Wafangdian Bearing Co.,Ltd（WazhouB）
Wafangdian Bearing Company Limited
2018 Midyear Report
2018-21
August 17, 2018
Wafangdian Bearing Co.,Ltd（WazhouB）
2018 Midyear Financial report
（unaudited）
From Jan. 1, 2018 to Jun 30, 2018
Catalogue page Midyear financial statement
2-4 Balance sheet
Income statement
4-5 Cash flow statement
5-7 The changes ofowner’s equity
8-12 Annotations of the midyear incorporate financial statements
13-58 Other financial data
Abnormal profits and losses 58
Wafangdian Bearing Co.,Ltd（WazhouB）
Financial Report
I. Financial Statement
1. Consolidated Balance Sheet.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing Balance|Opening Balance|
|Current assets ：|||
|Monetary fund|185,921,246.44|82,860,774.83|
|Financial assets held-for-trading|||
|Bills receivable|91,540,918.33|209,923,835.91|
|Account receivable|1,169,506,871.73|1,128,338,013.69|
|Account paid in advance|43,335,666.85|39,863,576.53|
|Interest receivable|||
|Dividend reciivable|||
|Other receivables|25,480,796.33|21,895,381.98|
|Inventory|712,471,443.43|693,836,428.55|
|Non-current assets due within 1 year|||
|Other current assets|751,154.78|5,386,473.92|
|Total current assets|2,229,008,097.89|2,182,104,485.41|
|Non-current assets|||
|Financial assets available-for-sale|2,567,033.30|2,000,000.00|
|Investments held-to-maturity|||
|Long-term receivable|||
|Long-term equity investment|||
|Investment property|132,182,083.40|136,874,108.05|
|Fixed assets|665,943,050.67|710,247,969.72|
|Construction in progress|84,338,838.27|82,689,318.94|
|Construction materials|||
|Fixed assets disposal|||
|Biological assets|||
|Gas and petrol assets|||
|Intangible assets|87,309,293.26|87,530,122.26|
|Development expenditure|||
|Goodwill|||
|Long-term prepaid expense|638,384.96|700,228.04|
|Deferred tax assets|11,625,939.19|11,625,939.19|
|Other non-current assets|||
|Total non-current assets|984,604,623.05|1,031,667,686.20|
|Total assets|3,213,612,720.94|3,213,772,171.61|
|Current liabilities|||
|Short-term loan|615,000,000.00|648,000,000.00|
|Note payable|364,974,289.06|299,483,279.00|
|Accounts payable|679,399,393.32|630,832,287.45|
|Accounts received in advance|22,508,002.18|31,634,532.72|
|Commission charge payable|||
|Accrued payroll|15,886,068.57|16,660,148.64|
|Tax payable|5,292,297.13|13,849,972.32|
|Interest payable|157,000.00|1,190,100.00|
|Dividends payable|||
|Other payables|78,991,210.94|92,123,093.92|
|Non-current liabilities due within I year||50,000,000.00|
|Other current liabilities|3,967,022.53|3,967,022.53|
|Total current liabilities|1,786,175,283.73|1,787,740,436.58|
|Non-current liabilities|||
|Long-term loan|||
|Debenture payable|||
|Long-term payables|1,597,305.72|1,597,305.72|

Wafangdian Bearing Co.,Ltd（WazhouB）
||||
|-|-|-|
|Special payables|296,698.98|296,698.98|
|Contingent liabilities|||
|Deferred income|35,846,493.62|37,754,771.56|
|Deferred tax liabilities|888,084.06|888,084.06|
|Other non-current liabilities|||
|Total non-current liabilities|38,628,582.38|40,536,860.32|
|Total liabilities|1,824,803,866.11|1,828,277,296.90|
|Owner’s equity (shareholders’ equity)|||
|Capital stock|402,600,000.00|402,600,000.00|
|Capital public reserves|485,691,050.47|485,691,050.47|
|Less: treasury share|||
|Surplus reserve|134,278,527.26|134,278,527.26|
|Undistributed profit|366,239,277.10|362,925,296.98|
|Difference of foreign currency translation|||
|Equity attributable to parent company|1,388,808,854.83|1,385,494,874.71|
|Minority interest|||
|Total owner’s equity|1,388,808,854.83|1,385,494,874.71|
|Total owner’s equity and liabilities|3,213,612,720.94|3,213,772,171.61|

 Chairman: Meng Wei General Accountant : Sun Najuan Accounting charger: Sun Najuan
2. Balance Sheet of Parent Company
Unit: RMB Yuan
||||
|-|-|-|
|Item|Opening Balance|Closing Balance|
|Current assets ：|||
|Monetary fund|181,513,599.84|78,901,032.57|
|Financial assets held-for-trading|||
|Bills receivable|84,603,506.93|203,511,631.58|
|Account receivable|1,155,178,274.15|1,113,118,255.50|
|Account paid in advance|39,959,944.37|37,510,877.11|
|Interest receivable|||
|Dividend receivable|||
|Other receivables|24,464,781.40|20,605,278.47|
|Inventory|638,697,620.68|622,177,633.83|
|Non-current assets due within 1 year|||
|Other current assets|667,466.88|4,067,326.65|
|Total current assets|2,125,085,194.25|2,079,892,035.71|
|Non-current assets|||
|Financial assets available-for-sale|2,567,033.30|2,000,000.00|
|Investments held-to-maturity|||
|Long-term receivable|||
|Long-term equity investment|211,583,897.67|211,583,897.67|
|Investment property|115,693,914.39|119,890,581.55|
|Fixed assets|455,157,838.76|490,076,503.07|
|Construction in progress|83,579,490.38|82,374,150.54|
|Construction materials|||
|Fixed assets disposal|||
|Biological assets|||
|Gas and petrol assets|||
|Intangible assets|68,922,814.86|68,788,824.54|
|Development expenditure|||
|Goodwill|||
|Long-term prepaid expense|419,616.13|453,531.31|
|Deferred tax assets|10,350,000.00|10,350,000.00|
|Other non-current assets|||
|Total non-current assets|948,274,605.49|985,517,488.68|

Wafangdian Bearing Co.,Ltd（WazhouB）
||||
|-|-|-|
|Total assets|3,073,359,799.74|3,065,409,524.39|
|Current liabilities|||
|Short-term loan|615,000,000.00|648,000,000.00|
|Note payable|364,974,289.06|299,483,279.00|
|Accounts payable|560,069,736.52|511,083,367.33|
|Accounts received in advance|24,138,755.36|31,518,509.16|
|Accrued payroll|9,130,569.50|9,803,431.58|
|Tax payable|2,267,810.54|10,821,733.56|
|Interest payable|157,000.00|1,190,100.00|
|Dividends payable|||
|Other payables|40,540,079.69|52,910,305.81|
|Non-current liabilities due within I year||50,000,000.00|
|Other current liabilities|3,869,474.53|3,869,474.53|
|Total current liabilities|1,620,147,715.20|1,618,680,200.97|
|Non-current liabilities|||
|Long-term loan|||
|Debenture payable|||
|Long-term payables|||
|Special payables|296,698.98|296,698.98|
|Contingent liabilities|||
|Deferred income|31,651,929.62|33,560,207.56|
|Deferred tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|31,948,628.60|33,856,906.54|
|Total liabilities|1,652,096,343.80|1,652,537,107.51|
|Owner’s equity (shareholders’ equity)|||
|Capital stock|402,600,000.00|402,600,000.00|
|Capital public reserves|485,678,443.26|485,678,443.26|
|Less: treasury share|||
|Surplus reserve|134,278,527.26|134,278,527.26|
|Undistributed profit|398,706,485.42|390,315,446.36|
|Total owner’s equity|1,421,263,455.94|1,412,872,416.88|
|Total owner’s equity and liabilities|3,073,359,799.74|3,065,409,524.39|

 3. Consolidated Income Sheet.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Account for the current period|Account for the prior period|
|1.Total operating income|1,074,867,981.68|1,135,500,575.33|
|Including: Operating revenue|1,074,867,981.68|1,135,500,575.33|
|Interest income|||
|Handling charge and commission income|||
|2.Total operating cost|1,077,193,585.45|1,137,410,071.24|
|Including: Operating cost|939,746,571.13|1,004,195,641.99|
|Interest expenses|||
|Handling charge and commission income|||
|Tax & surcharges for main operations|8,592,102.92|9,832,448.15|
|Selling expenses|70,739,571.63|76,020,179.92|
|Administrative expense|34,075,703.49|31,245,721.82|
|Financial expense|24,052,423.13|16,016,268.75|
|Loss of impairment of assets|-12,786.85|99,810.61|
|Add: Gains of assets sale (loss with"-")|243,495.82|7,398.46|
|Other income(loss with "-")|2,155,428.15|2,438,777.94|
|3.Operating profit (loss with"-")|73,320.20|536,680.49|
|Add: Non-operating revenue|3,147,204.28|2,269,265.97|
|Including:income on disposal of non-current assets|||

Wafangdian Bearing Co.,Ltd（WazhouB）
||||
|-|-|-|
|Less: Non-operating cost|185,971.17|172,310.91|
|Including: loss on disposal of non-current assets|||
|4.Total profit(loss with"-")|3,034,553.31|2,633,635.55|
|Less: Income tax expenses|-279,426.81||
|5. Net profit(Loss with"-")|3,313,980.12|2,633,635.55|
|Net profit attributable to shareholders of parent company|3,313,980.12|2,633,635.55|
|Minority interests|||
|6. Other comprehensive returns|||
|7. Total comprehensive returns|3,313,980.12|2,633,635.55|
|Total comprehensive returns available for parent company|3,313,980.12|2,633,635.55|
|Total comprehensive returns available for minority|||
|shareholders|||
|6.Earnings per share|||
|(1) Basic earnings per share|0.008|0.007|
|(2) Diluted earnings per share|0.008|0.007|

 Chairman: Meng Wei General Accountant : Sun Najuan Accounting charger: Sun Najuan
4. Income Sheet of Parent Company.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Account for the current period|Account for the prior period|
|1.Total operating income|1,055,959,948.67|1,121,747,641.74|
|Less:Operating cost|929,170,023.73|999,817,155.16|
|Tax & surcharges for main operations|7,127,550.36|8,636,001.96|
|Selling expenses|69,335,868.71|74,810,685.74|
|Administrative expense|22,927,138.05|18,388,929.30|
|Financial expense|18,377,173.41|16,060,266.15|
|Loss of impairment of assets|-12,786.85|99,810.61|
|Add: Gains of assets sale (loss with"-")|243,495.82|36,648.46|
|Other income(loss with "-")|1,926,877.94|2,423,777.94|
|2.Operating profit (loss with"-")|11,205,355.02|6,395,219.22|
|Add: Non-operating revenue|2,761,588.64|1,918,805.14|
|Less: Non-operating cost|5,855,331.41|182,450.85|
|Including: loss on disposal of non-current assets|||
|3.Total profit(loss with"-")|8,111,612.25|8,131,573.51|
|Less: Income tax expenses|-279,426.81||
|4. Net profit(Loss with"-")|8,391,039.06|8,131,573.51|
|Net profit attributable to shareholders of parent company|8,391,039.06|8,131,573.51|
|Minority interests|||
|5. Other comprehensive returns|||
|6. Total comprehensive returns|8,391,039.06|8,131,573.51|
|7.Earnings per share|||
|(1) Basic earnings per share|0.021|0.020|
|(2) Diluted earnings per share|0.021|0.020|

