Wafangdian Bearing Company Limited 2015 Midyear Report
Wafangdian Bearing Company Limited
2015 Midyear Report
2015-33
August 25, 2015
Wafangdian Bearing Company Limited 2015 Midyear Report Chapter I. Important Prompts, Table of Contents, and Definitions The Board of Directors, board of supervisors, directors, supervisors, and top management of the Company hereby guarantee that there are no false record, misleading statements and important omission of the material in this report, and assume the individual and associated responsibilities for the truth,accuracyand completenessofthe contents.
Allthe directors attended theBoard meeting anddiscussedthe report.
The Company plans not to distribute cash dividends or bonus shares or turn capital reserve into share capital.
Chairman Meng Wei , General Accountant Ms. Sun Najuan and accounting charger Ms. Yao Chunjuan declare: guaranteethe truthand completenessofthe financial reportinthe annualreport. The description of the future development in this report does not constitute a commitment for investors. Investors are requested to pay attention to the risks involved in your investment.
Wafangdian Bearing Company Limited 2015 Midyear Report Table of Contents
Chapter I. Important Prompts, Table of Contents, and Definitions.........1 Chapter II.Company Profile....................................................................................4 Chapter III.Financial Highlights............................................................................ 5 Chapter IV Directors Report...................................................................................9ChapterⅤ SignificantEvents.......................................................错误！未定义书签。
ChapterⅥ. Changes in Capital Stock andShareholders.....错误！未定义书签。
ChapterⅦ. Directors, Supervisors, Senior Management and Staff
错误！未定义书签。
ChapterⅧ. CorporateGovernance............................................错误！未定义书签。
ChapterⅨ. InternalControl...........................................................错误！未定义书签。
ChapterⅩ. Financial Report(Attachment)...............................错误！未定义书签。
Wafangdian Bearing Company Limited 2015 Midyear Report Glossary
||||
|-|-|-|
|Terms|Defined as|Description|
|Company,theCompany|Defined as|Wafangdian Bearing Company Limited|
|WazhouGroup|Defined as|WafangdianBearing GroupCompany|
|the reportperiod,the currentperiod,the currentyear|Defined as|January1,2015–June 30,2015|
|Liaozhou Co.,Ltd|Defined as|WazhouLiaoyang Bearing Manufacture Co.,Ltd|
|Dalian motor|Defined as|Dalianmotor Bearing Co.,Ltd|
|TheBoard ofDirectors|Defined as|Wafangdian Bearing Company LimitedTheBoardof Directors|
|TheSupervisory Committee|Defined as|Wafangdian Bearing Company LimitedTheSupervisoryCommittee|
|Wafangdian BearingCompany Limited|Defined as|Wafangdian Bearing Company LimitedTheShareholders’Meeting|
|Shen Jiao Suo|Defined as|ShenZhen StockExchange|
|SRC|Defined as|China SecuritiesRegulatory Commission|
|Dalian SKFWazhouCompanyLimited|Defined as|DalianSKF Wazhou|

Wafangdian Bearing Company Limited 2015 Midyear Report Chapter II.Company Profile
I. Company Information
|||||
|-|-|-|-|
|Abbreviatednameofthestock|WazhouB|Stockcode:|200706|
|ListinglocationoftheCompany’sstock:|ShenzhenStockExchange|||
|Chinese name of theCompany|瓦房店轴承股份有限公司|||
|Abbreviation ofChinese name|瓦轴股份公司|||
|English name of theCompany|WafangdianBearing Company Limited|||
|Abbreviation ofEnglish name|WBC|||
|Legal representativeof the Company|Wang Lushun|||
|Registered address|No. 1 Beigongji Street, Wafangdian City, Liaoning Province, China.|||
|P.C|116300|||
|office address|No. 1 Beigongji Street, Wafangdian City, Liaoning Province, China.|||
|office P.C|116300|||
|Website|http//www.zwz-200706.com|||
|E-mail|zwz2308＠126.com|||

II.Contacts
||||
|-|-|-|
||Secretaryof theBoard|Representative ofStockAffairs|
|Name|SunNajuan|Ke Xin|
|Correspondence address|No. 1 Beigongji Street,Wafangdian City, LiaoningProvince, China.|No. 1 Beigongji Street,Wafangdian City, LiaoningProvince, China.|
|Consulting telephone|0411-39116369|0411-39116732|
|Fax|0411-39116738|0411-39116738|
|E-mail|zwz2308＠126.com|zwz2308＠126.com|

III.Other information
i.The way to contact with compay
In the report period the Registered address ,P.C, office address,office P.C of the company
is no change.Detials can be seen in 2013 annual report.
ii.Place for information disclosure
In the report period the place for information disclosure is no change. is no change.Detials
Wafangdian Bearing Company Limited 2015 Midyear Report can be seen in 2013 annual report.
iii. Change of Business Registration
In the report period the Registration .date Registration place No. of Incorporation, Certificate No. of TaxationRegistration Organizationcodeis nochange. etials can be seen in 2013 annual report. iv.Other relevant information
In the report period other relevant information is no change.
Chapter III. Financial Highlights
I.Main accountingdata and indices
Are there any retrospective adjustments or restatement of financial information of previous year due to change ofaccountingpolicies or correctingofaccounting errors?
[]Yes[V]No
InRMBYuan
|||||
|-|-|-|-|
||currentperiod|previous period|+/-（％）comparing withthe previous period|
|Turnover(RMB)|1,168,093,679.34|1,641,013,208.71|-28.82%|
|Net profitattributable toshareholdersofthe listedcompany(Yuan)|-59,587,254.16|-17,449,186.08|241.49%|
|Netprofitattributableto theshareholders ofthelistedcompanyandafter deductingofnon-recurring gain/loss(RMB)|-65,404,823.42|-20,480,427.05|219.35%|
|NetCash flow generatedbybusinessoperation(RMB)|14,734,845.66|56,163,250.30|-73.76%|
|Basic earnings pershare(Yuan/share)|-0.15|-0.04|275.00%|
|Diluted earningspershare(Yuan/share)|-0.15|-0.04|275.00%|
|Netreturn onequity(%)|-4.41%|-1.17%|-3.24%|
||Endof 2015.06.30|Endof 2014.12.31|Changedover lastyear(%)|
|TotalAssets (RMB)|3,711,289,841.13|3,935,819,231.85|-5.70%|
|Owner’sEquityAttributed toShareholdersofListedCompany(RMB)|1,322,257,734.56|1,381,844,988.72|-4.31%|

II. Differencesinaccountinginformation underIAS anddomestic accountingstandard
1.Differencesinnetprofitandnet assetunderdomesticandinternationalaccountingstandards
InRMBYuan
Wafangdian Bearing Company Limited 2015 Midyear Report
||||||
|-|-|-|-|-|
||Netprofitattributableto theshareholders ofthe listedcompany||Netasset attributabletotheshareholdersofthe listed company||
||Currentterm|Amountoflastterm|Endof term|Beginningofterm|
|OnChineseAccountingStandard|-59,587,254.16|-17,449,186.08|1,322,257,734.56|1,381,844,988.72|
|Itemsandamounts adjustedon IAS|||||
|Under InternationalAccountingStandard|-59,587,254.16|-17,449,186.08|1,322,257,734.56|1,381,844,988.72|

2. Differencesinnet profit and net asset under domesticandoverseas accountingstandards
||||||
|-|-|-|-|-|
||Netprofitattributableto theshareholders ofthe listedcompany||Netasset attributabletotheshareholdersofthe listed company||
||Currentterm|Amountoflastterm|Endof term|Beginningofterm|
|OnChineseAccountingStandard|-59,587,254.16|-17,449,186.08|1,322,257,734.56|1,381,844,988.72|
|Accountsandamounts adjustedaccording to overseas accountingstandard|||||
|OnIAS|-59,587,254.16|-17,449,186.08|1,322,257,734.56|1,381,844,988.72|

 InRMBYuan 3. Statement on the differences of accounting information on IAS and domestic accounting standard
Nodifference
III. Non-recurring gain/lossitems andamounts
||||
|-|-|-|
|Items|Amount|Remarks|
|Gain/lossofnon-currentassets(includesthe neutralized partofthe assetimpairmentprovisiondrawnalready)|717,043.38||
|Gains and losses included inthe current periodofgovernmentsubsidies,excluding thosegovernmentgrantswhichare closely relatedto normalbusiness andin linewith national policy,or in accordance with fixed standardsor quantities|2,497,040.93||
|Debtrestructuring gainsandlosses|3,186,216.67||
|Other non-business incomeand expendituresotherthanthe above|19,933.10||
|Influencedamountofincometax|602,664.82||
|Total|5,817,569.26|--|

InRMBYuan For theCompany‘s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering their Securities to thePublic–Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the ExplanatoryAnnouncement No.1 on Information Disclosure for Companies Offering their Securities to thePublic–Non-recurring
Gains and Losses which have been defined as recurring gains and losses,it is necessary to explain the
reason.
□Applicable√Inapplicable
Wafangdian Bearing Company Limited 2015 Midyear Report Chapter IV Directors Report
I. Overview
At the end of June 30, company's total assets is 3.71129 billion Yuan, which decrease5.7% compared with the beginning of this year; Net assess attributing to shareholders of listed company 1.32226 billionYuan,decreased by4.31%compared with then beginningof thisyear; Operatingincome is 1.16809 billion Yuan, decrease by28.82% compared with the same period last year; Net profit of attributing toshareholdersofthe parentcompanyis minus59.59 millionYuan.
II.Analysis of Main Business
||||||
|-|-|-|-|-|
|Item|Reportperiod|Lastreport period|Changedby %YoY|Changereason|
|Main BusinessIncome|1,168,093,679.34|1,641,013,208.71|-28.82%||
|Main BusinessCost|1,068,509,261.57|1,490,487,024.71|-28.31%||
|SalesExpenses|98,588,255.39|118,732,526.35|-16.97%||
|ManagementExpenses|40,067,918.93|35,930,304.10|11.52%||
|FinancialExpenses|20,655,027.80|11,935,634.49|73.05%|Theinterestofcirculatingfundloanandlong-termloanincrease6.68millionYuancomparedwithlastpeirod,thenetamountofexchangeincrease1.79millionYuancomparedwithlastpeirod|
|TaxExpenses|264,036.88|||TheincometaxisfromSRBQ1|
|Spending on research anddevelopment of thebusinessincomeratio|55,000,000.00|60,000,000.00|-8.33%||
|NetCash Flows fromOperatingActivities|14,734,845.66|56,163,250.30|-73.76%|Mainlybeacasuethesaleisdecline,andthecustomerpaymentderease,whichleadthe NetCashFlowindeclinesharply|
|NetCash Flows fromInvestingActivities|-17,722,945.26|-32,108,788.92|-44.80%|Mainlybeacasuethepaymentforfixassetdeclineby79.7%.|
|NetCash Flows fromFinancingActivities|-58,164,206.80|21,065,196.30|-376.12%|Inordertodecreasefinancingcost,thecompanycutdowntheshortloanwithamountof 193millionYuancomparedwithbeginningofyear,whileincreseorderfinancingwithamountof152.58millionYuan comparedwithbeginningofyear,whichmaketheNetCashFlowsfromFinancingActivitiesdecreasealot.|
|NetIncreaseinCash andCashEquivalents|-60,933,606.57|46,283,411.30|-231.65%|Mainlybeacasuethe NetCashFlowsof OperatingActivitiesand FinancingActivitiesdecrease|

Theprofitstructure or sourcechangegreatly
□Applicable√Inapplicable
Pre-disclosure ofoperationplan
Wafangdian Bearing Company Limited 2015 Midyear Report□Applicable√Inapplicable
Review onthe progress ofprior disclosuredevelopment strategy andbusinessplanduring the reportingperiod
In2015,thedomesticmarketwasmorecompetitive,priceofproductwasfailing,profitmarginswas
becomingnarrowly.Theinternationalmarketcompetitionwastrendinghedomesticmarket,domesticcompetition internationalizationwasseriousdaybyday,salespriceofbearingproductcontinuedtoslide,Thesereasons constituteabiggerthreattoimproveoperationquality,causethecompanydidnotfinishbusinessplan.Butinthe secondquarter,thecompanyactivelytakevariousmeasures,throughcostreduction,etc.,effectivelyreversingin thefirstquarterof2015,inthesecondquarterlosssituationisundercontrol.
III. Mainbusiness composition
InRMBYuan
||||||||
|-|-|-|-|-|-|-|
||Operatingincome|Operating cost|BOI|+/-(%)ofoperatingincome|+/-(%)ofoperatingcost|+/-(%)of BOI|
|ByIndustries|||||||
|Export|193,792,609.52|186,314,923.98|3.86%|37.45%|38.10%|-0.45%|
|Civil|||||||
|Including:TrafficBearing|326,872,960.16|301,627,835.24|7.72%|-43.48%|-41.04%|-3.81%|
|SpecialBearing|242,612,118.62|220,750,339.75|9.01%|-22.34%|-26.41%|5.03%|
|CommonBearing|292,186,482.59|247,113,635.17|15.43%|-19.25%|-21.46%|2.38%|
|Industrialincome|11,753,733.85|14,722,141.27|-25.26%|-77.67%|-74.96%|-13.58%|
|OnProducts|||||||
|Bearing|1,055,464,170.89|955,806,734.14|9.44%|-24.26%|-24.21%|-0.06%|
|Industryoperation|11,753,733.85|14,722,141.27|-25.26%|-77.67%|-74.96%|-13.58%|
|Region|||||||
|Civil|873,425,295.22|784,213,951.43|10.21%|-33.08%|-33.82%|1.01%|
|Foreign|193,792,609.52|186,314,923.98|3.86%|37.45%|38.10%|-0.45%|

 IV.Core competence analyzing
Thecompany corecompetition ability isno change.
V.InvestmentAnalysis
1.External equityinvestment
None
2. Analysis of MainSubsidiaries andInvestment Companies
Unit:RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|CompanyNamWeafan|Typegdian Be|Industryaring C|MainProductorompany LimitService|RegisterededCapital|TotalAsset|NetAsset|OperatingReven2u0e15|OperatingMidPyreofaitr R|NetProfiteport|
|LiaoyangBearing|Subsidiary||ProductandSaleBearingandmachine-electricalequipment|19,350,000|134,199,982.83|-29,234,040.31|69,225,395.63|-7,202,301.67|-6,083,228.06|
|DalianElectricalEquipment|Subsidiary||ProductandSaleBearing|10,000,000|142,548,037.55|17,572,074.42|85,729,062.83|46,203.76|22,631.08|
|Wzhouprecisionsphericalrollerbearing(Wafangdian)Co.,Ltd.|Joint-stockCompany||ProductandSalesSphericalRollerBearing|194,000,000|251,322,850.00|226,056,372.94|61,528,573.10|1,090,178.01|898,007.33|

3. Important Non-raisedCapital’s Projects
Unit:0000’Yuan
|||||||
|-|-|-|-|-|-|
|Project|TotalPlanInvestment|Investmentinthereportperiod|Accumulatedinvestment|Progress|Earnings|
|ImportGrindingequipmentmodificationofrailwaywagonbearing|2,940|500|1,090|45.00%|Import international advancedGrindingequipmentproductionline,formahighlevelbigtruckaxlebearingbatchproductionability|
|ImportSuperfinishingmachineofrailwaywagonbearing|970|100|180|45.00%|Import international advancedSuperfinishingmachine,formahighlevelbigtruckaxlebearingbatchproductionability|
|Heattreatmentmachineofrailwaywagonbearing|860|150|480|45.00%|Import international advancedHeattreatmentmachine,formahighlevelbigtruckaxlebearingbatchproductionability|
|supportingprodcutionline,detectionmachine ofrailwaywagonbearing|2,500|300|920|45.00%|Import international advancedupportingprodcutionline,detectionmachine,formahighlevelbigtruckaxlebearingbatchproductionability|
|mportGrindingequipmentproductionlinefortopgradeautobearing|2,860|1,700|2,500|70.00%|Expendhigh-gradecarexportability,tohaveastableexprotmarket|
|supportingprodcutionline,detectionmachine fortopgradeautobearing|1,580|402|960|70.00%|Expendhigh-gradecarexportability,tohaveastableexprotmarket|
|Heattreatmentmachineandothersupportingprodcutionproject|2,380|540|1,200|55.00%|Toguaranteethedevelopmeetonprodcutqualityandefficiency|
|Total|14,061|9,201|6,150||--|

Wafangdian Bearing Company Limited 2015 Midyear Report VI. Forecastfor operation outstandingfrom 2014 January toSeptember
Inapplicable
VII. Explanation of the Board of Directions and Board of supervisor on the QualifiedAuditor’s Report Issued by the CPAs
Thefinancialreportisunaudited
VIII Explanation of the Board of Directions on the QualifiedAuditor’s last year Report Issued by the CPAs
Thefinancial reportis unaudited
IX. Dividend Distribution
Inapplicable
X.Reception of investigations,communications,or interviews in the report period
|||||||
|-|-|-|-|-|-|
|Time/date|Place|Way|Typeofvisitors|Visitors|Main contentinvolvedandmaterialprovided|
|March4,2015|Office|Telephonecommunication|Privateinvestor|Privateinvestor|The general informationofthe company|
|March18,2015|Office|Telephonecommunication|Privateinvestor|Privateinvestor|The general informationofthe company|
|April28,2015|Office|Telephonecommunication|Privateinvestor|Privateinvestor|The general informationofthe company|
|May19,2015|Office|Telephonecommunication|Privateinvestor|Privateinvestor|The general informationofthe company|

