Wafangdian Bearing Company Limited 2014Annual Report Abstract Stockcode：200706 Stock ID:Wazhou B Announcement No.2015-14
Wafangdian Bearing Company Limited
2014 Annual Report Abstract
1. Important Notes
This abstract was derived from the annual report, the annual report issued on the Shenzhen Stock Exchange web or other web appointed by and CSRC; details please refer to the whole annual report.
Brief Information of the listed company
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||Secretary of the Board|Representative of StockA ffairs|
|Name|Sun Najuan|Su Shaoli|
||No. 1 Beigongji Street, Wafangdian|No. 1 Beigongji Street, Wafangdian|
|Correspondence address|||
||City, Liaoning Province, China.|City, Liaoning Province, China.|
|Consulting telephone|0411-39116369|0411-39116732|
|Fax|0411-39116738|0411-39116738|
|E-mail|zwz2308＠126.com|zwz2308＠126.com|

2.Main accounting date and shareholder change
（1）Main accounting data
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|-|-|-|-|-|-|-|
|||2013||%|2012||
||2014||||||
|||||After|||
|||Before adjustment|After adjustment||Before adjustment|After adjustment|
|||||adjustment|||
|Turnover(RMB)|3,007,578,581.96|3,079,780,183.34|3,079,780,183.34|-2.34%|3,092,563,172.35|3,092,563,172.35|
|Net profit attributable to|-103,902,948.89||2,021,789.87||||
|shareholders of the listed||2,021,789.87||-5,239.16%|42,278,508.87|42,278,508.87|
|company(Yuan)|||||||
|et profit attributable to the|||||||
|shareholders of the|||||||
|listed company after deducting|-190,819,385.15|-4,484,031.91|-4,484,031.91|4,155.53%|18,657,064.32|18,657,064.32|
|of|||||||
|non-recurring gain/loss(RMB)|||||||
|Net Cash flow generated by|70,472,166.86||70,234,137.22||||
|business operation||70,234,137.22||0.34%|130,556,742.20|130,556,742.20|
|(RMB)|||||||
|Basic earnings per|-0.26||0.01||||
|||0.01||-2,700.00%|0.11|0.11|
|share(Yuan/share)|||||||
|Diluted earnings per|-0.26||0.01||||
|||0.01||-2,700.00%|0.11|0.11|
|share(Yuan/share)|||||||

Wafangdian Bearing Company Limited 2014Annual Report Abstract
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|-|-|-|-|-|-|-|
|Net return on equity(%)|-7.18%|0.13%|0.13%|-7.31%|2.81%|2.81%|
|||2013||%|2012||
||2014|||After||Beforeadjustment|
|||Before adjustment|After adjustment||||
|||||adjustment|||
|Total Assets (RMB)|3,935,819,231.85|3,717,797,889.26|3,717,797,889.26|5.86%|3,618,360,177.55|3,618,360,177.55|
|Owner’s Equity Attributed to|1,381,844,988.72||1,504,966,435.50||||
|Shareholders of Listed||1,504,966,435.50||-8.18%|1,515,934,147.74|1,515,934,147.74|
|Company(RMB)|||||||