 5. Consolidated Cash Flow Statement.
Unit: RMB yuan
||||
|-|-|-|
|Item|Account for the current period|Account for the prior period|
|1.Cash from operating activities|||
|Cash received from sale of goods or Provideing of services|473,793,646.35|512,413,730.92|
|Refund of taxes and fares|||
|Other cash received relating to operating activities|914,421.41|1,373,744.39|
|Sub-total of cash inflows|474,708,067.76|513,787,475.31|
|Cash paid for goods and services|214,448,371.39|371,323,998.46|
|Cash paid to or on behalf of the employees|119,948,971.31|119,257,067.02|

Wafangdian Bearing Co.,Ltd（WazhouB）
||||
|-|-|-|
|Tax payments|40,270,692.83|47,104,172.58|
|Other cash paid relating to operating activities|55,833,437.00|52,708,495.81|
|Sub-total of cash outflows|430,501,472.53|590,393,733.87|
|Net cash flows from operating activities|44,206,595.23|-76,606,258.56|
|2.Cash flows from investing activities|||
|Cash received from return of investment|||
|Cash received from investment incomes|||
|Net cash received from disposal of fixed assets, intangible|1,251,120.00|4,885,900.00|
|assets and other long-term assets|||
|Proceeds from sale of subsidiaries and other operating|||
|units|||
|Other cash received relating to investing activities|||
|Sub-total of cash inflows|1,251,120.00|4,885,900.00|
|Cash paid to acquire fixed assets, intangible assets and|830,419.50|6,335,477.77|
|other long-term assets|||
|Cash paid to acquire investment|||
|Net cash used in acquiring subsidiaries and other operating|||
|units|||
|Other cash paid relating to investing activities|||
|Sub-total of cash outflows|830,419.50|6,335,477.77|
|Net cash flows from investment activities|420,700.50|-1,449,577.77|
|3.Cash flows from financing activities|||
|Cash received from absorbing investment|||
|Including: Cash received from increase in minority interest|||
|Proceeds from borrowings|90,000,000.00|223,000,000.00|
|Other proceeds relating to financing activities|328,905,975.40|321,721,729.99|
|Sub-total of cash inflows|418,905,975.40|544,721,729.99|
|Repayment of borrowings|182,064,872.18|208,000,000.00|
|Distribution of dividends or profits & interest expenses|15,666,321.40|15,240,108.89|
|Including: dividends or profit paid to minority interest|||
|Cash paid for other financing activities|248,898,190.83|286,551,613.33|
|Sub-total of cash outflows|446,629,384.41|509,791,722.22|
|Net cash flows from financing activities|-27,723,409.01|34,930,007.77|
|4. Effects of foreign exchange rate changes on cash|-118,504.41|-491,746.17|
|5.Net increases in cash and cash equivalents|16,785,382.31|-43,617,574.73|
|Add: cash and cash equivalent, at the beginning of year|58,043,497.54|142,233,376.52|
|6.Cash and cash equivalent at the end of the year|74,828,879.85|98,615,801.79|

 6. Cash Flow Statement Of Parent Company.
Unit: RMB yuan
||||
|-|-|-|
|Item|Account for the current period|Account for the prior period|
|1.Cash from operating activities|||
|Cash received from sale of goods or Providing of services|467,167,711.85|505,013,167.86|
|Refund of taxes and fares|||
|Other cash received relating to operating activities|859,015.98|1,036,362.56|
|Sub-total of cash inflows|468,026,727.83|506,049,530.42|
|Cash paid for goods and services|242,795,410.65|386,834,924.59|
|Cash paid to or on behalf of the employees|95,982,327.94|93,936,635.19|
|Tax payments|34,029,224.90|39,398,824.49|
|Other cash paid relating to operating activities|51,488,741.86|48,664,314.64|
|Sub-total of cash outflows|424,295,705.35|568,834,698.91|
|Net cash flows from operating activities|43,731,022.48|-62,785,168.49|
|2.Cash flows from investing activities|||
|Cash received from return of investment|||
|Cash received from investment incomes|||
|Net cash received from disposal of fixed assets, intangible|1,251,120.00|4,876,900.00|

Wafangdian Bearing Co.,Ltd（WazhouB）
||||
|-|-|-|
|assets and other long-term assets|||
|Proceeds from sale of subsidiaries and other operating units|||
|Other cash received relating to investing activities|||
|Sub-total of cash inflows|1,251,120.00|4,876,900.00|
|Cash paid to acquire fixed assets, intangible assets and other|803,269.50|6,308,049.77|
|long-term assets|||
|Cash paid to acquire investment|||
|Net cash used in acquiring subsidiaries and other operating|||
|units|||
|Other cash paid relating to investing activities|||
|Sub-total of cash outflows|803,269.50|6,308,049.77|
|Net cash flows from investment activities|447,850.50|-1,431,149.77|
|3.Cash flows from financing activities|||
|Cash received from absorbing investment|||
|Including: Cash received from increase in minority interest|||
|Proceeds from borrowings|90,000,000.00|223,000,000.00|
|Other proceeds relating to financing activities|328,905,975.40|321,721,729.99|
|Sub-total of cash inflows|418,905,975.40|544,721,729.99|
|Repayment of borrowings|182,064,872.18|208,000,000.00|
|Distribution of dividends or profits & interest expenses|15,665,802.99|15,237,696.69|
|Including: dividends or profit paid to minority interest|||
|Cash paid for other financing activities|248,898,190.83|286,551,613.33|
|Sub-total of cash outflows|446,628,866.00|509,789,310.02|
|Net cash flows from financing activities|-27,722,890.60|34,932,419.97|
|4. Effects of foreign exchange rate changes on cash|-118,504.41|-491,746.17|
|5.Net increases in cash and cash equivalents|16,337,477.97|-29,775,644.46|
|Add: cash and cash equivalent, at the beginning of year|54,083,755.28|118,675,591.71|
|6.Cash and cash equivalent at the end of the year|70,421,233.25|88,899,947.25|

Wafangdian Bearing Co.,Ltd（WazhouB） 2016 Mid-year Report 7. Consolidated Sheet Of Changes InShareholder’s Equity
Unit: RMB Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Amount in current period|||||||||
||Owner’s equity attributable to parent company|||||||Minority||
|Item||||||||||
||Capital|Capital public|less：treasure||General provision|||shareholders’|Owner’s equity|
|||||Surplus public reserves||Undistributed profits|Others|||
||stock|reserves|stock||for risk|||equity||
||402,600,000.00|485,691,050.47||134,278,527.26||362,925,296.98|||1,385,494,874.71|
|1.Balance at the end of last year||||||||||
|Add: changes in accounting||||||||||
|policies||||||||||
|Changes in previous errors||||||||||
|Others||||||||||
|2.Balance at the beginning of|402,600,000.00|485,691,050.47||134,278,527.26||362,925,296.98|||1,385,494,874.71|
|this year||||||||||
|3. The changes in this year||||||3,313,980.12|||3,313,980.12|
|（decrease with“-”）||||||||||
|（1）Total of comprehensive||||||3,313,980.12|||3,313,980.12|
|income||||||||||
|（2）Capital contribution and||||||||||
|reduction||||||||||
|1）Ordinary share||||||||||
|2）Capital contributed by other||||||||||
|equity instrument holders||||||||||
|3）Share-based payments||||||||||
|charged to equity||||||||||
|4）Others||||||||||
|(4）Profits distribution||||||||||
|1)Provision for surplus public||||||||||
|reserves||||||||||
|2)provision for general risks||||||||||
|3)distribution for||||||||||
|owner(shareholders)||||||||||
|4)others||||||||||
|(5 ） interior transference of||||||||||
|owner’s equity||||||||||
|1)capital (capital||||||||||

Wafangdian Bearing Co.,Ltd（WazhouB） 2016 Mid-year Report
|||||||
|-|-|-|-|-|-|
|stock)transferred by the capita|l|||||
|public reserves||||||
|2)capital (capita|ls|||||
|stock)transferred by the surplu||||||
|public reserves||||||
|3)loss offset by the surplu|s|||||
|public reserves||||||
|4)others||||||
|4. Balance at the end of th|e 402,600,000.00|485,691,050.47|134,278,527.26|366,239,277.10|1,388,808,854.83|
|current period||||||

Unit: RMB yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount in previous period||||||||
||Owner’s equity attributable to parent company||||||Minority||
|Item|Capital|Capital public|less：treasure||General provision||shareholders’|Owner’s equity|
|||||Surplus public reserves||Undistributed profits|||
||stock|reserves|stock||for risk||equity||
|1.Balance at the end of last|402,600,000.00|485,691,050.47||131,442,909.11||359,603,965.97||1,379,337,925.55|
|year|||||||||
|Add: changes in accounting|||||||||
|policies|||||||||
|Changes in previous errors|||||||||
|Others|||||||||
|2.Balance at the beginning of|402,600,000.00|485,691,050.47||131,442,909.11||359,603,965.97||1,379,337,925.55|
|this year|||||||||
|3. The changes in this year||||2,835,618.15||3,321,331.01||6,156,949.16|
|（decrease with“-”）|||||||||
|（1）Total of comprehensive||||||10,182,949.16||10,182,949.16|
|income|||||||||
|（2）Capital contribution and|||||||||
|reduction|||||||||
|1）Ordinary share|||||||||
|2）Capital contributed by other|||||||||
|equity instrument holders|||||||||
|3）Share-based payments|||||||||
|charged to equity|||||||||
|4）Others|||||||||
|(4）Profits distribution||||2,835,618.15||-6,861,618.15||-4,026,000.00|

Wafangdian Bearing Co.,Ltd（WazhouB） 2016 Mid-year Report
|||||||
|-|-|-|-|-|-|
|1)Provision for surplus public|||2,835,618.15|-2,835,618.15||
|reserves||||||
|2)provision for general risks||||||
|3)distribution for||||||
|owner(shareholders)||||||
|4)others||||||
|(5）interior transference of||||||
|owner’s equity||||||
|1)capital (capital||||||
|stock)transferred by the capital||||||
|public reserves||||||
|2)capital (capital||||||
|stock)transferred by the surplus||||||
|public reserves||||||
|3)loss offset by the surplus||||||
|public reserves||||||
|4)others||||||
|4. Balance at the end of the|402,600,000.00|485,691,050.47|134,278,527.26|362,925,296.98|1,385,494,874.71|
|current period||||||