Wafangdian Bearing Company Limited 2015 Midyear ReportChapterⅤ Significant Events
I. Corporate Governance
Duringthe reportperiod,the Company had continuously observedCompany Law, Securities Law, and Guidelines ofCorporate Governancefor Listed Company and relevant regulationstoimprove and enhanceits corporate governance.
1.1 Theholding ofthe shareholders,board ofdirectors andboardofsupervisors, thevoting procedures andthe formationof the resolutionswere totally subjecttotheseregulations.
1.2 TheCompany hasmade itsinternal managementsystemsandregulations for restriction of
budgeting,purchasing,logisticsand sale,etc,andexecuted them strictly.
1.3 Thecompanyhas separated business,personnel,assets,interior organization andfinance from its holding shareholder:
(1) TheCompanyhad independentoperations itself,with its business separatedfrom itsholding shareholders;
(2)TheCompany was independentin termsofits personnel,laborand salarymanagement, andhadits own independentlabor andpersonnel managementsystems.(3)Theproduction system,auxiliary production system and supplementaryfacilities ofthe Company were independentfrom the controlling shareholder.
(4)TheCompany hasseparated the accountingfrom the controllingshareholder. TheCompanycarried outindependentfinance andaccounting onits own and paid taxesindependently.
(5)TheCompany hasestablishedthe organizations independenton the holdingshareholder
II. Main Lawsuits and Arbitration Affairs
□Applicable√Inapplicable
There were no importantlawsuitsand arbitrationaffairs.
III. Media query.
□Applicable√ Inapplicable
There was no mediaqueryin the reportperiod.
IV. Bankruptcy and Recombination
□Applicable√ Inapplicable
V. Asset business
√Applicable□Inapplicable
Salesof asset
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Thedealingparty|assets forsale|Saledate|Price（10thousandYuan）|TheassetsContrubutiontoprofit|Influencetocompany|Pricingprinciple|Whetherisrelatedtransactions|Theassetsrightistotallychangedornot|Thedebtistotallytransferdornot|Dateofdisclosure|Theindex|
|Buyer|Oldmachines|JanuarytoJune2015|148.9||Increase717thousandYuan|equitable|No|Yes|yes|||

VI.Implementation and Influence of Equity Incentives
□Applicable√ Inapplicable
Wafangdian Bearing Company Limited 2015 Midyear Report VII. Important ContractsandImplementation
1、Therelatetransactions relatedto the day-to-dayoperations.
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Relativeparties|Relationship|Relativetype|Content|Principleof price|RelativePrice|RelativeAmount(RMB’0000)|ThePercentageofaccountedforsimilardeals(%)|Approvalamount(RMB’0000)|Morethantheapprovedamountor not|TheWayOfAccount|Marketprice|DisclosureDate|DisclosureIndex|
|WazhouprecisionSteelBallCompany|Other Companiescontrolledby thesamecontrollingshareholders andthe ultimatecontrollingparty|MerchandiseProcurement|Components|JusticeandEquity|Marketprice|273|0.20%|677|no|CashPaymentor TheKnot||||
|||Salesofgoods|GoodsandMaterials|JusticeandEquity|Marketprice|44|0.04%|300|no|CashPaymentor TheKnot||||
|||ProvideService|Heattreatment|JusticeandEquity|Marketprice|78|0.07%|170|no|CashPaymentor TheKnot||||
|Wazhouprecisionforging Ltd.,|Other Companiescontrolledby thesamecontrollingshareholders andthe ultimatecontrollingparty|MerchandiseProcurement|Components|JusticeandEquity|Marketprice|9,488|7.06%|25,000|no|CashPaymentor TheKnot||||
|||Salesofgoods|GoodsandMaterials|JusticeandEquity|Marketprice|8,845|7.57%|32,000|no|CashPaymentor TheKnot||||
|DalianWazhouManufacturingEquipmentCo.,Ltd|Other Companiescontrolledby thesamecontrollingshareholders andthe ultimatecontrollingparty|MerchandiseProcurement|Production|JusticeandEquity|Marketprice|392|0.29%|2,000|no|CashPaymentor TheKnot||||
|||Salesofgoods|GoodsandMaterials|JusticeandEquity|Marketprice|76|0.07%|160|no|CashPaymentor TheKnot||||

Wafangdian Bearing Company Limited 2015 Midyear Report
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|WazhouGroupTurnplateBearing Ltd|Other Companiescontrolledby thesamecontrollingshareholders andthe ultimatecontrollingparty|MerchandiseProcurement|BearingProduct|JusticeandEquity|Marketprice|7,958|5.92%|4,000|Yes|CashPaymentor TheKnot|
|||Salesofgoods|Materials|JusticeandEquity|Marketprice|40|0.03%|80|no|CashPaymentor TheKnot|
|WazhouGroupprecisionTransmissionBearing Co.,Ltd|Other Companiescontrolledby thesamecontrollingshareholders andthe ultimatecontrollingparty|MerchandiseProcurement|BearingProduct|JusticeandEquity|Marketprice|3,794|2.82%|10,300|no|CashPaymentor TheKnot|
|||Salesofgoods|Materials|JusticeandEquity|Marketprice|820|0.70%|2,300|no|CashPaymentor TheKnot|
|||ProvideService|Heattreatment||Marketprice|58|0.05%|210|no|CashPaymentor TheKnot|
|WazhouGroupPrecisionspecialBearingCompanyLimited|Other Companiescontrolledby thesamecontrollingshareholders andthe ultimatecontrollingparty|Salesofgoods|GoodsandMaterials|JusticeandEquity|Marketprice|160|0.14%|450|no|CashPaymentor TheKnot|
|||ProvideService|Heattreatment|||17|0.01%|70|no|CashPaymentor TheKnot|
|DaLianWazhouFengyuanMachineCo.,Ltd|Other Related party|MerchandiseProcurement|BearingProduct|JusticeandEquity|Marketprice|4,380|3.26%|16,000|no|CashPaymentor TheKnot|
|DaLianWazhouJinZhou MachineCo.,Ltd|Other Related party|MerchandiseProcurement|BearingProduct|JusticeandEquity|Marketprice|5,543|4.13%|14,500|no|CashPaymentor TheKnot|
|||Salesof|Goods|Justice|Market|30|0.03%|30|no|Cash|

Wafangdian Bearing Company Limited 2015 Midyear Report
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||goods|andMaterials|andEquity|price|||||Paymentor TheKnot|
|||ProvideService|Heattreatment|JusticeandEquity|Marketprice|12|0.01%|50|no|CashPaymentor TheKnot|
|WafangdianTongdaBearingManufacturingCo.,Ltd|Other Related party|MerchandiseProcurement|BearingProduct|JusticeandEquity|Marketprice|1,888|1.41%|7,000|no|CashPaymentor TheKnot|
|||Salesofgoods|GoodsandMaterials|JusticeandEquity|Marketprice|25|0.02%||Yes|CashPaymentor TheKnot|
|||ProvideService|Heattreatment|JusticeandEquity|Marketprice|6|0.00%|50|no|CashPaymentor TheKnot|
|DaLian KOYOCo.,Ltd|Other Related party|MerchandiseProcurement|Goods|JusticeandEquity|Marketprice|2,040|1.52%|5,000|no|CashPaymentor TheKnot|
|Equipmenttechnicalengineering|Other Companiescontrolledby thesamecontrollingshareholders andthe ultimatecontrollingparty|MerchandiseProcurement|equipment|justiceandEquity|Marketprice|1,567|1.17%|4,500|no|CashPaymentor TheKnot|
|WazhouGroup|Thecontrollingshareholders andthe ultimatecontrollingparty|MerchandiseProcurement|product|justiceandEquity|Marketprice|2,950|2.20%|0|Yes|CashPaymentor TheKnot|
|||AcceptService|LeaseofHouses,|justiceandEquity|Marketprice|455|0.33%|1,900|no|CashPaymentor TheKnot|
||||machimes|justiceand|Marketprice|413|0.32%|950|no|CashPayment|

Wafangdian Bearing Company Limited 2015 Midyear Report
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||rent|Equity|||||||or TheKnot||
||||SecurityandFireService|justiceandEquity|Marketprice|165|0.12%|329|no||CashPaymentor TheKnot||
||||AnnouncementService|justiceandEquity|Marketprice|39|0.03%|80|no||CashPaymentor TheKnot||
||||TechnologyDevelopmentService|justiceandEquity|Marketprice|270|0.20%|0|Yes||CashPaymentor TheKnot||
||||Trademark|justiceandEquity|Marketprice|212|0.16%|900|no||CashPaymentor TheKnot||
|||Salesofgoods|GoodsandMaterials|JusticeandEquity|Marketprice|52|0.04%|130|no||CashPaymentor TheKnot||
|Wazhougroup(USA) bearingco.,LTD|Other Companiescontrolledby thesamecontrollingshareholders andthe ultimatecontrollingparty|Salesofgoods|BearingProduct|JusticeandEquity|Marketprice|8,439|7.22%|7,700|Yes||CashPaymentor TheKnot||
|Total||||--|--|60,529|--|136,836|--|--||--|

WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearalReportii、The related businesson assetpurchase and sales
iii. Major relatedbusinessonjointly investment
iv、Credit andDebt withrelevant parties
CreditandDebt from non-operation
□Applicable√ Inapplicable
V.Other important relatedbusiness
□Applicable√ Inapplicable
Vi.Important contract andimplement
VIII.Statementsof the Supervisory CommitteeandIndependent Directors(if applicable) on the“Non-standardAuditors’Report”issued bythe CPA.
□Applicable√ Inapplicable
IX. The implement of major contract and its performance
1. Deposit,contract andrent.
Thecontentofrentcanbefoundinparteleven“RelatedPartiesRelationshipandTransactions”sectionfive “Relatedrent”
X. Commitment made by sharehoder with over5% shares in the report or happen before but last to thereport
□Applicable√ Inapplicable
XI.Hiring, firing certified public accountants
□Applicable√ Inapplicable
XII. Punishment and rectification
□Applicable√ Inapplicable
XIII. Suspension and terminated listig after the annual report disclosure.
□Yes√No
XIV. Other important matters
□Yes√No
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearalReportChapterⅥ. Changes in Capital Stock and Shareholders
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before Changes||Changesin Shares|||||After Changes||
||Shares|Ratio|NewSharesIssued|BonusShares|Conversion ofReservestoShare|Others|Subtotal|Shares|Ratio|
|1.Non-tradableShares|244,000,000|60.61%||||||244,000,000|60.61%|
|a.Promoters’Shares|244,000,000|60.61%||||||244,000,000|60.61%|
|Including：State-owned share|244,000,000|60.61%||||||244,000,000|60.61%|
|2.Tradable shares|158,600,000|39.39%||||||158,600,000|39.39%|
|b.B shares|158,600,000|39.39%||||||158,600,000|39.39%|
|3.Total|402,600,000|100%||||||402,600,000|100%|

I. Changes in Capital Stock
Reason ofChanges ofShares
□Applicable√Inapplicable
Influence from the shareholding movements upon such financial indicators as earnings per share, net asset per
shareof the latestyear and the latestaccounting period
□Applicable√Inapplicable
II. Shareholders and Actual Controller
1. Number ofShareholders andShares
Unit:Share
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Totalnumber of shareholder atthe endof reportperiod|||7739||Totalnumber ofshareholder at theend ofreportperiod with preferredstock|||||0||
|Shareholders with 5% or aboveShares||||||||||||
|Name|Nature|Ratio（%）||Totalsharesheld||Increaseordecreaseinthereportperiod|Non-currentsharesheld|Currentsharesheld|Impawned or FrozenShares|||
||||||||||Status||Amount|
|WafangdianBearing GroupCorporation|State-ownedshareholder|60.61%||402,600,000|||244,000,000|||||
|AKTIEBOLAGETSKF|Foreignshareholder|19.70%||79,300,000||||79,300,000|Frozen||79,300,000|
|BOCISECURITIESLIMITED|Foreignshareholder|0.80%||3,120,000||||||||
|Huang Junyue|Domesticshareholder|0.80%||3,060,000||||||||
|JinYunhua|Domestic|0.40%||1,674,140||||||||

WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearalReport
||||||||
|-|-|-|-|-|-|-|
||shareholder||||||
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED|Foreignshareholder|0.30%||1,255,949|||
|HuXiaofeng|Domesticshareholder|0.30%||1,187,877|||
|KGIASIALIMITED|Foreignshareholder|0.20%||878,710|||
|MAN,KWAIWING文贵荣|Foreignprivateshareholde|0.20%||713,101|||
|YangYufei|Domesticshareholder|0.10%||502,278|||
|Explanation forthe AffiliatedRelationsor United Actionofthe TopTenShareholders||In the report period, the frozen period of the shares purchased by thecompany’s strategic investorAKTIEBOLAGET SKF expired in 1999, and has notdealtwith the releasing-procedurein this reportperiod.|||||
|Notes to relationship or“action in concert”among thetop ten shareholders.|||||||
|TopTenTradable Shareholders|||||||
|Name|||Currentshares held atendof year (Note 4)||Category of Shares||
||||||Categories|Amount|
|AKTIEBOLAGETSKF|||79,300,000||B|79,300,000|
|BOCISECURITIES LIMITED|||3,120,000||B|3,120,000|
|Huang Junyue|||3,060,000||B|3,060,000|
|JinYunhua|||1,674,140||B|1,674,140|
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED|||1,255,949||B|1,255,949|
|HuXiaofeng|||1,187,877||B|1,187,877|
|KGIASIALIMITED|||878,710||B|878,710|
|MAN,KWAIWING文贵荣|||713,101||B|713,101|
|YangYufei|||502,278||B|502,278|
|MaYuancheng|||480,000||B|480,000|
|Explanation forthe AffiliatedRelationsorUnited Actionofthe TopTenShareholders andthe TopTenTradableShareholders|||Therewas no relationship and consistentactivities between the firstbigshareholder andother shareholdersor the top ten commonstockholders;Therelationshipamongothershareholders,toptencirculationshareholders,top tencirculation shareholders andother shareholderswas notclear.||||

iii Change of ControllingShareholder ActualControllerinthe Report Period
□Applicable√ Inapplicable
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearalReportChapterⅦ. Relevant information about preferred stock
ChapterⅧ. Directors, Supervisors, Senior Management and Staff I. Shares holding change in Directors, Supervisors, Senior Management
Inapplicable
II. Changes of Directors, Supervisors and Senior Management
||||||
|-|-|-|-|-|
|Name|Position|Type|Date|Reason|
|TanJianguang|supervisor|Appointanddismiss|January5,2015|Positionchange|
|TanJianguang|Deputymanager|Engage|January5,2015||
|ZhuJiming|Director|Resignation|June12,2015|Workreason|
|SunYongsheng|supervisor|Engage|June18,2015||
|LiuYuping|Independentdirector|Resignation|June18,2015||
|SunGuangguo|Independentdirector|Resignation|June18,2015||
|WanShouyi|Independentdirector|Engage|June18,2015||
|WenBo|Independentdirector|Engage|June18,2015||

Chapter VIII. Financial Report
I. Audit Report
Thefinancial reportis unaudited
II. Financial Statement
1. Consolidated Balance Sheet.
Unit: RMBYuan
||||
|-|-|-|
|Item|ClosingBalance|OpeningBalance|
|Current assets ：|||
|Monetaryfund|122,884,207.45|180,569,164.66|
|Financialassets held-for-trading|||
|Billsreceivable|148,751,133.19|188,117,975.71|
|Accountreceivable|1,043,421,699.08|1,098,566,178.20|
|Accountpaid inadvance|39,067,599.72|44,031,201.66|
|Interestreceivable|||
|Dividend reciivable||240,000.00|
|Otherreceivables|27,139,296.12|19,211,927.22|
|Inventory|1,114,216,661.49|1,166,347,866.35|
|Non-currentassets duewithin1year|||
|Othercurrentassets|17,479,640.62|24,534,185.32|
|Totalcurrent assets|2,512,960,237.67|2,721,618,499.12|
|Non-current assets|||
|Financialassets available-for-sale|2,000,000.00|2,000,000.00|

WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearalReport
||||
|-|-|-|
|Investmentsheld-to-maturity|||
|Long-termreceivable|||
|Long-termequity investment|||
|Investmentproperty|||
|Fixedassets|658,519,157.61|695,819,839.43|
|Constructioninprogress|387,382,617.78|363,404,435.51|
|Constructionmaterials|||
|Fixedassets disposal|||
|Biologicalassets|||
|Gasand petrolassets|||
|Intangibleassets|137,884,955.59|140,355,336.13|
|Developmentexpenditure|||
|Goodwill|||
|Long-termprepaid expense|689,605.21|767,854.39|
|Deferredtax assets|11,853,267.27|11,853,267.27|
|Othernon-currentassets|||
|Totalnon-current assets|1,198,329,603.46|1,214,200,732.73|
|Totalassets|3,711,289,841.13|3,935,819,231.85|
|Current liabilities|||
|Short-termloan|305,000,000.00|498,000,000.00|
|Note payable|204,389,337.00|206,867,023.86|
|Accounts payable|1,445,389,642.00|1,388,424,650.70|
|Accounts receivedinadvance|41,513,167.08|48,558,339.92|
|Commissioncharge payable|||
|Accrued payroll|18,932,447.87|20,275,364.44|
|Taxpayable|4,944,060.75|3,676,987.88|
|Interestpayable|10,899,993.00|5,942,500.00|
|Dividends payable|||
|Other payables|161,496,832.28|183,285,758.81|
|Non-current liabilities due within Iyear|90,000,000.00|90,000,000.00|
|Other currentliabilities|4,411,103.83|4,761,103.83|
|Totalcurrent liabilities|2,286,976,583.81|2,449,791,729.44|
|Non-current liabilities|||
|Long-term loan|50,000,000.00|50,000,000.00|
|Debenture payable|||
|Long-termpayables|1,597,305.72|1,597,305.72|
|Special payables|321,698.98|321,698.98|
|Contingent liabilities|||
|Deferredincom|48,995,522.71|51,122,513.64|
|Deferredtax liabilities|1,140,995.35|1,140,995.35|
|Other non-currentliabilities|||
|Totalnon-current liabilities|102,055,522.76|104,182,513.69|
|Totalliabilities|2,389,032,106.57|2,553,974,243.13|
|Owner’sequity(shareholders’equity)|||
|Capital stock|402,600,000.00|402,600,000.00|
|Capital publicreserves|485,691,050.47|485,691,050.47|
|Less:treasury share|||
|Surplus reserve|131,442,909.11|131,442,909.11|
|Undistributed profit|302,523,774.98|362,111,029.14|
|Differenceof foreigncurrencytranslation|1,322,257,734.56|1,381,844,988.72|
|Equityattributableto parentcompany|||
|Minorityinterest|||
|Totalowner’sequity|1,322,257,734.56|1,381,844,988.72|
|Totalowner’sequity andliabilities|3,711,289,841.13|3,935,819,231.85|

Chairman: MengWei GeneralAccountant:Sun Najuan Accounting charger:YaoChunjuan
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearalReport 2. Balance Sheet of Parent Company
Unit: RMBYuan
||||
|-|-|-|
|Item|OpeningBalance|ClosingBalance|
|Current assets ：|||
|Monetaryfund|117,538,850.04|172,688,792.14|
|Financialassets held-for-trading|||
|Billsreceivable|140,994,902.72|181,824,053.86|
|Accountreceivable|1,030,348,276.98|1,106,322,532.09|
|Accountpaid inadvance|32,571,170.89|40,549,347.10|
|Interestreceivable|||
|Dividend receivable||240,000.00|
|Otherreceivables|24,498,834.63|15,661,424.30|
|Inventory|1,033,436,814.74|1,079,876,029.63|
|Non-currentassets duewithin1year|||
|Othercurrentassets|10,741,876.40|15,143,422.57|
|Totalcurrent assets|2,390,130,726.40|2,612,305,601.69|
|Non-current assets|||
|Financialassets available-for-sale|2,000,000.00|2,000,000.00|
|Investmentsheld-to-maturity|||
|Long-termreceivable|||
|Long-termequity investment|211,583,897.67|211,583,897.67|
|Investmentproperty|||
|Fixedassets|534,533,043.15|565,949,871.82|
|Constructioninprogress|266,490,300.31|243,881,508.42|
|Constructionmaterials|||
|Fixedassets disposal|||
|Biologicalassets|117,219,115.70|119,333,165.54|
|Gasand petrolassets|||
|Intangibleassets|||
|Developmentexpenditure|||
|Goodwill|||
|Long-termprepaid expense|689,605.21|767,854.39|
|Deferredtax assets|10,580,100.02|10,580,100.02|
|Othernon-currentassets|||
|Totalnon-current assets|1,143,096,062.06|1,154,096,397.86|
|Totalassets|3,533,226,788.46|3,766,401,999.55|
|Current liabilities|||
|Short-termloan|305,000,000.00|498,000,000.00|
|Note payable|203,089,337.00|206,867,023.86|
|Accounts payable|1,335,636,508.49|1,296,111,095.77|
|Accounts receivedinadvance|40,100,969.49|48,868,818.23|
|Commissioncharge payable|||
|Accrued payroll|11,054,166.47|12,247,600.92|
|Taxpayable|2,598,055.67|1,092,872.50|
|Interestpayable|10,899,993.00|5,942,500.00|
|Dividends payable|||
|Other payables|114,870,403.74|135,496,360.01|
|Non-current liabilities due within Iyear|90,000,000.00|90,000,000.00|
|Other currentliabilities|4,313,555.83|4,313,555.83|
|Totalcurrent liabilities|2,117,562,989.69|2,298,939,827.12|
|Non-current liabilities|||
|Long-term loan|50,000,000.00|50,000,000.00|
|Debenture payable|||
|Long-termpayables|||
|Special payables|321,698.98|321,698.98|
|Contingent liabilities|||
|Deferredincome|44,508,314.71|46,635,305.64|

WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearalReport
||||
|-|-|-|
|Deferredtax liabilities|||
|Other non-currentliabilities|||
|Totalnon-current liabilities|94,830,013.69|96,957,004.62|
|Totalliabilities|2,212,393,003.38|2,395,896,831.74|
|Owner’sequity(shareholders’equity)|||
|Capital stock|402,600,000.00|402,600,000.00|
|Capital publicreserves|485,678,443.26|485,678,443.26|
|Less:treasury share|||
|Surplus reserve|131,442,909.11|131,442,909.11|
|Undistributed profit|301,112,432.71|350,783,815.44|
|Differenceof foreigncurrencytranslation|||
|Equityattributableto parentcompany|||
|Minorityinterest|||
|Totalowner’sequity|1,320,833,785.08|1,370,505,167.81|
|Totalowner’sequity andliabilities|3,533,226,788.46|3,766,401,999.55|

 3. Consolidated Income Sheet.
Unit: RMBYuan
||||
|-|-|-|
|Item|Account forthe currentperiod|Accountfor the prior period|
|1.Totaloperatingincome|1,168,093,679.34|1,641,013,208.71|
|Including:Operatingrevenue|1,168,093,679.34|1,641,013,208.71|
|Interestincome|||
|Handling chargeand commission income|||
|2.Totaloperatingcost|1,233,837,130.70|1,664,289,776.23|
|Including:Operatingcost|1,068,509,261.57|1,490,487,024.71|
|Interestexpenses|||
|Handling chargeand commission income|||
|Tax&surchargesfor mainoperations|6,001,203.40|6,171,354.22|
|Sellingexpenses|98,588,255.39|118,732,526.35|
|Administrative expense|40,067,918.93|35,930,304.10|
|Financialexpense|20,655,027.80|11,935,634.49|
|Lossofimpairmentofassets|15,463.61|1,032,932.36|
|Add: Gains of change of fair value of assets(losswith"-")|||
|Investmentincome(losswith "-")||2,261,215.59|
|Including:Incomeforminvestment onassociatedenterprise andjointly enterprise|0.00|2,261,215.59|
|3.Operatingprofit (loss with"-")|-65,743,451.36|-21,015,351.93|
|Add:Non-operating revenue|6,894,300.08|4,368,539.55|
|Less:Non-operating cost|957,589.72|27,802.77|
|Including:loss ondisposalof non-currentassets|474,066.00|802,373.70|
|4.Totalprofit(loss with"-")|240,546.34||
|Less:Incometaxexpenses|-59,323,217.28|-17,449,186.08|
|5.Net profit(Loss with"-")|264,036.88||
|Net profit attributable to shareholders of parentcompany|-59,587,254.16|-17,449,186.08|
|Minorityinterests|||
|6.Other comprehensive returns|||
|7.Totalcomprehensivereturns|-59,587,254.16|-17,449,186.08|
|Totalcomprehensive returnsavailable forparentcompany|-59,587,254.16|-17,449,186.08|
|Totalcomprehensive returnsavailable forminorityshareholders|||
|6.Earnings per share|||
|(1) Basicearnings per share|-0.15|-0.04|
|(2) Diluted earningsper share|-0.15|-0.04|

Chairman: MengWei GeneralAccountant:Sun Najuan Accounting charger:YaoChunjuan
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearalReport 4. Income Sheet of Parent Company.
Unit: RMBYuan
||||
|-|-|-|
|Item|Accountfor thecurrentperiod|Accountforthe prior period|
|1.Totaloperatingincome|1,207,722,167.59|1,643,461,366.28|
|Less:Operatingcost|1,113,365,931.88|1,494,654,881.09|
|Tax& surcharges formain operations|5,301,076.02|5,418,432.45|
|Sellingexpenses|98,046,463.76|118,078,966.63|
|Administrativeexpense|25,937,146.39|26,247,250.39|
|Financialexpense|20,948,319.00|12,175,479.92|
|Lossof impairmentofassets|15,463.61|1,032,932.36|
|Add: Gains of change of fair value of assets(losswith"-")|||
|Investmentincome(losswith "-")||2,261,215.59|
|Including:Incomeforminvestment onassociatedenterprise and jointly enterprise||2,261,215.59|
|2.Operatingprofit (losswith"-")|-55,892,233.07|-11,885,360.97|
|Add:Non-operating revenue|6,560,907.95|2,058,659.28|
|Less:Non-operating cost|340,057.61|794,929.94|
|Including:losson disposalof non-currentassets|||
|3.Totalprofit(losswith"-")|-49,671,382.73|-10,621,631.63|
|Less:Incometax expenses|||
|4.Net profit(Losswith"-")|-49,671,382.73|-10,621,631.63|
|Net profit attributable to shareholders of parentcompany|-49,671,382.73|-10,621,631.63|
|Minorityinterests|||
|5.Othercomprehensive returns|||
|6.Totalcomprehensive returns|-49,671,382.73|-10,621,631.63|
|Totalcomprehensive returns available for parentcompany|||
|Totalcomprehensive returns available forminorityshareholders|||
|7.Earningsper share|||
|(1) Basicearnings per share|-0.12|-0.03|
|(2) Diluted earningsper share|-0.12|-0.03|

 5. Consolidated Cash Flow Statement.
Unit: RMByuan
||||
|-|-|-|
|Item|Account forthe currentperiod|Account forthe prior period|
|1.Cash fromoperatingactivities|||
|Cash received from sale of goods or Provideingof services|602,752,635.37|699,010,861.57|
|Refund oftaxes and fares||129.17|
|Other cash received relating to operatingactivities|1,986,184.06|6,856,715.72|
|Sub-total ofcash inflows|604,738,819.43|705,867,706.46|
|Cash paidfor goods and services|331,602,614.87|346,912,442.67|
|Cash paidto or on behalfof theemployees|170,346,950.86|171,292,291.78|
|Taxpayments|25,216,808.36|42,258,628.44|
|Other cash paidrelatingto operatingactivities|62,837,599.68|89,241,093.27|
|Sub-total ofcash outflows|590,003,973.77|649,704,456.16|
|Net cash flowsfrom operatingactivities|14,734,845.66|56,163,250.30|

WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearalReport
||||
|-|-|-|
|2.Cashflows frominvesting activities|||
|Cash received fromreturn ofinvestment||240,000.00|
|Cash received frominvestmentincomes|18,000.00||
|Net cash received from disposal of fixed assets,intangible assetsand otherlong-term assets|||
|Proceeds from sale of subsidiaries and otheroperating units|||
|Other cash received relating to investingactivities|||
|Sub-total ofcash inflows|18,000.00|240,000.00|
|Cash paid to acquire fixed assets, intangibleassets and other long-term assets|6,490,945.26|32,348,788.92|
|Cash paidto acquireinvestment|11,250,000.00||
|Net cashusedin acquiringsubsidiaries andotheroperating units|||
|Other cash paidrelatingto investingactivities|||
|Sub-total ofcash outflows|17,740,945.26|32,348,788.92|
|Net cash flowsfrom investment activities|-17,722,945.26|-32,108,788.92|
|3.Cashflows fromfinancingactivities|||
|Cash received fromabsorbing investment|||
|Including: Cash received from increase inminority interest|||
|Proceeds fromborrowings|447,579,700.00|338,000,000.00|
|Other proceeds relating tofinancing activities|||
|Sub-total ofcash inflows|447,579,700.00|338,000,000.00|
|Repaymentofborrowings|488,000,000.00|299,322,611.11|
|Distribution of dividends or profits & interestexpenses|17,743,906.80|17,612,192.59|
|Including: dividends or profit paid to minorityinterest|||
|Cash paidfor other financingactivities|||
|Sub-total ofcash outflows|505,743,906.80|316,934,803.70|
|Net cash flowsfrom financingactivities|-58,164,206.80|21,065,196.30|
|4. Effects of foreign exchange rate changesoncash|218,699.83|1,163,753.62|
|5.Net increases incash andcash equivalents|-60,933,606.57|46,283,411.30|
|Add: cash and cash equivalent, at the beginningof year|143,399,164.66|60,616,759.13|
|6.Cash and cash equivalent at the end of theyear|82,465,558.09|106,900,170.43|

6. Cash Flow Statement Of Parent Company.
Unit: RMByuan
||||
|-|-|-|
|Item|Account for the currentperiod|Account forthe prior period|
|1.Cash fromoperatingactivities|||
|Cash received from sale of goods or Providing ofservices|599,345,378.91|701,385,036.16|
|Refund oftaxes and fares||129.17|
|Other cash received relating tooperatingactivities|1,583,863.47|4,955,678.49|
|Sub-total ofcash inflows|600,929,242.38|706,340,843.82|
|Cash paidfor goods and services|374,127,409.24|385,265,879.81|
|Cash paidto or on behalfof theemployees|139,776,818.16|147,731,859.49|
|Taxpayments|18,316,626.33|34,630,453.11|
|Other cash paidrelatingto operatingactivities|55,546,990.88|81,176,929.37|

WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearalReport
||||
|-|-|-|
|Sub-total ofcash outflows|587,767,844.61|648,805,121.78|
|Net cash flowsfrom operatingactivities|13,161,397.77|57,535,722.04|
|2.Cashflows frominvesting activities|||
|Cash received fromreturn ofinvestment||240,000.00|
|Cash received frominvestmentincomes|||
|Net cash received from disposal of fixed assets,intangible assetsand otherlong-term assets|||
|Proceeds from sale of subsidiaries and otheroperating units|||
|Other cash received relating toinvesting activities|||
|Sub-total ofcash inflows||240,000.00|
|Cash paid to acquire fixed assets, intangible assetsandother long-term assets|5,168,003.59|32,228,548.92|
|Cash paidto acquireinvestment|11,250,000.00||
|Net cash used in acquiring subsidiaries and otheroperating units|||
|Other cash paidrelatingto investingactivities|||
|Sub-total ofcash outflows|16,418,003.59|32,228,548.92|
|Net cash flowsfrom investment activities|-16,418,003.59|-31,988,548.92|
|3.Cashflows fromfinancingactivities|||
|Cash received fromabsorbing investment|||
|Including: Cash received from increase in minorityinterest|||
|Proceeds fromborrowings|447,579,700.00|338,000,000.00|
|Other proceeds relating tofinancing activities|||
|Sub-total ofcash inflows|447,579,700.00|338,000,000.00|
|Repaymentofborrowings|488,000,000.00|299,322,611.11|
|Distribution of dividends or profits & interestexpenses|17,741,736.11|17,553,224.13|
|Including:dividendsor profitpaidtominorityinterest|||
|Cash paidfor other financingactivities|||
|Sub-total ofcash outflows|505,741,736.11|316,875,835.24|
|Net cash flowsfrom financingactivities|-58,162,036.11|21,124,164.76|
|4. Effects of foreign exchange rate changes oncash|218,699.83|1,163,753.62|
|5.Net increases incash andcash equivalents|-61,199,942.10|47,835,091.50|
|Add: cash and cash equivalent, at the beginning ofyear|135,518,792.14|56,478,876.74|
|6.Cash and cash equivalent at the end of theyear|74,318,850.04|104,313,968.24|

WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport 7. Consolidated Sheet Of Changes InShareholder’s Equity
Unit: RMBYuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item|Amount incurrentperiod|||||||||
||Owner’sequityattributable toparentcompany|||||||Minorityshareholders’equity|Owner’sequity|
||Capitalstock|Capital publicreserves|less：treasurestock|Surpluspublicreserves|Generalprovisionforrisk|Undistributedprofits|Others|||
|1.Balanceattheendoflastyear|402,600,000.00|485,691,050.47||131,442,909.11||362,111,029.14|||1,381,844,988.72|
|Add: changes inaccounting policies||||||||||
|Changes in previouserrors||||||||||
|Others||||||||||
|2.Balance at the beginningofthis year|402,600,000.00|485,691,050.47||131,442,909.11||362,111,029.14|||1,381,844,988.72|
|3.The changes in this year（decreasewith“-”）||||||-59,587,254.16|||-59,587,254.16|
|(1) Net profits||||||-59,587,254.16|||-59,587,254.16|
|(2) Other comprehensivereturns||||||||||
|Total(1) and (2)||||||||||
|(3) The assets invested orreturnedby the owners||||||||||
|1) capital invested byowners||||||||||
|2)The amount of sharepayment recorded owner’sequity||||||||||
|3) others||||||||||
|(4）Profits distribution||||||||||
|1)Provision for surpluspublic reserves||||||||||
|2)provision for generalrisks||||||||||
|3)distribution forowner(shareholders)||||||||||

WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport
|||||||
|-|-|-|-|-|-|
|4)others||||||
|(5）interior transference ofowner’sequity||||||
|1)capital (capitalstock)transferred by thecapitalpublic reserves||||||
|2)capital (capitalstock)transferred by thesurpluspublic reserves||||||
|3)loss offset by the surpluspublic reserves||||||
|4)others||||||
|4. Balance at the end ofthe currentperiod|402,600,000.00|485,691,050.47|131,442,909.11|302,523,774.98|1,322,257,734.56|