（2）Information on the top 10 shareholders
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|-|-|-|-|-|-|-|
|||2013||%|2012||
||2014||||||
|||||After|||
|||Before adjustment|After adjustment||Before adjustment|After adjustment|
|||||adjustment|||
|Turnover(RMB)|3,007,578,581.96|3,079,780,183.34|3,079,780,183.34|-2.34%|3,092,563,172.35|3,092,563,172.35|
|Net profit attributable to|-103,902,948.89||2,021,789.87||||
|shareholders of the listed||2,021,789.87||-5,239.16%|42,278,508.87|42,278,508.87|
|company(Yuan)|||||||
|et profit attributable to the|||||||
|shareholders of the|||||||
|listed company after deducting|-190,819,385.15|-4,484,031.91|-4,484,031.91|4,155.53%|18,657,064.32|18,657,064.32|
|of|||||||
|non-recurring gain/loss(RMB)|||||||
|Net Cash flow generated by|70,472,166.86||70,234,137.22||||
|business operation||70,234,137.22||0.34%|130,556,742.20|130,556,742.20|
|(RMB)|||||||
|Basic earnings per|-0.26||0.01||||
|||0.01||-2,700.00%|0.11|0.11|
|share(Yuan/share)|||||||
|Diluted earnings per|-0.26||0.01||||
|||0.01||-2,700.00%|0.11|0.11|
|share(Yuan/share)|||||||
|Net return on equity(%)|-7.18%|0.13%|0.13%|-7.31%|2.81%|2.81%|
|||2013||%|2012||
||2014|||After||Beforeadjustment|
|||Before adjustment|After adjustment||||
|||||adjustment|||
|Total Assets (RMB)|3,935,819,231.85|3,717,797,889.26|3,717,797,889.26|5.86%|3,618,360,177.55|3,618,360,177.55|
|Owner’s Equity Attributed to|1,381,844,988.72||1,504,966,435.50||||
|Shareholders of Listed||1,504,966,435.50||-8.18%|1,515,934,147.74|1,515,934,147.74|
|Company(RMB)|||||||

2.3 Relationship of the property right and controlling between the Company and actual controller:
Dalian MunicipalGovernment State-owned Assets
Supervising and Managing committee
2
Innovation Investment Dalian Equipment Manufacture Investment Zhong Cheng Company Limited
Company
Company Limited
Wafangdian Bearing Company Limited 2014Annual Report Abstract3、Discussion and analysis
At the end of 2014,the total assets is 3935.82 million Yuan,increased by5.86% compared with the year beginning,the net assets belong tocompany’s shareholders is 1381.84 million Yuan,decline8.18% to year beginning,total business income is 3007.58 million Yuan,decline2.34% to last period.total profit is -102.66 million Yuan, the net profit belong to parent companysharehoders’ is -103.09 millionYuan,。
4、Relevant items involved financial report
4.1 The explanation of the changes in accounting policies, accounting estimation and calculation method comparing with the latest annual report
At the beginning of the year of 2014, the Ministry of Finance of thePeople’s Republic of China announced on the file ofCaikuai[2014] No6,No7,No8, No10, No11,No14 and No16 that Accounting Standard No39-fair value measurement, Accounting Standard No30-presentation of financial statements (revised in 2014), Accounting Standard No9-employee benefit (revised in 2014), Accounting Standard No33-consolidated financial statements (revised in 2014), Accounting Standard No-40-joint arrangement , Accounting Standard No2-long-term equity investment (revised in 2014) and Accounting Standard No41-disclosure of interest in other entity shall be adopted by all entities who follow the Accounting Standards from the 1st July, 2014 onwards and shall be adopted earlier by encouraging the entity listed overseas. Meanwhile, the Ministry of Finance of thePeople’s Republic of China announced on the file ofCaikuai[2014]No23 that Accounting Standard No37-presentation of financial instrument (revised in 2014)(hereinafter referred to as “financial instruments presentation standards”) shall be followed for the year of 2014 and afterwards.
Having been approved by the 6th board meeting on 23rd April, 2015, 7 revised or amended Accounting Standards other than financial instruments presentation standard mentioned above started to be adopted since the 1st July, 2014, financial instruments standard is followed when preparing the financial statements for the year of 2014 and adjustment has been made in accordance with transitional regulation of relevant standards. The effect of adjustment to current period and prior period are described as follows
Explanation 1: prior to the year of 2014, the Group adopted cost method to account the equity investment in the acquiree who is not under common control of the Group or not significantly affected by the Group and the investment neither has quoted price in the active market, nor the fair value of the investment can be measured reliably. According to the revised Accounting Standard No2--long-term equity investment, Accounting Standard No22-financial instruments recognition and measurement shall be applied to equity investment. The Group made retrospective adjustment and the comparative figures in the financial statements for the year of 2014 have been restated, long-term equity investment for the year of 2013 is
Wafangdian Bearing Company Limited 2014Annual Report Abstract decreased by 2,000,000.00Yuan, increase the available for sale financial assets by 2,000,000.00Yuan. No effect on total of assets.
Explanation 2: according to Accounting Standard No30-presentation of financial statements (revised in 2014) and relevant interpretation, government grant not carried over shall be disclosed in the deferred income, it has been restated in the financial statements for the year of 2014, other non-current liability in the year of 2013 is decreased by 52,433,617.52Yuan, and deferred income is increased by52,433,617.52Yuan. No effect on total of assets.
4.2 The content of significant errors, the changed amount, the reason and the effect
□applicable √Not applicable
4.3 The explanation of the changes in the consolidated scope comparing with the latest annual report (1) Business combination without the same controloccurred in current period
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|-|-|-|-|-|
|Acquiree|Share equityacquisition date|Cost ofacquisition|Percentage（%）|Acquisition method|
|Wazhou Precision ofSpherical RollerBearings(Wafangdian)Co.,Ltd|2014/11/30|45,000,000.00|51%|Processing in steps ofbusiness combinationwithout the same control|

