WafangdianBearingCompanyLimited 2014MidyearReportStockcode：200706 StockID:WazhouB AnnouncementNo.2014-25 Wafangdian Bearing Company Limited
2014 Midyear Report
2014-25
August 2014
WafangdianBearingCompanyLimited 2014MidyearReport ChapterI. ImportantPrompts, Tableof Contents,and Definitions
The Board of Directors, board of supervisors, directors, supervisors, and top management of the Companyherebyguaranteethattherearenofalserecord,misleadingstatementsandimportantomissionof the material in this report, and assume the individual and associated responsibilities for the truth, accuracy andcompletenessofthecontents.
Chairman Mr. Cong Hong, General Accountant Ms. Sun Najuan and accounting charger Ms. Yao Chunjuandeclare:guaranteethetruthandcompletenessofthefinancialreportintheannualreport.
Alldirectorsattendedthemeeting.
Profitdistributionpreplan,noprofitdistributioninreportperiod
Thedescriptionofthefuturedevelopmentinthisreportdoesnotconstituteacommitmentforinvestors. Investorsarerequestedtopayattentiontotherisksinvolvedinyourinvestment.
WafangdianBearingCompanyLimited 2014MidyearReport Table of Contents
ChapterI. ImportantPrompts,TableofContents,andDefinitions............................................................2 ChapterII.CompanyProfile......................................................................................................................4 ChapterIII.FinancialHighlights.............................................................................................................5 ChapterIVDirectorsReport.....................................................................................................................7ChapterⅤSignificantEvents................................................................................................................12ii、Therelatedbusinessonassetpurchaseandsales...............................................................43 iii.Majorrelatedbusinessonjointlyinvestment........................................................................43iv、CreditandDebtwithrelevantparties.................................................................................43 V.Otherimportantrelatedbusiness.........................................................................................44ChapterⅥ.ChangesinCapitalStockandShareholders..........................................................................44ChapterⅦ.Directors,Supervisors,SeniorManagementandStaff...........................................................46 ChapterVIII.FinancialReport................................................................................................................46
WafangdianBearingCompanyLimited 2014MidyearReport Glossary
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|-|-|-|
|Terms|Definedas|Description|
|Company,theCompany|Definedas|WafangdianBearingCompanyLimited|
|WazhouGroup|Definedas|WafangdianBearingGroupCompany|
|thereportperiod,thecurrentperiod,thecurrentyear|Definedas|January1,2014–June30,2014|
|LiaozhouCo.,Ltd|Definedas|WazhouLiaoyangBearingManufactureCo.,Ltd|
|Dalianmotor|Definedas|DalianmotorBearingCo.,Ltd|
|TheBoardofDirectors|Definedas|WafangdianBearingCompanyLimitedTheBoardofDirectors|
|TheSupervisoryCommittee|Definedas|WafangdianBearingCompanyLimitedTheSupervisoryCommittee|
|WafangdianBearingCompanyLimited|Definedas|WafangdianBearingCompanyLimitedTheShareholders’Meeting|
|ShenJiaoSuo|Definedas|ShenZhenStockExchange|
|SRC|Definedas|ChinaSecuritiesRegulatoryCommission|

WafangdianBearingCompanyLimited 2014MidyearReport ChapterII.CompanyProfile
I. CompanyInformation
II.Contacts
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|-|-|-|-|
|Abbreviatednameofthestock|WazhouB|Stockcode:|200706|
|ListinglocationoftheCompany’sstock:|ShenzhenStockExchange|||
|ChinesenameoftheCompany|瓦房店轴承股份有限公司|||
|AbbreviationofChinesename|瓦轴股份公司|||
|EnglishnameoftheCompany|WafangdianBearingCompanyLimited|||
|AbbreviationofEnglishname|WBC|||
|LegalrepresentativeoftheCompany|CongHong|||

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|-|-|-|
||SecretaryoftheBoard|RepresentativeofStockAffairs|
|Name|SunNajuan|SuShaoli|
|Correspondenceaddress|No.1BeigongjiStreet,WafangdianCity,LiaoningProvince,China.|No.1BeigongjiStreet,WafangdianCity,LiaoningProvince,China.|
|Consultingtelephone|0411-39116369|0411-39116732|
|Fax|0411-39116738|0411-39116738|
|E-mail|zwz2308＠126.com|zwz2308＠126.com|

III.Otherinformation
i.Thewaytocontactwithcompay
InthereportperiodtheRegisteredaddress,P.C,officeaddress,officeP.Cofthecompanyisnochange.Detials canbeseenin2013annualreport.
ii.Placeforinformationdisclosure
In the report period the place for information disclosure is no change. is no change.Detials can be seen in 2013annualreport.
iii.ChangeofBusinessRegistration
InthereportperiodtheRegistration.dateRegistrationplaceNo.ofIncorporation,CertificateNo.ofTaxationRegistration Organizationcodeisnochange.etialscanbeseenin2013annualreport.
iv.Otherrelevantinformation
Inthereportperiodotherrelevantinformationisnochange.
Chapter III. Financial Highlights
WafangdianBearingCompanyLimited 2014MidyearReport I.Mainaccountingdataandindices
Arethereanyretrospectiveadjustmentsorrestatementoffinancialinformationofpreviousyearduetochangeofaccounting policiesorcorrectingofaccountingerrors?
[]Yes[V]No
InRMBYuan
|||||
|-|-|-|-|
||currentperiod|previousperiod|+/-（％）comparingwiththepreviousperiod|
|Turnover(RMB)|1,641,013,208.71|1,547,403,493.37|6.05%|
|Netprofitattributabletoshareholdersofthelistedcompany(Yuan)|-17,449,186.08|22,832,072.23|-176.42%|
|Netprofitattributabletotheshareholdersofthelistedcompanyandafterdeductingofnon-recurringgain/loss(RMB)|-20,480,427.05|20,937,895.75|-197.82%|
|NetCashflowgeneratedbybusinessoperation(RMB)|56,163,250.30|-20,293,414.93|-230.21%|
|Basicearningspershare(Yuan/share)|-0.04|0.06|-166.67%|
|Dilutedearningspershare(Yuan/share)|-0.04|0.06|-166.67%|
|Netreturnonequity(%)|-1.17%|1.49%|-2.66%|
||Endof2014.06.30|Endof2013.12.31|Changedoverlastyear(%)|
|TotalAssets(RMB)|3,942,232,259.61|3,717,797,889.26|6.04%|
|Owner’sEquityAttributedtoShareholdersofListedCompany(RMB)|1,487,517,249.42|1,504,966,435.50|-1.16%|

II.DifferencesinaccountinginformationunderIASanddomesticaccountingstandard
1.Differencesinnetprofitandnetassetunderdomesticandinternationalaccountingstandards
InRMBYuan
||||||
|-|-|-|-|-|
||Netprofitattributabletotheshareholdersofthelistedcompany||Netassetattributabletotheshareholdersofthelistedcompany||
||Currentterm|Amountoflastterm|Endofterm|Beginningofterm|
|OnChineseAccountingStandard|-17,449,186.08|22,832,072.23|1,487,517,249.42|1,504,966,435.50|
|ItemsandamountsadjustedonIAS|||||
|UnderInternationalAccountingStandard|-17,449,186.08|22,832,072.23|1,487,517,249.42|1,504,966,435.50|

2.Differencesinnetprofitandnetassetunderdomesticandoverseasaccountingstandards
InRMBYuan
||||||
|-|-|-|-|-|
||Netprofitattributabletotheshareholdersofthelistedcompany||Netassetattributabletotheshareholdersofthelistedcompany||
||Currentterm|Amountoflastterm|Endofterm|Beginningofterm|
|OnChineseAccountingStandard|-17,449,186.08|22,832,072.23|1,487,517,249.42|1,504,966,435.50|
|Accountsandamountsadjustedaccordingtooverseasaccountingstandard|||||
|OnIAS|-17,449,186.08|22,832,072.23|1,487,517,249.42|1,504,966,435.50|

 Thereisnodifference,andtheresultisnotaudited.
3.StatementonthedifferencesofaccountinginformationonIASanddomesticaccountingstandard
III.Non-recurringgain/lossitemsandamounts
WafangdianBearingCompanyLimited 2014MidyearReport InRMBYuan
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|-|-|-|
|Items|Amount|Remarks|
|Gain/lossofnon-currentassets(includestheneutralizedpartoftheassetimpairmentprovisiondrawnalready)|27,802.77||
|Gainsandlossesincludedinthecurrentperiodofgovernmentsubsidies,excludingthosegovernmentgrantswhicharecloselyrelatedtonormalbusinessandinlinewithnationalpolicy,orinaccordancewithfixedstandardsorquantities|2,376,811.94||
|Debtrestructuringgainsandlosses|-146,236.39||
|Othernon-businessincomeandexpendituresotherthantheabove|1,307,787.53||
|Influencedamountofincometax|534,924.88||
|Total|3,031,240.97|--|

For theCompany‘s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering their Securities to thePublic–Non-recurring Gains and Losses and its non-recurring gain/lossitemsasillustratedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingtheir Securities to thePublic–Non-recurring Gains and Losses which have been defined as recurring gains and losses, it is necessarytoexplainthereason.
□Applicable√Inapplicable
ChapterIVDirectorsReport
WafangdianBearingCompanyLimited 2014MidyearReport I.Overview
At the situation of the bearing market production oversupply, market competition acutely and price declinecommonlyinQ2,thecompanytakesomemeasureslikeproductsstructureadjustment,costreducing andexpensescompressing,whichmakeoperationimproved.
Butaffectedbybearingmarketdemandslacking,salespricedeclinecontinually,themainbusinessgross profit margin decline, and profit space compressed, the profit in reduce compared with the same period of lastyear.
At the end of June 30, company's total assets is 3.9422 billion Yuan, rose6.04% compared with the beginning of this year; Net assess attributing to shareholders of listed company 1.4875 billion Yuan, decreased by1.16% compared with then beginning of this year; Operating income is 1.641 billion Yuan, increase by6.05% compared with the same period last year; Net profit of attributing to shareholders of the parentcompanyisminus17.45millionYuan.
II.AnalysisofMainBusiness
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|-|-|-|-|-|
|Item|Reportperiod|Lastreportperiod|Changedby%YoY|Changereason|
|MainBusinessIncome|1,641,013,208.71|1,547,403,493.37|6.05%||
|MainBusinessCost|1,490,487,024.71|1,375,879,876.97|8.33%||
|SalesExpenses|118,732,526.35|102,660,427.82|15.66%||
|ManagementExpenses|35,930,304.10|34,739,784.53|3.43%||
|FinancialExpenses|11,935,634.49|12,206,072.78|-2.22%||
|TaxExpenses||842,546.41|-100.00%|because the profit in this period isminus,theincometaxisn’twithdrawn|
|Spending on research anddevelopment of the businessincomeratio|60,000,000.00|55,426,392.85|8.25%||
|NetCashFlowsfromOperatingActivities|56,163,250.30|-20,293,414.93|-376.76%|Mainlybecausethepaymentfromclientincrease,andmonetarypaymenttosuppliescompressed.|
|NetCashFlowsfromInvestingActivities|-32,108,788.92|-395,610.77|8,016.26%|MainlybecausepaytheGermanyimportmachineswithamountof19.51millionYuan,thepayablenoteexpirewithamountof8.67millionYuan|
|NetCashFlowsfromFinancingActivities|21,065,196.30|38,323,909.62|-45.03%|Mainlybecausethemonetaryfinancingunderorderdeclinecomparedwithlastperiod.|
|NetIncreaseinCashandCashEquivalents|46,283,411.30|17,154,193.48|169.81%|MainlybecausetheCashFlowsfromOperatingActivitiesincreaselargelycomparedwithlastperiod.|

 Theprofitstructureorsourcechangegreatly
□Applicable√Inapplicable
Pre-disclosureofoperationplan
□Applicable√Inapplicable
Reviewontheprogressofpriordisclosuredevelopmentstrategyandbusinessplanduringthereportingperiod
InQ2,thecompanytakesomemeasureslikeproductsstructureadjustment,costreducingandexpensescompressing,
whichmakeoperationimproved.
WafangdianBearingCompanyLimited 2014MidyearReport Butaffectedbybearingmarketdemandslacking,salespricedeclinecontinually,themainbusinessgrossprofitmargin decline,andprofitspacecompressed,theprofitinreducecomparedwiththesameperiodoflastyear.
III.Mainbusinesscomposition
InRMBYuan
||||||||
|-|-|-|-|-|-|-|
||Operatingincome|Operatingcost|BOI|+/-(%)ofoperatingincome|+/-(%)ofoperatingcost|+/-(%)ofBOI|
|ByIndustries|||||||
|Export|140,992,686.32|134,917,023.46|4.31%|3.06%|2.67%|0.36%|
|Civil|1,252,501,784.65|1,126,197,836.81|10.08%|13.29%|15.03%|-1.36%|
|Including:TrafficBearing|578,284,516.64|511,593,649.12|11.53%|22.37%|21.65%|0.53%|
|SpecialBearing|312,384,405.97|299,963,874.67|3.98%|20.39%|30.21%|-7.24%|
|CommonBearing|361,832,862.04|314,640,313.02|13.04%|-3.12%|-4.11%|0.89%|
|Industrialincome|52,644,486.65|58,789,239.75|-11.67%|15.82%|13.14%|2.65%|
|OnProducts|||||||
|Bearing|1,393,494,470.97|1,261,114,860.27|9.50%|12.17%|13.57%|-1.12%|
|Industryoperation|52,644,486.65|58,789,239.75|-11.67%|15.82%|13.14%|2.65%|
|Region|||||||
|Civil|1,305,146,271.30|1,184,987,076.56|9.21%|13.39%|14.93%|-1.22%|
|Foreign|140,992,686.32|134,917,023.46|4.31%|3.06%|2.67%|0.36%|

 IV.Corecompetenceanalyzing
Thecompanycorecompetitionabilityisnochange.
V.InvestmentAnalysis
1.Externalequityinvestment
None
2.AnalysisofMainSubsidiariesandInvestmentCompanies
Unit:RMB
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|-|-|-|-|-|-|-|-|-|-|
|CompanyName|Type|Industry|MainProductorService|RegisteredCapital|TotalAsset|NetAsset|OperatingRevenue|OperatingProfit|NetProfit|
|LiaoyangBearing|Subsidiary||ProductandSaleBearingandmachine-electricalequipment|19,350,000|130,288,050.86|-17,381,928.61|62,055,422.75|-5,604,384.49|-3,333,471.04|
|DalianElectricalEquipment|Subsidiary||ProductandSaleBearing|10,000,000|104,498,663.20|18,167,907.95|103,737,560.46|-2,840,717.92|-2,809,194.86|
|DalianSKFWazhouBearingCo.,Ltd.|Joint-stockCompany||ProductandSalesSphericalRollerBearing|194,000,000|268,375,628.99|222,228,464.21|93,263,566.51|6,708,292.52|4,614,725.69|
|ShanghaiMEMachine-electricalEquipmentchainLtd.|Joint-stockCompany||Salemachine-electricalequipment、MetalMaterial、Computer、etc.|35,000,000|297,142,100|253,196,100|137220200|11,045,000|11,122,500|

3.ImportantNon-raisedCapital’sProjects
Unit:0000’Yuan
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|-|-|-|-|-|-|
|Project|Total Plan|Investmentin|Accumulated|Progress|Earnings|

WafangdianBearingCompanyLimited 2014MidyearReport
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|-|-|-|-|-|-|
||Investment|thereportperiod|investment|||
|High-graderollingprocess|800|460|370|57.50%|Formahighgraderollerproductioncapacity,improvethelevelofproductprecision|
|High-gradesphericalrollerrollergrinding|2,881|2,600|1,480|90.25%|Formahighgraderollerproductioncapacity,improvethelevelofproductprecision|
|Railwaywagonbearinglathework|600|400|356|66.67%|Carryoutprocessing,grinding,assemblyautomationproductioncarmodification,maketherailwaywagonbearingproductionequipment,technologyleveltoreachinternationalstandardsProcessing,grinding,assemblyautomationproductioncarmodification,therailwaywagonbearingproductionequipment,technologylevelhasreachedinternationalstandards|
|Railwaywagonbearingthermaltransformation|1,200|1,080|1,029|90.00%|Carryoutprocessing,grinding,assemblyautomationproductioncarmodification,maketherailwaywagonbearingproductionequipment,technologyleveltoreachinternationalstandardsProcessing,grinding,assemblyautomationproductioncarmodification,therailwaywagonbearingproductionequipment,technologylevelhasreachedinternationalstandards|
|Railwaywagonbearinggrinding|2,860|834|185|29.16%|Carryoutprocessing,grinding,assemblyautomationproductioncarmodification,maketherailwaywagonbearingproductionequipment,technologyleveltoreachinternationalstandardsProcessing,grinding,assemblyautomationproductioncarmodification,therailwaywagonbearingproductionequipment,technologylevelhasreachedinternationalstandards|
|Railwaywagonbearingassembly|1,280|800|560|62.50%|Carryoutprocessing,grinding,assemblyautomationproductioncarmodification,maketherailwaywagonbearingproductionequipment,technologyleveltoreachinternationalstandardsProcessing,grinding,assemblyautomationproductioncarmodification,therailwaywagonbearingproductionequipment,technologylevelhasreachedinternationalstandards|
|Grindingequipmentrenovationprojectofpremiumcarbearing|2,480|1,860|1,606|75.00%|Form4rollhigh-gradecarexportsbearingproductionlines|
|Assemblytestreformprojectofpremiumcarbearing|1,460|887|316|60.75%|Form4rollhigh-gradecarexportsbearingproductionlines|
|Other|500|280|248|56.00%|Ensurenormalproductionandoperationfacilitiesoperation|
|Total|14,061|9,201|6,150||--|

 VI.Forecastforoperationoutstandingfrom2014JanuarytoSeptember
Inapplicable
VII. Explanation of the Board of Directions and Board of supervisor on the QualifiedAuditor’s Report IssuedbytheCPAs
Thefinancialreportisunaudited
VIIIExplanationoftheBoardofDirectionsontheQualifiedAuditor’slastyearReportIssuedbytheCPAs Thefinancialreportisunaudited
IX.DividendDistribution
Thedividenddistributionmadeby2013shareholdermeetingisthat:basedonthetotalcapitalstockof40,260sharesatthe
WafangdianBearingCompanyLimited 2014MidyearReport endofDecember31,2013,RMB0.4Yuanwillbepaidper10shares(includingtax),totallyallocatescashof16,104,000.00 RMB
TheCompanyhasbeendevotingitselfnotonlytomaximizetheshareholders’benefit,butalsotoenvironmentandresource preserving, as well as the stakes of all related parties, such as the employees, clients, suppliers and the community. ContinuousandconcorddevelopmentalongwiththecommunityisthetargetoftheCompany.
|||
|-|-|
|Cashdividendpolicyofspecialstatement||
|Whethercompliancewiththeprovisionsofthecompany'sarticlesofassociationorresolutionsoftheshareholders'generalmeetingrequirements:|yes|
|Whetherthestandardofshareoutbonusandtheproportionareclearr:|yes|
|Whetherrelateddecision-makingprocessandmechanismarecompleteness:|yes|
|Whethertheindependentdirectortakesofficeresponsibleandplayaproperrole:|yes|
|Whetherthesmallandmedium-sizedshareholdersthechancetofullyexpresstheirviewsanddemands;Whetherthelegitimaterightsandinterestswere protectedfully:|yes|
|Cashdividendpolicytoadjustorchange，whetherConditionsandtheprogramaretransparent:|Companiescashdividendpolicyisnottoadjustorchange.|

X.Receptionofinvestigations,communications,orinterviewsinthereportperiod
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|-|-|-|-|-|-|
|Time/date|Place|Way|Typeofvisitors|Visitors|Maincontentinvolvedandmaterialprovided|
|February19,2014|Office|Telephonecommunication|Privateinvestor|Privateinvestor|Thegeneralinformationofthecompany|
|March24,2014|Office|Telephonecommunication|Privateinvestor|Privateinvestor|Thegeneralinformationofthecompany|
|March26,2014|Office|Telephonecommunication|Privateinvestor|Privateinvestor|Thegeneralinformationofthecompany|
|March31,2014|Office|Telephonecommunication|Privateinvestor|Privateinvestor|Thegeneralinformationofthecompany|
|April16,2014|Office|Telephonecommunication|Privateinvestor|Privateinvestor|Thegeneralinformationofthecompany|
|May20,2014|Office|Telephonecommunication|Privateinvestor|Privateinvestor|Thegeneralinformationofthecompany|