Unit:RMB yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item|Amount inprevious period|||||||||
||Owner’sequity attributableto parentcompany|||||||Minorityshareholders’equity|Owner’sequity|
||Capitalstock|Capital publicreserves|less：treasurestock|Surplus publicreserves|Generalprovisionforrisk|Undistributedprofits|Others|||
|1.Balance at the end oflastyear|402,600,000.00|488,805,548.36||131,442,909.11||482,117,978.03|||1,504,966,435.50|
|Add: changes inaccounting policies||||||||||
|Changes in previouserrors||||||||||
|Others||||||||||
|2.Balance at thebeginning ofthis year|402,600,000.00|488,805,548.36||131,442,909.11||482,117,978.03|||1,504,966,435.50|
|3. The changes in thisyear（decreasewith“-”）||-3,114,497.89||||-120,006,948.89|||-123,121,446.78|
|(1) Netprofits||-3,114,497.89||||-103,902,948.89|||-107,017,446.78|
|(2) Other comprehensivereturns||||||||||
|Total(1) and (2)||||||||||
|(3) The assets invested orreturnedby the owners||||||||||

WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport
|||||||
|-|-|-|-|-|-|
|1) capital invested byowners||||||
|2)The amount of sharepayment recordedowner’sequity||||||
|3) others||||||
|(4）Profits distribution||||-16,104,000.00|-16,104,000.00|
|1)Provision for surpluspublic reserves||||||
|2)provision for generalrisks||||||
|3)distribution forowner(shareholders)||||-16,104,000.00|-16,104,000.00|
|4)others||||||
|(5）interiortransferenceofowner’sequity||||||
|1)capital (capitalstock)transferred by thecapitalpublic reserves||||||
|2)capital (capitalstock)transferred by thesurplus public reserves||||||
|3)loss offset by thesurplus public reserves||||||
|4)others||||||
|4. Balance at the end ofthe currentperiod|402,600,000.00|485,691,050.47|131,442,909.11|362,111,029.14|1,381,844,988.72|

8. Sheet Of Changes InShareholder’s Equity Of Parent Compamy.
Unit: RMB yuan
|||||||||
|-|-|-|-|-|-|-|-|
|Item|Amount incurrentperiod|||||||
||Owner’sequity attributableto parentcompany||||||Owner’sequity|
||Capital stock|Capital publicreserves|less：treasurestock|Surplus publicreserves|Generalprovisionforrisk|Undistributedprofits||
|1.Balance at the end oflastyear|402,600,000.00|485,678,443.26||131,442,909.11||350,783,815.44|1,370,505,167.81|
|Add: changes inaccounting policies||||||||

WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport
|||||||
|-|-|-|-|-|-|
|Changes in previouserrors||||||
|Others||||||
|2.Balance at thebeginning ofthisyear|402,600,000.00|485,678,443.26|131,442,909.11|350,783,815.44|1,370,505,167.81|
|3. The changes in thisyear（decreasewith“-”）||||-49,671,382.73|-49,671,382.73|
|(1) Net profits||||-49,671,382.73|-49,671,382.73|
|(2) Othercomprehensive returns||||||
|Total(1) and(2)||||||
|(3) The assets investedor returned by theowners||||||
|1) capital invested byowners||||||
|2)The amount ofshare paymentrecordedowner’sequity||||||
|3) others||||||
|(4）Profits distribution||||||
|1)Provision for surpluspublic reserves||||||
|2)provision for generalrisks||||||
|3)distribution forowner(shareholders)||||||
|4)others||||||
|(5）interior transferenceofowner’sequity||||||
|1)capital (capitalstock)transferred by thecapitalpublic reserves||||||
|2)capital (capitalstock)transferred by thesurpluspublic reserves||||||
|3)loss offset by thesurpluspublic reserves||||||

WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport
|||||||
|-|-|-|-|-|-|
|4)others||||||
|4. Balance at the end ofthe current period|402,600,000.00|485,678,443.26|131,442,909.11|301,112,432.71|1,320,833,785.08|

Unit: RMB yuan
|||||||||
|-|-|-|-|-|-|-|-|
|Item|Amountin lastperiod|||||||
||Owner’sequity attributableto parentcompany||||||Owner’sequity|
||Capital stock|Capitalpublicreserves|less：treasurestock|Surplus publicreserves|Generalprovisionforrisk|Undistributedprofits||
|1.Balance at the end oflastyear|402,600,000.00|485,678,443.26||131,442,909.11||542,374,627.44|1,562,095,979.81|
|Add: changes inaccountingpolicies||||||||
|Changes in previouserrors||||||||
|Others||||||||
|2.Balance at thebeginning ofthisyear|402,600,000.00|485,678,443.26||131,442,909.11||542,374,627.44|1,562,095,979.81|
|3. The changes in thisyear（decrease with“-”）||||||-191,590,812.00|-191,590,812.00|
|(1) Net profits||||||-175,486,812.00|-175,486,812.00|
|(2)Othercomprehensivereturns||||||||
|Total(1) and(2)||||||||
|(3) The assets investedor returned by theowners||||||||
|1) capital invested byowners||||||||
|2)The amount ofshare paymentrecordedowner’sequity||||||||
|3) others||||||||
|(4）Profitsdistribution||||||-16,104,000.00|-16,104,000.00|
|1)Provision for surpluspublic reserves||||||||

WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport
|||||||
|-|-|-|-|-|-|
|2)provision for generalrisks||||||
|3)distribution forowner(shareholders)||||-16,104,000.00|-16,104,000.00|
|4)others||||||
|(5）interior transferenceofowner’sequity||||||
|1)capital (capitalstock)transferred by thecapitalpublic reserves||||||
|2)capital (capitalstock)transferred by thesurpluspublic reserves||||||
|3)loss offset by thesurpluspublic reserves||||||
|4)others||||||
|4. Balance at the end ofthe currentperiod|402,600,000.00|485,678,443.26|131,442,909.11|350,783,815.44|1,370,505,167.81|

WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport III.Generalinformation
Wafangdian Bearing Company Limited (the “Company”) is a joint stock limited company established in thePeople’s Republic of China (the “PRC”) on 16 July 1997. In the opinion of the directors, its parent andultimate holding company is Wafangdian Bearing GroupCompany Limited (“Wazhou Group”).TheCompany’sB shares havebeen listedon the Shenzhen StockExchangesince 29Feburary 1997. Theaddressesoftheregisteredofficeandprincipalplaceofbusiness oftheCompany areNo.1,Phrase 1, GongjiStreet,WafangdianNorth, LiaoningProvince,andthe PRC.
The Company is principally engaged in the manufacturing and sale of bearing products, engineering equipment, automobile spareparts andrelatingproducts.
TheCompany together with itssubsidiaries iscollectively referredtoas the “Group”.
IV. Basisfor the preparation of financialstatements
1Basis for the preparationof financialstatements
The Group prepares the financial statements on the basis of going concern and actual transactions and events, and in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance of thePeople’s Republic of China, and based on the accounting policies and estimates in the note 4‘Significant accounting policies, accounting estimates and method for preparationofconsolidatedfinancialstatements’.
v. Significant accounting policies, accounting estimates and method for preparation of consolidatedfinancialstatements
1Complying withAccountingStandard for BusinessEnterprise
The financial statements are prepared by the Group according to the requirements of Accounting Standard for Business Enterprise, and reflectthe relative information for the financial position, operating performance,cashflow ofthe Grouptruly and fully.
2Accounting period
TheGroup adopts the Gregorian calendar year as accountingperiod,i.e.fromJan 1toDec 31. 3.Operating cycle
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport Normal operating cycle refers to the duration from purchasing the assets for manufactuing up to cash or cash equivelant realisation. The group sets twelve months for one operating cycle and as the liquidity criterion forassetsandliability.
4Funcitonalcurrency
TheGroup adopts RMB asfunctional currency.
5Recordingbasisandpricingprinciple
The accrual basis shall be adopted for accounting treatment to follow the historical cost method, except thatthe financial assets held fortrading andsale are measuredat fair value.
6Business combination
Business combination refers to transaction or event bringing together two or more separate enterprises into one reporting entity. The Group should recognize the acquired assets and liabilities at the combining date or acquisition date. The combining date or acquisition date is the date when the Group acquired actually acquiree andcombined party.
The assets and liabilities that the combining party obtains in a business combination under the same control should be measured on the basis of their carrying amount in the combined party on the combining date. As for the balance between the carrying amount of the net assets obtained by the combining party and the carrying amount of the consideration paid by it, the capital surplus shall be adjusted. Ifthecapital surplusis notsufficient to beoffset,the retainedearnings shall beadjusted. For a business combination not under same control, the combination cost shall be the fair value, on the acquisition date, of the assets paid, the liabilities incurred or assumed and equity securities issued by the acquirer in exchange for the control of the acquiree. The difference when combination cost exceeds the fair value of identifiable net assets of acquiree should be recognized as goodwill. If the combination cost is less than the he fair value of identifiable net assets of acquiree, the difference should be recognized ascurrentprofitor loss.
7Methodof preparation of consolidatedfinancialstatements
(1) Recognitionprincipleofscope ofconsolidation
Scope of consolidated financial statements should include all subsidiaries of the parent and the special purpose entities.
(2) Accountingmethodofconsolidated financialstatements
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport TheGroup’s consolidated financial statements had been prepared in accordance with<Accounting Standard for Business Enterprise No.33– Consolidated FinancialStatements> and related regulations. All material intragroup transaction and balance had been eliminated in full. The parts ofsubsidiaries’ equity non-attributable to parent company shall be as minority interest presented in the in the consolidated balancesheetwithinequity.
Where there are inconsistent accounting policiesor accounting period,when preparing the consolidated financial statements,theGroup shalladjustthesubsidiaries’financial statementsin accordance with theGroup’saccountingpolicies and accounting period.
For the subsidiary obtained under different control, when preparing the consolidated financial statements, the Group shall adjust the separate financial statements based on the fair value of identifiable netassets atthe purchase date;for the subsidiaries combined by the Group under the same control, regard the subsidiaries that they have been existing since the beginning of the period, and the assets, liabilities, operation performance and cash flows shall be consolidated into the financial statements ofthe beginning ofthe combinationperiodaccording to their originalbook value.
8Cashandcash equivalent
Thecash listed on the cash flow statements of the Group refers to cashon hand and bank deposit. The cash equivalents refer to short-term (normally with original maturities of three months or less) and liquid investments which are readily convertible to known amounts of cash and subject to an insignificant riskof changes invalue.
9Translationof foreign currency
(1) Foreign currencytransaction
Foreign currency transactions are translated at the spot exchange rate issued byPeople’s Bank of China (“PBOC”) when the transaction incurs. Monetary assets and liabilities in foreign currencies are translated into RMB at the exchange rate prevailing at the balance sheet day. Exchange differences arising from the settlement of monetary items are charged as in profit or loss for the period. Exchange differences of specific borrowings related to the acquisition or construction of a fixed asset should be capitalized as occurred, before the relevant fixed asset being acquired or constructed is ready for its intended uses. The foreign currency non-monetary items recorded at fair value are translated at the exchange rate issued on the date of fair value recognized. Exchange differences are charged as profit and loss of change of fair value. The foreign currency non-monetary items recorded at historical cost are translated at the exchange rate issued on the date when the transaction incurs, anddon’t change the RMB amount.
(2) Translation offoreign currencyfinancial statements
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport The asset and liability items in the foreign currency balance sheet should be translated at a spot exchange rate at the balance sheet date. Among theower’s equity items except “undistributed profit”, others shouldbe translated atthe spot exchange rate when they are incurred. Theincomeand expense shouldbetranslatedatspotexchangeratewhenthetransactionincurs.Translationdifferenceofforeign currency financial statements should be presented separately under theower’s equity item. For the foreign currency monetary items that form substantially the oversea business net investment, their exchange difference of movement of exchange rate should be presented separately as translation difference of foreign currency financial statement under theower’s equity item when prepare the consolidated financial statements. When disposing an overseas business, the Group should shift the translation difference of foreign currency financial statement related to the overseas business into the disposal profits and losses of current period. Foreign currency cash flows are translated at the spot exchange rate on the day when the cash flows incur. The amounts resulted from change of exchange rateare presented separately inthe cashflow statement.
10 Financialassets andfinancialliabilities
(1) Financialassets
1)Classification
The Group classifies its financial assets in the following categories: at fair value through profit or loss, loans and receivables, held-to-maturity financial assets and available-for-sale. The classification depends on the purpose for which the financial assets were acquired. Management determines the classificationof its financialassetsat initialrecognition.
a)Financialassetsat fair valuethroughprofitor loss
Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term. Derivativesare alsocategorised as heldfor trading unless theyare designated as hedges.Assets in this category are classified as current assets if expected to be settled within 12 months; otherwise, they are classified asnon-current.
b)Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are notquoted inan active market.They are included in current assets, exceptfor maturities greater than 12monthsafter the reportingperiod,whichare classifiedas non-currentassets.
c)Held-to-maturityfinancial assets
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Group(cid:0)s management has the positive intention and ability to hold to maturity. If the Group were to sell other than an insignificant amount of held-to-maturity financial assets, the whole category would be tainted and reclassified as available for sale. Held-to-maturity financial assets are included in non-current assets, except for those with maturities lessthan12 monthsfrom the end ofthe reporting period,which areclassified ascurrentassets. d)Available-for-salefinancialassets
Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories. They are included in non-current assets unless the investment matures or management intends to dispose of it within 12 months of the end of the reporting period.
2)Recognitionandmeasurement
Financial assets are recognized at fair value on the balance sheet when the Group becomes a party to the contractual provisions of the financial instrument. Transaction costs of financial assets carried at the fair value through profit or loss are expensed in the income statement;Transaction costs of otherfinancial assetsare includedin financialassetsatinitial recognition.
Available-for-sale financial assets are subsequently measured at fair value. Investments inequity instruments are measured at cost when they do not have a quoted market price in an active market and whose fair value cannot be reliably measured. Loans and receivables are measured at amortisedcostusing the effective interestmethod.
A gain or loss arising from change in fair value of an available-for-sale financial asset is recognised directly in equity, except for impairment losses and foreign exchange gains and losses arising from the translation of monetary financial assets. When such financial asset is derecognised, the cumulative gain or loss previously recognised in equity is recognised in income statement. Interest on available for sale debt instrument, calculated using effective interest method, and cash dividends declared by the investee on available-for-sale equity instruments are recognised as investment incomein incomestatement.
3) Impairmentof financialassets
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport The Group assesses the carrying amount of financial assets other than financial assets at fair value through profit or loss at each balance sheet date. If there is objective evidence that the financial asset isimpaired,the Group shalldeterminethe amountofanyimpairmentlossaccounts.
Ifan impairmentlossonafinancial assetcarried atamortized costhas been incurred,the amountof loss is measured at the difference between theasset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred). If there is objective evidence that the value of the financial asset recovered and the recovery can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairmentlossis reversed and the amountofreversal isrecognized inincomestatement.
If objective evidence shows that impairment for available-for-sale financial assets will occur,the cumulative loss arising from the decline in fair value that had been recognized directly in equity is removed from equity and recognized as impairmentloss.For an available forsale debt instrument,if there is objective evidence that the value of the financial asset recovered and the recovery can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed and the amount of reversal is recognized in income statement. For an available for sale equity instrument, if there is objective evidence that the value recovered and the recovery can be objectively related to an event occurring after the impairment loss recognized, the previously recognized impairment loss is reversed and directly recognized in equity.
4)Derecognizing offinancialassets
Financial assets are derecognized when: i) the contractual rights to receive the cash flows from the financial assets have expired; or ii) all substantial risks and rewards of ownership of the financial assets have been transferred; or iii) the control over the financial asset has been waived even if the Group does not transfer or retain nearly all of the risks and rewards relating to the ownership of a financialasset.
Onderecognitionofafinancialasset,the differencebetween the carryingamountandthe aggregate of consideration received and the accumulative amount of changes of fair value originally recorded in theowner’s equityis recognisedin theincomestatement.
(2) Financial liabilities
Thefinancialliabilities are classifiedintothe financialliability atfairvalue through profitor lossandother financialliability for the initialrecognition.
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport The financial liabilities at fair value through profit or loss include the financial liabilities held for trading and the designated financial liabilities at fair value through profit or loss when initial recognized. For this kind of financial liabilities should be measured at fair value, variation of fair value should be recorded intothe currentprofitor loss.
Other financial liabilities should be subsequently measured at amortization cost by adopting actual interestrate method.
(3) Fair valuemeasurementof financialassets andliabilities
a) If the market for a financial instrument is active, an entity establishes fair value by using the quoted priceinthe active market.Inthe active market,theGroup measuresthe fair valueof itsholding financial assets and contingent financial liabilities by using the current quoted price; the Group measures the fair value of its contingent financial assets and holding financial liabilities by using the current quoted price. If there are no current quoted prices for the financial assets and liabilties, and no significant change in the economic environment after the settlement date, the quoted prices of the recent transactions should be used tomeasure the fair valueofthe financial assets andliabilities.
b) If the market for a financial instrument is not active, an entity establishes fair value by using a valuation technique. Valuation techniques include using recentarm’s length market transactions between knowledgeable, willing parties, if available, reference to the current fair value of another instrumentthatis substantially the same,discounted cashflow analysisand optionpricingmodels. 11 Provisionfor baddebtsof receivables
The Group shall review the carrying amount of receivables fully at the balance sheet date. The Group shall calculate the full provision for bad debts for the following receivables: debtor has been log-out, bankruptcy, minus net asset, significant poor cash flow and significant nature disaster leads to discontinue production and the debtors could not pay for the debts within the foreseeable time . Other solid evidences indicates thatthe receivablescound notbe paidor beof aslim chance.
The allowance method is applied to the potential loss of bad debt. The Group should make the impairment test separately or in combination and accure the bad debt provisions which shall be recorded into current profit or loss at the end of the period. If there is defined evidence for the receivables not to or not likely to be received, which shall be recognized as the loss of bad debt and writeoffthe accrued bad debts provisionsafter goingthroughthe approvalprocedure oftheGroup. (1) Individually significantamounts ofaccounts receivableaccrued bad debt provisionas per portfolio Judgment basisor amount standards Thereceivables with more thanRMB 3millionindividual ofindividually significantamounts amountshall berecognized as the significant receivables; Theaccruingmethodof the Thebaddebt provisionsshallbe accrued basedon the receivables with individuallysignificant difference between currentvalue offuturecashflow and the
amounts carrying amounts.
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport (2) Accounts receivableaccrued bad debtprovision byportfolio
Thebasis ofportfolio
Usethe accountingaging ofthe receivables asthe creditrisk Accounting aging
characteristicstoclassify theportfolio
Usethe amountcharacteristicsofthe receivables ,ifthe Related parties transactionparty is relatedparties characteristics need to classifythe portfolio
Usetheamountcharacteristicsofthe receivables,the creditof transactionparty, the nature ofthe amounts and the Risk-free
safeguardmechanism oftransaction ascharacteristics to classifythe portfolio
1) Thepercentage ofprovisionfor baddebtsbased on the ageofreceivables as followings:
Accountingaging Accrualpercentageof the Accrualpercentageof otherreceivables(%) receivables(%)
Within1year 1 1
1-2years 5 5
2-3years 20 20
Over 3years 50 50
Related parties Accruethe baddebt provision byindividualidentification method Risk-free Accruethe baddebt provision byindividualidentification method 2) Theother methods is appliedto actuatingofbad debts provision
(3) Individually insignificantamountaccounts receivablebutaccruedbad debtprovision as per portfolio The individual amount is not significant, but the accrued bad Accrualreason debt provision on the basis of portfolio can not reflect its risk characteristic
The bad debt provisions should be accrued based on the Accrualmethod difference between current value of future cash flow and the carryingamount.
12 Inventories
Classification of inventory: Inventories are classified as raw material, wrappage, low-valuable
consumable, working-in-progress,and finished goods etc.
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport Pricing of inventories received and sent out: The inventories are processed on perpetual inventory system, purchased and stored based on their standard cost. The raw materials are priced daily on their standard costs. The differences between the standard and actual costs is recorded into the costs of materials and for sending out according to proportion of storage and sending out of materials, and adjust the planned costs of raw material into actual costs. The working-in-progress finished goods are priced on their standard costs; the differences between the standard and actual costs are recorded into the costs of working-in-progress and finished goods according to the receiving and sending out proportion,andfinaly adjusttheplanned costs intoactualcosts.
At the balance sheet date inventory should be measured at the lower of the cost and net realizable value. For the inventories which are damaged, fully or partly obsoleted and selling price below cost, the Group should calculate the provision for impairment of inventories according to the estimated nonrecoverable part of cost. Finished goods and a large amount raw materials should be calculated provision for impairment based on the difference of the cost exceed the realizable value of single item. For raw and accessorial materials with a large quantities and lower unit price should be calculated provisonfor impairmentaccording toclassifyofinventory.
For the finished goods, working in progress and raw material held for sale etc which shall be sold directly,the netrealizablevalueshouldbeconfirmedatthe estimatedsellingpricelessestimatedselling expenses and related tax and expenses. The raw material held for production, its realizable value should be confirmed at the estimated selling price of finished goods less estimated cost of completion, estimated selling expenses and related tax. The net realizable value of inventories held for execution of sale contracts or labor contracts shall be calculated based on the contract price. If the quantities of inventories inthe Groupare more thanquantities ifinventoriessubscribed inthe salescontracts,the net realizable value of the excessive part of the inventories should be calculated based on the general selling price.
13 Long-term equity investment
Long-term equity investments include the equity investments which the Group can control, joint control or have significant influence on the investee, or the Group can not control, joint control or significant influence on the investee and there is no offer in the active market, fair value can not be reliably measured.
Joint control refers to the control over an economic activity in accordance with contract. Any party of joint venture can not separately control the business activity of joint venture. The decision related to principaloperating activities needunanimous consentfromanyparty
Significantinfluence refers tothe power to participate inmakingdecisionson the financial andoperating
policies of investee, but not to control or do joint control together with other parties over the formulation
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport of these policies. Significant influence confirm according to the Group holds the over20% (including20%) but lower than50% voteing shares. Unless there is evidence which indicate the Group can not participatein the decisionofproduction and operating under the conditionsabove.
The initial cost of long term equity investments formed in the merger of enterprise under the same control shall be recognized at the carry amounts of equity of the merged enterprise. The initial cost of long term equity investments acquired in the merger of enterprise under the different control shall be recognized atfair valueof the assets paid,liabilities risen or charged, and equity securities issued. Besides the long-term equity investments acquired by the merger of enterprises, the initial cost of a long-term equity investment obtained by other means shall be ascertained in accordance with the provisionsas follows:
(1) The initial cost of a long-term equity investment obtained by making payment in cash shall be the purchase cost which is actually paid. The initial cost consists of the expenses directly relevant to the obtaining ofthe long-term equity investment,taxes and other necessary expenses.
(2) The initial cost of a long-term equity investment obtained on the basis of issuing equity securities shall bethe fair valueof the equity securitiesissued.
(3) The initial cost of a long-term equity investment of an investor shall be the value stated in the investment contractor agreementexceptthe unfair value statedin the contractor agreement.
(4) The initial cost of a long-term investment obtained by the exchange of non-monetary assets and the initial cost of a long-term equity investment obtained by debts restructuring shall be ascertained in accordance with related AccountingStandardsforEnterprises.
For the long-term equity investment in subsidiaries of the Group shall be measured in accordance with the cost method, and shall be adjusted when preparing consolidated financial statements in accordance with equity method. For the long-term equity investment of joint venture shall be measured in accordance with equity method.
For the long-term equity investment of the investing enterprise that does not do joint control or does not have significant influences on the invested entity, and has no offer in the active market and its fair value cannot be reliably measured should be measured in accordance with cost method. For the long-term equity investment of the investing enterprise that does not do joint control or does not have significant influences on the invested entity, and has offer in the active market and its fair value can be reliably measuredshouldbe measured asthe assetsavailable forsale.
14 Fixed asset
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport Recognition criteria of fixed assets: Fixed assets are defined as the tangible assets which are held for the purpose of producing goods, rendering services, leasing or for operation& management, and have more thanoneyearofusefullife,andwhoseunitpriceisoverRMB2,000.
Fixed assets shall be recognized when the economic benefit probably flows into the Group and its cost can be measured reliably. Fixed assets include: building, machinery, transportation equipment, electronic equipmentandothers.
All fixed assets shall be depreciated unless the fixed assets had been fully depreciated and are still being used and land is separately measuered. Straight-line depreciation method is adopted by the Group. Estimatednetresidualvaluerate,usefullife,depreciationrateasfollows:
Recognition criteria of fixed assets: Fixed assets are defined as the tangible assets which are held for the purpose of producing goods, Provideing services, leasing or for operation& management, and have more thanone year ofusefullife, andwhoseunit price isover RMB2,000.
Classification of fixed assets: Building, machinery, transportation equipment, electronic equipment and others.Measurement of fixed assets: Initial measurement of fixed assets shall be conducted on fixed assetsaccordingtotheactualcostwhenobtained,including,the costofpurchasedfixedassetincluding purchase price, value added tax, duty and other related tax and fee, other expenses that bring the fixed asset to the expected conditions for use and that may be relegated to the fixed asset. The cost of a self-constructed fixed asset shall be formed by the necessary expenses incurred for bringing the asset to the expected conditions for use. The cost of fixed asset which was invested by investor should be recorded in accordance with the price stipulated in the contract or agreement, other than those of unfair value as stipulated in the contract or agreement. The cost of fixed assets which is obtained by financial leasing should be measured at the lower one of fair value and the minimum lease payment in the beginning oflease.
Depreciation method: the Group withdraws depreciation for all fixed assets except for the fixed assets which had been fully depreciated and are still being used. The Group withdraws depreciation by adopting straight-line method and depreciation rate of unit item on monthly basis, and brings it cost or expenses in current period. Estimated net residual value rate is3%, useful life, depreciation rate as follows:
Estimated
Useful net
Category life(year residual Annualdepreciationrate s) value rate
(%)
Housingand Buildings
Including:Buildings
15 3 6.47
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport Housingfor productive
30 3 3.23
Housingfor non-productive
35 3 2.77
Machinery equipments
10-15 3 6.47～9.70
Transportation equipments
6 3 16.17
Electronic equipments
Including:Computer
4 3 24.25
General testing instruments
7 3 13.86
Specialized electronicequipments
8 3 12.13
Automatedcontrollingequipments
8 3 12.13
Automatedcontrollingmeters
8 3 12.13
Others equipments
Including:Industrialkiln
7 3 13.86
Tools& other production tools
9 3 10.78
Transmissionequipments
15 3 6.47
Non-operationalequipments and tools
18 3 5.39
The Group should review the estimated useful life, estimated net residual value and depreciation method at the end of each year. If any change has occurred, it shall be regarded as a change in the accounting estimates.
The Company should derecognized fixed asset when the fixed asset has been disposed, or the fixed assetscan’t generate any future economic benefit through using and disposal. The amount that income resulting from disposal of fixed asset deducts fixedasset’s book value and relevant tax shall be recorded inthe profitand lossfor the currentperiod.
15 Constructionin progress
Measurement of CIP: Construction-in-progress is recognized at actual cost. Self-construction project is recognized at the cost of material, labour cost and construction expenses. Contractual construction is recognized at project price which should be paid. Installed construction is recognized at the value of equipment, installation and assembly cost. Besides above, the cost of CIP comprises borrowing cost andprofitand loss resulting from foreign exchange.
The criteria and time spot of constructions inprogress’s being transferred to fixed assets: Constructions in progress are carried down to fixed assets on their actual costs when completing and achieving estimated usable status. The fixed assets that have been completed and reached estimated usable status but have not yet been through completion and settlement procedures are charged to an account accordingtotheirestimatevalues;adjustmentwillbeconducteduponconfirmationoftheiractualvalues. TheGroup shouldwithdraw depreciationin the next monthafter completion.
16 Borrowing costs
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport Recognition principles on capitalization of borrowing cost: The Group should capitalizes the borrowing cost directly attributable to the acquisition, construction or production of a qualifying asset and record borrowing cost into cost of related asset. The Group should recognize the other borrowing cost as the current expense and charged it as profit and loss of current period. A qualifying asset refers to fixed asset, investment property and inventory need be constructed for so long time to its intended use or sale.
Duration of capitalization of borrowing cost: When expenditures and borrowing cost are being incurred, and activities that are necessary to put the asset available for use or sale are in progress, the capitalization of borrowing costs as part of the cost of a qualifying asset should commence. Capitalization of borrowing costs should be suspended during extended periods in which active development is interrupted and interruption period last for over 3 month. The borrowing cost incurred during the period should be recognized as expenses and recorded into the profit and loss in the current period. When all the activities for bringing the asset to its intended use or sale are completed, the capitalization of borrowing costs ceases, and the borrowing costs should be recognized as an expense in the periodincurred.
Measurement of borrowing cost: As for specifically borrowed loans for the acquisition and construction or production of assets eligible for capitalization, the to-be-capitalized amount of interests shall be determined as the difference of the actual cost incurred of the specially borrowed loan at the present period minus the income of interests earned on the unused borrowing loans as a deposit in the bank or as a temporary investment. Where a general borrowing is used for the acquisition and construction or production of assets eligible for capitalization, the Group shall calculate and determine the to-be-capitalized amount of interests on the general borrowing by multiplying the weighted average asset disbursement of the part of the accumulative asset disbursements minus the general borrowing by the capitalization rate of the general borrowing used. The capitalization rate shall be calculated and determinedat theweighted averageinterest rate ofthe generalborrowing.
17 Intangibleassets
Measurement of intangible assets: The intangible assets of the Group refer to land use right, ERP system software. The cost of outsourcing intangible assets shall include the purchase price, relevant taxes and other necessary expenditures directly attributable to intangible assets. The cost invested into intangible assets by investors shall be determined according to the stated value in the investment contractor agreement,exceptforthose ofunfair value inthe contractor agreement.
Amortization method and period: The Group shall amortize land use right on the basis of its useful life by adopting straight line method from the time of acquiring. ERP system software and other intangible assets shall be amortized on the basis of shorter of estimated useful life, stated beneficial year in the
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport contract,andlegalavailableyear.Theamortization amountshouldbe recordedintothe costor expense of relevantinthe currentperiod.
The Group shall check the estimated useful life and amortization method of intangible assets with limited usefullife at the end of each year,if any change has been made, it shall be adjusted. The Group shall check the estimated useful life of intangible assets with uncertain useful life during the each accounting period. If there are evidences to prove the useful life of intangible assets is limited, the Group shallestimatethe usefullifeandamortize the intangible assetswithinestimated useful life. 18 Impairment of non-financialasset
The Group checks the long-term equity investment for its subsidiaries, association and joint venture, fixed asset, construction-in-progress, intangible asset and others on each balance sheet date. There may be an impairment of asset when one of following indications occurs. The Group should test impairments. The Group tests the impairment of goodwill, intangible asset with uncertain useful life on the endofeveryyear.Whenitisdifficulttomeasure therecoverableamountofasset,itshouldmeasure the recoverable amountofasset onthe basis ofassetgroup.
After impairment test, if the book value exceeds the recoverable amount of the asset, the difference should be recognized as impairment loss. Once any loss of impairment is recognized, it shall not be reversed in the future accounting periods. The recoverable amount of asset refers to the higher one of the net amount of the fair value of asset minus disposal expense and the present value of estimated futurecash flow ofasset.
Indications ofimpairmentas follows:
(1) During the period, a fair value of the asset in the market has declined significantly, which exceeds the expecteddecline as timepassing or normaluse;
(2) Significant changes with an adverse effect on the Group have taken place during the period, or will take place in the near future, in the technological, market, economic or legal environment in which the entity operatesor in the market towhichan assetis dedicated;
(3) Market interest rates or other market rates of return on investments have increased during the period,andthoseincreasesarelikelytoaffectthediscountrateappliedincalculatinganasset'svaluein useand decreasethe asset'srecoverable amountmaterially;
(4) Evidence isavailable ofobsolescenceor physical damageof anasset;
(5) The asset has been idle or is becoming idle, discontinued, or plans to dispose of an asset before
the previously expecteddate;
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport (6) Evidence is available from internal reporting that indicates that the economic performance of an asset is,or willbe,worse than expected;and
(7) Other evidence indicates impairmentofasset.
19 Long-term deferredexpenses
Long-term deferred expenses of the Group refer to expenses which are paid and should be deferred over the future period. The amortization period shall be more than one year (no including 1 year). The expenses should be amortized averagely over the beneficial period. If the deferred expense can not take benefit for the future accounting period, the unamortized balance of the deferred expenses should be transferredinto thecurrentprofitor loss.
20 Employee benefits
Employee compensation comprises short-term benefit, post-employment benefit, termination benefit andother long-termemployee’sbenefit.
Employee’s payables include salary, bonus, allowance, welfare, social insurance, housing funds, labour union expense,stafftrainingexpense,during theperiodin whichthe service renderedby theemployees, the actually incurred short term employee benefits shall be recognized as liability and shall be recognized inP&L or related cost of assets based on benefit objective allocated from the service rendered by employees.
Post-employment benefits include the basic pension schemeand unemployment insurance etc. Based on the risk and obligation borne by the Group, post-employment benefits are classified into defined contribution plan and defined benefit plan.For defined contribution plan, liability shall be recognized based on the contributed amount made by the Group to separate entity at the balance sheet date in exchange of employee service for the period andit shallbe recorded intocurrentprofitand lossaccount or relevantcostofassetsin accordancewith beneficialobjective.
Terminationbenefits areemployee benefitspayable asaresultofeitheranentity’sdecisiontoterminate anemployee’s employment before the contract due date or anemployee’s decision to accept voluntary redundancy in exchange for those benefits. An entity shall recognize the termination benefits as a liability and an expense at the earlier date when the entity cannot unilateral withdraw the termination benefits due to employment termination plan or due to redundancy suggestion, or when the entity can recognize the restricting cost or expense arising from paying termination benefits. For the termination benefits that will not be expected to be fully paid within twelve months after the end of the reporting period, it shall be accounted as other long-term employee benefit. For employee internally retired informally, termination benefits accounting shall be applied. The Group shall recognized the planned
wages and social insurance of retired employee in the current profit and loss account when provision
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport conditions are met, for the period since the termination of employee service rendered until the formal retirementdate.(termination benefit).
Other long-term employee benefit provided by the Group, shall be accounted for as defined contribution plan ifthe definedcontribution plan are met,otherwise shallbe accounted foras definedbenefitplan. 21 Contingent liabilities
The obligation pertinent to a contingency shall be recognized as an estimated debt when the following conditionsare satisfied simultaneously:
(1) Theobligationis acurrent obligation ofthe Group;
(2) It is likely to cause any economic benefit to flow out of the Group as a result of performance of the obligation;and
(3) Theamountofthe obligation canbe measuredreliably.
The estimated debts shall be initially measured in accordance with the best estimate of the necessary expenses for the performance of the current obligation, and the Group shall take into full consideration of the risks, uncertainty, time value of money, and other factors pertinent to the contingencies. If the time value of money is of great significance, the best estimate amounts shall be determined after discounting the relevant future outflow of cash. The Group shall check the book value of the estimated debts on the balance sheet date. If there is any exact evidence indicating that the book value cannot really reflect the current best estimate amounts, the Group shall adjust the book value in accordance with the currentbest estimate amounts.
22 Principle of recognitionof revenue
The revenue of the Group is mainly from selling goods, providing labour services and abalienating the right ofuse assets.Recognitionstandards forrevenue are asbelow:
(1) Recognitionofrevenue fromselling good:
1) Thesignificantrisksandrewards ofownershipofthe goodshavebeen transferred tothe buyer; 2) The Group remains neither continuous management right that usually keeps relation with the ownershipnor effectivecontrolover the sold goods;
3) Theamountofrevenuescanbe measuredreliably;
4) Therelevanteconomicbenefits arelikely to flowinto the Group;and
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport 5) Theincurredcostor intended costcanbe measuredreliably.
(2) Recognitionofrevenue fromproviding labour services:
1) Total revenue and total cost can be measured reliably; the relevant economic benefits are likely to flow intothe Group;and the stageofcompletion canbe confirmedreliably;
2) Ifthe Group can,on the date of the balancesheet day, reliably estimate the outcomeof a transaction concerning the labour services it provides, it shall recognize the revenue from providing services employing the stage of completion method. If the outcome can not be estimated reliably and incurred costcanbeoffset,therevenueshouldberecognisedbythecompensation.Whenthestandardscannot be satisfied, the revenue should not be recognised, and the incurred cost should be recorded into the currentprofitandloss.
(3) Revenuefromabalienating the useright ofuseassets
The revenue from abalienating of use right of assets shall be recognized, when the relevant economic benefits are likelyto flow intothe Group,andthe amountofrevenues canbe measuredreliably.
23 Government grants
A government subsidy of the Group shall be recognized if the Group can meet the conditions for the government subsidy and also can obtain the government subsidy. If a government subsidy is a monetary asset, it shall be measured in the light of the received or receivable amount. If a government subsidy isanon-monetaryasset,itshallbemeasured atits fair value;ifits fairvalue cannotbe obtained in areliable way, itshall bemeasured atits nominalamount (RMB 1).
The government subsidies pertinent to assets shall be recognized as deferred income, equally distributed within the useful lives of the relevant assets, and included in the current profits and losses. The government subsidies pertinent to incomes shall be treated respectively in accordance with the indications as follows: (1) those subsidies used for compensating the related future expenses or losses of the Group shall be recognized as deferred income and shall included in the current profits and losses during the period when the relevant expenses are recognized; or (2) those subsidies used for compensating the related expenses or losses incurred to the Group shall be directly included in the currentprofits and losses.
24 Deferredtax assets anddeferred tax liabilities
Deferred tax assets and deferred tax liability should be recognized at the differences (taxable temporary differences) between the tax base of an asset or liability and its carrying amount. The Group shall
recognize the deferred incometax assets arising from a deductible temporary difference to the extentof
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport the amount of the taxable income which it is most likely to obtain and which can be deducted from the deductible temporary difference. At the balance sheet date, deferred tax asset and deferred tax liability should bemeasured atapplicabletax rate.
The Group shall recognize the deferred tax assets arising from a deductible temporary difference to the extent of the amount of the taxable income which is most likely to obtain which can be deducted from the deductible temporary difference. For the deferred tax assets which already have been recognized, where there is any evidence showing that the Group is probably unable to acquire sufficient amount of taxable income tax in a future period to offset against the deductible temporary difference, the book value of the deferred tax assets shall be deducted. Where it is likely to acquire sufficient amount of taxable incometax,the amountdeducted shallbe reversed.
25 Lease
Theleases ofthe Grouprefer tooperating lease.
The rents from operating leases shall be recorded by the lessee into the relevant asset costs or the profits and losses of the current period by using the straight-line method over each period of the lease term.
26 Accounting treatmentmethod of incometax
The Group shall recognize income tax by balance sheet liability method. The income taxes of the current period and deferred income tax of the Group shall be treated as income tax expenses or incomes, and shall be recorded into the current profits and losses, excluding the income taxes incurred in the following circumstances: (1) the business combination; and (2) the transactions or events directly recognized as theowner’s equity. The income taxes of the current period and deferred income tax related to the transactions or events directly recorded as theowner’s equity shall be recorded into theowner’sequity.
The income tax expenses for the current period the amount payable to the Tax Office which are calculatedandrecognizedaccordingtothetaxlawandtransactionsandeventsofthecurrentperiod,i.e. income taxes payable; the deferred income taxes refer to the differences recognized between the amounts at the end of the period and amounts recognized originally of deferred tax assets and liabilities according tothe balancesheetliability method.
27 Segment report
Business segment is confirmed in accordance with governance structure, management requests, internal reportingsystem,andthe Group confirm the reportsegmenton the basis ofbusiness segment.
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport Business segment is a component of the Group that satisfys the following conditions simultaneously: the component can take revenue and expenses; the management level can appraise the operating performance of the component in order to allocation of resource and appraise the performance; and the Group canacquire thefinancial position,operatingperformanceand cashflow ofthe componentetc. 28 Discontinuedoperation
Discontinued operation represents the component of the Group that had been disposed or plan to sell, and the component can be separately divided when operating and preparing financial statements. The component shallbedisposed partlyor wholly inaccordance with theGroup’splan.
The component of the Group shall be recognized as the component held for selling when satisfying the conditionsas below:
1) TheGrouphadmadeadecision ondisposal ofthe component;
2) TheGrouphadsigned theirrepealably Transfer Agreement withtransferee; and
3) Thetransfershall befinished withinoneyear.
29.Changes inaccountingpolicies, accountingestimates andcorrection ofprevious errors There are nochanges inaccountingpolicies,accounting estimates and correctionofprevious errors VI.Taxation
1. Themain applicabletax andrateto the Groupas follows:
Tax Taxbase Tax rate
Value-addedtax (VAT) Salesrevenueor Purchase 17%，13%，11%，6%，3% Businesstax Revenuefrom propertylease 5%
City constructiontax Value-added taxpayables, businesstax 7%
Enterprise income Currentperiodtaxable profit 15%
tax(EIT)
Educationsurcharge Value-added taxpayables, businesstax 3%
Local education Value-added taxpayables, businesstax 2%
surcharge
70%of costof own property or revenue
Realestate tax 1.2% or12%
fromleasing property
Land usetax Land usingright area RMB 6persquare meter NotesfortaxprincipleswithdifferentEITrate
Taxprinciples EITrate
WazhouLiaoyangBearingconstructionCo.,Ltd 25%
DalianWazhouPrecisionMotorCarBearingCompanyLimited 25%
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport WazhouPrecisionofSphericalRollerBearings(Wafangdian)Co.,Ltd 25%
2. Taxpreferenceandapproval
Thecompanyobtainedthe qualificationofhigh andnew technologyenterprises at29Sep2014.The Certificatenumber is GF201421200004,and the periodof validity isthree years.Accordingto the provisionsof thetax law the company canbe grantedthe preferentialtax policy ofenterpriseincome tax rateof15% inthree years.
VII.Notestoconsolidatedfinancialstatements
1.Cashandcash inbank
||
|-|
|ClosingBalance|
|362,559.91|
|82,102,998.18|
|40,418,649.36|
|122,884,207.45|