8. Sheet Of Changes InShareholder’s Equity Of Parent Compamy.
Unit: RMB yuan
||||||||
|-|-|-|-|-|-|-|
||Amount in current period||||||
|Item||Capital public||Surplus public reserves|||
||Capital stock||less：treasure stock||Undistributed profits|Owner’s equity|
|||reserves|||||
|1.Balance at the end of last year|402,600,000.00|485,678,443.26||134,278,527.26|390,315,446.36|1,412,872,416.88|
|Add: changes in accounting|||||||
|policies|||||||
|Changes in previous errors|||||||
|Others|||||||
|2.Balance at the beginning of|402,600,000.00|485,678,443.26||134,278,527.26|390,315,446.36|1,412,872,416.88|
|this year|||||||
|3. The changes in this year|||||8,391,039.06|8,391,039.06|
|（decrease with“-”）|||||||
|（1）Total of comprehensive|||||8,391,039.06|8,391,039.06|
|income|||||||
|（2）Capital contribution and|||||||
|reduction|||||||

Wafangdian Bearing Co.,Ltd（WazhouB） 2016 Mid-year Report
|||||||
|-|-|-|-|-|-|
|1）Ordinary share||||||
|2）Capital contributed by other||||||
|equity instrument holders||||||
|3）Share-based payments||||||
|charged to equity||||||
|4）Others||||||
|(4）Profits distribution||||||
|1)Provision for surplus public||||||
|reserves||||||
|2)provision for general risks||||||
|3)distribution for||||||
|owner(shareholders)||||||
|4)others||||||
|(5 ） interior transference of||||||
|owner’s equity||||||
|1)capital (capital||||||
|stock)transferred by the capital||||||
|public reserves||||||
|2)capital (capital||||||
|stock)transferred by the surplus||||||
|public reserves||||||
|3)loss offset by the surplus||||||
|public reserves||||||
|4)others||||||
|4. Balance at the end of the|402,600,000.00|485,678,443.26|134,278,527.26|398,706,485.42|1,421,263,455.94|
|current period||||||

Unit: RMB yuan
||||||||
|-|-|-|-|-|-|-|
||Amount in previous period||||||
|Item|Capital stock|Capital public reserves|l ess：treasure stock|Surplus public reserves|Undistributed profits|Owner’s equity|
|1.Balance at the end of lastyear|402,600,000.00|485,678,443.26||131,442,909.11|368,820,883.02|1,388,542,235.39|
|Add: changes in accountingpolicies|||||||
|Changes in previous errors|||||||
|Others|||||||
|2.Balance at the beginning ofthis year|402,600,000.00|485,678,443.26||131,442,909.11|368,820,883.02|1,388,542,235.39|

Wafangdian Bearing Co.,Ltd（WazhouB） 2016 Mid-year Report
|||||||
|-|-|-|-|-|-|
|3. The changes in this year|||2,835,618.15|21,494,563.34|24,330,181.49|
|（decrease with“-”）||||||
|（1）Total of comprehensive||||28,356,181.49|28,356,181.49|
|income||||||
|（2）Capital contribution and||||||
|reduction||||||
|1）Ordinary share||||||
|2）Capital contributed by other||||||
|equity instrument holders||||||
|3）Share-based payments||||||
|charged to equity||||||
|4）Others||||||
|(4）Profits distribution|||2,835,618.15|-6,861,618.15|-4,026,000.00|
|1)Provision for surplus public|||2,835,618.15|-2,835,618.15||
|reserves||||||
|2)provision for general risks||||-4,026,000.00|-4,026,000.00|
|3)distribution for||||||
|owner(shareholders)||||||
|4)others||||||
|(5 ）interior transference of||||||
|owner’s equity||||||
|1)capital (capital||||||
|stock)transferred by the capital||||||
|public reserves||||||
|2)capital (capital||||||
|stock)transferred by the surplus||||||
|public reserves||||||
|3)loss offset by the surplus||||||
|public reserves||||||
|4)others||||||
|4. Balance at the end of the|402,600,000.00|485,678,443.26|134,278,527.26|390,315,446.36|1,412,872,416.88|
|current period||||||