WafangdianBearingCompanyLimited 2014MidyearReportChapterⅤSignificantEvents
Ⅰ. CorporateGovernance
Duringthereportperiod,theCompanyhadcontinuouslyobservedCompanyLaw,SecuritiesLaw,andGuidelinesofCorporate GovernanceforListedCompanyandrelevantregulationstoimproveandenhanceitscorporategovernance.
1.1Theholdingoftheshareholders,boardofdirectorsandboardofsupervisors,thevotingproceduresand theformationoftheresolutionsweretotallysubjecttotheseregulations.
1.2TheCompanyhasmadeitsinternalmanagementsystemsandregulationsforrestrictionofbudgeting, purchasing,logisticsandsale,etc,andexecutedthemstrictly.
1.3Thecompanyhasseparatedbusiness,personnel,assets,interiororganizationandfinancefromits holdingshareholder:
(1)TheCompanyhadindependentoperationsitself,withitsbusinessseparatedfromitsholding
shareholders;
(2)TheCompanywasindependentintermsofitspersonnel,laborandsalarymanagement,andhaditsown independentlaborandpersonnelmanagementsystems.ExcepttheChairmanofBoardofDirectorsofthe parentcompanyWafangdianBearingGroupCorporationwhooccupiesastheChairmanoftheCompany,the GeneralManager,Deputy-GeneralManagersandtheFinanceControlleroftheCompanywereallindependent fromthecontrollingshareholder.
(3)Theproductionsystem,auxiliaryproductionsystemandsupplementaryfacilitiesoftheCompanywere independentfromthecontrollingshareholder.
(4)TheCompanyhasseparatedtheaccountingfromthecontrollingshareholder.TheCompanycarriedout independentfinanceandaccountingonitsownandpaidtaxesindependently.
(5)TheCompanyhasestablishedtheorganizationsindependentontheholdingshareholder
IIMainLawsuitsandArbitrationAffairs
□Applicable√Inapplicable
Therewerenoimportantlawsuitsandarbitrationaffairs.
III.Mediaquery.
□Applicable√Inapplicable
Therewasnomediaqueryinthereportperiod.
IV.BankruptcyandRecombination
□Applicable√Inapplicable
V.Assetbusiness
□Applicable√Inapplicable
VI.ImplementationandInfluenceofEquityIncentives
□Applicable√Inapplicable
WafangdianBearingCompanyLimited 2014MidyearReport VII.ImportantContractsandImplementation
1、Therelatetransactionsrelatedtotheday-to-dayoperations.
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|Relativeparties|Relationship|Relativetype|Content|Principleofprice|RelativePrice|RelativeAmount(RMB’0000)|ThePercentageofaccountedforsimilardeals(%)|TheWayOfAccount|Marketprice|DisclosureDate|DisclosureIndex|
|DalianSKFWazhouBearingsCo.,Ltd|Associates|MerchandiseProcurement|BearingProduct||Negotiatedprice|9,148|5.29%|CashPaymentorTheKnot||2014.08.21|http://www.cninfo.com.cn|
|||SalesofGoods|Components||Negotiatedprice|3,413|2.08%|CashPaymentorTheKnot||2014.08.21|http://www.cninfo.com.cn|
|||ProvideService|Heattreatment|||193|0.12%|CashPaymentorTheKnot||2014.08.21|http://www.cninfo.com.cn|
|WazhouprecisionSteelBallCompany|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|MerchandiseProcurement|Components|JusticeandEquity|Marketprice|310|0.18%|CashPaymentorTheKnot||2014.08.21|http://www.cninfo.com.cn|
|||Salesofgoods|GoodsandMaterials|JusticeandEquity|Marketprice|389|0.24%|CashPaymentorTheKnot||2014.08.21|http://www.cninfo.com.cn|
|||ProvideService|Heattreatment|||50|0.03%|CashPaymentorTheKnot||2014.08.21|http://www.cninfo.com.cn|
|Wazhouprecisionforging Ltd.,|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|MerchandiseProcurement|Components|JusticeandEquity|Marketprice|13,659|7.89%|CashPaymentorTheKnot||2014.08.21|http://www.cninfo.com.cn|
|||Salesofgoods|GoodsandMaterials|JusticeandEquity|Marketprice|17,923|10.92%|CashPaymentorTheKnot||2014.08.21|http://www.cninfo.com.cn|
|DalianWazhouManufacturingEquipmentCo.,Ltd|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|MerchandiseProcurement|Production|JusticeandEquity|Marketprice|1,131|0.65%|CashPaymentorTheKnot||2014.08.21|http://www.cninfo.com.cn|
|||Salesofgoods|GoodsandMaterials|JusticeandEquity|Marketprice|66|0.04%|CashPaymentorTheKnot||2014.08.21|http://www.cninfo.com.cn|
|WazhouGroupTurnplateBearingLtd|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|MerchandiseProcurement|BearingProduct|JusticeandEquity|Marketprice|11,211|6.48%|CashPaymentorTheKnot||2014.08.21|http://www.cninfo.com.cn|
|||Salesofgoods|GoodsandMaterials|JusticeandEquity|Marketprice|39|0.02%|CashPaymentorTheKnot||2014.08.21|http://www.cninfo.com.cn|
|WazhouGroupprecisionTransmissionBearingCo.,Ltd|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimate|MerchandiseProcurement|BearingProduct|JusticeandEquity|Marketprice|5,317|3.07%|CashPaymentorTheKnot||2014.08.21|http://www.cninfo.com.cn|
|||Salesof|Goodsand|Justiceand|Marketprice|1,315|0.80%|CashPaymentor||2014.08.21|http://www.cninf|

WafangdianBearingCompanyLimited 2014MidyearReport
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||controllingparty|goods|Materials|Equity||||TheKnot||o.com.cn|
|||ProvideService|Heattreatment||Marketprice|135|0.08%|CashPaymentorTheKnot|2014.08.21||
|WazhouGroupPrecisionspecialBearingCompanyLimited|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|MerchandiseProcurement|BearingProduct|JusticeandEquity|Marketprice|0||CashPaymentorTheKnot|2014.08.21|http://www.cninfo.com.cn|
|||Salesofgoods|GoodsandMaterials|JusticeandEquity|Marketprice|197|0.12%|CashPaymentorTheKnot|2014.08.21|http://www.cninfo.com.cn|
|||ProvideService|Heattreatment|||25|0.02%|CashPaymentorTheKnot|2014.08.21|http://www.cninfo.com.cn|
|DaLianWazhouFengyuanMachineCo.,Ltd|OtherRelatedparty|MerchandiseProcurement|BearingProduct|JusticeandEquity|Marketprice|7,113|4.11%|CashPaymentorTheKnot|2014.08.21|http://www.cninfo.com.cn|
|||Salesofgoods|GoodsandMaterials|JusticeandEquity|Marketprice|0|0.00%|CashPaymentorTheKnot|2014.08.21|http://www.cninfo.com.cn|
|DaLianWazhouJinZhouMachineCo.,Ltd|OtherRelatedparty|MerchandiseProcurement|BearingProduct|JusticeandEquity|Marketprice|6,891|3.98%|CashPaymentorTheKnot|2014.08.21|http://www.cninfo.com.cn|
|||Salesofgoods|GoodsandMaterials|JusticeandEquity|Marketprice|15|0.01%|CashPaymentorTheKnot|2014.08.21|http://www.cninfo.com.cn|
|||ProvideService|Heattreatment|||20|0.01%|CashPaymentorTheKnot|2014.08.21|http://www.cninfo.com.cn|
|Equipmenttechnicalengineering|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|MerchandiseProcurement|equipment|justiceandEquity|Marketprice|1,543|0.89%|CashPaymentorTheKnot|2014.08.21||
|WazhouGroup|Thecontrollingshareholdersandtheultimatecontrollingparty|AcceptService|SecurityandFireServiceAnnouncementService|||204|0.12%|CashPaymentorTheKnot|2014.08.21|http://www.cninfo.com.cn|
||||TechnologyDevelopmentService|||270|0.16%|CashPaymentorTheKnot|2014.08.21|http://www.cninfo.com.cn|
||||UseofTrademark|||400|0.23%|CashPaymentorTheKnot|2014.08.21|http://www.cninfo.com.cn|
||||LeaseofLand,House,Equipment|||1,214|0.70%|CashPaymentorTheKnot|2014.08.21|http://www.cninfo.com.cn|

WafangdianBearingCompanyLimited 2014MidyearReport
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Salesofgoods|GoodsandMaterials|JusticeandEquity|Marketprice|62|0.04%|CashPaymentorTheKnot||2014.08.21|http://www.cninfo.com.cn|
|Wazhougroup(USA)bearingco.,LTD|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Salesofgoods|BearingProduct|JusticeandEquity|Marketprice|1,196|0.73%|CashPaymentorTheKnot||2014.08.21|http://www.cninfo.com.cn|
|Total||||--|--|83,449|--|--|--|--|--|

WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearalReportii、Therelatedbusinessonassetpurchaseandsales
iii.Majorrelatedbusinessonjointlyinvestment
iv、CreditandDebtwithrelevantparties
CreditandDebtfromnon-operation
□Applicable√Inapplicable
V.Otherimportantrelatedbusiness
□Applicable√Inapplicable
Vi.Importantcontractandimplement
1.Deposit,contractandrent.
（1）Assetsrentout
||||||||
|-|-|-|-|-|-|-|
|Lessor|Lessee|Categoryofassetsrentout|Startingdate|Maturedate|Basisofleasepricing|Leaseincomerecognizedincurrentperiod|
|TheCompany|WazhouExactForgeLtd.|Land(locatedinNo.1,Phrase1,NorthGongjiStreet,withareaof7,881m².|2014-1-1|2014-12-31|ContractLawsofChinaandNo.58[1997]Dazhengfa||
|TheCompany|WazhouSteelBallCompany|Land(locatedinNo.1,Phrase1,NorthGongjiStreet,withareaof13,171m².|2014-1-1|2014-12-31|ContractLawsofChinaandNo.58[1997]Dazhengfa||
|TheCompany|WazhouGroupSpecialPrecisionBearingCo.,Ltd|Land(locatedinNo.1,Phrase1,NorthGongjiStreet,withareaof5,864.40m².|2014-1-1|2014-12-31|ContractLawsofChinaandNo.58[1997]Dazhengfa||
|TheCompany|WazhouExactForgeLtd.|Building（s 9,177m²）|2014-1-1|2014-12-31|ContractLawsofChinaandNo.58[1997]Dazhengfa||
|TheCompany|WazhouGroupSpecialPrecisionBearing Co.,Ltd|Buildings（6,534.4m²）|2014-1-1|2014-12-31|ContractLawsofChinaandNo.58[1997]Dazhengfa||
|TheCompany|DalianWazhouFengyuanMachineryCo.,Ltd|Building（s 1,791m²）|2014-1-1|2014-12-31|ContractLawsofChinaandNo.58[1997]Dazhengfa||
|TheCompany|DalianWazhouJinzhouMachineryCo.,Ltd|Buildings（13,386m²）|2014-1-1|2014-12-31|ContractLawsofChinaandNo.58[1997]Dazhengfa||

WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearalReport Note: According tothe No.3[2012] Wazhou GroupFa<Provisions on the paymentof land usetax> issued by the Wazhou Group, fromJanuary 2012, Wazhou Group should be responsible forchecking, putting on recordsto thetaxbureau,andmodifyingtheregistrationinformationoflanduseoninternet,ifthelandofWazhouGroupand the Companyis used. The units using land are responsible fordeclaring and paying land usetax according tothe statutoryregulationsandthelandareacheckedbythedepartmentofcorporationlayoutanddevelopment,security equipmentenergyofWazhouGroup.WazhouGroupandtheCompanyarenolongercollectingandpayinglanduse taxonbehalfoftheunitswhousingtheland.In2014thecompanychargesthelesseeatotalof1.99millionyuan, invoicestothelesseeinAugust,confirmstherentalincome
（2）Assetsunderlease
||||||
|-|-|-|-|-|
|Lessee|Categoryofassetsrentin|Startingdate|Maturedate|Basisofleasepricing|
|TwofinishedbranchoftheCompany|Land(locatedinWazhouGroupindustrialpark,withareaof14,418.00m².|2014-1-1|2014-12-31|ContractLawsofChinaandNo.58[1997]Dazhengfa|
|TheCompany|Land(locatedinNo.1,Phrase1,NorthGongjiStreet,withareaof715.20m².|2014-1-1|2014-12-31|ContractLawsofChinaandNo.58[1997]Dazhengfa|
|Thephysicaldistributionbranchofthecompany|Land(locatedinWazhouGroupindustrialpark,withareaof17,829.00m².|2014-1-1|2014-12-31|ContractLawsofChinaandNo.58[1997]Dazhengfa|
|TheCompany|Land(locatedinNo.1,Phrase1,NorthGongjiStreet,withareaof21,692.06m².|2012-1-1|Nofixedperiod|Free|
|TheCompany|Land(locatedinwestindustrialpark,withareaof58,500m².|2012-1-1|Nofixedperiod|Free|
|PrecisionbearingbranchoftheCompany|Land(locatedinWazhouGroupindustrialpark,withareaof30,380m².|2014-1-1|2014-12-31|ContractLawsofChinaandNo.58[1997]Dazhengfa|
|SpeciallargebranchoftheCompany|Land(locatedinWazhouGroupindustrialpark,withareaof20,207m².|2014-1-1|2014-12-31|ContractLawsofChinaandNo.58[1997]Dazhengfa|
|SpeciallargebranchoftheCompany|Land(locatedinWazhouGroupindustrialpark,withareaof16,388.00m².|2014-1-1|2014-12-31|ContractLawsofChinaandNo.58[1997]Dazhengfa|
|TheprecisionrollingcompanyoftheCompany|Land(locatedinWazhouGroupindustrialpark,withareaof7,199.00m².|2014-1-1|2014-12-31|ContractLawsofChinaandNo.58[1997]Dazhengfa|

WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearalReport
||||||
|-|-|-|-|-|
|Lessee|Categoryofassetsrentin|Startingdate|Maturedate|Basisofleasepricing|
|TheCompany|Buildings（3770.04m²）|2014-1-1|2014-12-31|ContractLawsofChinaandNo.58[1997]Dazhengfa|
|PrecisionbearingbranchoftheCompany|Buildings（19494.20m²）|2014-1-1|2014-12-31|ContractLawsofChinaandNo.58[1997]Dazhengfa|
|TwofinishedbranchoftheCompany|Buildings（9518.49m²）|2014-1-1|2014-12-31|ContractLawsofChinaandNo.58[1997]Dazhengfa|
|SpeciallargebranchoftheCompany|Buildings（14353.94m²）|2014-1-1|2014-12-31|ContractLawsofChinaandNo.58[1997]Dazhengfa|
|TheprecisionrollingcompanyoftheCompany|Buildings（4759.24m²）|2014-1-1|2014-12-31|ContractLawsofChinaandNo.58[1997]Dazhengfa|
|Thephysicaldistributionbranchofthecompany|Buildings（5043.67m²）|2014-1-1|2014-12-31|ContractLawsofChinaandNo.58[1997]Dazhengfa|
|SpeciallargebranchoftheCompany|Buildings（13749.80m²）|2014-1-1|2014-12-31|ContractLawsofChinaandNo.58[1997]Dazhengfa|
|TheprecisionrollingcompanyoftheCompany|Buildings（2592.00m²）|2014-1-1|2014-12-31|ContractLawsofChinaandNo.58[1997]Dazhengfa|
|TwofinishedbranchoftheCompany|Equipment|2014-1-1|2014-12-31|ContractLawsofChina|
|TheprecisionrollingcompanyoftheCompany|Equipment|2014-1-1|2014-12-31|ContractLawsofChina|
|TheautobearingcompanyoftheCompany|Equipment|2011-9-20|2016-9-20|ContractLawsofChina|
|TheautobearingcompanyoftheCompany|Equipment|2014-1-1|2014-12-31|ContractLawsofChina|

WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearalReportChapterⅥ.Changes in CapitalStock and Shareholders
I.ChangesinCapitalStock
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||BeforeChanges||ChangesinShares|||||AfterChanges||
||Shares|Ratio|NewSharesIssued|BonusShares|ConversionofReservestoShare|Others|Subtotal|Shares|Ratio|
|1.Non-tradableShares|244,000,000|60.61%||||||244,000,000|60.61%|
|a.Promoters’Shares|244,000,000|60.61%||||||244,000,000|60.61%|
|Including：State-ownedshare|244,000,000|60.61%||||||244,000,000|60.61%|
|2.Tradableshares|158,600,000|39.39%||||||158,600,000|39.39%|
|b.Bshares|158,600,000|39.39%||||||158,600,000|39.39%|
|3.Total|402,600,000|100%||||||402,600,000|100%|

ReasonofChangesofShares
□Applicable√Inapplicable
Influencefromtheshareholdingmovementsuponsuchfinancialindicatorsasearningspershare,netassetper
shareofthelatestyearandthelatestaccountingperiod
□Applicable√Inapplicable
II.ShareholdersandActualController
1.NumberofShareholdersandShares
Unit:Share
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Totalnumberofshareholderattheendofreportperiod|||9,115||Totalnumberofshareholderattheendofreportperiodwithpreferredstock|||||0||
|Shareholderswith5%oraboveShares||||||||||||
|Name|Nature|Ratio（%）||Totalsharesiheld||Increaseordecreasenthereportperiod|Non-currentsharesheld|Currentsharesheld|ImpawnedorFrozenShares|||
||||||||||Status||Amount|
|WafangdianBearingGroupCorporation|State-ownedshareholder|60.61%||244,000,000|||244,000,000|||||
|AKTIEBOLAGETSKF|Foreignshareholder|19.7%||79,300,000||||79,300,000|Frozen||79,300,000|
|HuangJunyue|Domesticshareholder|0.70%||2,828,321||||||||
|BOCISECURITIESLIMITED|Foreignshareholder|0.70%||2,800,085||||||||
|MaYuancheng|Domesticshareholder|0.19%||755,825||||||||
|MAN,KWAIWING|Foreignprivateshareholder|0.18%||713,101||||||||
|YanJianhui|Foreignprivateshareholder|0.14%||564,900||||||||
|HeiYouxin|Foreignprivateshareholder|0.13%||512,559||||||||

WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearalReport
||||||||
|-|-|-|-|-|-|-|
|EVERBRIGHTSECURITIESLIMITED(HONGKONG)|Foreignshareholder|0.12%||482,150|||
|YangYufei|Domesticshareholder|0.12%||474,090|||
|ExplanationfortheAffiliatedRelationsorUnitedActionoftheTopTenShareholders||In the report period, the frozen period of the shares purchased by the company’s strategicinvestor AKTIEBOLAGET SKFexpired in 1999, and has not dealt with the releasing-procedure inthisreportperiod.|||||
|Notes to relationship or “action inconcert”among the top tenshareholders.|||||||
|TopTenTradableShareholders|||||||
|Name|||Currentsharesheldatendofyear(Note4)||Categoryof Shares||
||||||Categories|Amount|
|AKTIEBOLAGETSKF|||79,300,000||B|79,300,000|
|HuangJunyue|||2,828,321||B|2,828,321|
|BOCISECURITIESLIMITED|||2,800,085||B|2,800,085|
|MaYuancheng|||755,825||B|755,825|
|MAN,KWAIWING|||713,101||B|713,101|
|YanJianhui|||564,900||B|564,900|
|HeiYouxin|||512,559||B|512,559|
|EVERBRIGHTSECURITIESLIMITED(HONGKONG)|||482,150||B|482,150|
|YangYufei|||474,090||B|474,090|
|WangHongting|||388,891||B|388,891|
|ExplanationfortheAffiliatedRelationsorUnitedActionoftheTopTenShareholdersandtheTopTenTradableShareholders|||Therewasnorelationshipandconsistentactivitiesbetweenthefirstbigshareholderandothershareholdersorthetoptencommonstockholders;Therelationshipamongothershareholders,toptencirculationshareholders,toptencirculationshareholdersandothershareholderswasnotclear.||||

iiiChangeofControllingShareholderActualControllerintheReportPeriod
□Applicable√Inapplicable
ChapterⅧ.Relevantinformationaboutpreferredstock
ChapterⅧ.Directors,Supervisors,SeniorManagementandStaff
I.SharesholdingchangeinDirectors,Supervisors,SeniorManagement
Inapplicable
II.ChangesofDirectors,SupervisorsandSeniorManagement
||||||
|-|-|-|-|-|
|Name|Position|Type|Date|Reason|
|HuaYuehong|Vice-manager|Resignsion|2014.04.28|personalreason|

WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearalReport Chapter VIII. Financial Report
I.AuditReport
Thefinancialreportisunaudited
II. Financial Statement
1.ConsolidatedBalanceSheet.
Unit:RMBYuan
||||
|-|-|-|
|Item|ClosingBalance|OpeningBalance|
|Currentassets ：|||
|Monetaryfund|146,719,100.22|80,687,086.92|
|Financialassetsheld-for-trading|||
|Billsreceivable|152,222,140.07|100,329,887.46|
|Accountreceivable|1,301,381,593.11|1,138,605,661.45|
|Accountpaidinadvance|34,102,822.32|33,712,904.14|
|Interestreceivable||240,000.00|
|Otherreceivables|22,598,251.17|29,727,292.33|
|Inventory|1,126,647,752.16|1,196,734,228.79|
|Non-currentassetsduewithin1year|||
|Othercurrentassets|2,969,167.26|2,772,988.57|
|Totalcurrentassets|2,786,640,826.31|2,582,810,049.66|
|Non-currentassets|||
|Financialassetsavailable-for-sale|||
|Investmentsheld-to-maturity|||
|Long-termreceivable|||
|Long-termequityinvestment|110,533,646.70|108,272,431.11|
|Investmentproperty|||
|Fixedassets|542,635,346.40|572,492,122.56|
|Constructioninprogress|353,554,300.23|303,172,462.62|
|Constructionmaterials|||
|Fixedassetsdisposal|||
|Biologicalassets|137,259,152.75|139,563,086.91|
|Gasandpetrolassets|||
|Intangibleassets|||
|Developmentexpenditure|||
|Goodwill|||
|Long-termprepaidexpense|846,103.57|724,852.75|
|Deferredtaxassets|10,762,883.65|10,762,883.65|
|Othernon-currentassets|||
|Totalnon-currentassets|1,155,591,433.30|1,134,987,839.60|
|Totalassets|3,942,232,259.61|3,717,797,889.26|
|Currentliabilities|||
|Short-termloan|408,000,000.00|418,000,000.00|
|Notepayable|249,796,543.78|93,247,340.00|
|Accountspayable|1,261,935,771.38|1,166,466,116.64|
|Accountsreceivedinadvance|62,911,847.40|74,433,323.04|
|Commissionchargepayable|||
|Accruedpayroll|17,459,162.49|19,654,053.70|
|Taxpayable|5,557,677.41|5,762,579.01|
|Interestpayable||1,728,222.22|
|Dividendspayable|||
|Otherpayables|154,144,365.34|136,673,398.82|
|Non-currentliabilitiesduewithinIyear|150,000,000.00|150,000,000.00|
|Othercurrentliabilities|4,011,103.83|4,011,103.83|
|Totalcurrentliabilities|2,313,816,471.63|2,069,976,137.26|
|Non-currentliabilities|||

WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearalReport
||||
|-|-|-|
|Long-termloan|90,000,000.00|90,000,000.00|
|Debenturepayable|||
|Long-termpayables|100,000.00|100,000.00|
|Specialpayables|321,698.98|321,698.98|
|Contingentliabilities|||
|Deferredtaxliabilities|||
|Othernon-currentliabilities|50,476,839.58|52,433,617.52|
|Totalnon-currentliabilities|140,898,538.56|142,855,316.50|
|Totalliabilities|2,454,715,010.19|2,212,831,453.76|
|Owner’sequity(shareholders’equity)|||
|Capitalstock|402,600,000.00|402,600,000.00|
|Capitalpublicreserves|488,805,548.36|488,805,548.36|
|Less:treasuryshare|||
|Surplusreserve|131,442,909.11|131,442,909.11|
|Undistributedprofit|464,668,791.95|482,117,978.03|
|Differenceofforeigncurrencytranslation|||
|Equityattributabletoparentcompany|1,487,517,249.42|1,504,966,435.50|
|Minorityinterest|||
|Totalowner’sequity|1,487,517,249.42|1,504,966,435.50|
|Totalowner’sequityandliabilities|3,942,232,259.61|3,717,797,889.26|