 Notes:theclosingbalanceofothercashandcashequivalentsareallsecuritydepositsofbankacceptance notes.Sincetheliquiditylimitation,thiswillbedeductedfromtheclosingbalance.
2Notesreceivable
(1) Categoryofnotesreceivable
2015.06.30 2014.12.31 Items
Bank acceptance notes
123,866,155.60 153,691,174.47 Commercial acceptance notes
24,884,977.59 34,426,801.24 Total
148,751,133.19 188,117,975.71 3Accounts receivable
(1)Categoryofaccountsreceivable
ClosingBalance
|||||
|-|-|-|-|
|Bookingbalance||Provision||
|Amount|%|Amount|%|
|9,002,676.43|0.70%|9,002,676.43|100.00%|
|1,095,013,331.36|98.20%|51,591,632.28|5.10%|
|14,393,660.23|1.10%|14,393,660.23|100.00%|

WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport
||||
|-|-|-|
|1,118,409,668.02|100.00%|74,987,968.94|

 (Continued)
Openingbalance
|||||
|-|-|-|-|
|Bookingbalance||Provision||
|Amount|%|Amount|%|
|9,002,676.43|0.75%|9,002,676.43|100.00%|
|1,150,173,274.09|98.04%|51,607,095.89|4.60%|
|14,393,660.23|1.20%|14,393,660.23|100.00%|
|1,173,569,610.75|100.00%|75,003,432.55||

 1) Accounts receivable with individual significant amount and identification separately bad debt provision atthe endofJune 30,2015
Booking Provisionfor Provisionrate
Company name Reasonsfor provision balance baddebts (%)
A/R with over 5years aging, A 3,910,007.43 3,910,007.43 100.00%
unlikely tobe collected B 5,092,669.00 5,092,669.00 100.00% Brokedown
Total 9,002,676.43 9,002,676.43 — —
2) Accounts receivable accruedthe bad debtprovisions under accountingaginganalysis method ClosingBalance
|||
|-|-|
|Accountsreceivable|Provisionforbaddebts|
|781,960,815.99|7,819,608.16|
|781,960,815.99|7,819,608.16|
|130,224,993.28|6,511,249.66|
|33,379,147.05|6,675,829.42|
|61,169,890.09|30,584,945.04|

WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport (2)Baddebtprovisionaccruedandwritten-off(withdraw)
Thebaddebtprovisionhasbeenaccruedintheamount15,463.61Yuanduringthereportperiod.
(3)Accountsreceivablewrittenoffincurrentperiod
Item Written-offAmount
Accountsreceivablewrittenoff 30,927.22
3) Individually insignificant amount accounts receivable but accrued bad debt provision separately at the endof June 30,2015
4Advances tosuppliers
(1)Agingofadvancestosuppliers
Items 2015.06.30 2014.12.31
Amount Percentage Amount Percentage(%)(%)
Within1year
29,038,945.60 74.33% 33,178,587.95 75.35% 1to2years
199,880.02 0.51% 6,035,528.97 13.71% 2to3years
5,150,191.83 13.18% 1,013,168.29 2.30% Over 3years
4,678,582.27 11.98% 3,803,916.45 8.64% Total
39,067,599.72 -- 44,031,201.66 --
(2)Thetopfivesignificantadvancestosupplierscategorizedbydebtors
The total amount of top five significant advances to suppliers categorized by debtors is 27,142,499.14Yuan,takingtheparentageof69.48%oftheclosingbalanceofadvancestosuppliers.
5.Dividendsreceivable
(1)Dividendsreceivable
||
|-|
|ClosingBalance|
|240,000.00|
|240,000.00|

 6 Other receivables
(1) Thecategories ofotherreceivable
ClosingBalance
|||||
|-|-|-|-|
|Bookingbalance||Provision||
|Amount|%|Amount|%|

WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport
|||||
|-|-|-|-|
|28,845,229.16|100.00%|1,705,933.04|7.08%|
|28,845,229.16|100.00%|1,705,933.04||

 (Continued)
OpeningBalance
|||||
|-|-|-|-|
|Bookingbalance||Provision||
|Amount|%|Amount|%|
|20,917,860.26|99.94%|1,705,933.04|12.00%|
|20,917,860.26|100.00%|1,705,933.04||

 (2) Other receivables accrued the baddebt provisions under accountingaging analysis method ClosingBalance
|||
|-|-|
|Otherreceivables|Provisionforbaddebts|
|18,900,125.86|189,001.26|
|1,984,534.70|99,226.74|
|624,907.37|124,981.47|
|2,585,447.14|1,292,723.57|
|24,095,015.07|1,705,933.04|

(3)Otherreceivablescategorizedbynature
||
|-|
|ClosingBalance|
|28,845,229.16|
|28,845,229.16|

 7Inventories
(1) Categoriesofinventories
||||||
|-|-|-|-|-|
|2015.06.30|||||
|Cost|Provisionfordecline|Netbookvalue|Cost|Provisionfordeclines|
|160,396,767.27|2,721,438.13|157,762,957.01|161,777,520.87|2,721,438.13|
|180,838,485.71|602,496.86|180,235,988.85|203,865,748.23|602,496.86|
|876,998,986.70|104,787,136.46|772,211,850.24|904,774,320.44|104,787,136.46|

WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport
||||||
|-|-|-|-|-|
|4,093,493.26||4,005,865.39|4,041,348.26||
|1,222,327,732.94|108,111,071.45|1,114,216,661.49|1,274,458,937.80|108,111,071.45|

Decrease
Items 2014.12.31 Increase 2015.06.30 Reverse Otherstransferred
Raw materials
2,721,438.13 2,721,438.13 Finishedgoods
602,496.86 602,496.86 Working in
104,787,136.46 104,787,136.46 progress
Total
108,111,071.45 108,111,071.45 (2)Accrualforprovisionfordeclineinthevalueofinventories
||
|-|
|Basisonrecognizedconvertiblenetvalue|
|Materials market price at the end ofperiod|
|Averagesalepriceofsimilarproduct|

Item 2015.06.30 2014.12.31
Over paid added valuetax
14,415,264.11 21,777,741.91 Rental
1,209,038.95 892,113.04 Over paid incometax
1,855,337.56 1,864,330.37 Total
17,479,640.62 24,534,185.32 8Other current assets
9.Available-for-salefinancialassets
(1)Available-for-salefinancialassets
||||||
|-|-|-|-|-|
|ClosingBalance|||||
|Bookingbalance|Provision|Bookvalue|Bookingbalance|Provision|
|2,000,000.00|-|2,000,000.00|2,000,000.00|-|
|2,000,000.00|-|2,000,000.00|2,000,000.00|-|
|2,000,000.00|-|2,000,000.00|2,000,000.00|-|

(2)Available-for-salefinancialassetsmeasuredatcostmethod
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport
||||||||||
|-|-|-|-|-|-|-|-|-|
|BookingBalance||||Provision||||Proportion(%)|
|OpeningBalance|Increase|Decrease|ClosingBalance|OpeningBalance|Increase|Decrease|ClosingBalance||
|2,000,000.00||-|2,000,000.00|-|-|-|-|4.76|
|2,000,000.00||-|2,000,000.00|-|-|-|-|4.76|

 10 Fixed assets
(1) Fixedassets by categories
||||||
|-|-|-|-|-|
|Building|MachineryEquipment|Transportation|ElectronicDevice|OtherEquipment|
|431,429,106.06|1,053,930,386.30|22,131,123.52|66,357,172.40|176,996,473.48|
|4,747,401.21|2,303,048.26|238,483.97|300,859.56|3,495.00|
|3,523,518.00|470,689.43|0.00|286,791.59|3,495.00|
|1,223,883.21|1,832,358.83|238,483.97|14,067.97|0.00|
|0.00|5,108,719.33|2,236,244.95|99,018.77|210,000.00|
|0.00|5,108,719.33|2,236,244.95|99,018.77|210,000.00|
|436,176,507.27|1,051,124,715.23|20,133,362.54|66,559,013.19|176,789,968.48|
|199,412,319.52|635,511,992.94|15,784,448.29|51,541,999.32|151,252,942.74|
|6,909,467.73|30,989,938.11|719,573.95|2,024,743.60|3,129,803.53|
|6,909,467.73|30,989,938.11|719,573.95|2,024,743.60|3,129,803.53|

WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport
||||||
|-|-|-|-|-|
|0.00|4,325,766.21|1,529,627.13|88,777.58|210,000.00|
|0.00|4,325,766.21|1,529,627.13|88,777.58|210,000.00|
||1,319,560.01|200,000.00||1,159.51|
||379,369.23||||
||940,190.78|200,000.00||1,159.51|
|229,854,720.02|388,008,359.61|4,958,967.43|13,081,047.85|22,616,062.70|
|232,016,786.54|417,098,833.35|6,146,675.23|14,815,173.08|25,742,371.23|