Wafangdian Bearing Co.,Ltd（WazhouB）
II. General information
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 and ultimate holding company is Wafangdian Bearing Group Company Limited (“Wazhou Group”).
TheCompany’s B shares have been listed on the Shenzhen Stock Exchange since 19February, 1997.
The parent company is Wazhou Group. General shareholders meeting is thecompany’s authority and have the resolution power overcompany’s business policy, financing, investment and profit appropriation etc.significant events in accordance with relevant law. Board of directors is responsible for general meeting and has the power over thecompany’s decision making. Management is in charge of implementation of resolution made by general meeting and board meeting and is responsible for operation management. The company has the following functional departments including: procurement department, portfolio investment department, operating department, HR, marketing department, manufacturing and construction department, quality control department, financial department and logistic department. Wholly owned subsidiaries include Wazhou Liaoyang Bearing Manufacturing Co., Ltd(“Liaoyang Bearing”), Dalian Wazhou Precision Electric Motor Car Bearing (“DalianElectrical Motor”),and Wazhou Precision of Spherical Roller Bearings(Wafangdian)Co., Ltd(“Spherical Bearings”).
The addresses of the registered office and principal place of business of the Company are No.1, Phrase 1, Gongji Street, Wafangdian North, Liaoning Province, and the PRC.Legal representative is Meng Wei.
The Company is principally engaged in the manufacturing and sale of bearing, bearing spare parts, engineering equipment, automobile spare parts and relating products, bearing repair, maintenance and technology service etc and also in renting mechanical equipment and estate, inspection of bearings, mechanical equipment, measuring instruments and meters. III. Basis for the preparation of financial statements
1 Basis for the preparation of financial statements
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 preparation of consolidated financialstatements’.
IV. Significant accounting policies, accounting estimates and method for preparation of consolidated financial statements
1 Complying with Accounting Standard for Business Enterprise
The financial statements are prepared by the Group according to the requirements of Accounting Standard for Business Enterprise, and reflect the relative information for the financial position, operating performance, cash flow of the Group truly
and fully.
Wafangdian Bearing Co.,Ltd（WazhouB）
2 Accounting period
The Group adopts the Gregorian calendar year as accounting period, i.e. from Jan 1 to Dec 31.
3.Operating cycle
Normal operating cycle refers to the duration from purchasing the assets for manufactuing up to cash or cash equivelant realisation. The group sets twelve months for one operating cycle and as the liquidity criterion for assets and liability.
4 Funcitonal currency
The Group adopts RMB as functional currency.
5 Recording basis and pricing principle
The accrual basis shall be adopted for accounting treatment to follow the historical cost method, except that the financial assets held for trading and sale are measured at fair value.
6 Business 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 and combined 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. If the capital surplus is not sufficient to be offset, the retained earnings shall be adjusted. For a business combination not under same control, the 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 as current profit or loss.
7 Method of preparation of consolidated financial statements
(1) Recognition principle of scope of consolidation
Scope of consolidated financial statements should include all subsidiaries of the parent and the special purpose entities. (2) Accounting method of consolidated financial statements
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 balance sheet within equity.
Wafangdian Bearing Co.,Ltd（WazhouB）
Where there are inconsistent accounting policies or accounting period, when preparing the consolidated financial statements, the Group shall adjust thesubsidiaries’ financial statements in accordance with theGroup’s accounting policies 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 net assets at the 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 of the beginning of the combination period according to their original book value.
8 Cash and cash equivalent
The cash listed on the cash flow statements of the Group refers to cash on hand and bank deposit. The cash equivalents refer to short-term (normally with original maturities of three months or less) and liquid investments which are readily convertible to known amounts of cash and subject to an insignificant risk of changes in value.
9 Translation of foreign currency
(1) Foreign currency transaction
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 of foreign currency financial statements
The asset and liability items in the foreign currency balance sheet should be translated at a spot exchange rate at the balance sheet date. Among theower’s equity items except “undistributed profit”, others should be translated at the spot exchange rate when they are incurred. The income and expense should be translated at spot exchange rate when the transaction incurs. Translation difference of foreign currency financial statements should be presented separately under 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 rate are presented separately in the cash flow statement.
Wafangdian Bearing Co.,Ltd（WazhouB）
10 Financial assets and financial liabilities
(1) Financial assets
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 classification of its financial assets at initial recognition.
a)Financial assets at fair value through profit or 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. Derivatives are also categorised as held for trading unless they are designated as hedges. Assets in this category are classified as current assets if expected to be settled within 12 months; otherwise, they are classified as non-current.
b)Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the reporting period, which are classified as non-current assets.
c)Held-to-maturity financial assets
Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable payments and fixed maturities that theGroup‟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 less than 12 months from the end of the reporting period, which are classified as current assets.
d)Available-for-sale financial assets
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)Recognition and measurement
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 other financial assets are included in financial assets at initial recognition.
Wafangdian Bearing Co.,Ltd（WazhouB）
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 amortised cost using the effective interest method.
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 income in income statement.
3) Impairment of financial assets
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 is impaired, the Group shall determine the amount of any impairment loss accounts.
If an impairment loss on a financial asset carried at amortized cost has been incurred, the amount of 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 impairment loss is reversed and the amount of reversal is recognized in income statement.
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 impairment loss. For an available for sale 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 of financial assets
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 financial asset.
On derecognition of a financial asset, the difference between the carrying amount and the aggregate of consideration received and the accumulative amount of changes of fair value originally recorded in theowner’s equity is recognised in the income statement.
(2) Financial liabilities
Wafangdian Bearing Co.,Ltd（WazhouB）
The financial liabilities are classified into the financial liability at fair value through profit or loss and other financial liability for the initial recognition.
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 into the current profit or loss.
Other financial liabilities should be subsequently measured at amortization cost by adopting actual interest rate method. (3) Fair value measurement of financial assets and liabilities
a) If the market for a financial instrument is active, an entity establishes fair value by using the quoted price in the active market. In the active market, the Group measures the fair value of its holding 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 to measure the fair value of the financial assets and liabilities.
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 instrument that is substantially the same, discounted cash flow analysis and option pricing models.
11 Accord receivables
(1) Individually significant amounts of accounts receivable accrued bad debt provision as per portfolio
Judgment basis or amount standards of The receivables with more than RMB 3 million individual amount shall be individually significant amounts recognized as the significant receivables;
The accruing method of the receivables with The bad debt provisions shall be accrued based on the difference
individually significant amounts between current value of future cash flow and the carrying amounts. (2) Accounts receivable accrued bad debt provision by portfolio
The basis of portfolio
Use the accounting aging of the receivables as the credit risk characteristics Accounting aging
to classify the portfolio
Use the amount characteristics of the receivables , if the transaction party Related parties
is related parties characteristics need to classify the portfolio
Use the amount characteristics of the receivables, the credit of transaction Risk-free party, the nature of the amounts and the safeguard mechanism of transaction as characteristics to classify the portfolio
1) The percentage of provision for bad debts based on the age of receivables as followings:
Accounting aging Accrual percentage of the Accrual percentage of other receivables(%) receivables(%)
Within 1 year 1 1
1-2 years 5 5
2-3 years 20 20
Wafangdian Bearing Co.,Ltd（WazhouB）
Over 3 years 50 50
Related parties Accrue the bad debt provision by individual identification method
Risk-free Accrue the bad debt provision by individual identification method
2) The other methods is applied to actuating of bad debts provision
(3) Individually insignificant amount accounts receivable but accrued bad debt provision as per portfolio
The individual amount is not significant, but the accrued bad debt Accrual reason
provision on the basis of portfolio can not reflect its risk characteristic The bad debt provisions should be accrued based on the difference Accrual method
between current value of future cash flow and the carrying amount. 12 Inventories
Classification of inventory: Inventories are classified as raw material, wrappage, low-valuable consumable, working-in-progress, and finished goods etc.
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, and finaly adjust the planned costs into actual costs.
At the balance sheet date inventory should be measured at the lower of the cost and net realizable value. For the inventories which are damaged, fully or partly obsoleted and selling price below cost, the Group should calculate the provision for impairment of inventories according to the estimated nonrecoverable part of cost. Finished goods and a large amount raw materials should be calculated provision for impairment based on the difference of the cost exceed the realizable value of single item. For raw and accessorial materials with a large quantities and lower unit price should be calculated provison for impairment according to classify of inventory.
For the finished goods, working in progress and raw material held for sale etc which shall be sold directly, the net realizable value should be confirmed at the estimated selling price less estimated selling expenses and related tax and expenses. The raw material held for production, its realizable value should be confirmed at the estimated selling price of finished goods less estimated cost of completion, estimated selling expenses and related tax. 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 in the Group are more than quantities if inventories subscribed in the sales contracts, 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
Wafangdian Bearing Co.,Ltd（WazhouB）
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 principal operating activities need unanimous consent from any party
Significant influence refers to the power to participate in making decisions on the financial and operating policies of investee, but not to control or do joint control together with other parties over the formulation 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 participate in the decision of production and operating under the conditions above. 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 at fair value of 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 provisions as 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 of the 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 be the fair value of the equity securities issued.
(3) The initial cost of a long-term equity investment of an investor shall be the value stated in the investment contract or agreement except the unfair value stated in the contract or 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 Accounting Standards for Enterprises.
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 measured should be measured as the assets available for sale.
14 Investment property
Wafangdian Bearing Co.,Ltd（WazhouB）
Investment property of the Company includes land and property. Cost model is adpoted.
Investment property is depreciated or amortized under straight line method. Estimated net residual value rate, useful life, depreciation rate as follows:
Estimated
Useful life net residual Annual
Category
(years) value rate depreciation rate
(%)
Use right of land 40 8.33%
Including: Buildings 15 3 6.47%
Housing for production 30 3 3.23%
Housing for non-production 35 3 2.77%
15.Fixed asset
(1)Recognition criteria
Recognition criteria of fixed assets: Fixed assets are defined as the tangible assets which are held for the purpose of producing goods, rendering services, leasing or for operation& management, and have more than one year of useful life, and whose unit price is over RMB2,000.
Fixed assets shall be recognized when the economic benefit probably flows into the Group and its cost can be measured reliably. Fixed assets include: building, machinery, transportation equipment, electronic equipment and others.:
(2)Depreciation method
Estimated net
Useful
Category residual value Annual depreciation rate life(years)
rate(%)
Housing and Buildings
15 3 6.47
Including: Buildings
Housing for productive
30 3 3.23
35 3 2.77
Housing for non-productive
Machinery equipments
10-15 3 6.47～9.70
6 3 16.17
Transportation equipments
Electronic equipments
4 3 24.25
Including: Computer
General testing instruments
7 3 13.86
8 3 12.13
Specialized electronic equipments
Automated controlling equipments
8 3 12.13
8 3 12.13
Automated controlling meters
Others equipments
Wafangdian Bearing Co.,Ltd（WazhouB）
Including: Industrial kiln
7 3 13.86
9 3 10.78
Tools& other production tools
Transmission equipments
15 3 6.47
18 3 5.39
Non-operational equipments and tools
16 Construction in 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 and profit and loss resulting from foreign exchange.
17 Borrowing costs
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 period incurred.
18 Intangible assets
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 contract or agreement, except for those of unfair value in the contract or 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 contract, and legal available year. The amortization amount should be recorded into the cost or expense of relevant in the current period.
The Group shall check the estimated useful life and amortization method of intangible assets with limited useful life 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 shall estimate the useful life and amortize the intangible assets within estimated useful life.
19 Impairment of non-financial asset
Wafangdian Bearing Co.,Ltd（WazhouB）
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 end of every year. When it is difficult to measure the recoverable amount of asset, it should measure the recoverable amount of asset on the basis of asset group.
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 future cash flow of asset.
20 Long-term deferred expenses
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 transferred into the current profit or loss.
21 Employee benefits
Employee compensation comprises short-term benefit, post-employment benefit, termination benefit and other long-termemployee’s benefit.
Employee’s payables include salary, bonus, allowance, welfare, social insurance, housing funds, labour union expense, staff training expense,during the period in which the service rendered by the employees, 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 and it shall be recorded into current profit and loss account or relevant cost of assets in accordance with beneficial objective.
Termination benefits are employee benefits payable as a result of either anentity’s decision to terminate 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 conditions are met, for the period since the termination of employee service rendered until
the formal retirement date.(termination benefit).
Wafangdian Bearing Co.,Ltd（WazhouB）
Other long-term employee benefit provided by the Group, shall be accounted for as defined contribution plan if the defined contribution plan are met, otherwise shall be accounted for as defined benefit plan.
22 Contingent liabilities
The obligation pertinent to a contingency shall be recognized as an estimated debt when the following conditions are satisfied simultaneously:
(1) The obligation is a current obligation of the 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) The amount of the obligation can be measured reliably.
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 current best estimate amounts.
23 Principle of recognition of revenue
The revenue of the Group is mainly from selling goods, providing labour services and abalienating the right of use assets. Recognition standards for revenue are as below:
(1) Recognition of revenue from selling good:
1) The significant risks and rewards of ownership of the goods have been transferred to the buyer;
2) The Group remains neither continuous management right that usually keeps relation with the ownership nor effective control over the sold goods;
3) The amount of revenues can be measured reliably;
4) The relevant economic benefits are likely to flow into the Group; and
5) The incurred cost or intended cost can be measured reliably.
(2) Recognition of revenue from providing labour services:
1) Total revenue and total cost can be measured reliably; the relevant economic benefits are likely to flow into the Group; and the stage of completion can be confirmed reliably;
2) If the Group can, on the date of the balance sheet day, reliably estimate the outcome of 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 cost can be offset, the revenue should be recognised by the compensation. When the standards can not be satisfied, the revenue should not be recognised, and the incurred cost should
be recorded into the current profit and loss.
Wafangdian Bearing Co.,Ltd（WazhouB）
(3) Revenue from abalienating the use right of use assets
The revenue from abalienating of use right of assets shall be recognized, when the relevant economic benefits are likely to flow into the Group, and the amount of revenues can be measured reliably.
24 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 is a non-monetary asset, it shall be measured at its fair value; if its fair value cannot be obtained in a reliable way, it shall be measured at its nominal amount (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 current profits and losses. 25 Deferred tax assets and deferred 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 income tax assets arising from a deductible temporary difference to the extent of 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 be measured at applicable tax 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 income tax, the amount deducted shall be reversed.
26 Lease
The leases of the Group refer to operating 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.
VI Accounting treatment method of income tax
1. The main applicable tax and rate to the Group as follows:
Tax Tax base Tax rate
Wafangdian Bearing Co.,Ltd（WazhouB）
Value-added tax (VAT) Sales revenue or Purchase 17%,13%,11%,6%,3% Business tax Revenue from property lease, examination fee, surcharge 5%
City construction tax Value-added tax payables, business tax 7%
Education surcharge Value-added tax payables, business tax 3%
Local education surcharge Value-added tax payables, business tax 2%
Enterprise income tax(EIT) Current period taxable profit 15%
70% of cost of own property or revenue from leasing
Real estate tax 1.2% or12% property
Land use tax Land using right area RMB 6 per square meter Notes for tax principles with different EIT rate
Tax principles EIT rate
Wazhou Liaoyang Bearing construction Co.,Ltd 25%
Dalian Wazhou Precision Motor Car Bearing Company Limited 25%
Wazhou Precision of Spherical Roller Bearings(Wafangdian)Co., Ltd 25%
2. Tax preference
The company obtained the qualification of high and new technology enterprises at 29September, 2014.The Certificate No is GF201421200004, and the validity duration is three years. According to the tax law, the company can be granted for the preferential tax policy of enterprise income tax rate of15% in three years.
V. Taxation
1. The main applicable tax and rate to the Group as follows:
Tax Tax base Tax rate
Value-added tax (VAT) Sales revenue or Purchase 17%，13%，11%，6%，3% Business tax Revenue from property lease 5%
City construction tax Value-added tax payables, business tax 7%
Enterprise income tax(EIT) Current period taxable profit 15%
Education surcharge Value-added tax payables, business tax 3%
Local education surcharge Value-added tax payables, business tax 2%
70% of cost of own property or revenue from
Real estate tax 1.2% or12%
leasing property
Land use tax Land using right area RMB 6 per square meter Notes for tax principles with different EIT rate
Tax principles EIT rate
Wazhou Liaoyang Bearing construction Co.,Ltd 25%
Dalian Wazhou Precision Motor Car Bearing Company Limited 25%
Wazhou Precision of Spherical Roller Bearings(Wafangdian)Co., Ltd 25%
Wafangdian Bearing Co.,Ltd（WazhouB）
2. Tax preference and approval
The company obtained the qualification of high and new technology enterprises at 29 November, 2017.The Certificate No is GR201721200199, and the validity duration is five years. According to the tax law, the company can be granted for the preferential tax policy of enterprise income tax rate of15% in three years.
VI. Notes to consolidated financial statements
1. Cash and cash in bank
||
|-|
|Closing Balance|
|54,564.16|
|74,774,315.69|
|111,092,366.59|
|185,921,246.44|