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|-|-|-|-|
|Acquisition date|Basis of confirmationof Acquisition date|Revenue of acquireefrom acquisition dateto end of year|Net profits of acquiree fromacquisition date to end of year|
|2014/11/30|satisfied with the rulesof “policy of shareequity transfer”|13,188,641.89|-400,771.03|

Cost of consolidation and Goodwill
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|-|-|
|Item|Wazhou Precision of Spherical RollerBearings(Wafangdian)Co., Ltd|
|Cash|45,000,000.00|
|Fair value of the share equity held before acquisition atacquisition date|114,380,606.51|
|Sum of cost of consolidation|159,380,606.51|
|Less: fair value of recognizable net assets acquired|233,429,809.21|
|Amount of cost of consolidation less-than fair value ofrecognizable net assets acquired|74,049,202.70|

Recognizable assets/liabilities of acquiree at acquisition date
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|-|-|-|
|Item|Wazhou Precision of Spherical Roller Bearings(Wafangdian)Co., Ltd||
||Fair value at acquisition date|Book value at acquisition date|
|Assets:|||
|Cash|322,269.90|322,269.90|
|Accounts receivable|111,077,204.45|111,077,204.45|

|||||||
|-|-|-|-|-|-|
|Acquiree|Book value ofthe shareequity held|Fair value ofthe share|Profit and lossoccurred whenrecalculatinWga ftahnged ifaani Bre a|Main method andhypothesis toringc oCnomfipramny Ltihmeite fda 2i0r1 4A|Amount ofinvestment profitstransferrednnrueagl Raerpdoirtn Agb sttora cot thercomprehensiveprofits of shareequity held beforeacquisition date|
||before atacquisitiondate|equity heldbefore atacquisition date|value of the shareequity held beforeacquisition date|value of the shareequity held beforeacquisition date||
|WazhouPrecision ofSphericalRollerBearings(Wafangdian)Co., Ltd|103,767,681.35|114,380,606.51|10,612,925.16|According toassessment report|3,114,497.89|

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|-|-|-|
|Inventories|10,193,617.36|10,193,617.36|
|Fixed assets|26,269,950.15|21,725,223.89|
|Intangible assets|5,416,222.83|4,764,691.59|
|Construction in process|121,743,922.34|119,248,784.83|
|Liabilities:|||
|Accounts payable|50,179,054.08|50,179,054.08|
|Net assets|233,113,797.50|225,738,414.20|

 4.4 Opinions presented by Board meeting and supervisor meeting on “un-standard audit report”□applicable √Not applicable