11Constructionin progress
(1) DetailsofConstruction-in-progress
Items 2015.06.30 2014.12.31
Provision Provision
Book
for Bookvalue Bookbalance for Bookvalue balance
impairment impairment
M250Grinding
Machine 130,730.53 130,730.53 130,730.53 130,730.53 Improvement
Improvementof
1,191,553.31 1,191,553.31 1,543,757.23 1,543,757.23 maintenanceholder
Forkedtruck 1,739,365.29 1,739,365.29 1,739,365.29 1,739,365.29 Improvementof
6,566,140.27 6,566,140.27 6,836,609.99 6,836,609.99 plant
Installationofsuper
1,286,701.41 1,286,701.41 1,283,681.73 1,283,681.73 finishmachine
Improvementof
finishedgoods 93,279.09 93,279.09 450,879.09 450,879.09 storage
Dalianindustrypark
20,488,524.42 20,488,524.42 19,885,742.72 19,885,742.72
project
CraneProject 2,861,844.53 2,861,844.53 2,861,157.05 2,861,157.05
Improvementof
4,439,535.78 4,439,535.78 3,455,196.16 3,455,196.16
second-finished
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport products
ComputerProject 2,639,066.75 2,639,066.75 875,831.49 875,831.49 Improvementof
precisionroller 65,611,355.45 65,611,355.45 57,715,726.04 57,715,726.04 branch
Improvementof
9,854,253.45 9,854,253.45 9,682,989.93 9,682,989.93 liaoyangbearing
Improvementof
5,232,527.30 5,232,527.30 5,061,298.12 5,061,298.12 Amerauto
Improvementof
8,677,857.42 8,677,857.42 9,045,850.67 9,045,850.67 grindingmachine
Grindingproduct
10,352,536.82 10,352,536.82 10,566,935.30 10,566,935.30 line
Improvementof
seven-finished 53,932,642.62 53,932,642.62 45,761,958.46 45,761,958.46 products
Others 10,789,813.59 10,789,813.59 11,670,198.30 11,670,198.30 Heattreatment
5,044,818.67 5,044,818.67 2,723,139.00 2,723,139.00 productline
DigitalBoring
1,873,336.12 1,873,336.12 1,873,330.07 1,873,330.07 machine
Improvementof
exploration 345,483.36 345,483.36 345,072.96 345,072.96 machinery
Improvementof
8,477,858.74 8,477,858.74 7,565,073.68 7,565,073.68 speciallargebranch
Improvementof
one-finished 40,040,876.47 40,040,876.47 37,988,266.40 37,988,266.40 products
Instruments 1,230,893.37 1,230,893.37 1,230,893.37 1,230,893.37 Mediumsizeddeep
grooveballbearing 1,712,732.31 1,712,732.31 1,712,732.31 1,712,732.31 productline
Assemblingline 1,876,573.24 1,876,573.24 1,875,092.53 1,875,092.53 Ballsurfacebearings new 120,892,317.4
120,892,317.47 119,522,927.09 119,522,927.09 plant 7
387,382,617.7
Total 387,382,617.78 363,404,435.51 363,404,435.51 8
(2) Changein the significantconstructionin progress
||||||
|-|-|-|-|-|
|Name|OpeningBalance|Increase|Decrease||
||||Transfertofixedassets|Otherdecrease|
||130,730.53||||
||1,543,757.23|466,355.24|818,559.16||

WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport
|||||
|-|-|-|-|
|1,739,365.29||||
|6,836,609.99|28,026.47|298,496.19||
|1,283,681.73|3,019.68|||
|450,879.09||157,600.00|200,000.00|
|19,885,742.72|602,781.70|||
|2,861,157.05|687.48|||
|3,455,196.16|984,339.62|||
|875,831.49|1,763,235.26|||
|57,715,726.04|7,977,748.62||82,119.21|
|9,682,989.93|173,686.60||2,423.08|
|5,061,298.12|262,653.80||91,424.62|
|9,045,850.67|534,720.94|902,714.19||
|10,566,935.30|1,201.63|215,600.11||
|45,761,958.46|8,559,373.85||388,689.69|
|11,670,198.30||51,394.10|828,990.61|
|2,723,139.00|2,461,679.67|140,000.00||
|1,873,330.07|6.05|||
|345,072.96|410.40|||
|7,565,073.68|912,785.06|||
|37,988,266.40|2,793,542.85|724,430.23|16,502.55|
|1,230,893.37||||
|1,712,732.31||||
|1,875,092.53|1,480.71|||
|119,522,927.09|3,032,988.68||1,663,598.30|
|363,404,435.51|30,560,724.31|3,308,793.98|3,273,748.06|

 12Intangibleassets
||||
|-|-|-|
|Landuseright|ERPsoftware|Others|
|176,189,727.74|||

WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport
||
|-|
|176,189,727.74|
|36,599,750.53|
|2,194,753.80|
|2,194,753.80|
|38,794,504.33|
|137,395,223.41|
|139,589,977.21|

 13Long-term deferredandprepaidexpenses
Amortizatio Other
Item 2014.12.31 Increase 2015.06.30 n decrease
Right tousepremiseof
657,022.39 33,915.18 623,107.21 Shanghaisales office
Decorationfees
110,832.00 44,334.00 66,498.00 Total
767,854.39 78,249.18 689,605.21 14Deferredtax assets anddeferred tax liabilities
(1)Deferredtaxassetswithoutdeduction
||||
|-|-|-|
|ClosingBalance|||
|Deductibletemporarydifference|Deferredtaxassets|Deductibletemporarydifference|
|63,685,949.07|10,062,159.26|63,685,949.07|
|11,940,720.07|1,791,108.01|11,940,720.07|
|75,626,669.14|11,853,267.27|75,626,669.14|

WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport (2)Deferredtaxliabilitieswithoutdeduction
||||
|-|-|-|
|ClosingBalance|||
|Taxabletemporarydifference|Deferredtaxliabilities|Taxabletemporarydifference|
|7,606,635.67|1,140,995.35|7,606,635.67|
|7,606,635.67|1,140,995.35|7,606,635.67|

 (3)Thenetvalueofdeferredtaxassetsanddeferredtaxliabilitieswithdeduction
||||
|-|-|-|
|ClosingBalanceofdeferredtaxassetsandliabilitieswithdeduction|ClosingBalanceofdeferredtaxassets/deferredtaxliabilities|OpeningBalanceofdeferredtaxassetsandliabilitieswithdeduction|
||11,853,267.27||
||1,140,995.35||

(4)Unrecognizeddeferredtaxassetsdetails
||
|-|
|ClosingBalance|
|57,426,417.68|
|187,793,926.50|
|245,220,344.18|

 (5)Unrecognizeddeductiblelossofdeferredtaxassetsexpirednextperiod
|||
|-|-|
|ClosingBalance|OpeningBalance|
|21,053,716.07|21,053,716.07|
|166,740,210.42|166,740,210.42|
|187,793,926.49|187,793,926.49|

15 Short-termloan
(1) Categoryofshort-term loan
Loancategory 2015.06.30 2014.12.31
Creditloan
305,000,000.00 498,000,000.00
Total
305,000,000.00 498,000,000.00
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport 16 Notespayable
Items 2015.06.30 2014.12.31
Commercialacceptance notes
11,017,023.86 Bank acceptance notes
204,389,337.00 195,850,000.00 Total
204,389,337.00 206,867,023.86 17 Accounts payable
(1)Accountspayable
||
|-|
|ClosingBalance|
|1,338,523,870.77|
|106,865,771.23|
|1,445,389,642.00|

 18 Advances fromcustomers
(1) Receivedinadvance
||
|-|
|ClosingBalance|
|41,513,167.08|
|41,513,167.08|

 19 Employee benefitspayable
(1)Categoryofemployee’spayables
||||
|-|-|-|
|OpeningBalance|Increase|Decrease|
|10,212,114.16|135,114,026.05|136,219,460.01|
|10,063,250.28|21,982,701.98|22,220,184.59|
|20,275,364.44|157,096,728.03|158,439,644.60|

(2)Short-termemployee’spayables
||||
|-|-|-|
|OpeningBalance|Increase|Decrease|
|967,372.74|107,374,989.28|108,143,412.10|

WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport
||||
|-|-|-|
||7,597,262.95|7,597,262.95|
|495,865.45|10,095,888.46|10,139,096.03|
|207,498.96|8,825,028.07|8,865,942.23|
|218,585.45|997,612.47|999,468.20|
|69,781.04|273,247.92|273,685.60|
|2,950,467.55|9,339,559.44|9,396,765.94|
|5,798,408.42|706,325.92|942,922.99|
|10,212,114.16|135,114,026.05|136,219,460.01|

 (3)Welfarewithdepositandwithdrawalplan
||||
|-|-|-|
|OpeningBalance|Increase|Decrease|
|9,736,874.03|20,920,673.93|21,155,995.27|
|326,376.25|1,062,028.05|1,064,189.32|
|10,063,250.28|21,982,701.98|22,220,184.59|

 6.20 Taxespayable
||
|-|
|ClosingBalance|
|3,126,305.80|
|49,685.50|
|158,745.93|
|669,668.01|
|71,073.87|
|11,600.65|
|88,747.11|
|487,526.03|
|280,707.85|
|4,944,060.75|

WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport 21 Interest payable
||
|-|
|ClosingBalance|
|10,899,993.00|
|10,899,993.00|

 22 Other payables
Otherpayablescategorizedbypaymentsnature
||
|-|
|ClosingBalance|
|161,496,832.28|
|161,496,832.28|

 23 Non-current liabilitiesdue within oneyear
(1)Non-currentliabilities duewithinone year
Item ClosingBalance OpeningBalance
Long-termloan duewithin oneyear
90,000,000.00 90,000,000.00 Total
90,000,000.00 90,000,000.00 Item ClosingBalance OpeningBalance
Government subsidywithin 1 year
4,411,103.83 4,761,103.83 Total
4,411,103.83 4,761,103.83 24 Other non-current liabilities
25 Long-term loan
(1) Categoryoflong-term loan
Category 2015.06.30 2014.12.31
Assuranceloan
50,000,000.00 50,000,000.00 Total
26Long-term payables
(1) Long-termpayablescategorizedbypaymentsnature
||
|-|
|ClosingBalance|
|100,000.00|
|1,497,305.72|

WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport Total 100,000.00 100,000.00 27 Specialpayables
|||||
|-|-|-|-|
|OpeningBalance|Increase|Decrease|ClosingBalance|
|221,698.98|-|-|221,698.98|
|100,000.00|-|-|100,000.00|
|321,698.98|-|-|321,698.98|

28Other non-current liabilities
(1) Categoryofdeferredincome
|||||
|-|-|-|-|
|OpeningBalance|Increase|Decrease|ClosingBalance|
|51,122,513.64||2,126,990.93|48,995,522.71|
|51,122,513.64||2,126,990.93|48,995,522.71|

(2)Governmentsubsidy
||||||
|-|-|-|-|-|
|OpeningBalance|Increase|Recordedintonon-operationincome|OtherChange|ClosingBalance|
|4,487,208.00||||4,487,208.00|
|1,473,999.97|||368,500.00|1,105,499.97|

WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport
|||||
|-|-|-|-|
|35,155,065.67||1,306,617.94|33,848,447.73|
|3,600,000.00||200,000.00|3,400,000.00|
|3,306,240.00||236,160.00|3,070,080.00|
|2,400,000.00|||2,400,000.00|
|700,000.00|15,712.99||684,287.01|
|51,122,513.64|15,712.99|2,111,277.94|48,995,522.71|

2014.12.31 Changeforcurrentperiod 2015.06.30 Transfer
Issui
Shareholders Distrib ring
ng
name/categor uting capital Other Subtot
Amounts % new Amounts % y share reserves s al
shar
s toshare
es
capital
402,600, 100. 402,600,000.0 Totalshares — — — — — 100.00 000.00 00 0 29Sharecapital
30 Capitalreserves
Items 2014.12.31 Increase Decrease 2015.06.30 201,956,446.52 201,956,446.52 Sharepremium
283,734,603.95 283,734,603.95 Othercapitalreserves
485,691,050.47 485,691,050.47
Total
31 Surplus reserves
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport Items 2014.12.31 Increase Decrease 2015.06.30
110,852,290.20 110,852,290.20 Statutorysurplusreserve
20,590,618.91 20,590,618.91 Discretionarysurplusreserve
131,442,909.11 131,442,909.11 Total
32Undistributedprofit
||
|-|
|Thisperiod|
|362,111,029.14|
|362,111,029.14|
|-59,587,254.16|
|302,523,774.98|

 33Operatingrevenue& cost
||||
|-|-|-|
|This period|||
|Salesrevenue|Costofsales|Salesrevenue|
|1,067,217,904.74|970,528,875.41|1,446,138,957.62|
|100,875,774.60|97,980,386.16|194,874,251.09|
|1,168,093,679.34|1,068,509,261.57|1,641,013,208.71|

 34Operating taxes and surcharges
Items Thisperiod Last period
Businesstax
168,576.54 276,220.06 City constructiontax
3,380,286.62 3,438,828.25 Educationsurcharge
2,452,340.24 2,456,305.91 Total
6,001,203.40 6,171,354.22 35 Sellingexpenses
Items Thisperiod Last period
Sellingexpenses
98,588,255.39 118,732,526.35 Total
98,588,255.39 118,732,526.35
36 Administrative expenses
Items Thisperiod Last period
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport Administrative expenses
40,067,918.93 35,930,304.10 Total
40,067,918.93 35,930,304.10 37Financialexpenses
Items This period Last period Interestexpenses
24,463,077.99 19,435,381.54 Less:interestincome
4,112,766.42 6,090,557.66 Add:Exchangelosses
992,066.81 307,956.76 Less:Exchangeincome
961,252.46 2,069,590.92 Add:Othersexpenditure
273,901.88 352,444.77 Total
20,655,027.80 11,935,634.49 38Assetsimpairment losses
Items This period Last period
Lossofbad debts
15,463.61 1,032,932.36 Total
15,463.61 1,032,932.36 39 Investment income
||
|-|
|Thisperiod|

 39Non-operatingincome
(1) Non-operating incomelist
|||
|-|-|
|Thisperiod|Last period|
|957,589.72|27,802.77|
|957,589.72|27,802.77|
|3,325,164.04|645,467.57|
|6,649.49|25,923.28|
|107,855.90|1,292,533.99|
|6,894,300.08|4,368,539.55|

(2) Governmentgrants list
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport
||||||
|-|-|-|-|-|
|OpeningBalance|Increase|Recordedintonon-operationincome|OtherChange|ClosingBalance|
|368,500.00|368,500.00|368,500.00|368,500.00|368,500.00|
|1,306,617.94|1,352,117.94|1,306,617.94|1,352,117.94|1,306,617.94|
|200,000.00||200,000.00||200,000.00|
|236,160.00|236,160.00|236,160.00|236,160.00|236,160.00|
|15,712.99||15,712.99||15,712.99|
|20,050.00|20,034.00|20,050.00|20,034.00|20,050.00|
|350,000.00||350,000.00||350,000.00|
||400,000.00||400,000.00||
|2,497,040.93|2,376,811.94|2,497,040.93|2,376,811.94|2,497,040.93|

40 Non-operatingexpenses
|||
|-|-|
|Thisperiod|Last period|
|240,546.34||
|240,546.34||

WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport
|||
|-|-|
|138,947.37|791,703.96|
|10,000.00||
|84,572.29|10,669.74|
|474,066.00|802,373.70|

 41Income taxexpenses
(1) Incometax expenses
Items This period Last period
Currentincometax expenses
264,036.88
Total
264,036.88
（2）Adjustmentfor profitandincometas expenss
|||
|-|-|
|item|amoutn|
|Totalprofit|-59,323,217.28|
|Income taxexpenses|264,036.88|

 42 Notestocash flow statement
(1) Cashreceipt/paymentofother operating/investing/financingactivities
1) Othercash received relating tooperating activities
Items This period Last period
Interestincome
544,365.42 160,754.26
Allowancefor exhibition place
20,050.00 20,034.00
Waste materialincome
768,913.10
Return of reservefund, depositetc.
1,421,768.64 5,907,014.36
Total
1,986,184.06 6,856,715.72
2) Othercash paidrelating tooperatingactivities
Items
This period Last period
Travelexpenses 8,924,402.37 12,375,169.88
Rentexpense 14,366,346.90 16,938,756.96
Freightserviceexpense 8,666,302.62 10,718,256.31
Conference expense 2,399,555.14 8,359,293.55
Collection andpaymentforothers 7,582,065.50 9,780,040.50
Officeexpense 3,030,939.33 4,157,457.04
Marketdevelopmentexpense 950,214.51 1,744,933.96
Guard and firefightingexpense 1,650,000.00 1,650,000.00
Business promotionexpense 2,177,704.82 3,649,883.73
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport Total 13,090,068.49 19,867,301.34
43 Supplementaryinformation of consolidatedcashflow statement
Items This period Last period
1.Adjusting netprofit into cash flowsofoperating
activities:
Net profit
-59,587,254.16 -17,449,186.08
Add: Provision forimpairmentof assets
15,463.61 1,032,932.36
Depreciation offixed assets
43,773,526.92 38,102,595.42
Amortizationofintangibleassets
2,470,380.54 2,303,934.16
Amortizationoflong-termdeferredexpenses
78,249.18 70,860.18
Lossesondisposaloffixedassets,intangibleassets,
-717,043.38 -27,802.77
andlong-termassets(incomelistedwith”-”)
Financialexpense(incomelistedwith”-”)
20,655,027.80 11,935,634.49
Investmentloss(incomelistedwith”-”)
-2,261,215.59
Decreaseofinventory(increaselistedwith”-”)
-52,131,204.86 70,086,476.63
Decreaseofoperatingreceivables(increase
-79,538,779.90 -190,068,176.59
listedwith”-”)
Increaseofoperatingpayables(decreaselisted
139,716,479.91 142,437,198.09
with”-”)
Net cashflows arisingfrom operatingactivities
14,734,845.66 56,163,250.30
2.Significant investment andfinancingactivities
unrelatedtocash income and expenses
3.Net increase(decrease) of cash andcash
equivalent
Ending balanceofcash
82,465,558.09 106,900,170.43
Less:Opening balance ofcash
143,399,164.66 60,616,759.13
Add: Endingbalanceof cashequivalent
Less:Opening balance ofcashequivalent
Net increaseofcashand cashequivalent
-60,933,606.57 46,283,411.30
(3) Cashandcash equivalents
Items This period Last period
Cash
82,465,558.09 143,399,164.66 Including:Cash onhand
362,559.91 243,292.16 Bankdeposit used forpayingat anymoment
82,102,998.18 143,155,872.50 Other cashused forpayingat anymoment
Cashequivalents
Closingbalanceof cashandcashequivalents
82,465,558.09 143,399,164.66
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport VIII.EquityofOtherEntities
1. Equityofsubsidiaries
(1) Organizationstructureofgroupcompany
||||||
|-|-|-|-|-|
|Location|RegisteredLocation|Natureofoperation|Share（%）||
||||Direct|Indirect|
|Wafangdian|LiaoyangBaitaDistrictWeiguoRdNo.61|Manufacturingandsellingbearingandmachines|100||
|Wafangdian|DalianFreeTradeZoneSanshiliYongshengRdNo.12|Manufacturingandsellingbearingandmachines|100||
|Wafangdian|WafangdianBeigongjiStNo.1|Manufacturingandsellingbearingandmachines|100||