 2 Notes receivable
(1) Category of notes receivable
2018.07.30 2017.12.31 Items
Bank acceptance notes
52,583,316.24 113,596,871.36 Commercial acceptance notes
38,957,602.09 96,326,964.55 Total
91,540,918.33 209,923,835.91 3 Accounts receivable
(1) Category of accounts receivable
Closing Balance
Items Booking balance Provision
Booking balance Amount % Amount %
Accountsreceivable with
individual significant amount and
5,092,669.00 0.41% 5,092,669.00100.00%
identification separately bad debt
provision
Accounts receivable identified
bad debt provision based on the 1,210,873,018.25 97.38% 41,366,146.52 4.27% 1,169,506,871.73 characters of credit risk portfolio
Accountsreceivable with
individual insignificant amount
27,541,279.51 2.21% 27,541,279.51100.00%
and identification separately bad
debt provision
Total 1,243,506,966.76100.00% 74,000,095.03 1,169,506,871.73 (Continued)
Opening balance
Items Booking balance Provision
Booking balance
Amount % Amount %
Accountsreceivable with
individual significant amount and 5,092,669.00 0.42% 5,092,669.00100.00%
identification separately bad debt
Wafangdian Bearing Co.,Ltd（WazhouB）
provision
Accounts receivable identified
bad debt provision based on the 1,170,649,399.63 97.29% 42,311,385.94 4.79% 1,128,338,013.69 characters of credit risk portfolio
Accountsreceivable with
individual insignificant amount
27,541,279.51 2.29% 27,541,279.51100.00%
and identification separately bad
debt provision
Total 1,203,283,348.14 100.00% 74,945,334.45 1,128,338,013.69 Accounts receivable accrued the bad debt provisions under accounting aging analysis method
Closing Balance
|||
|-|-|
|Accountsreceivable|Provision for bad debts|
|743,446,853.86|7,434,468.53|
|148,770,792.90|7,438,539.65|
|37,569,560.80|7,513,912.16|
|37,958,452.35|18,979,226.18|
|967,745,659.91|41,366,146.52|

4 Advances to suppliers
(1) Aging of advances to suppliers
Items 2018.06.30 2017.12.31
Amount Percentage(%) Amount Percentage(%)
Within 1 year
30,289,202.64 69.89% 36,499,031.46 91.56% 1 to 2 years
12,152,505.50 28.04% 3,085,092.20 7.74% 2 to 3 years
531,192.28 1.23% 205,543.10 0.52% Over 3 years
362,766.43 0.84% 73,909.77 0.18% Total
43,335,666.85 -- 39,863,576.53 --
5. Dividends receivable
6 Other receivables
(1) The categories of other receivable
Closing Balance
Items Booking balance Provision
Booking balance Amount % Amount %
Other receivables identified
bad debt provision based on
26,749,629.22 82.91% 1,268,832.89 8.70% 25,480,796.33
the characters of credit risk
portfolio
Accountsreceivable with
individual insignificant 5,513,140.92 17.09% 5,513,140.92100.00%
amount and identification
Wafangdian Bearing Co.,Ltd（WazhouB）
separately bad debt
provision
Total 32,262,770.14100.00% 6,781,973.81 25,480,796.33 (Continued)
Opening Balance
Provision Booking Items Booking balance
balance Amount % Amount %
Other receivables identified bad
debt provision based on the 23,164,214.87 80.78% 1,268,832.89 9.28% 21,895,381.98 characters of credit risk portfolio
Accountsreceivable with individual
insignificant amount and
5,513,140.92 19.22% 5,513,140.92 100.00%
identification separately bad debt
provision
Total 28,677,355.79 100.00% 6,781,973.81 21,895,381.98 (2) Other receivables accrued the bad debt provisions under accounting aging analysis method
Closing Balance
|||
|-|-|
|Other receivables|Provision for baddebts|
|6,962,467.41|69,624.67|
|5,696,876.91|284,843.85|
|165,641.74|33,128.35|
|1,762,472.04|881,236.02|
|14,587,458.10|1,268,832.89|

(3) Other receivables categorized by nature
||
|-|
|Closing Balance|
|32,262,770.14|
|32,262,770.14|

 7 Inventories
(1) Categories of inventories
2018.06.30 2017.12.31
Item
Provision for Provision for
Cost Net book value Cost Net book value decline declines
Raw materials
80,566,678.10 910,648.85 79,656,029.25 56,740,605.63 910,648.85 55,829,956.78 Finished
523,949,536.64 36,265,289.07 487,684,247.57 512,690,931.09 36,265,289.07 476,425,642.02
goods
Workingin
144,947,091.68 144,947,091.68 155,827,415.78 155,827,415.78
progress
Wafangdian Bearing Co.,Ltd（WazhouB）
Low value
184,074.93 184,074.93 5,753,413.97 5,753,413.97 consumables
Total
749,647,381.35 37,175,937.92 712,471,443.43 731,012,366.47 37,175,937.92 693,836,428.55 (2) Provision for decline in the value of inventories
||||||
|-|-|-|-|-|
|Opening Balance|Increase||Decrease||
||Accrual|Other|Reverse/Written- off|Otherstransferred|
|910,648.85|||||
|36,265,289.07|||||
|37,175,937.92|||||

 8 Other current assets
Item 2018.06.30 2017.12.31
VAT to be deducted
751,154.78 3,531,136.36 Prepaid income tax
1,855,337.56 Total
751,154.78 5,386,473.92 9. Available-for-sale financial assets
(1) Available-for-sale financial assets
||||||
|-|-|-|-|-|
|Closing Balance|||||
|Booking balance|Provision|Book value|Booking balance|Provision|
|2,567,033.30||2,567,033.30|2,000,000.00||
|2,567,033.30||2,567,033.30|2,000,000.00||
|2,567,033.30||2,567,033.30|2,000,000.00||

 10 Investment property
|||
|-|-|
|Property|Land use right|
|173,119,534.89|51,969,186.22|
|173,119,534.89|51,969,186.22|
|75,125,524.13|13,089,088.93|

Wafangdian Bearing Co.,Ltd（WazhouB）
|||
|-|-|
|Property|Land use right|
|2,743,203.90|1,948,820.75|
|77,868,728.03|15,037,909.68|
|95,250,806.86|36,931,276.54|
|97,994,010.76|38,880,097.29|

 11 Fixed assets
(1) Fixed assets by categories
||||||
|-|-|-|-|-|
|Building|MachineryEquipment|Transportation|ElectronicDevice|OtherEquipment|
|253,663,547.33|1,164,347,666.68|17,533,982.52|72,037,141.35|199,245,477.06|
|16,078.54|2,640,459.26|0.00|1,096,104.00|171,966.81|
|10,180.18|748,114.70||547,090.44|171,722.32|
|5,898.36|1,892,344.56||549,013.56|244.49|
||24,410.26|323,582.96|689,162.92||
||24,410.26|323,582.96|689,162.92||
|253,679,625.87|1,166,963,715.68|17,210,399.56|72,444,082.43|199,417,443.87|
|146,076,825.72|644,284,826.15|13,394,879.03|53,181,861.81|139,385,508.19|
|4,172,514.79|37,194,966.96|463,037.51|2,109,494.92|4,166,373.45|
|4,172,514.79|37,194,966.96|463,037.51|2,109,494.92|4,166,373.45|

Wafangdian Bearing Co.,Ltd（WazhouB）
||||||
|-|-|-|-|-|
||395.26|296,777.11|616,843.73||
||395.26|296,777.11|616,843.73||
|150,249,340.51|681,479,397.85|13,561,139.43|54,674,513.00|143,551,881.64|
||255,944.32||||
||255,944.32||||
|103,430,285.36|485,228,373.52|3,649,260.13|17,769,569.43|55,865,562.23|
|107,586,721.61|519,806,896.21|4,139,103.49|18,855,279.54|59,859,968.87|

 12 Construction in progress
(1) Details of Construction-in-progress
||||||||
|-|-|-|-|-|-|-|
||Closing Balance|||Opening Balance|||
|Item|||||||
|||||Book Balance|Provision||
||Book Balance|Provision|||||
|Improvement of|||||||
|seven-finished|30,739,383.45||30,739,383.45|30,689,629.52||30,689,629.52|
|products|||||||
|Improvement of|||||||
|one-finished|92,820.85||92,820.85|92,820.85||92,820.85|
|products|||||||
|Dalian industry park|||||||
||1,923,068.10||1,923,068.10|1,922,211.42||1,922,211.42|
|project|||||||
|Improvement of|||||||
|precision roller|10,634,263.21||10,634,263.21|11,340,473.99||11,340,473.99|
|branch|||||||
|Improvement of|||||||
||1,960,849.25||1,960,849.25|1,960,571.95||1,960,571.95|
|grinding machine|||||||
|Improvement of|||||||
||3,620,644.45||3,620,644.45|3,703,419.57||3,703,419.57|
|plant|||||||
|Improvement of|||||||
||11,873,079.37||11,873,079.37|10,195,223.88||10,195,223.88|
|railway|||||||
|Improvement of|||||||
||414,933.76||414,933.76|414,391.36||414,391.36|
|grinding machine|||||||
|Improvement of|||||||
|second-finished|1,483,761.06||1,483,761.06|1,483,761.06||1,483,761.06|
|products|||||||
|Crane Project|2,735,507.63||2,735,507.63|2,734,957.91||2,734,957.91|
|Improvement of|||||||
||2,220,709.81||2,220,709.81|2,220,662.31||2,220,662.31|
|special large branch|||||||
|Computer Project|2,081,977.04||2,081,977.04|2,081,977.04||2,081,977.04|
|Overhaul factory|||||||
||225,914.81||225,914.81|472,585.86||472,585.86|
|reconstruction|||||||
|Heat treatment|||||||
||160,940.46||160,940.46|160,551.84||160,551.84|
|product line|||||||
|Automobile||||1,016,610.51||1,016,610.51|

Wafangdian Bearing Co.,Ltd（WazhouB）
||||||
|-|-|-|-|-|
|improvement|||||
|Superfine machine|||||
||||1,291,421.97|1,291,421.97|
|installation project|||||
|Overhaul of bainite|||||
||||846,153.80|846,153.80|
|furnace|||||
|Refrigerated air|||||
||7,863.25|7,863.25|7,863.25|7,863.25|
|Dryer System|||||
|Three ton battery|||||
||192,307.70|192,307.70|192,307.70|192,307.70|
|fork truck|||||
|Sewage treatment|||||
||94,017.09|94,017.09|94,017.09|94,017.09|
|plant|||||
|low voltage switch|||||
||59,829.06|59,829.06|59,829.06|59,829.06|
|box|||||
|Information|||||
|transformation of|||||
||129,829.06|129,829.06|140,000.00|140,000.00|
|heat treatment|||||
|production line|||||
|Ipsen multipurpose|||||
|furnace overhaul||0.00|832,500.00|832,500.00|
|renovation|||||
|G17-15-07 Ball|||||
|bearing vibration|31,384.62|31,384.62|31,384.62|31,384.62|
|detector|||||
|G17-16-03 New|||||
|workshop|||||
||130,630.63|130,630.63|130,630.63|130,630.63|
|warehouse and|||||
|concrete road|||||
|G17-16-01|||||
|Environmental|153,153.15|153,153.15|153,153.15|153,153.15|
|improvement works|||||
|other|13,371,970.46|13,371,970.46|8,420,208.60|8,420,208.60|
|Total|84,338,838.27|84,338,838.27|82,689,318.94|82,689,318.94|