 Chairman: CongHong GeneralAccountant:SunNajuan Accountingcharger:YaoChunjuan 2. BalanceSheetofParentCompany
Unit:RMBYuan
||||
|-|-|-|
|Item|OpeningBalance|ClosingBalance|
|Currentassets ：|||
|Monetaryfund|144,132,898.03|76,549,204.53|
|Financialassetsheld-for-trading|||
|Billsreceivable|145,432,603.48|99,829,887.46|
|Accountreceivable|1,279,284,513.62|1,139,776,660.21|
|Accountpaidinadvance|33,567,617.57|32,824,584.91|
|Interestreceivable||240,000.00|
|Otherreceivables|19,334,694.73|25,564,205.17|
|Inventory|1,067,015,369.68|1,125,983,146.27|
|Non-currentassetsduewithin1year|||
|Othercurrentassets|2,969,167.26|2,772,988.57|
|Totalcurrentassets|2,691,736,864.37|2,503,540,677.12|
|Non-currentassets|||
|Financialassetsavailable-for-sale|||
|Investmentsheld-to-maturity|||
|Long-termreceivable|||
|Long-termequityinvestment|166,811,661.03|164,550,445.44|
|Investmentproperty|||
|Fixedassets|437,311,946.95|462,267,249.78|
|Constructioninprogress|353,554,300.23|303,169,052.62|
|Constructionmaterials|||
|Fixedassetsdisposal|||
|Biologicalassets|121,451,132.75|123,588,686.87|
|Gasandpetrolassets|||
|Intangibleassets|||
|Developmentexpenditure|||
|Goodwill|||
|Long-termprepaidexpense|846,103.57|724,852.75|
|Deferredtaxassets|10,762,883.65|10,762,883.65|
|Othernon-currentassets|||
|Totalnon-currentassets|1,090,738,028.18|1,065,063,171.11|
|Totalassets|3,782,474,892.55|3,568,603,848.23|

WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearalReport
||||
|-|-|-|
|Currentliabilities|||
|Short-termloan|408,000,000.00|418,000,000.00|
|Notepayable|249,796,543.78|93,247,340.00|
|Accountspayable|1,101,988,307.67|1,017,390,652.18|
|Accountsreceivedinadvance|57,878,019.81|74,528,538.89|
|Commissionchargepayable|||
|Accruedpayroll|9,403,984.70|11,427,966.15|
|Taxpayable|2,734,782.12|3,078,968.63|
|Interestpayable||1,728,222.22|
|Dividendspayable|||
|Otherpayables|111,071,567.90|95,022,064.02|
|Non-currentliabilitiesduewithinIyear|150,000,000.00|150,000,000.00|
|Othercurrentliabilities|3,913,555.83|3,913,555.83|
|Totalcurrentliabilities|2,094,786,761.81|1,868,337,307.92|
|Non-currentliabilities|||
|Long-termloan|90,000,000.00|90,000,000.00|
|Debenturepayable|||
|Long-termpayables|||
|Specialpayables|321,698.98|321,698.98|
|Contingentliabilities|||
|Deferredtaxliabilities|||
|Othernon-currentliabilities|45,892,083.58|47,848,861.52|
|Totalnon-currentliabilities|136,213,782.56|138,170,560.50|
|Totalliabilities|2,231,000,544.37|2,006,507,868.42|
|Owner’sequity(shareholders’equity)|||
|Capitalstock|402,600,000.00|402,600,000.00|
|Capitalpublicreserves|485,678,443.26|485,678,443.26|
|Less:treasuryshare|||
|Surplusreserve|131,442,909.11|131,442,909.11|
|Undistributedprofit|531,752,995.81|542,374,627.44|
|Differenceofforeigncurrencytranslation|||
|Equityattributabletoparentcompany|1,551,474,348.18|1,562,095,979.81|
|Minorityinterest|||
|Totalowner’sequity|1,551,474,348.18|1,562,095,979.81|
|Totalowner’sequityandliabilities|3,782,474,892.55|3,568,603,848.23|

 Chairman: CongHong GeneralAccountant:SunNajuan Accountingcharger:YaoChunjuan 3.ConsolidatedIncomeSheet.
Unit:RMBYuan
||||
|-|-|-|
|Item|Accountforthecurrentperiod|Accountforthepriorperiod|
|1.Totaloperatingincome|1,641,013,208.71|1,547,403,493.37|
|Including:Operatingrevenue|1,641,013,208.71|1,547,403,493.37|
|Interestincome|||
|Handlingchargeandcommissionincome|||
|2.Totaloperatingcost|1,664,289,776.23|1,531,668,845.00|
|Including:Operatingcost|1,490,487,024.71|1,375,879,876.97|
|Interestexpenses|||
|Handlingchargeandcommissionincome|||
|Tax&surchargesformainoperations|6,171,354.22|5,706,680.51|
|Sellingexpenses|118,732,526.35|102,660,427.82|
|Administrativeexpense|35,930,304.10|34,739,784.53|
|Financialexpense|11,935,634.49|12,206,072.78|
|Lossofimpairmentofassets|1,032,932.36|476,002.39|
|Add:Gainsofchangeoffairvalueofassets(losswith"-")|||
|Investmentincome(losswith"-")|2,261,215.59|5,711,527.35|

WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearalReport
||||
|-|-|-|
|Including:Incomeforminvestmentonassociatedenterpriseandjointlyenterprise|2,261,215.59|5,031,527.35|
|3.Operatingprofit(losswith"-")|-21,015,351.93|21,446,175.72|
|Add:Non-operatingrevenue|4,368,539.55|3,549,564.64|
|Less:Non-operatingcost|802,373.70|1,321,121.72|
|Including:lossondisposalofnon-currentassets||35,866.08|
|4.Totalprofit(losswith"-")|-17,449,186.08|23,674,618.64|
|Less:Incometaxexpenses||842,546.41|
|5.Netprofit(Losswith"-")|-17,449,186.08|22,832,072.23|
|Netprofitattributabletoshareholdersofparentcompany|-17,449,186.08|22,832,072.23|
|Minorityinterests|||
|6.Earningspershare|||
|(1)Basicearningspershare|-0.04|0.06|
|(2)Dilutedearningspershare|-0.04|0.06|
|7.Othercomprehensivereturns|||
|8.Totalcomprehensivereturns|-17,449,186.08|22,832,072.23|
|Totalcomprehensivereturnsavailableforparentcompany|-17,449,186.08|22,832,072.23|
|Totalcomprehensivereturnsavailableforminorityshareholders|||

Chairman: CongHong GeneralAccountant:SunNajuan Accountingcharger:YaoChunjuan 4.IncomeSheetofParentCompany.
Unit:RMBYuan
||||
|-|-|-|
|Item|Accountforthecurrentperiod|Accountforthepriorperiod|
|1.Totaloperatingincome|1,643,461,366.28|1,547,227,335.54|
|Less:Operatingcost|1,494,654,881.09|1,376,283,798.47|
|Tax&surchargesformainoperations|5,418,432.45|5,035,242.43|
|Sellingexpenses|118,078,966.63|102,033,585.21|
|Administrativeexpense|26,247,250.39|25,650,126.17|
|Financialexpense|12,175,479.92|12,170,694.57|
|Lossofimpairmentofassets|1,032,932.36|476,002.39|
|Add:Gainsofchangeoffairvalueofassets(losswith"-")|||
|Investmentincome(losswith"-")|118,078,966.63|102,033,585.21|
|Including:Incomeforminvestmentonassociatedenterpriseandjointlyenterprise|118,078,966.63|102,033,585.21|
|2.Operatingprofit(losswith"-")|118,078,966.63|102,033,585.21|
|Add:Non-operatingrevenue|26,247,250.39|25,650,126.17|
|Less:Non-operatingcost|12,175,479.92|12,170,694.57|
|Including:lossondisposalofnon-currentassets|||
|3.Totalprofit(losswith"-")|-10,621,631.63|33,006,701.93|
|Less:Incometaxexpenses||842,546.41|
|4.Netprofit(Losswith"-")|-10,621,631.63|32,164,155.52|
|Netprofitattributabletoshareholdersofparentcompany|||
|Minorityinterests|||
|5.Earningspershare|||
|(1)Basicearningspershare|-0.03|0.08|
|(2)Dilutedearningspershare|-0.03|0.08|
|6.Othercomprehensivereturns|||
|7.Totalcomprehensivereturns|||
|Totalcomprehensivereturnsavailableforparentcompany|||
|Totalcomprehensivereturnsavailableforminorityshareholders|-10,621,631.63|32,164,155.52|

Chairman: CongHong GeneralAccountant:SunNajuan Accountingcharger:YaoChunjuan
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearalReport 5.ConsolidatedCashFlowStatement.
Unit:RMByuan
||||
|-|-|-|
|Item|Accountforthecurrentperiod|Accountforthepriorperiod|
|1.Cashfromoperatingactivities|||
|CashreceivedfromsaleofgoodsorProvideingofservices|699,010,861.57|637,446,979.54|
|Refundoftaxesandfares|129.17|446.93|
|Othercashreceivedrelatingtooperatingactivities|6,856,715.72|6,525,851.06|
|Sub-totalofcashinflows|705,867,706.46|643,973,277.53|
|Cashpaidforgoodsandservices|346,912,442.67|383,221,108.66|
|Cashpaidtooronbehalfoftheemployees|171,292,291.78|149,744,170.51|
|Taxpayments|42,258,628.44|35,876,925.76|
|Othercashpaidrelatingtooperatingactivities|89,241,093.27|95,424,487.53|
|Sub-totalofcashoutflows|649,704,456.16|664,266,692.46|
|Netcashflowsfromoperatingactivities|56,163,250.30|-20,293,414.93|
|2.Cashflowsfrominvestingactivities|||
|Cashreceivedfromreturnofinvestment|240,000.00|680,000.00|
|Cashreceivedfrominvestmentincomes|||
|Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets|||
|Proceeds from sale of subsidiaries and other operatingunits|||
|Othercashreceivedrelatingtoinvestingactivities|||
|Sub-totalofcashinflows|240,000.00|680,000.00|
|Cash paid to acquire fixed assets, intangible assets andotherlong-termassets|32,348,788.92|1,075,610.77|
|Cashpaidtoacquireinvestment|||
|Netcashusedinacquiringsubsidiariesandotheroperatingunits|||
|Othercashpaidrelatingtoinvestingactivities|||
|Sub-totalofcashoutflows|32,348,788.92|1,075,610.77|
|Netcashflowsfrominvestmentactivities|-32,108,788.92|-395,610.77|
|3.Cashflowsfromfinancingactivities|||
|Cashreceivedfromabsorbinginvestment|||
|Including:Cashreceivedfromincreaseinminorityinterest|||
|Proceedsfromborrowings|338,000,000.00|516,000,000.00|
|Otherproceedsrelatingtofinancingactivities||4,723,200.00|
|Sub-totalofcashinflows|338,000,000.00|520,723,200.00|
|Repaymentofborrowings|299,322,611.11|466,849,955.55|
|Distributionof dividendsorprofits&interestexpenses|17,612,192.59|15,549,334.83|
|Including:dividendsorprofitpaidtominorityinterest|||
|Cashpaidforotherfinancingactivities|||
|Sub-totalofcashoutflows|316,934,803.70|482,399,290.38|
|Netcashflowsfromfinancingactivities|21,065,196.30|38,323,909.62|
|4.Effectsofforeignexchangeratechangesoncash|1,163,753.62|-480,690.44|
|5.Netincreasesincashandcashequivalents|46,283,411.30|17,154,193.48|
|Add:cashandcashequivalent,atthebeginningofyear|60,616,759.13|60,004,306.25|
|6.Cashandcashequivalentattheendoftheyear|106,900,170.43|77,158,499.73|

 Chairman: CongHong GeneralAccountant:SunNajuan Accountingcharger:YaoChunjuan 6.CashFlowStatementOfParentCompany.
Unit:RMByuan
||||
|-|-|-|
|Item|Accountforthecurrentperiod|Accountforthepriorperiod|
|1.Cashfromoperatingactivities|||
|CashreceivedfromsaleofgoodsorProvidingofservices|701,385,036.16|636,200,717.44|

WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearalReport
||||
|-|-|-|
|Refundoftaxesandfares|129.17|446.93|
|Othercashreceivedrelatingtooperatingactivities|4,955,678.49|5,148,013.18|
|Sub-totalofcashinflows|706,340,843.82|641,349,177.55|
|Cashpaidforgoodsandservices|385,265,879.81|417,618,006.53|
|Cashpaidtooronbehalfoftheemployees|147,731,859.49|125,912,567.93|
|Taxpayments|34,630,453.11|28,513,264.98|
|Othercashpaidrelatingtooperatingactivities|81,176,929.37|89,695,198.03|
|Sub-totalofcashoutflows|648,805,121.78|661,739,037.47|
|Netcashflowsfromoperatingactivities|57,535,722.04|-20,389,859.92|
|2.Cashflowsfrominvestingactivities|||
|Cashreceivedfromreturnofinvestment|240,000.00|680,000.00|
|Cashreceivedfrominvestmentincomes|||
|Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets|||
|Proceeds from sale of subsidiaries and other operatingunits|||
|Othercashreceivedrelatingtoinvestingactivities|||
|Sub-totalofcashinflows|240,000.00|680,000.00|
|Cash paid to acquire fixed assets, intangible assets andotherlong-termassets|32,228,548.92|940,927.96|
|Cashpaidtoacquireinvestment|||
|Netcashusedinacquiringsubsidiariesandotheroperatingunits|||
|Othercashpaidrelatingtoinvestingactivities|||
|Sub-totalofcashoutflows|32,228,548.92|940,927.96|
|Netcashflowsfrominvestmentactivities|-31,988,548.92|-260,927.96|
|3.Cashflowsfromfinancingactivities|||
|Cashreceivedfromabsorbinginvestment|||
|Including:Cashreceivedfromincreaseinminorityinterest|||
|Proceedsfromborrowings|338,000,000.00|516,000,000.00|
|Otherproceedsrelatingtofinancingactivities||4,723,200.00|
|Sub-totalofcashinflows|338,000,000.00|520,723,200.00|
|Repaymentofborrowings|299,322,611.11|466,849,955.55|
|Distributionof dividendsorprofits&interestexpenses|17,553,224.13|15,549,334.83|
|Including:dividendsorprofitpaidtominorityinterest|||
|Cashpaidforotherfinancingactivities|||
|Sub-totalofcashoutflows|316,875,835.24|482,399,290.38|
|Netcashflowsfromfinancingactivities|21,124,164.76|38,323,909.62|
|4.Effectsofforeignexchangeratechangesoncash|1,163,753.62|-480,690.44|
|5.Netincreasesincashandcashequivalents|47,835,091.50|17,192,431.30|
|Add:cashandcashequivalent,atthebeginningofyear|56,478,876.74|57,459,164.76|
|6.Cashandcashequivalentattheendoftheyear|104,313,968.24|74,651,596.06|

 Chairman: CongHong GeneralAccountant:SunNajuan Accountingcharger:YaoChunjuan
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport7.ConsolidatedSheetOfChangesInShareholder’sEquity
Unit:RMBYuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item|Amountincurrentperiod|||||||||
||Owner’sequityattributabletoparentcompany|||||||Minorityshareholders’equity|Owner’sequity|
||Capitalstock|Capitalpublicreserves|less：treasurestock|Surpluspublicreserves|Generalprovisionforrisk|Undistributedprofits|Others|||
|1.Balanceattheendoflastyear|402,600,000.00|488,805,548.36||131,442,909.11||482,117,978.03|||1,504,966,435.50|
|Add: changes in accountingpolicies||||||||||
|Changesinpreviouserrors||||||||||
|Others||||||||||
|2.Balance at the beginning ofthisyear|402,600,000.00|488,805,548.36||131,442,909.11||482,117,978.03|||1,504,966,435.50|
|3. The changes in this year（decreasewith“-”）||||||-17,449,186.08|||-17,449,186.08|
|(1)Netprofits||||||-17,449,186.08|||-17,449,186.08|
|(2)Othercomprehensivereturns||||||||||
|Total(1)and(2)||||||-17,449,186.08|||-17,449,186.08|
|(3) The assets invested orreturnedbytheowners||||||||||
|1)capitalinvestedbyowners||||||||||
|2)The amount of sharepayment recorded owner’sequity||||||||||
|3)others||||||||||
|(4）Profitsdistribution||||||||||
|1)Provision for surplus publicreserves||||||||||
|2)provisionforgeneralrisks||||||||||
|3)distribution forowner(shareholders)||||||||||
|4)others||||||||||
|(5 ） interior transference ofowner’sequity||||||||||
|1)capital (capital||||||||||

WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport
|||||||
|-|-|-|-|-|-|
|stock)transferred by the capitalpublicreserves||||||
|2)capital (capitalstock)transferred by the surpluspublicreserves||||||
|3)loss offset by the surpluspublicreserves||||||
|4)others||||||
|4. Balance at the end of thecurrentperiod|402,600,000.00|488,805,548.36|131,442,909.11|464,668,791.95|1,487,517,249.42|

Unit:RMByuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item|Amountinpreviousperiod|||||||||
||Owner’sequityattributabletoparentcompany|||||||Minorityshareholders’equity|Owner’sequity|
||Capitalstock|Capitalpublicreserves|less：treasurestock|Surpluspublicreserves|Generalprovisionforrisk|Undistributedprofits|Others|||
|1.Balance at the end of lastyear|402,600,000.00|485,691,050.47||129,292,318.86||498,350,778.41|||1,515,934,147.74|
|Add: changes in accountingpolicies||||||||||
|Changesinpreviouserrors||||||||||
|Others||||||||||
|2.Balance at the beginning ofthisyear|402,600,000.00|485,691,050.47||129,292,318.86||498,350,778.41||0.00|1,515,934,147.74|
|3. The changes in this year（decreasewith“-”）||3,114,497.89||2,150,590.25||-16,232,800.38|||-10,967,712.24|
|(1)Netprofits||||||2,021,789.87|||2,021,789.87|
|(2) Other comprehensivereturns||3,114,497.89|||||||3,114,497.89|
|Total(1)and(2)||3,114,497.89||||2,021,789.87||0.00|2,021,789.87|
|(3) The assets invested orreturnedbytheowners||||||||||
|1)capitalinvestedbyowners||||||||||
|2)The amount of sharepayment recorded owner’sequity||||||||||
|3)others||||||||||

WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport
|||||||
|-|-|-|-|-|-|
|(4）Profitsdistribution|||2,150,590.25|-18,254,590.25|16,104,000.00|
|1)Provision for surplus publicreserves|||2,150,590.25|-18,254,590.25||
|2)provisionforgeneralrisks||||||
|3)distribution forowner(shareholders)||||-16,104,000.00|-16,104,000.00|
|4)others||||||
|(5 ） interior transference ofowner’sequity||||||
|1)capital (capitalstock)transferred bythe capitalpublicreserves||||||
|2)capital (capitalstock)transferredbythesurpluspublicreserves||||||
|3)loss offset by the surpluspublicreserves||||||
|4)others||||||
|4. Balance at the end of thecurrentperiod|402,600,000.00|488,805,548.36|131,442,909.11|482,117,978.03|1,504,966,435.50|

8.SheetOfChangesInShareholder’sEquityOfParentCompamy.
Unit:RMByuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item|Amountincurrentperiod|||||||||
||Owner’sequityattributabletoparentcompany|||||||Minorityshareholders’equity|Owner’sequity|
||Capitalstock|Capitalpublicreserves|less：treasurestock|Surpluspublicreserves|Generalprovisionforrisk|Undistributedprofits|Others|||
|1.Balance at the end of lastyear|402,600,000.00|485,678,443.26||131,442,909.11||542,374,627.44|||1,562,095,979.81|
|Add:changesinaccountingpolicies||||||||||
|Changesinpreviouserrors||||||||||
|Others||||||||||
|2.Balance at the beginningofthisyear|402,600,000.00|485,678,443.26||131,442,909.11||542,374,627.44|||1,562,095,979.81|
|3. The changes in this year（decreasewith“-”）||||||-10,621,631.63|||-10,621,631.63|
|(1)Netprofits||||||-10,621,631.63|||-10,621,631.63|
|(2) Other comprehensive||||||||||

WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport
|||||||
|-|-|-|-|-|-|
|returns||||||
|Total(1)and(2)||||-10,621,631.63|-10,621,631.63|
|(3) The assets invested orreturnedbytheowners||||||
|1)capitalinvestedbyowners||||||
|2)The amount of sharepayment recorded owner’sequity||||||
|3)others||||||
|(4）Profitsdistribution||||||
|1)Provisionforsurpluspublicreserves||||||
|2)provisionforgeneralrisks||||||
|3)distribution forowner(shareholders)||||||
|4)others||||||
|(5）interior transference ofowner’sequity||||||
|1)capital (capitalstock)transferred by thecapitalpublicreserves||||||
|2)capital (capitalstock)transferred by thesurpluspublicreserves||||||
|3)loss offset by the surpluspublicreserves||||||
|4)others||||||
|4. Balance at the end of thecurrentperiod|402,600,000.00|485,678,443.26|131,442,909.11|531,752,995.81|1,551,474,348.18|

Unit:RMByuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item|Amountinpreviousperiod|||||||||
||Owner’sequityattributabletoparentcompany|||||||Minorityshareholders’equity|Owner’sequity|
||Capitalstock|Capitalpublicreserves|less：treasurestock|Surpluspublicreserves|Generalprovisionforrisk|Undistributedprofits|Others|||
|1.Balance at the end of lastyear|402,600,000.00|482,563,945.37||129,292,318.86||539,123,315.19|||1,553,579,579.42|
|Add:changesinaccountingpolicies||||||||||

WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport
|||||||
|-|-|-|-|-|-|
|Changesinpreviouserrors||||||
|Others||||||
|2.Balance at the beginningofthisyear|402,600,000.00|482,563,945.37|129,292,318.86|539,123,315.19|1,553,579,579.42|
|3. The changes in this year（decreasewith“-”）||3,114,497.89|2,150,590.25|3,251,312.25|8,516,400.39|
|(1)Netprofits||||21,505,902.50|21,505,902.50|
|(2) Other comprehensivereturns||3,114,497.89|||3,114,497.89|
|Total(1)and(2)||3,114,497.89||21,505,902.50|21,505,902.50|
|(3) The assets invested orreturnedbytheowners||||||
|1)capitalinvestedbyowners||||||
|2)The amount of sharepayment recorded owner’sequity||||||
|3)others||||||
|(4）Profitsdistribution|||2,150,590.25|-18,254,590.25|-16,104,000.00|
|1)Provisionforsurpluspublicreserves|||2,150,590.25|-2,150,590.25||
|2)provisionforgeneralrisks||||||
|3)distribution forowner(shareholders)||||-16,104,000.00|-16,104,000.00|
|4)others||||||
|(5）interior transference ofowner’sequity||||||
|1)capital (capitalstock)transferred by thecapitalpublicreserves||||||
|2)capital (capitalstock)transferred by thesurpluspublicreserves||||||
|3)loss offset by the surpluspublicreserves||||||
|4)others||||||
|4. Balance at the end of thecurrentperiod|402,600,000.00|485,678,443.26|131,442,909.11|542,374,627.44|1,562,095,979.81|

WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport 1.Generalinformation
WafangdianBearingCompanyLimited(the“Company”)isajointstocklimitedcompanyestablishedinthePeople’sRepublic ofChina(the“PRC”)on16July1997.Intheopinionofthedirectors,itsparentandultimateholdingcompanyisWafangdian BearingGroupCompanyLimited(“WazhouGroup”).
TheCompany’sBshareshavebeenlistedontheShenzhenStockExchangesince29Feburary1997.
The addresses of the registered office and principal place of business of the Company are No.1, Phrase 1, Gongji Street, WafangdianNorth,LiaoningProvince,andthePRC.
TheCompanyisprincipallyengagedinthemanufacturingandsaleofbearingproducts,engineeringequipment,automobile sparepartsandrelatingproducts.
TheCompanytogetherwithitssubsidiariesiscollectivelyreferredtoasthe“Group”.
2.Significantaccountingpolicies,accountingestimatesandmethodforpreparationofconsolidatedfinancialstatements 2.1Basisforthepreparationoffinancialstatements
The Group prepares the financial statements on the basis of going concern and actual transactions and events, and inaccordancewiththeAccountingStandardsforBusinessEnterprisesissuedbytheMinistryofFinanceofthePeople’sRepublic of China, and based on the accounting policies and estimates in the note 4‘Significant accounting policies, accountingestimatesandmethodforpreparationofconsolidatedfinancialstatements’.
2.2ComplyingwithAccountingStandardforBusinessEnterprise
The financial statements are prepared by the Group according to the requirements of Accounting Standard for Business Enterprise,andreflecttherelativeinformationforthefinancialposition,operatingperformance,cashflowoftheGrouptruly andfully.
2.3Accountingperiod
TheGroup adoptstheGregoriancalendaryearasaccountingperiod,i.e.fromJan1toDec31.
2.4Funcitonalcurrency
TheGroup adoptsRMBasfunctionalcurrency.
2.5Recordingbasisandpricingprinciple
The accrual basis shall be adopted for accounting treatment to follow the historical cost method, except that the financial
assetsheldfortradingandsalearemeasuredatfairvalue.
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport 2.6Businesscombination
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 combiningdateoracquisitiondateisthedatewhentheGroupacquiredactuallyacquireeandcombinedparty.
The assets and liabilities that the combining party obtains in a business combination under the same control should be measuredonthebasisoftheircarryingamountinthecombinedpartyonthecombiningdate.Asforthebalancebetweenthe carryingamountofthenetassetsobtainedbythecombiningpartyandthecarryingamountoftheconsiderationpaidbyit,the capitalsurplusshallbeadjusted.Ifthecapitalsurplusisnotsufficienttobeoffset,theretainedearningsshallbeadjusted. Forabusinesscombinationnotundersamecontrol,thecombinationcostshallbethefairvalue,ontheacquisitiondate,of theassetspaid,theliabilitiesincurredorassumedandequitysecuritiesissuedbytheacquirerinexchangeforthecontrolof the acquiree. The difference when combination cost exceedsthe 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 differenceshouldberecognizedascurrentprofitorloss.
2.7Methodofpreparationofconsolidatedfinancialstatements
(1)Recognitionprincipleofscopeofconsolidation
Scopeofconsolidatedfinancialstatementsshouldincludeallsubsidiariesoftheparentandthespecialpurposeentities. (2)Accountingmethodofconsolidatedfinancialstatements
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 andbalancehadbeeneliminatedinfull.Thepartsofsubsidiaries’equitynon-attributabletoparentcompanyshallbeasminority interestpresentedintheintheconsolidatedbalancesheetwithinequity.
Wherethereareinconsistentaccountingpoliciesoraccountingperiod,whenpreparingtheconsolidatedfinancialstatements, the Group shall adjust thesubsidiaries’ financial statements in accordance with theGroup’s accounting policies and accountingperiod.
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 subsidiariescombinedbytheGroup underthesamecontrol, regardthesubsidiariesthattheyhavebeenexistingsince the beginning of the period, and the assets, liabilities, operation performance and cash flows shall be consolidated into the financialstatementsofthebeginningofthecombinationperiodaccordingtotheiroriginalbookvalue.
2.8Cashandcashequivalent
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport ThecashlistedonthecashflowstatementsoftheGroupreferstocashonhandandbankdeposit.Thecashequivalents refer to short-term (normally with original maturities of three months or less) and liquid investments which are readily convertibletoknownamountsofcashandsubjecttoaninsignificantriskofchangesinvalue.
2.9Translationofforeigncurrency
(1)Foreigncurrencytransaction
ForeigncurrencytransactionsaretranslatedatthespotexchangerateissuedbyPeople’sBankofChina(“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 differencesarising from the settlement of monetary items arecharged as in profitorlossfortheperiod.Exchangedifferencesofspecificborrowingsrelatedtotheacquisitionorconstruction ofafixed assetshouldbecapitalizedasoccurred,beforetherelevantfixedassetbeingacquiredorconstructedisreadyforitsintended uses.Theforeigncurrencynon-monetaryitemsrecordedatfairvaluearetranslatedattheexchangerateissuedonthedateof fair value recognized. Exchange differences are charged as profit and loss of change of fair value. The foreign currency non-monetaryitemsrecordedathistoricalcostaretranslatedattheexchangerateissuedonthedatewhenthetransactionincurs,anddon’tchangetheRMBamount.
(2)Translationofforeigncurrencyfinancialstatements
Theassetandliabilityitemsintheforeigncurrencybalancesheetshouldbetranslatedataspotexchangerateatthebalance sheet date. Among theower’s equityitems except“undistributed profit”, others should be translated at the spot exchange ratewhentheyareincurred.Theincomeandexpenseshouldbetranslatedatspotexchangeratewhenthetransactionincurs.Translationdifferenceofforeigncurrencyfinancialstatementsshouldbepresentedseparatelyundertheower’sequityitem. 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 overseasbusinessintothedisposalprofitsandlossesofcurrentperiod.Foreigncurrencycashflowsaretranslatedatthespot exchange rate on the day when the cash flows incur. The amounts resulted from change of exchange rate are presented separatelyinthecashflowstatement.
2.10Financialassetsandfinancialliabilities
(1)Financialassets
1)Classification
TheGroupclassifiesitsfinancialassetsinthefollowingcategories:atfairvaluethroughprofitorloss,loansandreceivables, held-to-maturity financial assets and available-for-sale. The classification depends on the purpose for which the financial
assetswereacquired.Managementdeterminestheclassificationofitsfinancialassetsatinitialrecognition.
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport a)Financialassetsatfairvaluethroughprofitorloss
Financialassetsatfairvaluethroughprofitorlossarefinancialassetsheldfortrading.Afinancialassetisclassifiedin thiscategoryifacquiredprincipallyforthepurposeofsellingintheshortterm.Derivativesarealsocategorisedasheld fortradingunlesstheyaredesignatedashedges.Assetsinthiscategoryareclassifiedascurrentassetsifexpectedtobe settledwithin12months;otherwise,theyareclassifiedasnon-current.
b)Loansandreceivables
Loansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinan active market. They are included in current assets, except for maturities greater than 12 months after the reporting period,whichareclassifiedasnon-currentassets.
c)Held-to-maturityfinancialassets
Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable payments and fixed maturitiesthattheGroup smanagementhasthepositiveintentionandabilitytoholdtomaturity.IftheGroupwereto 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-maturityfinancial assets areincludedin non-currentassets, except for those withmaturitieslessthan12monthsfromtheendofthereportingperiod,whichareclassifiedascurrentassets.
d)Available-for-salefinancialassets
Available-for-salefinancialassetsarenon-derivativesthatareeitherdesignatedinthiscategoryornotclassifiedinanyof theothercategories.Theyareincludedinnon-currentassetsunlesstheinvestmentmaturesormanagementintendsto disposeofitwithin12monthsoftheendofthereportingperiod.
2)Recognitionandmeasurement
Financial assetsare recognizedat fair value on the balance sheet when the Group becomesa partyto the contractual provisionsofthefinancialinstrument.Transactioncostsoffinancialassetscarriedatthefairvaluethroughprofitorloss are expensed in the income statement;Transaction costs of other financial assets are included in financial assets at initialrecognition.
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 reliablymeasured.Loansandreceivablesaremeasuredatamortisedcostusingtheeffectiveinterestmethod.
A gain or loss arising from change in fair value of an available-for-sale financial asset is recognised directly in equity, exceptfor impairment lossesand foreign exchange gains and lossesarising from the translation ofmonetary financial
assets. When such financial asset is derecognised, the cumulative gain or loss previously recognised in equity is
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport 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 investmentincomeinincomestatement.
3)Impairmentoffinancialassets
TheGroupassessesthecarryingamountoffinancialassetsotherthanfinancialassetsatfairvaluethroughprofit
or lossat eachbalance sheetdate.Ifthereisobjectiveevidence thatthefinancialasset isimpaired, theGroup
shalldeterminetheamountofanyimpairmentlossaccounts.
If an impairment loss on a financial asset carried at amortized cost has been incurred, the amount of loss is
measuredatthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecash
flows(excludingfuturecreditlossesthathavenotbeenincurred).Ifthereisobjectiveevidencethatthevalueofthe
financial asset recoveredand therecoverycan berelatedobjectively to an event occurringafter theimpairment
wasrecognized,thepreviouslyrecognizedimpairmentlossisreversedandtheamountofreversalisrecognizedin
incomestatement.
Ifobjective evidenceshows that impairment for available-for-sale financialassets will occur,thecumulative 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
valueofthefinancialasset recoveredand therecoverycanberelatedobjectivelytoaneventoccurringafterthe
impairmentwasrecognized,thepreviouslyrecognizedimpairment lossisreversedandtheamountofreversalis
recognizedinincomestatement.Foranavailableforsaleequityinstrument,ifthereisobjectiveevidencethatthe
value recovered and the recovery can be objectively related to an event occurring after the impairment loss
recognized,thepreviouslyrecognizedimpairmentlossisreversedanddirectlyrecognizedinequity.
4)Derecognizingoffinancialassets
Financialassetsarederecognizedwhen:i)thecontractualrightstoreceivethecashflowsfromthefinancialassets
haveexpired;orii)allsubstantialrisksandrewardsofownershipofthefinancialassetshavebeentransferred;or
iii)thecontroloverthefinancialassethasbeenwaivedeveniftheGroupdoesnottransferorretainnearlyallof
therisksandrewardsrelatingtotheownershipofafinancialasset.
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
equityisrecognisedintheincomestatement.
(2)Financialliabilities
Thefinancialliabilitiesareclassifiedintothefinancialliabilityatfairvaluethroughprofitorlossandotherfinancialliability
fortheinitialrecognition.
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport Thefinancialliabilitiesatfairvaluethroughprofitorlossincludethefinancialliabilitiesheldfortradingandthedesignated financial liabilities at fair value through profit or loss when initial recognized. For this kind of financial liabilities should be measuredatfairvalue,variationoffairvalueshouldberecordedintothecurrentprofitorloss.
Otherfinancialliabilitiesshouldbesubsequentlymeasuredatamortizationcostbyadoptingactualinterestratemethod. (3)Fairvaluemeasurementoffinancialassetsandliabilities
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 liabilitiesbyusingthecurrentquotedprice;theGroupmeasuresthefairvalueofitscontingentfinancialassetsandholding financialliabilitiesbyusingthecurrentquotedprice.Iftherearenocurrentquotedpricesforthefinancialassetsandliabilties, andnosignificantchangeintheeconomicenvironmentafterthesettlementdate,thequotedpricesoftherecenttransactions shouldbeusedtomeasurethefairvalueofthefinancialassetsandliabilities.
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 analysisandoptionpricingmodels.
2.11Provisionforbaddebtsofreceivables
TheGroupshallreviewthecarryingamountofreceivablesfullyatthebalancesheetdate.TheGroupshallcalculatethefull provisionforbaddebtsforthefollowingreceivables:debtorhasbeenlog-out,bankruptcy,minusnetasset,significantpoor cashflowandsignificantnaturedisasterleadstodiscontinueproductionandthedebtorscouldnotpayforthedebtswithin theforeseeabletime.Othersolidevidencesindicatesthatthereceivablescoundnotbepaidorbeofaslimchance.
Theallowancemethodisappliedtothepotentiallossofbaddebt.TheGroupshouldmaketheimpairmenttestseparatelyor in combination and accure the bad debt provisions which shall be recorded into current profit or loss at the end of the period.Ifthereisdefinedevidenceforthereceivablesnottoornotlikelytobereceived,whichshallberecognizedastheloss ofbaddebtandwriteofftheaccruedbaddebtsprovisionsaftergoingthroughtheapprovalprocedureoftheGroup.
(1)Individuallysignificantamountsofaccountsreceivableaccruedbaddebtprovisionasperportfolio
Judgmentbasisoramountstandardsof ThereceivableswithmorethanRMB3millionindividualamountshallbe individuallysignificantamounts recognizedasthesignificantreceivables;
Theaccruingmethodofthereceivableswith Thebaddebtprovisionsshallbeaccruedbasedonthedifference
individuallysignificantamounts betweencurrentvalueoffuturecashflowandthecarryingamounts. (2)Accountsreceivableaccruedbaddebtprovisionbyportfolio
Thebasisofportfolio
Usetheaccountingagingofthereceivablesasthecreditriskcharacteristics Accountingaging
toclassifytheportfolio
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport Usetheamountcharacteristicsofthereceivables,ifthetransactionparty Relatedparties
isrelatedpartiescharacteristicsneedtoclassifytheportfolio
Usetheamountcharacteristicsofthereceivables,thecreditoftransaction Risk-free party,thenatureoftheamounts and thesafeguardmechanismof transactionascharacteristicstoclassifytheportfolio
Theaccrualmethodforbaddebtprovisionbyportfolio
Accountingaging Accruethebaddebtprovisionbyaccountingaginganalysismethod Relatedparties Accruethebaddebtprovisionbyindividualidentification method Risk-free Accruethebaddebtprovisionbyindividualidentification method 1)Thepercentageofprovisionforbaddebtsbasedontheageofreceivablesasfollowings:
Accountingaging Accrualpercentageofthe Accrualpercentageofotherreceivables(%)receivables(%)
Within1year 1 1
1-2years 5 5
2-3years 20 20
Over3years 50 50
2)Theothermethodsisappliedtoactuatingofbaddebtsprovision
Relatedparties Accruethebaddebtprovisionbyindividualidentification method
Risk-free Accruethebaddebtprovisionbyindividualidentification method
(3)Individuallyinsignificantamountaccountsreceivablebutaccruedbaddebtprovisionasperportfolio
The individual amount is not significant, but the accrued bad debt Accrualreason
provisiononthebasisofportfoliocannotreflectitsriskcharacteristic The bad debt provisions should be accrued based on the difference Accrualmethod
betweencurrentvalueoffuturecashflowandthecarryingamount. 2.12Inventories
Classification of inventory: Inventories are classified as raw material, wrappage, low-valuable consumable, working-in-progress,andfinishedgoodsetc.
Pricing of inventories received and sent out: The inventories are processed on perpetual inventory system, purchased and storedbasedontheirstandardcost.Therawmaterialsarepriceddailyontheirstandardcosts.Thedifferencesbetweenthe standardandactualcostsisrecordedintothecostsofmaterialsandforsendingoutaccordingtoproportionofstorageand sending out of materials, and adjust the planned costs of raw material into actual costs. The working-in-progress finished goodsarepricedontheirstandardcosts;thedifferencesbetweenthestandardandactualcostsarerecordedintothecostsof working-in-progressandfinishedgoodsaccordingtothereceivingandsendingoutproportion,andfinalyadjusttheplanned
costsintoactualcosts.
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport Atthebalancesheetdateinventoryshouldbemeasuredatthelowerofthecostandnetrealizablevalue.Fortheinventories 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 singleitem.Forrawandaccessorialmaterialswithalargequantitiesandlowerunitpriceshouldbecalculatedprovisonfor impairmentaccordingtoclassifyofinventory.
Forthefinishedgoods,workinginprogressandrawmaterialheldforsaleetcwhichshallbesolddirectly,thenetrealizable valueshouldbeconfirmedattheestimatedsellingpricelessestimatedsellingexpensesandrelatedtaxandexpenses.The rawmaterialheldforproduction,itsrealizablevalueshouldbeconfirmedattheestimatedsellingpriceoffinishedgoodsless estimated cost of completion, estimated selling expenses and related tax. The net realizable value of inventories held for executionofsalecontractsorlaborcontractsshallbecalculatedbasedonthecontractprice.Ifthequantitiesofinventoriesin theGrouparemorethanquantitiesifinventoriessubscribedinthesalescontracts,thenetrealizablevalueoftheexcessive partoftheinventoriesshouldbecalculatedbasedonthegeneralsellingprice.
2.13Long-termequityinvestment
Long-term equity investments include the equity investments which the Group can control, joint control or have significant influenceontheinvestee,ortheGroupcannotcontrol,jointcontrolorsignificantinfluenceontheinvesteeandthereisno offerintheactivemarket,fairvaluecannotbereliablymeasured.
Joint control refers to the control over an economic activity in accordance with contract. Any party of joint venture can not separatelycontrolthebusinessactivityofjointventure.Thedecisionrelatedtoprincipaloperatingactivitiesneedunanimous consentfromanyparty
Significantinfluencereferstothepowertoparticipateinmakingdecisionsonthefinancialandoperatingpoliciesofinvestee, butnotto controlordojointcontroltogetherwith otherpartiesovertheformulation ofthesepolicies. 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.
Theinitialcostoflongtermequityinvestmentsformedinthemergerofenterpriseunderthesamecontrolshallberecognized atthecarryamountsofequityofthemergedenterprise.Theinitialcostoflongtermequityinvestmentsacquiredinthemerger ofenterpriseunderthedifferentcontrolshallberecognizedatfairvalueoftheassetspaid,liabilitiesrisenorcharged,and equitysecuritiesissued.
Besides the long-term equity investments acquired by the merger of enterprises, the initial cost of a long-term equity investmentobtainedbyothermeansshallbeascertainedinaccordancewiththeprovisionsasfollows:
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport (1)Theinitialcostofalong-termequityinvestmentobtainedbymakingpaymentincashshallbethepurchasecostwhichis actuallypaid.Theinitialcost consistsoftheexpensesdirectlyrelevant totheobtaining ofthelong-term equityinvestment, taxesandothernecessaryexpenses.
(2)Theinitialcostofalong-termequityinvestmentobtainedonthebasisofissuingequitysecuritiesshallbethefairvalueof theequitysecuritiesissued.
(3) The initial cost of a long-term equity investment of an investor shall be the value stated in the investment contract or agreementexcepttheunfairvaluestatedinthecontractoragreement.
(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 StandardsforEnterprises.
Forthelong-termequityinvestmentinsubsidiariesoftheGroupshallbemeasuredinaccordancewiththecostmethod,and shall be adjusted when preparing consolidated financial statements in accordance with equity method. For the long-term equityinvestmentofjointventureshallbemeasuredinaccordancewithequitymethod.
Forthe long-termequityinvestmentoftheinvestingenterprisethatdoesnotdojointcontrolordoesnothavesignificant influencesontheinvestedentity,andhasnoofferintheactivemarketanditsfairvaluecannotbereliablymeasuredshould bemeasuredinaccordancewithcostmethod.Forthelong-termequityinvestmentoftheinvestingenterprisethatdoesnotdo jointcontrolordoesnothavesignificantinfluencesontheinvestedentity,andhasofferintheactivemarketanditsfairvalue canbereliablymeasuredshouldbemeasuredastheassetsavailableforsale.
2.14Fixedasset
Recognition criteria of fixed assets: Fixed assets are defined as the tangible assets which are held for the purpose ofproducinggoods,Provideingservices,leasingorforoperation&management,andhavemorethanoneyearofusefullife,and whoseunitpriceisoverRMB2,000.
Classificationoffixedassets:Building,machinery,transportationequipment,electronicequipmentandothers.
Measurementoffixedassets:Initialmeasurementoffixedassetsshallbeconductedonfixedassetsaccordingtotheactual cost whenobtained, including,thecostofpurchasedfixedasset includingpurchaseprice,valueaddedtax, dutyand other relatedtaxandfee,otherexpensesthatbringthefixedassettotheexpectedconditionsforuseandthatmayberelegatedto thefixedasset.Thecostofaself-constructedfixedassetshallbeformedbythenecessaryexpensesincurredforbringingthe asset to the expected conditions for use. The cost of fixed asset which was invested by investor should be recorded in accordance with the price stipulated in the contract or agreement, other than those of unfair value as stipulated in the contractoragreement.Thecostoffixedassetswhichisobtainedbyfinancialleasingshouldbemeasuredattheloweroneof fairvalueandtheminimumleasepaymentinthebeginningoflease.
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport Depreciationmethod:theGroupwithdrawsdepreciation forallfixedassetsexceptforthefixedassetswhichhadbeenfully depreciated and are still beingused. TheGroup withdraws depreciation byadopting straight-line method and depreciationrateofunititemonmonthlybasis,andbringsitcostorexpensesincurrentperiod.Estimatednetresidualvaluerateis3%, usefullife,depreciationrateasfollows:
Estimatednet
Useful
Category residualvalue Annualdepreciationrate life(years)
rate(%)
HousingandBuildings
Including:Buildings 15 3 6.47% Housingforproductive 30 3 3.23% Housingfornon-productive 35 3 2.77% Machineryequipments 10-15 3 6.47%～9.70% Transportationequipments 6 3 16.17% Electronicequipments
Including:Computer 4 3 24.25% Generaltestinginstruments 7 3 13.86% Specializedelectronic 8 3 12.13% equipments
Automated controlling 8 3 12.13% equipments
Automatedcontrollingmeters 8 3 12.13% Othersequipments
Including:Industrialkiln 7 3 13.86%Tools&otherproductiontools 9 3 10.78% Transmissionequipments 15 3 6.47% Non-operationalequipmentsandtools 18 3 5.39% TheGroupshouldreviewtheestimatedusefullife,estimatednetresidualvalueanddepreciationmethodattheendofeach year.Ifanychangehasoccurred,itshallberegardedasachangeintheaccountingestimates.
TheCompanyshouldderecognizedfixedassetwhenthefixedassethasbeendisposed,orthefixedassetscan’tgenerateany futureeconomicbenefitthroughusinganddisposal.Theamountthatincomeresultingfromdisposaloffixedassetdeductsfixedasset’sbookvalueandrelevanttaxshallberecordedintheprofitandlossforthecurrentperiod.
2.15Constructioninprogress
MeasurementofCIP:Construction-in-progressisrecognizedatactualcost.Self-constructionprojectisrecognizedatthecost ofmaterial,labour costandconstruction expenses.Contractualconstruction isrecognizedatprojectpricewhich shouldbe
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport paid.Installedconstructionisrecognizedatthevalueofequipment,installationandassemblycost.Besidesabove,thecost ofCIPcomprisesborrowingcostandprofitandlossresultingfromforeignexchange.
The criteria and time spot of constructions inprogress’s being transferred to fixed assets: Constructions in progress are carrieddowntofixedassetsontheiractualcostswhencompletingandachievingestimatedusablestatus.Thefixedassets that have been completedand reachedestimated usable statusbut have not yetbeen through completion and settlement proceduresarechargedtoanaccountaccordingtotheirestimatevalues;adjustmentwillbeconducteduponconfirmationof theiractualvalues.TheGroupshouldwithdrawdepreciationinthenextmonthaftercompletion.
2.16Borrowingcosts
Recognition principles on capitalization of borrowing cost: The Group should capitalizes the borrowing cost directly attributabletotheacquisition,constructionorproductionofaqualifyingassetandrecordborrowingcostintocostofrelated asset.TheGroupshouldrecognizetheotherborrowingcostasthecurrentexpenseandchargeditasprofitandlossofcurrent period.Aqualifyingassetreferstofixedasset,investmentpropertyandinventoryneedbeconstructedforsolongtimetoits intendeduseorsale.
Durationofcapitalizationofborrowingcost:Whenexpendituresandborrowingcostarebeingincurred,andactivitiesthatare necessarytoputtheassetavailableforuseorsaleareinprogress,thecapitalizationofborrowingcostsaspartofthecostofa qualifyingassetshouldcommence.Capitalizationofborrowingcostsshouldbesuspendedduringextendedperiodsinwhich activedevelopmentisinterruptedandinterruptionperiodlastforover3month.Theborrowingcostincurredduringtheperiod should be recognized as expenses and recorded into the profit and loss in the current period. When all the activities for bringingtheassettoitsintendeduseorsalearecompleted,thecapitalizationofborrowingcostsceases,andtheborrowing costsshouldberecognizedasanexpenseintheperiodincurred.
Measurement of borrowing cost: As for specifically borrowed loans for the acquisition and construction or production of assetseligibleforcapitalization,theto-be-capitalizedamountofinterestsshallbedeterminedasthedifferenceoftheactual cost incurred of the specially borrowed loan at the present period minus the income of interests earned on the unused borrowingloansasadepositinthebankorasatemporaryinvestment.Whereageneralborrowingisusedfortheacquisition and construction or production of assets eligible for capitalization, the Group shall calculate and determine the to-be-capitalizedamountofinterestsonthegeneralborrowingbymultiplyingtheweightedaverageassetdisbursementofthe partoftheaccumulativeassetdisbursementsminusthegeneralborrowingbythecapitalizationrateofthegeneralborrowing used. The capitalization rate shall be calculated and determined at the weighted average interest rate of the general borrowing.
2.17Intangibleassets
Measurementofintangibleassets:TheintangibleassetsoftheGrouprefertolanduseright,ERPsystemsoftware.Thecostof outsourcing intangible assets shall include the purchase price, relevant taxes and other necessary expenditures directly attributable tointangible assets. Thecostinvestedinto intangibleassetsbyinvestorsshallbedeterminedaccordingtothe
statedvalueintheinvestmentcontractoragreement,exceptforthoseofunfairvalueinthecontractoragreement.
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport Amortizationmethodandperiod:TheGroupshallamortizelanduserightonthebasisofitsusefullifebyadoptingstraightline methodfromthetimeofacquiring.ERPsystemsoftwareandotherintangibleassetsshallbeamortizedonthebasisofshorter ofestimatedusefullife,statedbeneficialyearin thecontract,andlegalavailable year.Theamortization amount shouldbe recordedintothecostorexpenseofrelevantinthecurrentperiod.
TheGroup shallcheckthe estimateduseful lifeand amortization methodofintangibleassets with limiteduseful life atthe end of each year, if any change has been made, it shall be adjusted. The Group shall check the estimated useful life of intangibleassetswithuncertainusefullifeduringtheeachaccountingperiod.Ifthereareevidencestoprovetheusefullifeof intangibleassetsislimited,theGroupshallestimatetheusefullifeandamortizetheintangibleassetswithinestimateduseful life.
2.18Impairmentofnon-financialasset
The Group checks the long-term equity investment for its subsidiaries, association and joint venture, fixed asset, construction-in-progress,intangibleassetandothersoneachbalancesheetdate.Theremaybeanimpairmentofassetwhen one of following indications occurs. The Group should test impairments. The Group tests the impairment of goodwill, intangibleassetwithuncertainusefullifeontheendofeveryyear.Whenitisdifficulttomeasuretherecoverableamountof asset,itshouldmeasuretherecoverableamountofassetonthebasisofassetgroup.
Afterimpairmenttest,ifthebookvalueexceedstherecoverableamountoftheasset,thedifferenceshouldberecognizedas impairment loss. Once any loss of impairment is recognized, it shall not be reversed in the future accounting periods. The recoverableamountofassetreferstothehigheroneofthenetamountofthefairvalueofassetminusdisposalexpenseand thepresentvalueofestimatedfuturecashflowofasset.
Indicationsofimpairmentasfollows:
(1)Duringtheperiod,afairvalueoftheassetinthemarkethasdeclinedsignificantly,whichexceedstheexpecteddecline astimepassingornormaluse;
(2)SignificantchangeswithanadverseeffectontheGrouphavetakenplaceduringtheperiod,orwilltakeplaceinthenear future,inthetechnological,market,economicorlegalenvironmentinwhichtheentityoperatesorinthemarkettowhichan assetisdedicated;
(3) Market interest rates or other market rates of return on investments have increased during the period, and those increases are likely to affect the discount rate applied in calculating an asset's value in use and decrease the asset's recoverableamountmaterially;
(4)Evidenceisavailableofobsolescenceorphysicaldamageofanasset;
(5)Theassethasbeenidleorisbecomingidle,discontinued,orplanstodisposeofanassetbeforethepreviouslyexpected
date;
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport (6) Evidence is available from internal reporting that indicates that the economic performance of an asset is, or will be, worsethanexpected;and
(7)Otherevidenceindicatesimpairmentofasset.
2.19Long-termdeferredexpenses
Long-termdeferredexpensesoftheGrouprefertoexpenseswhicharepaidandshouldbedeferredoverthefutureperiod.The amortizationperiodshallbemorethanoneyear(noincluding1year).Theexpensesshouldbeamortizedaveragelyoverthe beneficialperiod.Ifthedeferredexpensecannottakebenefitforthefutureaccountingperiod,theunamortizedbalanceof thedeferredexpensesshouldbetransferredintothecurrentprofitorloss.
2.20Employeebenefits
Employee compensation comprises salary, bonus, allowance, and welfare, social insurance, housing fund, labor union expenditure,employeeeducationexpenditureandotherrelevantexpendituresofserviceProvidedbytheemployees.
TheGroupshouldrecognizetheemployeecompensationasliabilityduringtheperiodofemployeeprovideservicetocompany. InaccordancewiththebeneficiariesoftheserviceProvidedbyemployee,theGroupshouldrecordtheemployeebenefitsinto relevantcostandexpense.Forthecompensationforemployeeduetocancellationoflaborcontract,theGroupshouldcharge thecompensationastheprofitandlossduringthecurrentperiod.
Terminationbenefitsarebenefitspayableasaresultofcancellationoflaborcontractbetweenthecompanyandemployees. For the termination plans with installment or voluntary termination advice, when planning and checking the recognition conditionofcontingentliabilityforeachperiodorstage,thenthecontingentliabilitycausedbyprovidingterminationbenefits shall be confirmed, and charged as management expenses satisfying the confirmation conditions of contingent liability for thecurrentperiod.
2.21Contingentliabilities
Theobligationpertinenttoacontingencyshallberecognizedasanestimateddebtwhenthefollowingconditionsaresatisfied simultaneously:
(1)TheobligationisacurrentobligationoftheGroup;
(2)ItislikelytocauseanyeconomicbenefittoflowoutoftheGroupasaresultofperformanceoftheobligation;and
(3)Theamountoftheobligationcanbemeasuredreliably.
The estimated debts shall be initially measured in accordance with the best estimate of the necessary expenses for the performanceofthecurrentobligation,andtheGroupshalltakeintofullconsiderationoftherisks,uncertainty,timevalueof
money,andotherfactorspertinenttothecontingencies.Ifthetimevalueofmoneyisofgreatsignificance,thebestestimate
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport amountsshallbedeterminedafterdiscountingtherelevantfutureoutflowofcash.TheGroupshallcheckthebookvalueof the estimated debts on the balance sheet date. If there is any exact evidence indicating that the book value cannot really reflectthecurrentbestestimateamounts,theGroupshalladjustthebookvalueinaccordancewiththecurrentbestestimate amounts.
2.22Principleofrecognitionofrevenue
The revenue of the Group is mainly from selling goods, providing labour services and abalienating the right of use assets. Recognitionstandardsforrevenueareasbelow:
(1)Recognitionofrevenuefromsellinggood:
1)Thesignificantrisksandrewardsofownershipofthegoodshavebeentransferredtothebuyer;
2) The Group remains neither continuous management right that usually keeps relation with the ownership nor effective controloverthesoldgoods;
3)Theamountofrevenuescanbemeasuredreliably;
4)TherelevanteconomicbenefitsarelikelytoflowintotheGroup;and
5)Theincurredcostorintendedcostcanbemeasuredreliably.
(2)Recognitionofrevenuefromprovidinglabourservices:
1)Totalrevenueandtotalcostcanbemeasuredreliably;therelevanteconomicbenefitsarelikelytoflowintotheGroup;and thestageofcompletioncanbeconfirmedreliably;
2)IftheGroupcan,onthedateofthebalancesheetday,reliablyestimatetheoutcomeofatransactionconcerningthelabour servicesitprovides,itshallrecognizetherevenuefromprovidingservicesemployingthestageofcompletionmethod.Ifthe outcome can not be estimated reliably and incurred cost can be offset, the revenue should be recognised by the compensation.Whenthestandardscannotbesatisfied,therevenueshouldnotberecognised,andtheincurredcostshould berecordedintothecurrentprofitandloss.
(3)Revenuefromabalienatingtheuserightofuseassets
The revenue from abalienating of use right of assetsshall berecognized,when the relevant economic benefitsare likelyto flowintotheGroup,andtheamountofrevenuescanbemeasuredreliably.
2.23Governmentgrants
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport AgovernmentsubsidyoftheGroupshallberecognizediftheGroupcanmeettheconditionsforthegovernmentsubsidyand alsocanobtainthegovernmentsubsidy.Ifagovernmentsubsidyisamonetaryasset,itshallbemeasuredinthelightofthe receivedorreceivableamount.Ifagovernmentsubsidyisanon-monetaryasset,itshallbemeasuredatitsfairvalue;ifitsfair valuecannotbeobtainedinareliableway,itshallbemeasuredatitsnominalamount(RMB1).
The government subsidies pertinent to assets shall berecognized 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 relatedfutureexpensesorlossesoftheGroupshallberecognizedasdeferredincomeandshallincludedinthecurrentprofits and lossesduring theperiodwhen therelevant expensesarerecognized;or(2)those subsidiesusedfor compensating the relatedexpensesorlossesincurredtotheGroupshallbedirectlyincludedinthecurrentprofitsandlosses.
2.24Deferredtaxassetsanddeferredtaxliabilities
Deferredtaxassetsanddeferredtaxliabilityshouldberecognizedatthedifferences(taxabletemporarydifferences)between thetaxbaseofanassetorliabilityanditscarryingamount.TheGroupshallrecognizethedeferredincometaxassetsarising fromadeductibletemporarydifferencetotheextentoftheamountofthetaxableincomewhichitismostlikelytoobtainand whichcanbedeductedfromthedeductibletemporarydifference.Atthebalancesheetdate,deferredtaxassetanddeferred taxliabilityshouldbemeasuredatapplicabletaxrate.
TheGroupshallrecognizethedeferredtaxassetsarisingfromadeductibletemporarydifferencetotheextentoftheamount ofthetaxableincomewhichismostlikelytoobtainwhichcanbedeductedfromthedeductibletemporarydifference.Forthe 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 taxableincometax,theamountdeductedshallbereversed.
2.25Lease
TheleasesoftheGrouprefertooperatinglease.
Therentsfromoperatingleasesshallberecordedbythelesseeintotherelevantassetcostsortheprofitsandlossesofthe currentperiodbyusingthestraight-linemethodovereachperiodoftheleaseterm.
2.26Accountingtreatmentmethodofincometax
TheGroupshallrecognizeincometaxbybalancesheetliabilitymethod.Theincometaxesofthecurrentperiodanddeferred incometaxoftheGroupshallbetreatedasincometaxexpensesorincomes,andshallberecordedinto thecurrentprofits and losses, excluding the income taxes incurred in the following circumstances: (1) the business combination; and (2) thetransactionsoreventsdirectlyrecognizedastheowner’sequity.Theincometaxesofthecurrentperiodanddeferredincome
taxrelatedtothetransactionsoreventsdirectlyrecordedastheowner’sequityshallberecordedintotheowner’sequity.
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport The income tax expenses for the current period the amount payable to the Tax Office which are calculated and recognized according to thetax law and transactionsand eventsofthe currentperiod,i.e. income taxespayable; the deferredincome taxesrefertothedifferencesrecognizedbetweentheamountsattheendoftheperiodandamountsrecognizedoriginallyof deferredtaxassetsandliabilitiesaccordingtothebalancesheetliabilitymethod.
2.27Segmentreport
Business segment is confirmed in accordance with governance structure, management requests, internal reporting system, andtheGroupconfirmthereportsegmentonthebasisofbusinesssegment.
BusinesssegmentisacomponentoftheGroupthatsatisfysthefollowingconditionssimultaneously:thecomponentcantake revenue and expenses; the management level can appraise the operating performance of the component in order to allocation of resource and appraise the performance; and the Group can acquire the financial position, operating performanceandcashflowofthecomponentetc.
2.28Discontinuedoperation
DiscontinuedoperationrepresentsthecomponentoftheGroupthathadbeendisposedorplantosell,andthecomponent can be separately divided when operating and preparing financial statements. The component shall be disposed partly orwhollyinaccordancewiththeGroup’splan.
ThecomponentoftheGroupshallberecognizedasthecomponentheldforsellingwhensatisfyingtheconditionsasbelow: 1)TheGrouphadmadeadecisionondisposalofthecomponent;
2)TheGrouphadsignedtheirrepealablyTransferAgreementwithtransferee;and
3)Thetransfershallbefinishedwithinoneyear.
3.Changesinaccountingpolicies,accountingestimatesandcorrectionofpreviouserrors
Therearenochangesinaccountingpolicies,accountingestimatesandcorrectionofpreviouserrorsin2012.
4.Taxation
4.1.ThemainapplicabletaxandratetotheGroupasfollows:
Tax Taxbase Taxrate
Value-addedtax(VAT) SalesrevenueorPurchase 17%，13%，11%，6%，3% Businesstax Revenuefrompropertylease 5%
Cityconstructiontax Value-addedtaxpayables,businesstax 7%
Enterpriseincometax(EIT) Currentperiodtaxableprofit 15%
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport Educationsurcharge Value-addedtaxpayables,businesstax 3%
Localeducationsurcharge Value-addedtaxpayables,businesstax 2%
70%ofcostofownpropertyorrevenue
Realestatetax 1.2%or12%
fromleasingproperty
Landusetax Landusingrightarea RMB6persquaremeter
TheenterpriseincometaxrateofLiaoyangBearing(thecompany’ssubsidiary)is25%.
TheenterpriseincometaxrateofDalianElectricalEquipment(thecompany’ssubsidiary)is25%.
4.2.Taxpreferenceandapproval
The company obtained the qualification of high and new technology enterprises at 14 Oct 2011.The Certificate number is GR201121200028,andtheperiodofvalidityisthreeyears.Accordingtotheprovisionsofthetaxlawthecompanycanenjoythepreferentialtaxpolicyofenterpriseincometaxrateof15%inthreeyears(including2011).
5.Businesscombinationandconsolidatedfinancialstatements
5.1Subsidiaries
Company Companytype Registeredaddress Natureofoperation Registeredcapital
name
Productionand
No.61,Weiguoroad,
Liaoyang salesofbearingand
Limited BaitadistrictLiaoyang 19,350,000.00
Bearing machinery
city
manufacturing
No.12,Shisanli Productionand
Dalian
yongshengstreet, salesofbearingand
Electrical Limited 10,000,000.00
freetradezoneDalian machinery
Equipment
city manufacturing
(Continued)
Company Businessscope Totalinvestment Holding% Voting% Consolidation
Name amounts
Productionand
Liaoyang salesofbearing
17,337,259.95 100 100 Yes
Bearing andmachinery
manufacturing
Manufactureand
salesofprecise
Dalian
motorandcar’s
Electrical 45,478,956.37 100 100 Yes
bearings,
Equipment
componentsand
relatedproducts
6.Notestoconsolidatedfinancialstatements
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport 6.1Cashandcashinbank
2014.06.30 2013.12.31
Items Original Exchange Amount Original Exchangerate Amount currency rate (RMB) currency (RMB) Cashon
-- -- 144,752.65 -- -- 294,706.89 hand
RMB -- -- 144,752.65 -- -- 294,706.89 Cashin
-- -- 106,755,417.78 -- -- 60,322,052.24 bank
RMB -- -- 91,693,131.06 -- -- 40,579,655.69 USD 2,311,600.61 6.1528 14,222,816.23 3,237,689.79 6.0969 19,739,870.88 Euro 100,001.25 8.3946 839,470.49 300.00 8.4189 2,525.67 Othercash -- -- 39,818,929.79 -- -- 20,070,327.79 RMB -- -- 39,818,929.79 -- -- 20,070,327.79 Total -- -- 146,719,100.22 -- -- 80,687,086.92 6.2Notesreceivable
(1)Categoryofnotesreceivable
2014.06.30 2013.12.31 Items
140,346,331.78 79,689,279.98 Bank acceptance notes
11,875,808.29 20,640,607.48 Commercial acceptance notes
Total
152,222,140.07 100,329,887.46 (2)UptoJune30,2014Nopledgednotesreceivable
(3)NotesreceivableendorsedtootherpartiesnotmatureattheendofJune2014
Noteissuer Issuingdate Maturity Amount
WeiFangShenZhouZhong
2014-02-12 2014-08-12 5,800,000.00 GongMachineryCo.,Ltd
ShenYangRailwayBureau 2014-05-08 2014-11-08 5,000,000.00 ChinaBoatZhong
Gong(ChongQing)Hai
2014-05-05 2014-11-05 5,000,000.00 ZhuangWindPower
EquipmentCo.,Ltd.
GanSuHuaDianYuMen
WindpowerDevelopment 2014-05-22 2015-05-14 5,000,000.00 Co.,Ltd
ShenYangRailwayBureau 2014-05-08 2014-11-08 5,000,000.00合计 — — 25,800,000.00 6.3dividendreceivable
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport 5.Dividendreceivable
2013.12.3 2014.06.3 Reasonfor
Items Increase Decrease Impairment 1 0 uncollection
Dividendreceivabledue 240,000.0 — — 240,000.00 0
within1year 0
Ofwhich: — — ShanghaiME — — 240,000.0
machine-electrical 240,000.00 0
0
equipmentchainLtd
Total 240,000.0 — — 240,000.00 0
0
6.4Accountsreceivable
(1)Categoryofaccountsreceivable
2014.06.30
Bookingbalance
Provisionforbadanddoubtfuldebts Items
Percentage Percentage Amount Amount
(%) (%)
Accountsreceivablewith
individualsignificantamount
3,910,007.43 0.29% 3,910,007.43 100.00% andidentificationseparatelybad
debtprovision
Accountsreceivableaccruedbad
debtprovisionbyportfolio
Accountingagingportfolio 1,325,238,985.18 97.21% 46,121,712.13 3.48% Relatedpartiesportfolio 22,264,320.06 1.63%
Risk-freeportfolio
Subtotalofportfolio 1,347,503,305.24 98.84% 46,121,712.13 3.42% Accountsreceivablewith
individualinsignificantamount
11,796,099.81 0.87% 11,796,099.81 100.00% andidentificationseparatelybad
debtprovision
1,363,209,412.48 -- 61,827,819.37 --
Total
(Continued)
2013.12.31
Items Bookingbalance ProvisionforbadanddoubtfuldebtsPercentage(%) Percentage(%) Amount Amount
Accountsreceivablewithindividual
significantamountandidentification 3,910,007.43 0.32% 3,910,007.43 100.00%
separatelybaddebtprovision
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport Accountsreceivableaccruedbaddebt
provisionbyportfolio
Accountingagingportfolio 1,168,651,721.54 97.35% 46,132,926.18 3.95% Relatedpartiesportfolio 16,086,866.09 1.34%
Risk-freeportfolio
Subtotalofportfolio 1,184,738,587.63 98.69% 46,132,926.18 3.89% Accountsreceivablewithindividual
insignificantamountand
11,796,099.81 0.99% 11,796,099.81 100.00% identificationseparatelybaddebt
provision
1,200,444,694.87 -- 61,839,033.42 -- Total
1)AccountsreceivablewithindividualsignificantamountandidentificationseparatelybaddebtprovisionattheendofJune 30,2014
Booking Provisionfor Provisionrate
Companyname Reasonsforprovision balance baddebts (%)
BaodingNorthChina
A/Rwithover5yearsaging,Machine&Electronic 3,910,007.43 3,910,007.43 100.00
unlikelytobecollected
EquipmentCo.,Ltd.
Total 3,910,007.4
3,910,007.43 —
3 —
2)Accountsreceivableaccruedthebaddebtprovisionsunderaccountingaginganalysismethod
Items 2014.06.30 2013.12.31
Percentage Percentage
Amount Provisionfor Amount Provisionfor(%) (%)
baddebts baddebts 1,149,579,774.0 11,495,797.7
84.33% 987,605,318.88 82.27% 9,876,053.19 Within1year
8 4
1to2years
91,560,581.10 6.72% 4,578,029.06 93,380,711.97 7.78% 4,669,035.60 40,004,765.55 2.93% 8,000,953.11 40,816,693.16 3.40% 8,163,338.63 2to3years
22,046,932.2
44,093,864.45 3.23% 46,848,997.53 3.90% 23,424,498.76 Over3years
2
1,325,238,985. 46,121,712.1 1,168,651,721.5
-- -- 46,132,926.18 Total
18 3 4
3) Individually insignificant amount accounts receivable but accrued bad debt provision separately at the end of June 30,2014
Booking Provisionfor Proportion
Companyname Reasonsforprovision balance baddebts (%)
ShenyangSewerageEquipment A/Rwithover5yearsaging, 2,706,703.13 2,706,703.13 100.00
Co.,Ltd unlikelytobecollected A/Rwithover3yearsaging, ShenYangGeneralBearingCo.,Ltd 2,452,138.58 2,452,138.58 100.00
unlikelytobecollected
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport A/Rwithover3yearsaging, TiefacoalsectorGroupCompany 2,352,760.15 2,352,760.15 100.00
unlikelytobecollected ShuangyashanMiningindustry A/Rwithover3yearsaging, 1,368,257.55 1,368,257.55 100.00
GroupCompany unlikelytobecollected ChongqingSailimengelectrical A/Rwithover3yearsaging, 650,758.88 650,758.88 100.00
machineLLC unlikelytobecollected A/Rwithover3yearsaging, QingdaoQingteZhongliaxleCo.,Ltd 590,898.99 590,898.99 100.00
unlikelytobecollected Othersporadicaccountsreceivable A/Rwithover5yearsaging, 1,674,582.53 1,674,582.53 100.00
unlikelytobecollected 11,796,099.81 11,796,099.81
Total
(2)Write-offofaccountsreceivablesduringthereportingperiod
|||||||
|-|-|-|-|-|-|
|Name|Properties|Time|Amount|Reason|Relatedbusinessornot|
|ChinaHeavyAutomobileJiNan Bridge-boxCo.,Ltd|Goodsselling||920,469.22|Accountdifferenceover8years|No|
|NanJingHighSpeedGearManufactoryCo.,Ltd|Goodsselling||41,938.02|Qualityproblem|No|
|NanJinghigh-extractiveGearGroupCompany|Goodsselling||80,958.78|Qualityproblem|No|
|TongHuaOilChemicalindustryMachinery|Goodsselling||780.39|Accountdifferenceover8years|No|
|Total|--|--|1,044,146.41|--|--|