IXRiskRelatedtoFinancialInstruments
X.DisclosureofFairValue
XIRelatedPartiesRelationshipandTransactions
1Parentcompanyandultimatecontroller
|||||
|-|-|-|-|
|Registeredaddress|Businessnature|Registeredcapital|Shareholdingpercentage(%)|
|No.1NorthGongjiStreet,WafangdianCity,Dalian|Manufactureandsalesofbearingandotherequipments|413,793,100.00|60.61|

2Other relatedparties
Nameofrelatedparty Relatedpartyrelationship
Othercompaniescontrolledbythesameparent
DalianWazhouManufacturingEquipmentCo.,Ltd
companyandultimatecontrollingparty
Othercompaniescontrolledbythesameparent
WazhouSteelBallCompany
companyandultimatecontrollingparty
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport Othercompaniescontrolledbythesameparent WazhouExactForgeLtd.,
companyandultimatecontrollingparty
Othercompaniescontrolledbythesameparent WazhouGroupTurnplateBearingLtd
companyandultimatecontrollingparty
WazhouGroupExactTransmissionBearingCo., Othercompaniescontrolledbythesameparent Ltd companyandultimatecontrollingparty
WazhouGroupEquipmentTechnologyProjectCo., Othercompaniescontrolledbythesameparent Ltd. companyandultimatecontrollingparty
Othercompaniescontrolledbythesameparent WazhouGroupSpecialPrecisionBearingCo.,Ltd.
companyandultimatecontrollingparty
WazhouGroupNationalBearingsEngineering Othercompaniescontrolledbythesameparent ResearchCentreCo.,Ltd companyandultimatecontrollingparty
WafangdianTongdamanufactureCo.,Ltd Otherrelatedparty
DalianGONAWazhouAutoBearingsCo.,Ltd Otherrelatedparty
DalianWazhouJinzhouMachineryCo.,Ltd Otherrelatedparty
DalianWazhouFengyuanMachineryCo.,Ltd Otherrelatedparty
WazhouGroup(USA)BearingCO.,Ltd. Otherrelatedparty
3Related partytransactions
(1) Purchaseof goods
|||||||
|-|-|-|-|-|-|
|Relatedpartytype and company|Content|Amountinreportpeirod|Approvalamount|Morethantheapprovedamountornot|Amountinlastperiod|
|WazhouGroup|Purchaseof goods|29,500,397.79|0.00|Yes||
|DalianSKFWazhouBearingsCo.,Ltd.|Purchaseof goods|||No|91,479,064.50|
|WazhouSteel BallCompany|Purchaseof goods|2,725,471.71|6,500,000.00|No|3,096,656.30|
|WazhouExactForge Ltd.|Purchaseof goods|94,883,662.09|250,000,000.00|No|136,587,261.89|
|DalianWazhou ManufacturingEquipmentCo.,Ltd|Purchaseof goods|3,922,520.35|20,000,000.00|No|11,307,415.15|
|WazhouGroup Turnplate BearingLtd|Purchaseof goods|79,575,288.50|40,000,000.00|Yes|112,108,498.00|
|WazhouGroup ExactTransmissionBearing Co.,Ltd|Purchaseof goods|37,937,403.92|103,000,000.00|No|53,168,501.14|
|WazhouGroupEquipmentTechnologyProjectCo.,Ltd.|Purchaseof goods|15,673,365.23|45,000,000.00|No|15,432,733.33|
|WafangdianTongdamanufactureCo.,Ltd|Purchaseof goods|18,877,936.00|70,000,000.00|No||
|DalianGONAWazhouAutoBearingsCo.,Ltd|Purchaseof goods|20,401,779.48|50,000,000.00|No||
|DalianWazhouFengyuanMachineryCo.,Ltd|Purchaseof goods|43,801,272.14|160,000,000.00|No|71,125,192.00|
|DalianWazhouJinzhouMachineryCo.,Ltd|Purchaseof goods|55,427,499.53|145,000,000.00|No|68,905,658.17|

(2) Salesof goods
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport
|||||
|-|-|-|-|
|Relatedpartytypeandcompany|Content|Thisperiod|Last period|
|WazhouGroup|Salesof goods|524,942.00|622,270.14|
|DalianSKFWazhouBearingsCo.,Ltd.|Salesof goods||34,129,174.94|
|WazhouSteel BallCompany|Salesof goods|438,013.51|3,886,120.88|
|WazhouExactForge Ltd.|Salesof goods|88,452,666.21|179,230,758.96|
|DalianWazhou ManufacturingEquipmentCo.,Ltd|Salesof goods|761,089.22|661,955.32|
|WazhouGroup Turnplate BearingLtd|Salesof goods|395,923.38|386,515.20|
|WazhouGroup ExactTransmissionBearing Co.,Ltd|Salesof goods|8,200,007.98|13,147,922.82|
|WazhouGroupSpecialPrecisionBearingCo.,Ltd.|Salesof goods|1,596,963.99|1,973,843.00|
|DalianWazhouFengyuanMachineryCo.,Ltd|Salesof goods|||
|DalianWazhouJinzhouMachineryCo.,Ltd|Salesof goods|299,558.77|152,612.23|
|WafangdianTongdamanufactureCo.,Ltd|Salesof goods|250,351.68||
|WazhouGroup(USA)BearingCO.,Ltd.|Salesof goods|84,387,819.12|11,957,485.95|
|DalianSKFWazhouBearingsCo.,Ltd.|Provideingservice||1,925,926.98|
|WazhouSteel BallCompany|Provideingservice|776,046.02|501,943.65|
|WazhouGroup ExactTransmissionBearing Co.,Ltd|Provideingservice|577,433.61|1,349,653.11|
|WazhouGroupSpecialPrecisionBearingCo.,Ltd.|Provideingservice|172,678.01|249,363.99|
|WafangdianTongdamanufactureCo.,Ltd|Provideingservice|57,327.35||
|DalianWazhouJinzhouMachineryCo.,Ltd|Provideingservice|122,870.03|202,486.37|

4Assetsrentout
1)Assetsrentout
2)Assetsunderlease
|||||
|-|-|-|-|
|Lessor|Categoryofassetsrentin|Leasefeesinthereportpeirod|Leasefeesinthelastpeirod|
|WazhouGroup|land||146,400.00|
|WazhouGroup|house|4,550,000.00|6,238,750.00|
|WazhouGroup|machines|4,134,898.06|5,753,348.28|

 5Relatedpartydebtstructurereconstruction
|||
|-|-|
|Typeoftransaction|Amountinthereportpeirod|
|A/P|41,368.00|
|A/P|350,000.00|

WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport
|||
|-|-|
|A/P|100,000.00|
|A/P|600,000.00|
|A/P|200,000.00|
|A/P|50,000.00|
|A/P|60,000.00|
|A/P|350,000.00|
|A/P|50,000.00|
|A/P|750,000.00|

6.Balanceswithrelatedparties
(1)Accountsreceivableduefromrelatedparties
|||||
|-|-|-|-|
|Relatedparty|ClosingBalance|||
||BookBalance|Provision|BookBalance|
|WazhouGroup|6,903,361.61||6,903,361.61|
|WazhouGroupSpecialPrecisionBearingCo.,Ltd|9,576,689.37||9,399,082.68|
|WazhouGroup(USA)BearingCO.,Ltd.|71,409,669.52||12,344,182.91|
|WazhouGroupExactTransmissionBearingCo.,Ltd|104,803.24||104,803.24|
|WazhouExactForgeLtd.,|271,665.58||154,404.30|
|DalianWazhouFengyuanMachineryCo.,Ltd|12,295.63||12,295.63|

(2) Accountspayableduefromrelatedparties
|||
|-|-|
|Relatedparty|ClosingBalance|
|WazhouGroup|34,515,465.66|
|DalianWazhouManufacturingEquipmentCo.,Ltd|2,168,245.19|
|WazhouSteelBallCompany|3,933,648.74|
|WazhouExactForgeLtd.|53,837,085.92|
|WazhouGroupTurnplateBearingLtd|35,357,769.21|
|WazhouGroupExactTransmissionBearingCo.,Ltd|106,717,029.98|

WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport
|||
|-|-|
|DalianWazhouJinzhouMachineryCo.,Ltd|22,806,097.82|
|DalianWazhouFengyuanMachineryCo.,Ltd|19,328,832.51|
|WazhouGroupEquipmentTechnologyProjectCo.,Ltd.|13,574,802.39|
|WafangdianTongdamanufactureCo.,Ltd|21,712,169.31|
|DalianGONAWazhouAutoBearingsCo.,Ltd|24,281,374.04|
|WazhouGroup|34,452,223.53|
|DalianWazhouManufacturingEquipmentCo.,Ltd|286,088.45|
|WazhouGroupEquipmentTechnologyProjectCo.,Ltd.|952,000.00|

 7.Contingency
As atJune 30,2015,the Groupdoes nothaveany other contingencies.
XII.Share-BasedPayment
XIII.CommitmentandContingency
As atJune 30,2015,the Groupdoes nothaveany other significantcommitments.
XIV.EventsaftertheBalanceSheetDate
TheGroupdoesnothaveanyothersignificanteventsaftertheBalanceSheetDate.
XV.OtherSignificantEvents
1.Debtrestructuring
In this report peirod, the Company has signed the‘Debt RestructuringAgreement’ with the customers, throughcashreimbursementlessthanthedebt-equitycarryingvalue,andimplementedtherestructuring, the amounts of debt restructuring is RMB 3,500,000.00 4Yuan, which result in the debt restructuring lossesRMB138,947.37Yuan,andwererecognizedintonon-operatingexpenses.
In this report peirod, the Company has signed the‘Debt RestructuringAgreement’ with the creditors, through cash or bank notes reimbursement less than the debt-equity carrying value, and implemented the restructuring, the amounts of debt restructuring is RMB 74,211,204.75Yuan, which result in the debtrestructuringincomeRMB3,325,164.04Yuanandwererecognizedintonon-operatingrevenue.
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport XVI. Notes to theMain Items of theFinancialStatements of ParentCompany
1Accounts receivable
(1) Accounts receivable category
2015.06.30
Items Bookingbalance Provision Amount % Amount % Accountsreceivablewith individual significant
amountand identificationseparately bad debt
3,910,007.43 0.40% 3,910,007.43 100.00% provision
Accountsreceivableaccrued baddebt provisionby
1,077,467,990.4198.30% 47,119,713.43 4.70% portfolio
Accountsreceivablewith individual insignificant
amountand identificationseparately bad debt
14,393,660.23 1.30% 14,393,660.23 100.00% provision
100.00
Total 1,095,771,658.07 65,423,381.09
%
(Continued)
2014.12.31
Items Bookingbalance Provision Amount % Amount % Accountsreceivablewith individualsignificant
amountandidentification separately bad debt
3,910,007.43 3,910,007.43 100.00% provision
Accountsreceivableaccrued baddebt provision
1,153,457,709.1399.00% 47,135,177.04 4.00% by portfolio
Accountsreceivablewith individualinsignificant
amountandidentification separately bad debt 14,393,660.23 1.00% 14,393,660.23 100.00% provision
100.00
Total 1,171,761,376.79 65,438,844.70
%
1) Individually significant amounts of accounts receivable accrued the bad debt provision separately at the endof June 30,2015
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport Provision
Booking Proportion
Debtors name for bad Reasons forprovision balance (%)
debts
Baoding NorthChina A/R with over 5yearsMachine& Electronic
3,910,007.43 3,910,007.43 100.00%
aging,unlikelytobe EquipmentCo.,Ltd collected
Total
3,910,007.43 3,910,007.43 —
2) Accounts receivable accrued the bad debt provisions in the portfolio as accounting aging analysis method
ClosingBalance
|||
|-|-|
|Accountsreceivable|Provisionforbaddebts|
|894,007,586.49|8,940,075.86|
|132,344,903.10|6,617,245.16|
|33,085,335.59|6,617,067.12|
|49,921,577.80|24,960,788.90|
|1,109,359,402.98|47,135,177.04|

(2)Baddebtprovisionaccruedandwrite-off(withdraw)
The bad debt provision has been accrued in the amount 15,463.61 Yuan during the report period without anywrite-offorwithdrawal.
(3)Accountsreceivablewrittenoffincurrentperiod
Item Written-offAmount
Accountsreceivablewrittenoff 30,927.22
2Other receivables
2.Otherreceivables
(1)Thecategoryofotherreceivables
|||||
|-|-|-|-|
|ClosingBalance||||
|Bookingbalance||Provision||
|Amount|%|Amount|%|
|25,768,477.38|100.00%|1,269,642.75|5.91%|
|25,768,477.38|100.00%|1,269,642.75|5.91%|

WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport (Continued)
|||||
|-|-|-|-|
|OpeningBalance||||
|Bookingbalance||Provision||
|Amount|%|Amount|%|
|16,931,067.05|100.00%|1,269,642.75|11.00%|
|16,931,067.05|100.00%|1,269,642.75|11.00%|

 1) Other receivables accrued the bad debt provisions in the portfolio as accounting aging analysis method
ClosingBalance
|||
|-|-|
|Otherreceivables|Provisionforbaddebts|
|18,104,465.61|181,044.66|
|921,655.76|46,082.79|
|624,907.37|124,981.47|
|1,835,067.66|917,533.83|
|21,486,096.40|1,269,642.75|

(2)Otherreceivablescategorizedbynature
||
|-|
|ClosingBalance|
|25,768,477.38|
|25,768,477.38|

 3Long-term equityinvestments
(1)Categoryoflong-termequityinvestments
||||||
|-|-|-|-|-|
|ClosingBalance|||||
|ClosingBalance|Provision|BookValue|OpeningBalance|Provision|
|211,583,897.67||211,583,897.67|211,583,897.67||
|211,583,897.67||211,583,897.67|211,583,897.67||

(2)Investmentsintosubsidiaries
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport
||||||
|-|-|-|-|-|
|OpeningBalance|Increase|Decrease|ClosingBalance|Provisioncarriedcurrentperiod|
|17,337,259.95|||17,337,259.95||
|45,478,956.37|||45,478,956.37||
|148,767,681.35|||148,767,681.35||
|211,583,897.67|||211,583,897.67||

4Operating revenue andcost
||||
|-|-|-|
|This period|||
|Revenue|Cost|Revenue|
|1,105,704,985.20|1,013,477,311.71|1,445,719,557.96|
|102,017,182.39|99,888,620.17|197,741,808.32|
|1,207,722,167.59|1,113,365,931.88|1,643,461,366.28|

 5.Investmentincome
||
|-|
|This period|

 XVIISupplementaryInformationtotheFinancialStatements
1.Non-operatingprofitorloss
||
|-|
|Amount|
|717,043.38|
|2,497,040.93|
|3,186,216.67|
|19,933.10|

WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport
||
|-|
|602,664.82|
|5,817,569.26|

2.Returnonequityandearningspershare
|||
|-|-|
|Weightedaveragereturnonnetassets(%)||
||BasicEPS|
|-4.41%|-0.15|
|-4.84%|-0.16|

Differences inaccountinginformation under IAS anddomesticaccounting standard
1.Differencesinnetprofitandnet assetunderdomesticandinternationalaccountingstandards InRMBYuan
||||||
|-|-|-|-|-|
||Netprofitattributableto theshareholders ofthe listedcompany||Netasset attributabletotheshareholdersofthe listed company||
||Currentterm|Amountoflastterm|Endof term|Beginningofterm|
|OnChineseAccountingStandard|-59,587,254.16|-17,449,186.08|1,322,257,734.56|1,381,844,988.72|
|Itemsandamounts adjustedon IAS|||||
|Under InternationalAccountingStandard|-59,587,254.16|-17,449,186.08|1,322,257,734.56|1,381,844,988.72|

2. Differencesinnet profit and net asset under domesticandoverseas accountingstandards InRMBYuan
|||||||
|-|-|-|-|-|-|
||Netprofitattributableto theshareholders ofthe listedcompany||Netasset attributabletotheshareholdersofthe listed company|||
||Currentterm|Amountoflastterm|Endof term|Beginningofterm||
|OnChineseAccountingStandard|-59,587,254.16|-17,449,186.08|1,322,257,734.56|1,381,844,988.72||
|Accountsandamounts adjustedaccording to overseas accountingstandard||||||
|OnIAS|-59,587,254.16|-17,449,186.08|1,322,257,734.56||1,381,844,988.72|

Chapter X. List of reference documents
WafangdianBearingCo.,Ltd（WazhouB） 2015Mid-yearReport Listofreference documents
1.TheAccountingstatements whichis with the signatures andseals ofthe legalrepresentative, financecontroller and the director ofaccounting department ofthe Company.
2.Originaldocuments and noticesofthe Companydisclosedin newspapers designatedby the
SecuritySupervisory CommitteeofChina inreportperiod.