 13 Intangible assets
|||
|-|-|
|Land use right|software|
|124,220,541.52|6,272,685.89|
||97,087.38|
||97,087.38|
|124,220,541.52|6,369,773.27|
|36,823,081.84|6,140,023.31|
|1,545,146.91|71,983.31|
|1,545,146.91|71,983.31|
|1,299,213.84||

Wafangdian Bearing Co.,Ltd（WazhouB）
|||
|-|-|
|37,069,014.90|6,212,006.62|
|87,151,526.61|157,766.65|
|87,397,459.68|132,662.58|

 14 Long-term deferred and prepaid expenses
Other
Item 2017.12.31 Increase Amortization 2018.06.30 decrease
700,228.04 61,843.08 638,384.96 Office house decoration
Total
700,228.04 61,843.08 638,384.96 15 Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets without deduction
Item Closing Balance Opening Balance
Deductible temporary Deferred tax Deductible temporary Deferred tax difference assets difference assets Provision for impairment of assets
74,103,756.75 11,625,939.19 74,103,756.75 11,625,939.19 Total 74,103,756.75 11,625,939.19 74,103,756.75 11,625,939.19 (2) Deferred tax liabilities without deduction
Item Closing Balance Opening Balance
Taxable temporary Deferred tax Taxable Deferred tax difference liabilities temporary liabilities
difference
Asset evaluation increment in
business combination without 5,920,560.37 888,084.06 5,920,560.37 888,084.06 the same control
Total 5,920,560.37 888,084.06 5,920,560.37 888,084.06 (3) The net value of deferred tax assets and deferred tax liabilities with deduction
||||
|-|-|-|
|Closing Balanceof deferred taxassets andliabilities withdeduction|Closing Balanceof deferred taxassets/deferredtax liabilities|Opening Balance ofdeferred tax assetsand liabilities withdeduction|
||11,625,939.19||
||888,084.06||

Wafangdian Bearing Co.,Ltd（WazhouB）
16 Short-term loan
(1) Category of short-term loan
Loan category 2018.06.30 2017.12.31
615,000,000.00 648,000,000.00 Credit loan
Total
615,000,000.00 648,000,000.00 17 Notes payable
Items 2018.06.30 2017.12.31
362,918,752.32 295,396,000.00 Commercial acceptance notes
Bank acceptance notes
2,055,536.74 4,087,279.00 364,974,289.06 299,483,279.00 Total
18 Accounts payable
(1) Accounts payable
Item Closing Balance Opening Balance
Loan 618,238,277.92 559,579,919.87 Project payments 44,673,609.65 50,109,631.21 Other 16,487,505.75 21,142,736.37 Total 679,399,393.32 630,832,287.45 19 Advances from customers
(1) Received in advance
||
|-|
|Closing Balance|
|22,508,002.18|
|22,508,002.18|

 20 Employee benefits payable
(1) Category ofemployee’s payables
||||
|-|-|-|
|OpeningBalance|Increase|Decrease|
|7,313,818.35|102,608,361.74|103,289,812.34|
|9,346,330.29|14,423,053.67|14,515,683.14|
|16,660,148.64|117,031,415.41|117,805,495.48|

(2) Short-termemployee’s payables
Wafangdian Bearing Co.,Ltd（WazhouB）
Item Opening Increase Decrease Closing
Balance Balance
Salaries, bonus,
allowance, and 204,820.34 75,980,585.34 76,028,894.31 156,511.37 subsidy
Welfare 3,200.00 7,824,726.68 7,824,726.68 3,200.00 Social insurance 595,786.05 8,786,783.06 8,785,404.46 597,164.65 Include: Medical
306,854.19 6,670,717.80 6,670,717.80 306,854.19 insurance
Industrial injury
218,079.54 1,232,985.63 1,231,607.03 219,458.14 insurance
Maternity
70,852.32 883,079.63 883,079.63 70,852.32 insurance
Housingfunds 2,267,654.57 9,947,105.26 10,431,740.64 1,783,019.19 Labour union and
4,242,357.39 69,161.40 219,046.25 4,092,472.54 training expense
Total 7,313,818.35 102,608,361.74 103,289,812.34 6,632,367.75 (3) Welfare with deposit and withdrawal plan
||||
|-|-|-|
|OpeningBalance|Increase|Decrease|
|9,010,407.61|14,036,744.84|14,129,374.31|
|335,922.68|386,308.83|386,308.83|
|9,346,330.29|14,423,053.67|14,515,683.14|

 21 Taxes payable
Item Closing Balance Opening Balance
Value-added tax 3,538,584.05 11,018,297.67 Individual income tax 222,312.20 140,904.05 Enterprise income tax
City maintenance and construction tax 323,209.56 982,277.76 Real estate tax 301,009.32 294,515.16 Land use tax 206,982.61 204,027.14 Stamp tax 81,712.41 109,592.56 Education surcharge 248,191.90 728,270.43 River toll fee 217.02 1,486.14 Others 370,078.06 370,601.41
Total
22 Interest payable
Wafangdian Bearing Co.,Ltd（WazhouB）
||
|-|
|Closing Balance|
|157,000.00|
|157,000.00|

 23 Other payables
Other payablescategorized by payments nature
||
|-|
|Closing Balance|
|1,321,570.00|
|259,777.75|
|9,916,000.00|
|67,493,863.19|
|78,991,210.94|

 24 Non-current liabilities due within one year
(1)Non-current liabilities due within one year
Item Closing Balance Opening Balance
Long-term loan due within one year
90,000,000.00 Total
90,000,000.00 25 Other current liabilities
Item Closing Balance Opening Balance
Government subsidy within 1 year
3,967,022.53 3,967,022.53 Total
3,967,022.53 3,967,022.53 26 Long-term payables
(1) Long-term payablescategorized by payments nature
||
|-|
|Closing Balance|
|100,000.00|
|1,497,305.72|

 27 Special payables
Items Opening Increase Decre Closing Formation Basis
Balance ase Balance
Granted by Wafangdian Bureau of Special pollution Finance and Wafangdian Bureau of 221,698.98 221,698.98
treatment Environment Protection with approval
with “WaCaiZhi QiNo.[2004]217”
Dalian Financial Bureau and Municipal
Informatization
75,000.00 75,000.00 Office of Economic and Information
Construction
Technology Committee with approval
Wafangdian Bearing Co.,Ltd（WazhouB）
with “Da CaiZhi Qi No.[2012]917” and “Da Jing Xin Fa No.[2012]199”
Total 296,698.98 296,698.98
28 Other non-current liabilities
(1) Category of deferred income
|||||
|-|-|-|-|
|OpeningBalance|Increase|Decrease|ClosingBalance|
|37,754,771.56||1,908,277.94|35,846,493.62|
|37,754,771.56||1,908,277.94|35,846,493.62|

(2) Government subsidy
Recorded Related Government Opening into non Closing with Increase Other Change
subsidy item Balance -operation Balance asset/e income quity Liaozhou Industry
development 4,194,564.00 4,194,564.00 asset subsidies
Compensation for
Da Lian plants 27,042,358.18 1,352,117.94 25,690,240.24 asset moving
Development of
intelligent
manufacturing 2,400,000.00 200,000.00 2,200,000.00 asset equipment
subsidies
Improvement of
high-end bearing
1,889,280.00 236,160.00 1,653,120.00 asset production
subsidies
Interest subsidy of
1,660,000.00 120,000.00 1,540,000.00 asset grand axle load
Construction of
workshop for
568,569.38 568,569.38 asset technology masters
subsidy
Total 37,754,771.56 1,908,277.94 35,846,493.62
29 Share capital
2017.12.31 Change for current period 2018.06.30 Issui Transferrin
Shareholders ng Distributi g capital
name/category Amounts % new ng reserves Others Subtotal Amounts %
share shares to share
s capital
402,600,00 100.0
Total shares — — — — — 402,600,000.00 100.00
0.00 0
Wafangdian Bearing Co.,Ltd（WazhouB）
30 Capital reserves
Items 2017.12.31 Increase Decrease 2018.06.30 201,956,446.52 201,956,446.52 Share premium
283,734,603.95 283,734,603.95 Other capital reserves
485,691,050.47 485,691,050.47 Total
31 Surplus reserves
Items 2017.12.31 Increase Decrease 2018.06.30
113,687,908.35 113,687,908.35 Statutory surplus reserve
20,590,618.91 20,590,618.91 Discretionary surplus reserve
134,278,527.26 134,278,527.26 Total
32 Undistributed profit
Item This period Last period
Closing balance before adjustment 362,925,296.98 359,603,965.97 Opening balance after adjustment 362,925,296.98 359,603,965.97 Add: Current net profit attributable to shareholders of
3,313,980.12 10,182,949.16 parent company
Less: Provision for statutory surplus reserves 2,835,618.15 Dividends payable for common shares 4,026,000.00 Closing balance of 366,239,277.10 362,925,296.98 33 Operating revenue& cost
Items This period Last period
Sales revenue Cost of sales Sales revenue Cost of sales
Revenue from
967,045,981.57 840,649,172.13 986,168,093.43 862,562,230.54 main operation
Revenue from
107,822,000.11 99,097,399.00 149,332,481.90 141,633,411.45 other operation
Total 1,074,867,981.68 939,746,571.13 1,135,500,575.33 1,004,195,641.99 34 Operating taxes and surcharges
Items This period Last period
Business tax
2,837,747.43 3,428,881.69 City construction tax
Education surcharge
1,871,171.22 2,425,208.91 3,883,184.27 3,978,357.55 Other
Total
8,592,102.92 9,832,448.15
Wafangdian Bearing Co.,Ltd（WazhouB）
35 Selling expenses
Items This period Last period
Transportation expense 15,584,316.08 20,935,762.98 Employee benefit 17,781,672.15 13,476,776.84 Travel expense 9,078,815.87 9,656,691.45 Conference expense 2,329,999.72 2,465,600.45 Trademark use fee 2,101,642.83 927,157.82 International Transportation expense 5,179,043.74 10,610,815.19 Other expense 18,684,081.24 17,947,375.19 Total
70,739,571.63 76,020,179.92 36 Administrative expenses
Items This period Last period
Employee benefit 18,773,771.75 17,708,196.38 Tax expense 17,251.55 511,493.60 Technology development expense 3,505,391.30 1,318,389.62 Intangible assets amortization 2,266,737.13 2,266,864.90 Depreciation expense 811,587.96 998,045.03 Business entertaining expense 338,336.74 403,673.93 Travel expense 533,425.68 397,589.98 Other expense 7,829,201.38 7,641,468.38 34,075,703.49 31,245,721.82 Total
37 Financial expenses
Items This period Last period Interest expenses
22,726,199.79 16,282,310.02 345,878.37 384,832.07 Less: interest income
Add: Exchange losses
950,510.58 -1,336,112.98 721,591.13 1,454,903.78 Add: Others expenditure
Total
24,052,423.13 16,016,268.75 38 Assets impairment losses
Items This period Last period
-12,786.85 99,810.61 Loss of bad debts
Total
-12,786.85 99,810.61 39 Gain on assets disposal
Item current year prior year
Wafangdian Bearing Co.,Ltd（WazhouB）
Gain on disposal group classified as
243,495.82 7,398.46 held for sale
Gain on non-current assets disposal 243,495.82 7,398.46 Gain on fixed assets disposal 243,495.82 7,398.46 Total
40. Other income
||
|-|
|current year|
|228,550.21|
|1,352,117.94|
|236,160.00|
|200,000.00|
|120,000.00|
|18,600.00|
|2,155,428.15|