(3)Accountsreceivableduefromshareholdersholdingover5%(including5%)oftheCompany’sshares
2014.06.30 2013.12.31
Companyname
Amount Provisionforbaddebt Amount Provisionforbaddebt 6,903,361.61 6,903,361.61
WazhouGroup
Total
6,903,361.61 6,903,361.61
(4)Accountsreceivableforthetop5companies
Relationship with the
PercentageinthetotalA/R(%) Companyname Amount Aging
Company
Top1 45,853,594.65 3.40% Unrelatedparty Within1year
Top2 42,696,266.67 3.10% Unrelatedparty Within1year
Top3 30,633,004.16 2.20% Unrelatedparty Within1year
Top4 29,979,922.68 2.20% Unrelatedparty Within1year
Within1
28,630,199.97 2.10% Top5 Unrelatedparty
year;1-2years
177,792,988.13 13.00%
Total — —
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport (4)Accountsreceivableduefromrelatedparties
Percentageinthetotal Companyname RelationshipwiththeCompany Amount
accountsreceivable(%) WazhouGroup Parentcompany
6,903,361.61 0.50% WazhouGroupSpecial Othercompaniescontrolledbythe
7,627,664.68 0.56% PrecisionBearingCo.,Ltd sameparentcompany
WazhouGroup(US)Bearing Othercompaniescontrolledbythe
7,733,293.77 0.57% Co.,Ltd sameparentcompany
Total —
22,264,320.06 1.63% 6.4 Otherreceivables
(1)Thecategoriesofotherreceivable
2014.06.30
Bookingbalance Provisionforbadanddoubtfuldebts Items
Amount Percentage Amount Percentage(%) (%)
Otherreceivableswithindividualsignificant
amountandidentificationseparatelybad
debtprovision
Otherreceivablesaccruedbaddebtprovision
byportfolio
Accountingagingportfolio
17,902,420.27 67.27% 4,013,105.80 22.42% Relatedpartiesportfolio
Risk-freeportfolio
8,708,936.70 32.73%
Subtotalofportfolio
26,611,356.97 100.00% 4,013,105.80 15.08% Total 26,611,356.97 -- 4,013,105.80 --
(Continued)
2013.12.31
Bookingbalance Provisionforbadanddoubtfuldebts Items
Amount Percentage Amount Percentage
(%) (%)
Otherreceivableswithindividual
— — — — significantamountandidentification
separatelybaddebtprovision
Otherreceivablesaccruedbaddebt
— — — — provisionbyportfolio
18,307,069.77 54.26% 4,013,105.80 21.92% Accountingagingportfolio
Relatedpartiesportfolio
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport Risk-freeportfolio
15,433,328.36 45.74%
33,740,398.13 100.00% 4,013,105.80 11.89% Subtotalofportfolio
33,740,398.13 -- 4,013,105.80 --
Total
(2)Otherreceivablesaccruedthebaddebtprovisionsunderaccountingaginganalysismethod
Items 2014.06.30 2013.12.31
Percentage Percentage
Amount Provision Amount Provision
(%) (%)
Within1year
7,892,769.91 29.66% 78,927.70 8,314,567.63 24.64% 83,145.67 1to2years
1,770,443.29 6.65% 88,522.16 1,691,648.13 5.01% 84,582.40 2to3years
913,158.66 3.43% 182,631.73 1,016,830.94 3.01% 203,366.19 Over3years
7,326,048.41 27.53% 3,663,024.21 7,284,023.07 21.60% 3,642,011.54 18,307,069.7
Total 17,902,420.27 -- 4,013,105.80 -- 4,013,105.80 7
Nootherreceivablesareduefromshareholdersholdingover5%(including5%)oftheCompany’ssharesattheendofJune 30,2014.
(3)Otheraccountsreceivableforthetop5companies
Percentage
Relationshipwith
Companyname Amount Aging
inthetotalAR(%) theCompany
Top1 Within1year 22% Unrelatedparty 5,843,915.27
Top2 Within 4.9% Unrelatedparty 1,302,940.42
Top3 Within 3.0% Unrelatedparty 800,000.00
Top4 Within 1.7% Unrelatedparty 457,529.25
Top5
Unrelatedparty 370,000.00
Within3year 1.4% 8,774,384.94 -- 33% Total —
6.5Advancestosuppliers
(1)Agingofadvancestosuppliers
Items 2014.06.30 2013.12.31
Amount Percentage(%) Amount Percentage(%) 25,660,048.66 75.24% 28,330,096.29 84.03% Within1year
3,150,191.83 9.24% 1,164,471.54 3.45% 1to2years
2,773,731.57 8.13% 2,203,266.20 6.54% 2to3years
2,518,850.26 7.39% 2,015,070.11 5.98% Over3years
34,102,822.32 -- 33,712,904.14 --
Total
(2) Top5advancestosuppliers
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport Relationshipwith
Companyname Amount Aging Pendingreason theCompany
Top1
Unrelatedparty
8,583,368.91 within1year tradeunfinished Top2
Unrelatedparty
4,978,345.85 within1year
trade
within1 trade
Top3
Unrelatedparty
4,916,307.76
year;1-2year
Top4
Unrelatedparty
2,731,127.10 2-3year Goodsqualityissues Top5
Unrelatedparty
1,043,748.71 within1year tradeunfinished Total —
22,252,898.33
—
Noadvancestosuppliersareduefromshareholdersholdingover5%(including5%)oftheCompany’ssharesattheend ofJune30,2014.
6.6Inventories
(1)Categoriesofinventories
||||||
|-|-|-|-|-|
|2014.06.30|||||
|Cost|Provisionfordecline|Netbookvalue|Cost|Provisionfordeclines|
|175,766,899.33|2,385,945.20|173,380,954.13|156,386,450.54|2,385,945.20|
|165,991,437.01|602,496.86|165,388,940.15|173,497,408.33|602,496.86|
|844,497,493.59|56,976,781.48|787,520,712.11|924,735,016.96|56,976,781.48|
|357,145.77||357,145.77|2,080,576.50||
|1,186,612,975.70|59,965,223.54|1,126,647,752.16|1,256,699,452.33|59,965,223.54|

(2)Provisionfordeclineinthevalueofinventories
Decrease
Items 2013.12.31 Increase Others 2014.06.30
Reverse
transferred
2,385,945.20 2,385,945.20 Rawmaterials
Finishedgoods
602,496.86 602,496.86 56,976,781.48 56,976,781.48 Workinginprogress
59,965,223.54 59,965,223.54 Total
6.7Othercurrentassets
Item 2014.06.30 2013.12.31
1,113,829.70 908,658.20
Rental
1,855,337.56 1,855,337.56
Overpaidincometax
8,992.81
Overpaidaddedvaluetax
Total
2,969,167.26 2,772,988.57
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport 6.8Investmentinassociatedcompany
Monetaryunit:RMBTenThousandYuan Totalassetsas Totalliabilities Totalnetassets Totalsales
Holding Voting Netprofitsin Investee atJune asatJune asatJune revenuein
% % reportperiod 30,2014 30,2014 30,2014 reportperiod
Associated
— — — — — — — company
DalianSKF
Wazhou 268,375,628. 222,228,464.2 93,263,566.5
49% 49% 46,147,164.78 4,614,725.69 Bearings
99 1 1
Co.,Ltd.
6.9Long-termequityinvestments
(2)Long-termequityinvestmentsundercostandequitymethod
Investee Holding% Voting% OriginalAmounts
Costmethod
ShanghaiMEmachine-electricalequipmentchainLtd. 4.76 4.76 2,000,000.00 Sub-total — — 2,000,000.00 Equitymethod — — — DalianSKFWazhouBearingsCo.,Ltd. 49.00 49.00 95,060,000.00 Sub-total — — 95,060,000.00 Total — — 97,060,000.00 (Continued)
Cashdividendsreceived Investees 2013.12.31 Changeamount 2014.06.30
inreportperiod—
— —
Costmethod —
— — ShanghaiME machine-electrical
2,000,000.00 2,000,000.00
equipmentchainLtd. —
—
2,000,000.00 2,000,000.00 — Sub-total —
Equitymethod —
DalianSKFWazhouBearingsCo.,
106,272,431.11
2,261,215.59 108,533,646.70
— Ltd.
Sub-total 106,272,431.11
2,261,215.59 108,533,646.70
— 108,272,431.11 2,261,215.59 110,533,646.70
Total — 6.9Fixedassets
(1)Fixedassetsbycategories
Items 2013.12.31 Increase Decrease 2014.06.30
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport Cost
1,553,083,323.15 8,922,266.83 985,669.07 1,561,019,920.91 387,096,282.69 361,705.52 387,457,988.21 Buildings
901,974,591.72 3,489,474.67 440,195.26 905,023,871.13 Machinery
Transportation
19,876,916.92 545,473.81 19,331,443.11 equipment
Electronic
70,266,205.61 1,721,474.74 71,987,680.35 equipment
173,869,326.21 3,349,611.90 177,218,938.11 Others
Accumulated
977,851,923.54 38,089,355.14 295,981.22 1,015,645,297.46 deprecation
177,390,093.89 6,091,815.29 183,481,909.18 Buildings
Machinery
586,510,794.50 24,476,389.97 149,447.72 610,837,736.75 Transportation
13,561,031.62 679,322.68 146,533.50 14,093,820.80 equipment
Electronic
58,027,520.72 1,976,528.08 60,004,048.80 equipment
142,362,482.81 4,865,299.12 147,227,781.93 Others
Netbookvalue
575,231,399.61 545,374,623.45
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport
At the end of June 30,2014 the increase includes the assets which were transferred from construction in progress amountedtoRMB5,049,045.08,
6.10Constructioninprogress
(1)DetailsofConstruction-in-progress
Items 2014.06.30 2013.12.31
Book Provision for Provisionfor
Bookvalue Bookbalance Bookvalue balance impairment impairment
M250GrindingMachine
130,730.53 130,730.53 130,730.53 130,730.53 Improvement
Forkedtruck 1,739,365.29 1,739,365.29 1,739,365.29 1,739,365.29 Improvementofplant 9,262,952.38 9,262,952.38 7,370,997.06 7,370,997.06 Installationofsuper
1,312,460.84 1,312,460.84 1,280,668.30 1,280,668.30 finishmachine
Improvementoffinished
10,285,752.92 10,285,752.92 10,081,207.24 10,081,207.24 goodsstorage
Dalianindustrypark
19,521,623.66 19,521,623.66 17,791,792.04 17,791,792.04 project
CraneProject 2,943,466.97 2,943,466.97 2,860,733.35 2,860,733.35 Improvementof
6,215,944.07 6,215,944.07 3,459,601.61 3,459,601.61 two-finishedproducts
ComputerProject 162,841.97 162,841.97 1,535,381.58 1,535,381.58 Improvementof
42,326,575.95 42,326,575.95 19,150,962.11 19,150,962.11 precisionrollerbranch
ImprovementofLiao
14,627,958.92 14,627,958.92 13,916,307.14 13,916,307.14 zhou
automobile
1,757,080.22 1,757,080.22 1,835,259.09 1,835,259.09 improvement
Improvement
15,173,673.95 15,173,673.95 14,748,946.41 14,748,946.41 of grindingmachine
Grindingproductline 12,808,307.54 12,808,307.54 12,449,271.43 12,449,271.43 Improvementof
39,540,297.03 39,540,297.03 31,672,411.92 31,672,411.92 seven-finishedproducts
Heattreatmentproduct
1,386,791.97 1,386,791.97 1,485,321.71 1,485,321.71 line
DigitalBoringmachine 1,927,130.76 1,927,130.76 1,873,327.72 1,873,327.72 Improvementof
820,843.12 820,843.12 785,812.85 785,812.85
explorationmachinery
Improvementofspecial
4,948,161.20 4,948,161.20 4,251,393.54 4,251,393.54
largebranch
Improvementof 90,354,246.05 90,354,246.05 82,262,814.56 82,262,814.56
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport one-finishedproducts
Instruments 1,197,252.35 1,197,252.35 1,197,252.35 1,197,252.35 Mediumsizeddeep
grooveballbearing 45,115,213.19 45,115,213.19 37,928,717.99 37,928,717.99 productline
Assemblingline 18,949,681.57 18,949,681.57 18,007,638.86 18,007,638.86 others 11,045,947.78 11,045,947.78 15,356,547.94 15,356,547.94 Total 353,554,300.23 353,554,300.23 303,172,462.62 303,172,462.62 (2)Changeinthesignificantconstructioninprogress
Constructionname 2013.12.31 Increase Decrease 2014.06.30 Transferredtofixed
others
assets
M250Grinding
MachineImprovement 130,730.53 - - - 130,730.53 Forkedtruck 1,739,365.29 - - - 1,739,365.29 Improvementofplant 7,370,997.06 1,891,955.32 - - 9,262,952.38 Installationofsuper
finishmachine 1,280,668.30 31,792.54 - - 1,312,460.84 Improvementof
finishedgoodsstorage 10,081,207.24 204,545.68 - - 10,285,752.92 Dalianindustrypark
project 17,791,792.04 1,739,835.62 - 10,004.00 19,521,623.66 CraneProject 2,860,733.35 82,733.62 - - 2,943,466.97 Improvementof
two-finishedproducts 3,459,601.61 2,756,584.97 242.51 - 6,215,944.07 ComputerProject 1,535,381.58 - 1,372,539.61 - 162,841.97 Improvementof
precisionrollerbranch 19,150,962.11 23,271,485.61 66,256.40 29,615.37 42,326,575.95 ImprovementofLiao
zhou 13,916,307.14 711,651.78 - - 14,627,958.92 Americanautomobile
improvement 1,835,259.09 55,925.77 91,102.56 43,002.08 1,757,080.22 Improvement
of grindingmachine 14,748,946.41 424,727.54 - - 15,173,673.95 Grindingproductline 12,449,271.43 359,040.84 4.73 - 12,808,307.54 Improvementof
seven-finished
products 31,672,411.92 11,590,324.49 3,130,039.38 592,400.00 39,540,297.03 Heattreatment
productline 1,485,321.71 10,048.15 - 108,577.89 1,386,791.97 DigitalBoringmachine 1,873,327.72 53,803.04 - - 1,927,130.76 Improvementof
explorationmachinery 785,812.85 35,030.27 - - 820,843.12 Improvementof
speciallargebranch 4,251,393.54 840,357.41 143,589.75 - 4,948,161.20 Improvementof
one-finishedproducts 82,262,814.56 8,144,231.49 52,800.00 - 90,354,246.05
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport Instruments 1,197,252.35 - - - 1,197,252.35 Mediumsizeddeep
grooveballbearing
productline 37,928,717.99 7,186,495.20 - - 45,115,213.19 Assemblingline 18,007,638.86 942,042.71 - - 18,949,681.57 others 15,356,547.94 192,470.14 4,118,130.02 11,045,947.78 Total 303,172,462.62 60,332,612.05 5,049,045.08 4,901,729.36 353,554,300.23 (Continued)
%of Including:
investm Accumulated Accumulated Interest
Construction Sourceof Constructionname Budget ent capitalized capitalized capitalization
progress(%) funds against interest interestin rate
budget 2011
M250Grinding Loan/Sel Machine f
Improvement 737,500.00 financing Loan/Sel Forkedtruck f
1,589,700.00 financing Loan/Sel Improvementof
f
plant
8,970,026.78 financing Installationof Loan/Sel superfinish f
machine 6,013,996.00 financing Improvementof Loan/Sel finishedgoods f
storage 11,905,070.60 financing Loan/Sel Dalianindustry
f
parkproject
42,738,036.61 financing Loan/Sel CraneProject f
3,041,975.00 financing Improvementof Loan/Sel two-finished f
products 8,462,672.00 financing Loan/Sel ComputerProject f
1,968,222.00 financing Improvementof Loan/Sel precisionroller f
branch 20,316,126.00 financing Loan/Sel Improvementof
f
Liaozhou
19,682,175.00 financing
automobile Loan/Sel
improvement 2,030,970.00 f
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport financing Improvement Loan/Sel of grinding f
machine 20,258,600.00 financing Loan/Sel Grindingproduct
f
line
24,050,000.00 financing Improvementof Loan/Sel seven-finished f
products 66,584,851.00 financing Loan/Sel Heattreatment
f
productline
1,622,900.00 financing Loan/Sel DigitalBoring
f
machine
5,974,500.00 financing Improvementof Loan/Sel exploration f
machinery 2,150,600.00 financing Improvementof Loan/Sel speciallarge f
branch 6,000,330.00 financing Improvementof Loan/Sel one-finished f
products 107,599,461.00 financing Loan/Sel Instruments f
2,304,760.00 financing Mediumsizeddeep Loan/Sel grooveballbearing f
productline 59,660,000.00 financing Loan/Sel Assemblingline f
21,536,000.00 financing Loan/Sel others f
19,193,314.81 financing Total
464,391,786.80
6.11Intangibleassets
Items 2013.12.31 Increase Decrease 2014.06.30 Cost 171,131,093.34 — 171,131,093.34 Landuseright 165,422,429.50 - - 165,422,429.50 ERPsoftware 5,085,843.33 - 5,085,843.33 Others 622,820.51 - 622,820.51 Amortization 31,568,006.43 2,303,934.16 — 33,871,940.59
Landuseright 26,979,766.63 2,026,137.76 29,005,904.39
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport ERPsoftware 3,992,840.86 254,292.12 4,247,132.98 Others 595,398.94 23,504.28 618,903.22 139,563,086.91 -2,303,934.16 137,259,152.75 Netbookvalue
138,442,662.87 -2,026,137.76 136,416,525.11 Landuseright
ERPsoftware
1,093,002.47 -254,292.12 838,710.35 27,421.57 -23,504.28 3,917.29 Others
Provisionforimpairment
Landuseright
ERPsoftware
Others
139,563,086.91 -2,303,934.16 137,259,152.75 Bookvalue
138,442,662.87 -2,026,137.76 136,416,525.11 Landuseright
ERPsoftware
1,093,002.47 -254,292.12 838,710.35 27,421.57 -23,504.28 3,917.29 Others
Note: The increased accumulated amortization of this year includes normal amortization of intangible assets for RMB 2,303,934.16
6.12Long-termdeferredandprepaidexpenses
Other
Item 2013.12.31 Increase Amortization 2014.06.30 decrease
Righttousepremiseof
724,852.75 - 33,915.18 - 690,937.57 Shanghaisalesoffice
Fitmentexpensefor
192,111.00 36,945.00 155,166.00 storeroomofficeinShanghai
724,852.75 192,111.00 70,860.18 846,103.57 Total
6.13Deferredtaxassetsanddeferredtaxliabilities
(1) Recognizeddeferredtaxassetsanddeferredtaxliabilities
Items 2014.06.30 2013.12.31
Deferredtaxassets
Provisionforimpairmentofassets 8,971,775.64 8,971,775.64 Difference due to depreciation of fixed
1,791,108.01 1,791,108.01 assets
Total 10,762,883.65 10,762,883.65 Deferredtaxliabilities
Unrealizedintragrouploss
Total
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport (2)Temporarydifferences
Items Amountoftemporarydifferences Taxabledifferences
Unrealizedintragrouploss
Subtotal
Deductibledifferences
Provisionforbaddebts 24,890,103.98 Provisionforimpairmentoffixedassets 2,739,277.05 Provisionfordeclineinvalueofinventories 32,128,138.59 Differenceduetodepreciationoffixedassets 11,940,720.08 Subtotal 71,698,239.70 6.14Detailsofprovisionforimpairmentofassets
Decrease
2013.12.31 Accrual
Reversal Otherstransfer 2014.06.30 Provisionforbad
65,852,139.22
debts 11,214.05 65,840,925.17 Provisionfordecline
invalueof 59,965,223.54
inventories 59,965,223.54 Provisionfor
impairmentoffixed 2,739,277.05 2,739,277.05 assets
Total
128,556,639.81
128,545,425.76 6.15Short-termloan
(1)Categoryofshort-termloan
Loancategory 2014.06.30 2013.12.31
Mortgage loan
Guaranteedloan
Creditloan 408,000,000.00 418,000,000.00 Total 408,000,000.00 418,000,000.00 6.16Notespayable
Items 2014.06.30 2013.12.31
246,718,550.00 90,347,340.00 Commercial acceptance notes
3,077,993.78 2,900,000.00 Bank acceptancenotes
Total
249,796,543.78 93,247,340.00
6.17Accountspayable
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport (1)Accountspayable
Items 2014.06.30 2013.12.31
1,058,678,058.88 914,048,531.49 Including:within1year
203,257,712.50 252,417,585.15 over1year
1,261,935,771.38 1,166,466,116.64 Total
6.18Advancesfromcustomers
(1)Advancesfromcustomers
Items 2014.06.30 2013.12.31
55,761,476.17 66,620,868.44 Including:within1year
7,150,371.23 7,812,454.60 over1year
62,911,847.40 74,433,323.04 Total
(2)Noadvancesfromcustomersareduetoshareholdersholdingover5%(including5%)oftheCompany’ssharesatthe endofperiod.
6.19Employeebenefitspayable
Items 2013.12.31 Increase Decrease 2014.06.30 Salary,bonus,allowanceand
742,117.04 110,188,795.93 110,303,124.53 627,788.44 subsidy
0.00 7,684,075.01 7,684,075.01 0.00 welfare
Socialinsurance
9,066,754.25 29,871,854.11 30,759,087.43 8,179,520.93 -103,096.14 8,011,185.81 8,156,000.01 -247,910.34 medicaltreatmentinsurance
Endowmentinsurance
8,630,840.64 19,712,657.99 20,416,484.40 7,927,014.23 Unemploymentinsurance
276,899.07 984,000.20 1,001,638.22 259,261.05 Industrialinjuryinsurance
201,544.45 873,695.02 890,773.14 184,466.33 Bearinsurance
60,566.23 290,315.09 294,191.66 56,689.66 2,848,554.76 6,324,282.00 6,493,974.00 2,678,862.76 Housingfund
6,996,627.65 1,081,531.58 2,105,168.87 5,972,990.36 Other
Include:Laborunionfundand
6,996,627.65 581,756.30 1,605,393.59 5,972,990.36 staffeducationfunds
Compensateforrelievelabor
117,926.00 117,926.00
relationship
Un-monetarywelfare 381,849.28 381,849.28
19,654,053.70 155,150,538.63 157,345,429.84 17,459,162.49 Total
6.20Taxespayable
Items 2014.06.30 2013.12.31 Value-addedtax 4,005,036.57 4,057,635.57
Businesstax 177,668.44 123,617.77
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport Enterpriseincometax 6,153.34 6,153.34 Individualincometax 283,795.94 68,747.03 Citymaintenanceandconstructiontax 411,813.78 650,506.01 Realestatetax 29,633.15 Landusetax 350.00 Stamptax 153,932.42 133,171.97 Educationsurcharge 298,804.76 472,093.58 Rivertollfee 220,472.16 218,868.28 Others 1,802.31 Total 5,557,677.41 5,762,579.01 6.21Interestpayable
Item 2014.06.30 2013.12.31
1,728,222.22 Interestpayableonshortloan
1,728,222.22 Total
6.22Otherpayables
(1)Otherpayables
Item 2014.06.30 2013.12.31
Within1year
78,381,400.88 54,775,559.67 75,762,964.46 81,897,839.15 over1year
154,144,365.34 136,673,398.82 Total
(2)Otherpayablesduetoshareholderswhoholdmorethan5%(including5%)oftheGroup’sshares
Companyname 2014.06.30 2013.12.31
27,510,366.87 15,513,083.10 WazhouGroup
27,510,366.87 15,513,083.10 Total
6.22Non-currentliabilitiesduewithinoneyear
(1)Non-currentliabilitiesduewithinoneyear
Item ClosingBalance OpeningBalance
Long-termloanduewithinoneyear 150,000,000.00 150,000,000.00 Total 150,000,000.00 150,000,000.00 (2)Long-termloanwithinoneyear
Category ClosingBalance OpeningBalance
Creditloan 150,000,000.00 150,000,000.00
Total 150,000,000.00 150,000,000.00
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport 6.23 Othernon-currentliabilities
Item ClosingBalance OpeningBalance
Governmentsubsidywithin1year
4,011,103.83 4,011,103.83 Total
4,011,103.83 4,011,103.83 6.24 Long-termloan
(1)Categoryoflong-termloan
Category 2014.06.30 2013.12.31
90,000,000.00 90,000,000.00 Creditloan
90,000,000.00 90,000,000.00 Total
(2)Detailsoflong-termloan
||||||||
|-|-|-|-|-|-|-|
|Creditor|Startingdate|Maturity|Currency|Interestrate(%)|2014.06.30|2013.12.31|
|Import and ExportBankofChina|2013-07-23|2015-07-22|RMB||90,000,000.00|—|