 41 Non-operating income
(1) Non-operating income list
Amounts recognized into This period Last period
Item current non-recurring profit or loss
Income from debt restructuring 1,456,952.01 1,356,259.02 1,456,952.01 Penalty income 1,570,251.86 832,777.00 1,570,251.86 Others 120,000.41 80,229.95 120,000.41 Total 3,147,204.28 2,269,265.97 3,147,204.28 42 Non-operating expenses
Item This period Last period
Loss from debt restructuring 85,383.59
Loss on disposal of non-current assets 75,526.04 5,970.42 Penalty loss 11,410.47 15,648.86 Others 13,651.07 150,691.63
Total 185,971.17 172,310.91
43 Income tax expenses
Wafangdian Bearing Co.,Ltd（WazhouB）
(1) Income tax expenses
Items current year prior year
Current income tax expenses -279,426.81
Total -279,426.81
(2) Accounting profit to income tax expense adjustment
Items Current year
Consolidated total profit this year
3,034,553.31 Income tax expenses at applicable tax rate
-279,426.81 Income tax expense
-279,426.81 44 Notes to cash flow statement
(1) Cash receipt/payment of other operating/investing/financing activities
1) Other cash received relating to operating activities
Items This period Last period 914,421.41 1,373,744.39 Other cash received relating to operating activities
Total
914,421.41 1,373,744.39 2) Other cash paid relating to operating activities
Items
This period Last period
Other cash paid relating to operating
55,833,437.00 52,708,495.81 activities
Total 55,833,437.00 52,708,495.81 3) Other cash received relating to financial activities
Items
This period Last period
Other cash paid relating to financial
328,905,975.40 321,721,729.99 activities
Total 328,905,975.40 321,721,729.99 4) Other cash paid relating to financial activities
Items
This period Last period
Other cash paid relating to financial
248,898,190.83 286,551,613.33 activities
Total 248,898,190.83 286,551,613.33 45 Supplementary information of consolidated cash flow statement
Items This period Last period
1. Adjusting net profit into cash flows of operating activities:
Net profit
3,313,980.12 2,633,635.55
Wafangdian Bearing Co.,Ltd（WazhouB）
Add: Provision for impairment of assets
-12,786.85 99,810.61 50,705,693.88 48,297,397.65 Depreciation of fixed assets
Amortization of intangible assets
2,266,737.13 2,266,864.90 33,915.18 33,915.18 Amortization of long-term deferred expenses
Losses on disposal of fixed assets, intangible assets, and
-243,495.82 -10,771.00 long-term assets (income listed with”-”)
75,526.04
Losses on write-off of fixed assets (income listed with”-”)
Financial expense (income listed with”-”)
24,052,423.13 16,016,268.75 -18,635,014.88 74,534,439.97 Decrease of inventory (increase listed with”-”)
Decrease of operating receivables (increase listed with”-”)
-156,396,318.53 -138,273,848.15 139,045,935.83 -82,203,972.02 Increase of operating payables (decrease listed with”-”)
Net cash flows arising from operating activities
44,206,595.23 -76,606,258.56 Cash and cash equivalents
Items This period Last period
74,828,879.85 58,043,497.54 Cash
Closing balance of cash and cash equivalents
74,828,879.85 58,043,497.54 VII. Equity of Other Entities
1. Equity of subsidiaries
(1) Organization structure of group company
||||||
|-|-|-|-|-|
|Location|Registered Location|Nature of operation|Share（%）||
||||Direct|Indirect|
|Wafangdian|Liaoyang Baita DistrictWeiguo Rd No.61|Manufacturing andselling bearing andmachines|100||
|Wafangdian|Dalian Free Trade ZoneSanshiliYongsheng RdNo.12|Manufacturing andselling bearing andmachines|100||
|Wafangdian|WafangdianBeigongji StNo.1|Manufacturing andselling bearing andmachines|100||

VII Risk Related to Financial Instrument
The main financial instruments held by the group company are including investment in share equity, borrowing, accounts receivable, and accounts payable. The details introduction about each financial instrument is referred to this notes No.VI above. The related risks of these financial instruments and the risk management policy conducted to reduce these risks by the group company are introduced as below. The Group management conducts to manage and
monitor these risks exposure and control these risks under certain risk level.
1. Objectives and policies of each risk management
The objectives of risk management conducted by the group company are to reach the balance between risk and
profit return by reducing the negative influence to operating performance to the minimum level as well as
Wafangdian Bearing Co.,Ltd（WazhouB）
maximising theshareholders’ and otherinvestors’ profits. Based on these objectives, the basic risk management policy is to recognize and analyse all sorts of risk that the group company faced with, to set up the proper risk tolerance bottom line conducting risk management, as well as to monitor these risks in a timely and effective manner, and to ensure these risks under the limit level.
(1) Market risk
1) Currency risk
The currency risk is referred as the risk caused by the fluctuation of exchange rate. The main currency risk that the company faced with is related to the USD since the main export business is settled by USD. Other than the balance of foreign currency presented in Note VI. 44, all assets and liabilities of company are presented in RMB On December 31, 2015.The balance in foreign currency of assets and liabilities may cause currency risk with influence to operating performance.
2) Interest risk
The main potential interest risk which is caused by the fluctuation of the cash flow of financial instruments is related to the floating rate of bank loan (Note VI. 15). The policy that adopted by the Group is to maintain the floating rate of loan.
(2) Credit risk
On 31 December, 2015, theGroup’s most probable credit risk exposure is from the financial loss primarily due to the failure of fulfilling the obligation by one party of the contract. The impairment losses ofcompany’s financial assets are including:
Among the book value of recognized financial assets in the consolidated statement of financial position, for the financial instruments measured at fair value, their book values reflect the risk exposure, however, not maximum risk level; the level is changing along with the fair value.
As the aim to reduce the credit risk, the Group sets up the credit department to ensure the credit limit, to examine and approve the credit application, and to carry out monitor procedures to claim expiredcreditor’s right. In addition, at each of balance sheet date, the Group checks with every single process of receipt of receivable to ensure the sufficiency of provision of bad debt. Therefore, the management of the Group believed the credit risk had been minimized significantly.
The working capital has low level of credit risk since the cash is deposited in the banks with high credit reputation. (3) Liquidity risk
As the management of liquidity risk, theGroup’s policy is to regularly monitor the sufficiency of cash and cash equivalent, the liquidity requirements to ensure the normal operations, and the fluctuation of cash flow. The bank loan activities are under monitoring by management to make sure to comply with the loan agreement.
The liquidity risk is referred as the Group failed to fulfil its financial obligations by the due date. The Group manages the liquidity risk by the maintain sufficiency of working capital to cover the expired debt to avoid the unacceptable losses or the damage ofGroup’s reputation. The Group analyses the debt structure and due time periodically to ensure the sufficiency of available cash flow. The bank loan activities are under monitoring by management to make sure to comply with the loan agreement. At the same, the Group has consultation with financial organizations about the financing activities to maintain the credit level and to reduce the credit risk.
IX. Disclosure of Fair Value
X Related Parties Relationship and Transactions
1 Parent company and ultimate controller
Parent Registered Business nature Registere Shareholding Voting power
company address d capital percentage percentage(%)(%)
Wafangdian Bearing Co.,Ltd（WazhouB）
No. 1 North Gongji Manufacture and
Wazhou 413,793,1
Street, Wafangdian sales of bearing and 60.61 60.61
Group 00.00
City, Dalian other equipments
(2). Subsidiaries
Referring to the content in Note IX. 1. (1) Organization structure of group company
2 Other related parties
Name of related party Related party relationship
Dalian Wazhou Bearing Manufacturing Equipment Co., Other entity controlled by the same parent company and Ltd ultimate controlling party
Other entity controlled by the same parent company and Wazhou Precision Steel Ball Company
ultimate controlling party
Other entity controlled by the same parent company and Wazhou Exact Forge Ltd.,
ultimate controlling party
Other entity controlled by the same parent company and Wazhou Group Wind power Bearing Ltd
ultimate controlling party
Other entity controlled by the same parent company and Wazhou Group Exact Transmission Bearing Co., Ltd
ultimate controlling party
Other entity controlled by the same parent company and Wazhou Group Equipment Technology Project Co., Ltd.
ultimate controlling party
Other entity controlled by the same parent company and Wazhou Group Special Precision Bearing Co., Ltd.
ultimate controlling party
Other entity controlled by the same parent company and Liao Ning North Metal Materials supply Co., Ltd
ultimate controlling party
Other entity controlled by the same parent company and Wazhou Group (USA) Bearing CO., Ltd.
ultimate controlling party
Other entity controlled by the same parent company and Wazhou Group high-end auto bearing limited company
ultimate controlling party
Other entity controlled by the same parent company and Wazhou Group Precision Roller limited companu
ultimate controlling party
Other entity controlled by the same parent company and Wazhou Group Precision Retainer Limited Company
ultimate controlling party
Other entity controlled by the same parent company and Kugel- und Rollenlagerwerk Leipzig GmbH
ultimate controlling party
Other entity controlled by the same parent company and Wafangdian bearing Power Limited Company
ultimate controlling party
Wazhou Group Bearing Engineering technology Other entity controlled by the same parent company and research center
ultimate controlling party
Other entity controlled by the same parent company and Wazhou Group Special Steel limited Company
ultimate controlling party
Dalian GONA Wazhou Auto Bearings Co., Ltd Other related party
Dalian Wazhou Jinzhou Machinery Co., Ltd Other related party
Wafangdian Tongda Bearing Manufacturing Co., Ltd Other related party
Dalian WazhouFengyuan Machinery Co., Ltd Other related party
3 Related party transactions
(1) Purchase of goods
Wafangdian Bearing Co.,Ltd（WazhouB）
|||||
|-|-|-|-|
|Content|current year|Authorizedamount|Over or not|
|Purchase of goods|30,619,927.27|150,000,000.00|No|
|Purchase of goods|111,393,715.62|230,000,000.00|No|
|Purchase of goods|7,864,718.39|8,000,000.00|No|
|Purchase of goods|46,955,706.73|100,000,000.00|No|
|Purchase of goods|47,958,716.67|140,000,000.00|No|
|Purchase of goods|489,477.68|10,000,000.00|No|
|Purchase of goods/equipments|6,734,683.20|36,000,000.00|No|
|Purchase of goods|42,508,436.34|90,000,000.00|No|
|Purchase of goods|9,484,876.58|22,000,000.00|No|
|Purchase of goods|1,503,484.72|5,000,000.00|No|
|Purchase of goods|10,653,628.93|22,200,000.00|No|
|Purchase of goods|69,149,890.34|100,000,000.00|No|
|Purchase of goods|28,884,389.11|60,000,000.00|No|
|Purchase of goods|35,549,549.22|200,000,000.00|No|
|Purchase of goods|50,288.10|0.00|Yes|
|Purchase of reserve|1,531,492.08|8,000,000.00|No|
|Purchase of reserve|38|250|No|
|Purchase of reserve|130|900|No|
||453,012,980.98|1,215,700,000.00|No|