6.24Long-termpayables
Items Loan 2013.12.31 Interestrate Interest 2014.06.30 Loanconditions period (%) payable
LiaoyangBureauof
— 100,000.00 — — 100,000.00 —
Environment
Total — 100,000.00 — — 100,000.00 —
ThisistheloanfortheimprovementofforgingfromLiaoyangBureauofEnvironmentin1999.Theloandidn’trepayafter theprojectaccomplished.
6.25Specialpayables
Items 2013.12.31 Increase Decrease 2014.06.30
221,698.98 221,698.98 Specialpollutiontreatment
InformatizationConstruction
100,000.00 100,000.00 321,698.98 321,698.98 Total
* Special pollution treatment is the environmental protection subsidy granted by Wafangdian Bureau of Finance and
WafangdianBureauofEnvironmentProtectionforthetreatmentofwastewaterpursuanttothecircularNo.[2004]217.
ThebalanceofinformatizationconstructioncomesfromNo.[2012]917andNo.[2012]199DalianFinancialBureauand
MunicipalOfficeofEconomicandInformationTechnologyCommittee
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport 6.26Othernon-currentliabilities
Item 2014.06.30 2013.12.31 Improvementsubsidy 1,842,499.97 2,210,999.97 Compensationforplantsmoving 36,507,183.61 37,859,301.55 Developmentofintelligentmanufacturingequipmentsubsidies 4,000,000.00 4,000,000.00 3,542,400.00 3,778,560.00 Improvementofhigh-endbearingproductionsubsidies
SupportfundduetoLiaoYangCompanymoveintoLiaoYang
4,584,756.00 4,584,756.00 developmentzones
50,476,839.58 52,433,617.52 Total
(1) Note: The improvement subsidy is the railway transportation bearing technologic improvement subsidy with total amount of RMB 7,370,000.00 granted by Bureau of Finance Liaoning province. The subsidy should be deferred over the usefullifeofrelatedasset(i.e.10years).therevenueshouldberecognizedatRMB368,500.00intheperiod.
ThecompensationforplantsmovingisRMB59,820,000.00.AndtheamountofmakingupfortheremovallossofthecurrentperiodisRMB11,143,755.05；Therestof48,676,244.95isrecognizedastheremovalcompensationrelatedwith assets,whichisamortized18years,accordingtothenewfixedassetsformedaftertheDalianbranchremoval.Theincome confirmedinthereportpeirodisRMB1,352,117.94
TheRMB4,000,000.00ofdevelopmentofintelligentmanufacturingequipmentsubsidiesisdistributedbyDalianCity FinanceBureauin2012.Thesubsidiesareusedintheproject”Grindingvehicleintegrationandprocessingdigitalization”.Up toDec31,2012,thisprojectisstillconstructioninprocess,andnorevenuehasbeenrecognizedincurrentperiod.
TheRMB4,723,200Yuaninterestsubsidyof“Improvementofbearingbaseinhigh-endequipmentsector”isdistributed by Wafangdian Finance Bureau in 2013 for the year of 2011. The subsidy is specially used to improve the project of improvement ofbearingbase in high-endequipmentsector.Theitemisamortizedwithin 10yearsand236,160.00RMBis recognizedinthecurrentyear.
The4,877,400.00Yuan,intheotherun-flowdebt,the“SupportfundduetoLiaoYangCompanymoveintoLiaoYang developmentzones”isdistributedbytheLiaoyangEconomicandDevelopmentdistrictBureauofFinancein2013.norevenue hasbeenrecognizedincurrentperiod..
(2)Governmentsubsidy
Amounts Other
Reasonfor Governmentsubsidy
OpeningBalance
recognizedinto change
Increase ClosingBalance reimburseme category currentprofitor
nt loss
Improvementsubsidy 2,210,999.97 368,500.00 1,842,499.97
Investment Compensationfor
37,859,301.55 1,352,117.94 36,507,183.61
Investment plantsmoving
Developmentof
intelligent
4,000,000.00 4,000,000.00
Investment manufacturing
equipmentsubsidies
Improvementof
high-endbearing 3,778,560.00 236,160.00 3,542,400.00
Investment productionsubsidies
Supportfunddueto
4,584,756.00 4,584,756.00
Investment
LiaoYangCompany
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport moveintoLiaoYang
developmentzones
Total 52,433,617.52 1,956,777.94 50,476,839.58
— 6.27Sharecapital
2011.12.31 Changeforcurrentperiod 2013.12.31 Transferring
Issuin
Shareholders Distributi capital
gnew
name/category Amounts % ng reservesto Others Subtotal Amounts % share
shares share
s
capital
402,600,00 100.
Totalshares — — — — — 402,600,000.00 100.00 0.00 00
6.28Capitalreserves
Items 2013.12.31 Increase Decrease 2014.06.30 201,956,446.52 201,956,446.52 Sharepremium
286,849,101.84 286,849,101.84 Othercapitalreserves
488,805,548.36 488,805,548.36 Total
6.29Surplusreserves
Items 2013.12.31 Increase Decrease 2014.06.30
110,852,290.20 110,852,290.20 Statutorysurplusreserve
20,590,618.91 20,590,618.91 Discretionarysurplusreserve
131,442,909.11 131,442,909.11 Total
6.30Undistributedprofit
Items Amount Provisionordistribution% 482,117,978.03
Endingbalanceof2013
ClosingbalanceofJune2014 464,668,791.95
6.31Operatingrevenue&cost
(1)Operatingrevenue&cost
Items Thisperiod Lastperiod
1,446,138,957.62 1,287,811,506.03 Revenuefrommainoperation
194,874,251.09 259,591,987.34 Revenuefromotheroperation
Costofmainoperation
1,490,487,024.71 1,375,879,876.97（2）Mainoperation-classifiedaccordingtooperation
Unit: Yuan
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport
||||||
|-|-|-|-|-|
|Items|Thisperiod||Lastperiod||
||Salesrevenue|Costofsales|Salesrevenue|Costofsales|
|Export|140,992,686.32|134,917,023.46|136,810,764.89|131,410,972.37|
|Transportationvehiclebearings|578,284,516.64|511,593,649.12|472,567,440.34|420,559,469.61|
|Specialusebearings|312,384,405.97|299,963,874.67|259,475,453.06|230,375,981.41|
|Generalusebearings|361,832,862.04|314,640,313.02|373,504,645.60|328,113,952.07|
|IndustrialOperations|52,644,486.65|58,789,239.75|45,453,202.14|51,961,915.61|
|Total|1,446,138,957.62|1,319,904,100.02|1,287,811,506.03|1,162,422,291.07|

（3）Mainoperation-classifiedaccordingtoproducts
Unit:Yuan
||||||
|-|-|-|-|-|
|Items|Thisperiod||Lastperiod||
||Salesrevenue|Costofsales|Salesrevenue|Costofsales|
|Bearings|1,393,494,470.97|1,261,114,860.27|1,242,358,303.89|1,110,460,375.46|
|Components|52,644,486.65|58,789,239.75|45,453,202.14|51,961,915.61|
|Total|1,446,138,957.62|1,319,904,100.02|1,287,811,506.03|1,162,422,291.07|

（4）Mainoperation-classifiedaccordingtoregion
Unit:Yuan
||||||
|-|-|-|-|-|
|Items|Thisperiod||Lastperiod||
||Salesrevenue|Costofsales|Salesrevenue|Costofsales|
|Export|1,305,146,271.30|1,184,987,076.56|1,151,000,741.14|1,031,011,318.70|
|Domestic|140,992,686.32|134,917,023.46|136,810,764.89|131,410,972.37|
|Total|1,446,138,957.62|1,319,904,100.02|1,287,811,506.03|1,162,422,291.07|