 (2) Sales of goods
|||
|-|-|
|Content|current year|
|Sales of goods|46,150,623.18|
|Sales of goods|15,499.77|
|Sales of goods|25,230,262.57|
|Sales of goods|20,892,673.15|
|Sales of goods|74,038.35|
|Sales of goods|6,887,104.50|
|Sales of goods|271,679.73|

Wafangdian Bearing Co.,Ltd（WazhouB）
|||
|-|-|
|Sales of goods|31,876.56|
|Sales of goods|3,661.80|
|Sales of goods|686,608.84|
|Sales of goods|24,423,093.18|
|Sales of goods|51,663.87|
|Sales of goods|43,998,131.35|
|Sales of goods|3,351,510.13|
|provide labourservices|195,477.99|
|provide labourservices|6,293,599.71|
|provide labourservices|342,841.37|
|provide labourservices|68,824.03|
|provide labourservices|466,981.76|
|provide labourservices|25,261.57|
|provide labourservices|164,181.78|
|provide labourservices||
||179,625,595.19|

 4 Assets rent out
Detials can be found in the part VII “the important rlated party transactions” 1 “The relate transactions related to the day-to-day operations.”
5 Related party assets transfer and debt structure reconstruction
6. Balances with related parties
(1) Accounts receivable due from related parties
Closing Balance Opening Balance Item Related party
Book Balance Provision Book Balance Provision
Accounts Wazhou Exact Forge
2,687,126.33 9,357,030.29
receivable Ltd.,
Accounts Wazhou Group Precision
62,494,203.33 68,353,382.34
receivable Roller Limited Company
Wafangdian Bearing Co.,Ltd（WazhouB）
Closing Balance Opening Balance Item Related party
Book Balance Provision Book Balance Provision Accounts Wazhou Group (USA)
15,659,092.29 13,686,294.41
receivable Bearing CO., Ltd.
Wazhou Group Precision
Accounts
Retainer Limited 18,823,964.21 24,191,042.68
receivable
Company
Wazhou Group Special
Accounts
Precision Bearing Co., 4,568,598.65 4,724,144.07
receivable
Ltd.
Accounts Wazhou Group Limited
2,255,928.31 2,255,928.31
receivable Company
Wazhou Group Exact
Accounts
Transmission Bearing 11,484,768.27 3,714,337.85
receivable
Co., Ltd
Wazhou Group high-end
Accounts
auto bearing limited 121,981,082.84 157,299,071.76
receivable
company
Accounts Wazhou Special Steel
1,265,539.80 1,127,180.69
receivable Ball Company
Kugel- und
Accounts
Rollenlagerwerk Leipzig 1,216,618.52 2,843,173.17
receivable
GmbH
Wafangdian Tongda
Accounts
Bearing Manufacturing 71,061.68 149,884.33
receivable
Co., Ltd.
Accounts Dalian Wazhou Jinzhou
619,374.11 484,891.17
receivable Machinery Co., Ltd
Kugel- und
Prepaid Rollenlagerwerk Leipzig 3,368,086.16
GmbH
Wazhou bearing Power
Prepaid 5,099,826.27 1,340,370.00
limited Company
(2) Accounts payable due from related parties
Item Related party Closing Balance Opening Balance Accounts payable Wazhou Group Wind Power Bearing Ltd 22,657,706.00 56,086,707.09 Accounts payable Wazhou Group Limited Company 24,265,359.57 3,552,228.26 Wazhou Group Equipment Technology
Accounts payable 13,882,010.02 17,010,528.77 Project Co., Ltd.
Wafangdian Tongda Bearing
Accounts payable 34,216,624.03 20,874,853.98 Manufacturing Co., Ltd.
Accounts payable Dalian Wazhou Jinzhou Machinery Co., Ltd 1,197,535.41 6,757,162.31 Dalian Wazhou Bearing Manufacturing
Accounts payable 4,060,208.41 8,447,383.10 Equipment Co., Ltd
Accounts payable Wazhou Exact Forge Ltd., 59,523,954.57 12,760,327.17 Dalian Wazhou Fengyuan Machinery Co.,
Accounts payable 22,457,937.48 25,856,222.75 Ltd
Wafangdian Bearing Co.,Ltd（WazhouB）
Item Related party Closing Balance Opening Balance Wazhou Group Precision Retainer Limited
Accounts payable 1,632,766.91 6,692,821.86 Company
Accounts payable Wazhou Precision Steel Ball Company 3,546,738.23 3,486,892.33 Wazhou Group Precision Roller Limited
Accounts payable 4,884,537.36 3,403,327.15 Company
Accounts payable Wazhou Group (USA) Bearing CO., Ltd. 147,968.25 Wazhou Group Exact Transmission
Accounts payable 18,741,436.53 21,020,328.46 Bearing Co., Ltd
Accounts payable Wazhou bearing power limited company 544,121.00 311,333.62 Wazhou Group Bearing Engineering
Accounts payable 2,323,382.46 2,833,243.49 technology research center
Other payables Wazhou Group limited company 1,738,516.32 12,295,652.49 Dalian Wazhou Bearing Manufacturing
Other payables 431,088.45 431,088.45 Equipment Co., Ltd
Wazhou Group Equipment Technology
Other payables 953,000.00 953,000.00 Project Co., Ltd.
7. Contingency
As at June 30,2018, the Group does not have any other contingencies.
XII. Share-Based Payment
XIII. Commitment and Contingency
As at June 30,2018, the Group does not have any other significant commitments.
XIV. Events after the Balance Sheet Date
The Group does not have any other significant events after the Balance Sheet Date.
XV. Other Significant Events
Wafangdian Bearing Co.,Ltd（WazhouB）
XVI. Notes to the Main Items of the Financial Statements of Parent Company
1 Accounts receivable
(1) Accounts receivable category
Closing Balance
|||||
|-|-|-|-|
|Booking balance||Provision||
|Amount|%|Amount|%|
|1,196,362,584.79|98.43%|41,184,310.64|4.29%|
|19,049,504.15|1.57%|19,049,504.15|100.00%|
|1,215,412,088.94|100.00%|60,233,814.79||

(Continued)
Opening Balance
|||||
|-|-|-|-|
|Booking balance||Provision||
|Amount|%|Amount|%|
|1,155,247,805.56|98.38%|42,129,550.06|4.80%|
|19,049,504.15|1.62%|19,049,504.15|100.00%|
|1,174,297,309.71|100.00%|61,179,054.21||

 2) Accounts receivable accrued the bad debt provisions in the portfolio as accounting aging analysis method
Closing Balance
|||
|-|-|
|Accounts receivable|Provision for baddebts|
|736,656,401.91|7,366,564.02|
|148,280,910.59|7,414,045.53|
|37,842,019.47|7,568,403.89|
|37,670,594.39|18,835,297.20|
|960,449,926.36|41,184,310.64|

(2) Bad debt provision accrued and write-off (withdraw)
(3) Accounts receivable written off in current period
2 Other receivables
2. Other receivables
(1) The category of other receivables
Closing Balance
Items
Booking balance Provision Booking
Wafangdian Bearing Co.,Ltd（WazhouB）
Amount % Amount % balance Other receivables with bad debt provision based
25,464,888.4083.46% 1,000,107.00 6.94% 24,464,781.40 on the characters of credit risk portfolio
Other receivables with insignificant individual
5,048,580.9216.55% 5,048,580.92 100.00%
amount and separate bad debt provision
100.00
Total 30,513,469.32 6,048,687.92 24,464,781.40%
(Continued)
Opening Balance
Items Booking balance Provision Booking balance Amount % Amount %
Other receivables with bad debt provision based 1,000,107
21,605,385.4781.06% 7.65% 20,605,278.47 .00
on the characters of credit risk portfolio
Other receivables with insignificant individual 5,048,580
5,048,580.9218.94% 100.00%
.92
amount and separate bad debt provision
100.00 6,048,687
Total 26,653,966.39 20,605,278.47% .92
1) Other receivables accrued the bad debt provisions in the portfolio as accounting aging analysis method Closing Balance
|||
|-|-|
|Other receivables|Provision for baddebts|
|10,676,890.69|106,768.91|
|1,938,203.70|96,910.19|
|328,580.19|65,716.04|
|1,461,423.72|730,711.86|
|14,405,098.30|1,000,107.00|

(2) Other receivables categorized by nature
||
|-|
|Closing Balance|
|30,513,469.32|
|30,513,469.32|

 3 Long-term equity investments
(1) Category of long-term equity investments
||||||
|-|-|-|-|-|
|Closing Balance|||||
|Closing Balance|Provision|Book Value|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||

Wafangdian Bearing Co.,Ltd（WazhouB）
(2) Investments into subsidiaries
||||||
|-|-|-|-|-|
|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||

4 Operating revenue and cost
||||
|-|-|-|
|This period|||
|Revenue|Cost|Revenue|
|952,060,623.14|832,879,338.83|972,513,250.78|
|103,899,325.53|96,290,684.90|149,234,390.96|
|1,055,959,948.67|929,170,023.73|1,121,747,641.74|

 XVII Supplementary Information to the Financial Statements
1. Non-operating profit or loss
Items Amount Notes Gain or loss from disposal of non-current assets 167,969.78
Government grants recorded into profit or loss during current period 2,155,428.15
Profit or loss from debts restructuring 1,371,568.42
Others non-operating revenue and expense besides the above items 1,665,190.73
Effect from income tax 501,892.88
Total 4,858,264.20
2. Return on equity and earnings per share
Weighted average Earnings per share (EPS) Profit of report period return on net assets Basic Diluted EPS(%) EPS
Net profit attributable to shareholders of parent company 0.24% 0.008 0.008 Net profit after deducting non-recurring gains and losses
-0.11% -0.004 -0.004
attributable to shareholders of parent company
WangFangdianBearing company Limited
August17,2018