 (5)Salesrevenuefromtop5customers
Items Salesrevenue Accountingfor
proportionoftotal Client1 179,230,758.96 10.92
Client2 69,191,111.13 4.22
Client3
55,660,908.66 3.39
Client4
54,197,059.66 3.30
Client5
45,635,864.72 2.78
Total 403,915,703.13 24.61
6.32Operatingtaxesandsurcharges
Items Thisperiod Lastperiod Baseofcalculation
276,220.06 543,237.27
Businesstax 5%ofrentalrevenue
3,438,828.25 3,022,854.34
Cityconstructiontax 7%ofturnovertax
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport Educationsurcharge
2,456,305.91 2,140,588.90
5%ofturnovertax 6,171,354.22 5,706,680.51
Total
6.33Sellingexpenses
Items Thisperiod Lastperiod
Sellingexpenses
118,732,526.35 102,660,427.82 118,732,526.35 102,660,427.82 Total
6.34Administrativeexpenses
Items Thisperiod Lastperiod
Administrativeexpenses
35,930,304.10 34,739,784.53 35,930,304.10 34,739,784.53 Total
6.35Financialexpenses
Items Thisperiod Lastperiod Interestexpenses
19,435,381.54 16,880,617.03 -6,090,557.66 -6,426,372.50 Less:interestincome
307,956.76 1,505,814.08 Add:Exchangelosses
-2,069,590.92 -262,917.45 Less:Exchangeincome
Add:Othersexpenditure
352,444.77 508,931.62 11,935,634.49 12,206,072.78 Total
6.36Investmentincome
(1)Sourcesofinvestmentincome
Items Thisperiod Lastperiod Long-termequityinvestmentincomeundercostmethod
680,000.00 2,261,215.59 5,031,527.35 Long-termequityinvestmentincomeunderequitymethod
2,261,215.59 5,711,527.35 Total
(2)Long-termequityinvestmentincomeunderequitymethod
Items Thisperiod Lastperiod Reasonforchange
2,261,215.59 5,031,527.35
Total —
Including: —
Theassociatesprofitsincreased
2,261,215.59 5,031,527.35
DalianSKFWazhouBearingsCo.,Ltd.
comparedwithlastyear
6.37Assetsimpairmentlosses
Items Thisperiod Lastperiod
1,032,932.36 476,002.39
Lossofbaddebts
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport Total
1,032,932.36 476,002.39 6.38Non-operatingincome
(1)Non-operatingincomelist
Thisperiod Lastperiod
Amountsrecognizedinto Items currentnon-recurringprofitor loss
Gainsondisposalofnon-currentassets 27,802.77 448,926.05
Incomefromdebtrestructuring 27,802.77 448,926.05
Governmentgrants 645,467.57 436,592.70
Penaltyincome 2,376,811.94 2,156,909.17
Others 25,923.28 56,763.03
Total 1,292,533.99 450,373.69
(2) Governmentgrantslist
Thisperiod Lastperiod Relatedwith Non-recurring Item
asset/income gain/loss Allowanceforupgrade 368,500.00 368,500.02 Relatedwithasset
Yes Yes CompensateforDalianfactoryrelocation 1,352,117.94 1,352,117.94 Relatedwithasset
Yes High-endequipmentmanufacturing Relatedwithasset
bearingtechnologyupgrade 200,000.06
projects
Yes High-endequipmentmanufacturing
bearingtechnologyupgrade 236,160.00 Relatedwithasset
projects
1,956,777.94 1,920,618.02
Total
6.39Non-operatingexpenses
Thisperiod Lastperiod Amounts recognized into current Items
non-recurringprofitorloss
35,866.08
Lossondisposalofnon-currentassets
791,703.96 1,206,652.18
Lossfromdebtrestructuring
Others
10,669.74 78,603.46
802,373.70 1,321,121.72
Total
6.40Incometaxexpenses
(1)Incometaxexpenses
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport Items Thisperiod Lastperiod
Currentincometaxexpenses
842,546.41 842,546.41 Total
6.41Calculationofbasicearningspershareanddilutedearningspershare
Items No. Thisperiod Lastperiod Netprofitattributabletoshareholdersofparent
1 -17,449,186.08 22,832,072.23 company
2
Non-operatingprofitandlossattributableto
3,031,240.97 2,228,442.92 shareholdersofparentcompany
Netprofitafterdeductingnon-operatingprofitand
3=1-2 -20,480,427.05 20,937,895.75 lossattributabletoshareholdersofparent
company
4 402,600,000.00 402,600,000.00 Totalnumberofsharesattheperiodbegin
5 - - Thenumberofsharesincreasedduetotransferring
capitalreserveintosharecapitalordividend
distributionofsharesduringreportperiod(Ⅰ)
6 - - Thenumberofsharesincreasedduetoissuanceof
newsharesordebtforequityswapduringthe
reportperiod(Ⅱ)
7 - -thenumberofshares(Ⅱ)fromthenextmonthto
theendofthereportperiodforincreaseofshares
8 - - Thenumberofmonthsdecreasedduetostock
repurchaseordrawbackstockduringthereport
period
9 - - Thenumberofmonthsfromthenextmonthtothe
endofthereportperiodfordecreaseofshares
10 - - Thenumberofsharesfordecreaseofshares
11 - - Durationoftheperiodintermsofmonth
12=4+5+6×7÷11
Weightedaveragenumberofordinaryshares
402,600,000.00 402,600,000.00 issuedout
-8×9÷11-10
EPS–basis(Ⅰ)
13=1÷12 -0.04 0.06EPS–basis(Ⅱ)
14=3÷12 -0.05 0.05 Potentialdilutedinterestsofordinaryshares
recognizedasexpense
15 - - Transferfee
16 - - EITrate
17 - - Weightedaverageamountofordinaryshares
increasedduetowarrant,shareoptions
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport 18 - -EPS–diluted(Ⅰ)
19=[1+(15-16)×(1-17) -0.04 0.06EPS–diluted(Ⅱ)
]÷(12+18)
6.42Notestocashflowstatement
(1)Cashreceipt/paymentofotheroperating/investing/financingactivities
1)Othercashreceivedrelatingtooperatingactivities
Items amount
160,754.26
Interestincome
20,034.00
Allowanceforexhibitionplace
Wastematerialincome
768,913.10
5,907,014.36
Returnofreservefund,depositetc.
6,856,715.72
Total
2)Othercashpaidrelatingtooperatingactivities
Items amount
Travelexpenses 12,375,169.88
Rentexpense 16,938,756.96
Freightserviceexpense 10,718,256.31
Conferenceexpense 8,359,293.55
Collectionandpaymentforothers 9,780,040.50
Officeexpense 4,157,457.04
Marketdevelopmentexpense 1,744,933.96
Guardandfirefightingexpense 1,650,000.00
Businesspromotionexpense 3,649,883.73
Total 19,867,301.34
6.4.3Supplementaryinformationofconsolidatedcashflowstatement
Items Thisperiod Lastperiod
1.Adjustingnetprofitintocashflowsofoperatingactivities:
-17,449,186.08 22,832,072.23
Netprofit
Add:Provisionforimpairmentofassets
1,032,932.36 476,002.39
38,102,595.42 38,647,366.84
Depreciationoffixedassets
2,303,934.16 2,281,399.02
Amortizationofintangibleassets
70,860.18 33,915.18
Amortizationoflong-termdeferredexpenses
Lossesondisposaloffixedassets,intangibleassets,and
-27,802.77 -413,059.97
long-termassets(incomelistedwith”-”)
11,935,634.49 12,206,072.78
Financialexpense(incomelistedwith”-”)
-2,261,215.59 -5,711,527.35
Investmentloss(incomelistedwith”-”)
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport Decreaseofinventory(increaselistedwith”-”)
70,086,476.63 -35,392,230.32
-190,068,176.59 -221,007,090.03
Decreaseofoperatingreceivables(increaselistedwith”-”)
142,437,198.09 165,753,664.30
Increaseofoperatingpayables(decreaselistedwith”-”)
56,163,250.30 -20,293,414.93
Netcashflowsarisingfromoperatingactivities
2.Significantinvestmentandfinancingactivitiesunrelatedto
cashincomeandexpenses
3.Netincrease(decrease)ofcashandcashequivalent
106,900,170.43 77,158,499.73
Endingbalanceofcash
60,616,759.13 60,004,306.25
Less:Openingbalanceofcash
Add:Endingbalanceofcashequivalent
Less:Openingbalanceofcashequivalent
46,283,411.30 17,154,193.48
Netincreaseofcashandcashequivalent
(3)Cashandcashequivalents
Items Thisperiod Lastperiod
106,900,170.43 60,616,759.13
Cash
144,752.65
Including:Cashonhand
106,755,417.78
Bankdepositusedforpayingatanymoment
Othercashusedforpayingatanymoment
Cashequivalents
Including:Bondinvestmentduewithin3months
106,900,170.43 60,616,759.13
Closingbalanceofcashandcashequivalents
Thedifferencebetweencashandcashequivalentandcashattheendofthisyearreferstonotes6.1.
7.Relatedpartiesrelationshipandtransactions
7.1Relatedpartiesrelationship
(1)Parentcompanyandultimatecontroller
1)Parentcompanyandultimatecontroller
Parent Enterprise Registeredaddress Businessnature Legal Organization company nature representative code No. 1 North Gongji Manufactureandsales
State-owned
WazhouGroup Street, Wafangdian ofbearingand CongHong 24238666-3 Limited
City,Dalian otherequipments
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport 2)Registeredcapitalanditsmovementofparentcompany
Parentcompany 2013.12.31 Increase Decrease 2014.06.30
WazhouGroup 413,793,100.00 — — 413,793,100.00 3)Shareheldanditsmovementofparentcompany
Parentcompany Amount Shareholding(%)
2014.06.30 2013.12.31 2014.06.30 2013.12.31
WazhouGroup 244,000,000.00 244,000,000.00 60.61 60.61 (2)Subsidiaries
Subsidiaries Enterprise Registeredaddress Legalrepresentative Businessnature Registered nature
Manufactureand
No.61,Weiguoroad,
Liaoyang salesofbearing
Limited BaitadistrictLiaoyang ShaoYang
19,350,000.0 Bearing andmachine
city
manufacture 0 No.12,Shisanli Manufactureand
DalianElectrical yongshengstreet, salesofbearing 10,000,000.0 Limited ShaoYang
Equipment freetradezoneDalian andmachine
0 city manufacture
(Continue)
Subsidiary Organizationcode Stockholdingpercentage
Votingpercentage 12199127-7
LiaoyangBearing 100.00 100.00 DalianElectricalEquipment
55980608-0
100.00 100.00 (3)Associates
1)Associates
Associates Enterprise Registeredaddress Legalrepresentative Businessnature nature
Chinese-forei No.1,Phrase1,Gongji
DalianSKFWazhou Manufactureandsalesof gnequity Street,Wafangdian CongHong
BearingsCo.,Ltd. ball-surfacerollingbearing jointventure North
(Continued)
Associates Registeredcapital Shareholding% Voting% Organizationcode DalianSKFWazhou
BearingsCo.,Ltd. 194million 49.00 49.00 70218806-0 (4)Otherrelatedparties
Relatedparty Nameofrelatedparty Organizationcode
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport relationship
Othercompanies DalianWazhouManufacturingEquipmentCo.,Ltd 24239291-6 controlledbythesame
WazhouSteelBallCompany 76078283-4 parentcompanyand
WazhouExactForgeLtd., 76079407-7 ultimatecontrolling
party WazhouGroupTurnplateBearingLtd 66112524-9 WazhouGroupExactTransmissionBearingCo.,Ltd 66582213-x WazhouGroupEquipmentTechnologyengineering Co.,Ltd 59443405-9 WazhouGroupSpecialPrecisionBearingCo.,Ltd. 56552248X WazhouGroupAmericanBearingCo.,Ltd
Others DalianWazhouJinzhouMachineryCo.,Ltd 57605032-6 DalianWazhouFengyuanMachineryCo.,Ltd 57605568-8 7.2Relatedpartytransactions
(1)Purchaseofgoods
Relatedpartytypeandname Thisperiod Lastperiod
Amount % Amounts %
Associates: — — — — Including:DalianSKFWazhouBearingsCo.,Ltd.
91,479,064.505.29% 112,310,394.31 6.69% Othercompaniescontrolledbythesameparent
company
3,096,656.300.18% 3,389,924.16 0.20% Including:WazhouSteelBallCompany
136,587,261.897.89% 119,126,487.11 7.09% WazhouExactForgeLtd.,
DalianWazhouManufacturing
11,307,415.150.65% 11,489,432.22 0.68% EquipmentCo.,Ltd
112,108,498.006.48% 53,622,175.28 3.19% WazhouGroupTurnplateBearingLtd
WazhouGroupExactTransmission
53,168,501.143.07% 64,541,260.21 3.84% BearingCo.,Ltd
Wazhou Group Special Precision
313,525.57 0.02% BearingCo.,Ltd.
Wazhou Group Equipment Technology
15,432,733.330.89% 6,973,184.18 0.42% engineering Co.,Ltd
DalianWazhouFengyuanMachinery
71,125,192.004.11% 52,435,533.52 3.12% Co.,Ltd
DalianWazhouJinzhouMachineryCo.,
68,905,658.173.98% 79,578,698.23 4.74% Ltd
Total
TheCompany’s purchase price from Dalian SKFWazhouBearingsCo.,Ltdwasthecontractpricedeterminedin2002;others relatedpartypurchasepricewasmarketprice.
(2)Salesofgoods
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport Relatedpartytypeandcompany Thisperiod Lastperiod
Amount % Amount % Parentcompany:
622,270.14 0.04% 336,292.250.02% Including:WazhouGroup
Associates:
34,129,174.94 2.08% 24,494,835.471.58% Including:DalianSKFWazhouBearingsCo.,Ltd.
Othercompaniescontrolledbythesameparent
company
3,886,120.88 0.24% 2,859,622.430.18% Including:WazhouSteelBallCompany
WazhouExactForgeLtd.
179,230,758.96 10.92% 210,280,229.1713.59% DalianWazhouManufacturingEquipment
661,955.32 0.04% 1,048,483.890.07% Co.,Ltd
386,515.20 0.02% 10,719,178.300.69% WazhouGroupTurnplateBearingLtd
WazhouGroupExactTransmissionBearing
13,147,922.82 0.80% 15,061,881.250.97% Co.,Ltd
WazhouGroupSpecialPrecisionBearing
1,973,843.00 0.12% 1,912,565.790.12% Co.,Ltd
11,957,485.95 0.73%
WazhouGroupAmericanBearingCo.,Ltd
OtherRelatedparties
DalianWazhouFengyuanMachineryCo.,
152,612.23 0.01% 3,055,438.890.20% Ltd
TheCompany’ssalespriceofworkinginprogressandrawmaterialstoDalianSKFWazhouBearingsCo.,Ltdwasthecontract pricedeterminedin2002;thesalespriceofrawmaterialstoWazhouSteelBallCompanyandWazhouExactForgeLtdwasthe contract plus the expense occurred in the purchase on behalf of the customers; othersrelatedpartysalespricewasmarket price.
(3)Provideingservice
Relatedpartytypeandcompany Thisperiod Lastperiod
Amount % Amount % Associates:
1,925,926.98 0.12% 2,092,088.470.13% Including:DalianSKFWazhouBearingsCo.,Ltd.
Othercompaniescontrolledbythesameparent
company
501,943.65 0.03% 367,343.500.02% Including:WazhouSteelBallCompany
WazhouExactForgeLtd.
97,256.600.01% WazhouGroupExactTransmissionBearing
1,349,653.11 0.08% 1,469,308.790.09% Co.,Ltd
WazhouGroupSpecialPrecisionBearing
249,363.99 0.02% 76,417.670.00%
Co.,Ltd
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport OtherRelatedparties
DalianWazhouJinZhouMachineryCo.,Ltd 202,486.37 0.01% 1,583,618.900.10% 7.3Relatedpartiesrent
7.4 Balanceswithrelatedparties
(1)Accountsreceivableduefromrelatedparties
Relatedparty
EndofJune2014 Beginningoftheyear 6,903,361.6 6,903,361.6 Parentcompany
Including:WazhouGroup
Othercompaniescontrolledbythesameparentcompany
7,627,664.68 7,627,664.68 WazhouGroupSpecialPrecisionBearingCo.,Ltd
7,733,293.77 7,733,293.77 WazhouGroupAmericanBearingCo.,Ltd
(2)Accountspayableduetorelatedparties
Relatedparty
Thisperiod Lastperiod
Associates
81,721,462.87 70,617,717.03 Including:DalianSKFWazhouBearingsCo.,Ltd.
Othercompaniescontrolledbythesameparentcompany
19,899,619.78 41,757,360.03 Including:WazhouExactForgeLtd.
125,779,899.15 61,781,330.93 WazhouGroupTurnplateBearingLtd
4,081,797.37 1,498,795.06 WazhouSteelBallCompany
102,208,085.78 94,934,478.93 WazhouGroupExactTransmissionBearingCo.,Ltd
8,271,090.75 4,923,156.28 DalianWazhouManufacturingEquipmentCo.,Ltd
WafangdianBearingGroupEquipmentTechnology
9,480,662.96 24,955,761.96 Engineer Co.,Ltd
37,952,755.32 12,911,691.20 DalianWazhouJinzhouMachineryCo.,Ltd
29,534,525.26 3,731,824.50 DalianWazhouFengyuanMachineryCo.,Ltd
8.Contingency
AsatJune30,2014,theGroupdoesnothaveanyothercontingencies.
9.Commitment
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport AsatJune30,2014,theGroupdoesnothaveanyothersignificantcommitments.
10.Eventsafterthebalancesheetdate
11.Othersignificantevents
11.1Debtrestructuring
11.2Assetsrentoutunderoperatinglease
12.Notestothemainitemsofthefinancialstatementsofparentcompany
12.1Accountsreceivable
(1)Accountsreceivablecategory
2014.06.30
Items Bookingbalance Provision Amount % Amount % Accountsreceivablewithindividualsignificantamountand
3,910,007.43 0.29% 3,910,007.43 100.00% identificationseparatelybaddebtprovision
Accountsreceivableaccruedbaddebtprovisionbyportfolio
1,295,267,075.59 96.88% 41,977,100.39 3.24% Accountingagingportfolio
25,994,538.42 1.95%
Relatedpartiesportfolio
Risk-freeportfolio
Subtotalofportfolio
1,321,261,614.01 98.83% 41,977,100.39 3.18% Accountsreceivablewithindividualinsignificantamountand
11,796,099.81 0.88% 11,796,099.81 100.00% identificationseparatelybaddebtprovision
1,336,967,721.25 -- 57,683,207.63 -- Total
(Continued)
2013.12.31
Items Bookingbalance Provision Amount % Amount % Accountsreceivablewithindividualsignificant
3,910,007.43 0.33% 3,910,007.43 100.00% amountandidentificationseparatelybaddebt
provision
Accountsreceivableaccruedbaddebtprovisionby
portfolio
1,156,136,444.2396.55% 41,988,314.44 3.63% Accountingagingportfolio
25,628,530.42 2.13%
Relatedpartiesportfolio
Risk-freeportfolio
Subtotalofportfolio
1,181,764,974.6598.68% 41,988,314.44 3.55%
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport Accountsreceivablewithindividualinsignificant
amountandidentificationseparatelybaddebt 11,796,099.81 0.99% 11,796,099.81 100.00% provision
1,197,471,081.89 -- 57,694,421.68 --
Total
1) Individually significant amounts of accounts receivable accrued the bad debt provision separately at the end of June 30,2014
Provisionfor Proportion
Debtorsname Bookingbalance Reasonsforprovision baddebts (%)
BaodingNorthChinaMachine& A/Rwithover5yearsaging, 3,910,007.43 3,910,007.43 100.00%
ElectronicEquipmentCo.,Ltd unlikelytobecollected 3,910,007.43 3,910,007.43 —
Total
2)Accountsreceivableaccruedthebaddebtprovisionsintheportfolioasaccountingaginganalysismethod
2014.06.30 2013.12.31
Items
Amount % Provision Amount % Provision 1,130,694,339.88 84.57% 11,306,943.40 984,412,200.17 82.21% 9,844,122.00 Within1year
88,557,885.45 6.62% 4,427,894.27 92,785,902.07 7.75% 4,639,295.10 1-2years
39,217,208.03 2.93% 7,843,441.61 39,880,912.19 3.33% 7,976,182.44 2-3years
Over3years
36,797,642.23 2.75% 18,398,821.12 39,057,429.80 3.26% 19,528,714.90 3) Individually insignificant amount accounts receivable but accrued bad debt provision separately at the end of June 30,2014
Provisionfor Proportion
Companyname Bookingbalance Reasonsforprovision
baddebts (%)
ShenyangSewerage A/Rwithover5yearsaging,
2,706,703.13 2,706,703.13 100.00%
EquipmentCo.,Ltd unlikelytobecollected
ShenYangGeneral A/Rwithover3yearsaging,
2,452,138.58 2,452,138.58 100.00%
unlikelytobecollected
BearingCo.,Ltd
Tiefacoalsector A/Rwithover3yearsaging,
2,352,760.15 2,352,760.15 100.00%
unlikelytobecollected
GroupCompany
ShuangyashanMining
A/Rwithover3yearsaging,
1,368,257.55 1,368,257.55 100.00%
industryGroup
unlikelytobecollected
Company
ChongqingSailimeng A/Rwithover3yearsaging,
650,758.88 650,758.88 100.00%
unlikelytobecollected
electricalmachineLLC
QingdaoQingte A/Rwithover3yearsaging,
590,898.99 590,898.99 100.00%
unlikelytobecollected
ZhongliaxleCo.,Ltd
Othersporadic A/Rwithover5yearsaging,
1,674,582.53 1,674,582.53 100.00%
accountsreceivable unlikelytobecollected
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport Total
11,796,099.81 11,796,099.81 -- —
(2)Write-offofaccountsreceivableduringthereportingperiod
|||||||
|-|-|-|-|-|-|
|Name|Properties|Time|Amount|Reason|Relatedbusinessornot|
|ChinaHeavyAutomobileJiNan Bridge-boxCo.,Ltd|Goodsselling||920,469.22|Accountdifferenceover8years|No|
|NanJingHighSpeedGearManufactoryCo.,Ltd|Goodsselling||41,938.02|Qualityproblem|No|
|NanJinghigh-extractiveGearGroupCompany|Goodsselling||80,958.78|Qualityproblem|No|
|TongHuaOilChemicalindustryMachinery|Goodsselling||780.39|Accountdifferenceover8years|No|
|合计|--|--|1,044,146.41|--|--|

(3)Accountsreceivableduefromshareholdersholdingover5%(including5%)oftheCompany’sshares
Thisperiod Lastperiod
Debtorname
Amount Provisionforbaddebt Amount Provisionforbaddebt 6,903,361.61 6,903,361.61
WazhouGroup
6,903,361.61 6,903,361.61
Total
(4)Accountsreceivableforthetop5companies
Percentage Relationshipwith
Companyname Amount Aging
inthetotalAR(%) theCompany
TOP1 45,853,594.65 3.43% Unrelatedparty Within1year
Within1year
TOP2
Unrelatedparty
42,696,266.67 3.19% 1-2years
TOP3 30,633,004.16 2.29% Unrelatedparty Within1year
TOP 4 29,979,922.68 2.24% Unrelatedparty Within1year
28,630,199.97 2.14% TOP5 Unrelatedparty Within1year;1-2years
177,792,988.13 13.29% Total — —
(5)Accountsreceivableduefromrelatedparties
Companyname RelationshipwiththeCompany Amounts %inthetotalAR
6,903,361.61 0.52% WazhouGroup Parentcompany
WazhouGroupSpecialPrecision Othercompaniescontrolledby
7,627,664.68 0.57% Bearing Co.,Ltd
thesameparentcompany
Othercompaniescontrolledby
WazhouGroupAmericanCo.,Ltd 7,733,293.77 0.58% thesameparentcompany
LiaoZhou
Subsidiary
3,730,218.36 0.28%
25,994,538.42 1.95%
Total —
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport 12.2Otherreceivables
(1)Thecategoryofotherreceivable
2014.06.30
Items Bookingbalance Provision
Amount % Amount %
Otherreceivableswithindividual
significantamountand
identificationseparatelybaddebt
provision
Otherreceivablesaccruedbaddebt
provisionbyportfolio
11,972,879.14 57.89% 1,347,121.11 11.25%
Accountingagingportfolio
Relatedpartiesportfolio
8,708,936.70 42.11%
Risk-freeportfolio
Subtotalofportfolio
20,681,815.84 100.00% 1,347,121.11 6.51%
Otherreceivableswithindividual
insignificantamountand
identificationseparatelybaddebt
provision
20,681,815.84 -- 1,347,121.11 --
Total
（Continued）
2013.12.31
Items Bookingbalance Provision
Amount % Amount %
Otherreceivableswithindividual
significantamountandidentification
separatelybaddebtprovision
Otherreceivablesaccruedbaddebt
provisionbyportfolio
11,844,521.56 44.01% 1,347,121.11 11.37%
Accountingagingportfolio
Relatedpartiesportfolio
15,066,804.72 55.99%
Risk-freeportfolio
Subtotalofportfolio
26,911,326.28100.00% 1,347,121.11 5.01%
Otherreceivableswithindividual
insignificantamountandidentification
separatelybaddebtprovision
26,911,3
Total 26,911,326.28 -- 1,347,121.11
26.28
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport 1)Otherreceivableaccruedthebaddebtprovisionsintheportfolioasaccountingaginganalysismethod
2014.06.30 2013.12.31
Items
Amount % Provision Amount % Provision
37.82
7,821,512.86 78,215.13 7,875,751.87 29.27% 78,757.52 Within1year
%
1-2years
1,570,443.297.59% 78,522.16 1,373,068.49 5.10% 68,653.42 333,592.251.61% 66,718.45 327,134.79 1.22% 65,426.96 2-3years
10.87
2,247,330.74 1,123,665.37 2,268,566.41 8.42% 1,134,283.21 Over3years
%
11,972,879.14 -- 1,347,121.11 11,844,521.56 -- 1,347,121.11 Total
Nootherreceivableisduefromshareholdersholdingover5%(including5%)oftheCompany’ssharesattheendofperiod. 2)Otherreceivablesfromthetop5debtors
Percentage Relationshipwiththe
Companyname Amount Aging
inthetotalAR(%) Company
Top1 5,843,915.27 28.30% Unrelatedparty Within1year
Within1year
Top2 370,000.00 1.80% Unrelatedparty
Top3 150,000.00
Within1year
0.70% Unrelatedparty
Top4 100,000.00
Within1year
0.50% Unrelatedparty
Within1year
Top5
Unrelatedparty
100,000.00 0.50% 6,563,915.27 31.80% Total — —
3)Otherreceivablesincludesthefollowingforeigncurrencybalance
12.3Long-termequityinvestments
(1)Long-termequityinvestmentsundercostandequitymethod
Investee Shareholding% Voting% Original
Amounts
Costmethod — — — ShanghaiMEmachine-electricalequipmentchain
4.76 4.76 2,000,000.00 Ltd.
LiaoyangBearing 100.00 100.00 17,337,259.95 DalianWazhouPrecisionMotorCarBearing
100.00 100.00 10,478,956.37 CompanyLimited
Equitymethod — — — DalianSKFWazhouBearingsCo.,Ltd. 49.00 49.00 95,060,000.00
Total — — 124,876,216.32
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport (Continued)
Investee 2013.12.31 Increase Decrease 2014.06.30 Cashdividendsin reportperiod Costmethod — — — — — ShanghaiME
machine-electrical 2,000,000.00 — — 2,000,000.00 — equipmentchainLtd.
LiaoyangBearing 17,337,259.95 — — 17,337,259.95 — DalianWazhouPrecision
MotorCarBearing 45,478,956.37 — — 45,478,956.37 — CompanyLimited
Equitymethod — — — — — DalianSKFWazhou
99,734,229.12 2,261,215.59
—
101,995,444.71 — BearingsCo.,Ltd.
Total 164,550,445.44 2,261,215.59 166,811,661.03 — 12.4Operatingrevenueandcost
Items Thisperiod Lastperiod
1,445,719,557.96 1,284,660,133.07 Revenuefrommainoperation
197,741,808.32 262,567,202.47 Revenuefromotheroperation
Costofoperation
1,643,461,366.28 1,547,227,335.54 1,494,654,881.09 1,376,283,798.47 Total
(1)Mainoperation-classifiedaccordingtoIndustries
Thisperiod Lastperiod
Industries
Salesrevenue Costofsales Salesrevenue Costofsales 140,992,686.32 135,561,738.21 136,810,764.89 132,713,666.62 Export
Domestic
Including:Transportation
578,284,516.64 511,593,649.12 472,567,440.34 420,559,469.61 vehiclebearings
312,384,405.97 299,963,874.67 259,475,453.06 230,375,981.41 Specialusebearings
360,675,310.32 314,570,263.39 370,065,951.11 324,731,071.28 Generalusebearings
53,382,638.71 59,483,712.85 45,740,523.67 52,242,943.03 IndustrialOperations
Total
1,445,719,557.96 1,321,173,238.24 1,284,660,133.07 1,160,623,131.95 (2)Mainoperation-classifiedaccordingtoproduct
Thisperiod Lastperiod
Industries
Salesrevenue Costofsales Salesrevenue Costofsales Bearing
1,392,336,919.25 1,261,689,525.39 1,238,919,609.40 1,108,380,188.92 53,382,638.71 59,483,712.85 45,740,523.67 52,242,943.03 Component
1,445,719,557.96 1,321,173,238.24 1,284,660,133.07 1,160,623,131.95
Total
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport (3Mainoperation-classifiedaccordingtoarea
Thisperiod Lastperiod
Industries
Salesrevenue Costofsales Salesrevenue Costofsales 140,992,686.32 135,561,738.21 136,810,764.89 132,713,666.62 Export
1,304,726,871.64 1,185,611,500.03 1,147,849,368.18 1,027,909,465.33 Civil
Total
1,445,719,557.96 1,321,173,238.24 1,284,660,133.07 1,160,623,131.95 (4)Salesrevenuefromtop5customers
Items Salesrevenue Accountingforproportionoftotal
179,230,758.96 10.91% Client1
Client2
69,191,111.13 4.21% Client3 55,660,908.66 3.39% Client4 54,197,059.66 3.30% Client5 45,635,864.72 2.78% Total
403,915,703.13 24.59% 12.5Investmentincome
(1)Sourceofinvestmentincome
Items Thisperiod Lastperiod
Incomefromlong-termequityinvestmentsunder
680,000.00
costmethod
Incomefromlong-termequityinvestmentsunder
2,261,215.59 5,031,527.35
equitymethod
2,261,215.59 5,711,527.35
Total
(2)Long-termequityinvestmentincomeunderequitymethod
Items Thisperiod Lastperiod Reasonforchange
Total —
Theassociatesprofits
Including: Dalian SKF Wazhou
2,261,215.59 5,031,527.35
decreasedcompared
BearingsCo.,Ltd.
withlastyear
12.6Supplementaryinformationofconsolidatedcashflowstatementofparentcompany
Items Thisperiod Lastperiod
1.Adjustingnetprofitintocashflowsofoperatingactivities: — —
-10,621,631.63 32,164,155.52
Netprofit
1,032,932.36 476,002.39
Add:Provisionforimpairmentofassets
33,030,705.74 33,779,270.91
Depreciationoffixedassets
WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport Amortizationofintangibleassets
2,137,554.12 2,115,032.69
70,860.18 33,915.18
Amortizationoflong-termdeferredexpenses
Lossesondisposaloffixedassets,intangibleassets,and
-253,987.77
long-termassets(incomelistedwith”-”)
12,175,479.92 12,170,694.57
Financialexpense(incomelistedwith”-”)
Investmentloss(incomelistedwith”-”)
-2,261,215.59 -5,711,527.35
58,967,776.59 -45,669,907.24
Decreaseofinventories(increaselistedwith”-”)
-195,520,364.02 -198,479,075.80
Decreaseofoperatingreceivables(increaselistedwith”-”)
158,523,624.37 148,985,566.98
Increaseofoperatingpayables(decreaselistedwith”-”)
Netcashflowsarisingfromoperatingactivities
57,535,722.04 -20,389,859.92
2.Significantinvestmentandfinancingactivitiesunrelatedto
cashincomeandexpenses
3.Netincrease(decrease)ofcashandcashequivalent
104,313,968.24 74,651,596.06
Endingbalanceofcash
Less:Openingbalanceofcash
56,478,876.74 57,459,164.76
47,835,091.50 17,192,431.30
Netincreaseofcashandcashequivalent
Supplementaryinformationtothefinancialstatements
1.Non-operatingprofitorloss
Items Thisperiod Lastperiod
27,802.77
Gainorlossfromdisposalofnon-currentassets
Governmentgrantsrecordedintoprofitorlossduring
2,376,811.94
currentperiod
-146,236.39
Profitorlossfromdebtsrestructuring
Othersnon-operatingrevenueandexpensebesides
1,307,787.53
theaboveitems
Subtotal
534,924.88
Effectfromincometax
Effectofminorityinterests(aftertax)
Total
3,031,240.97 --
2
(1).Differencesinnetprofitandnetassetunderdomesticandinternationalaccountingstandards
InRMBYuan
||||||
|-|-|-|-|-|
||Netprofitattributabletotheshareholdersofthelistedcompany||Netassetattributabletotheshareholdersofthelistedcompany||
||Currentterm|Amountoflastterm|Endofterm|Beginningofterm|
|OnChineseAccountingStandard|-17,449,186.08|22,832,072.23|1,487,517,249.42|1,504,966,435.50|
|ItemsandamountsadjustedonIAS|||||
|UnderInternational|-17,449,186.08|22,832,072.23|1,487,517,249.42|1,504,966,435.50|

WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport
||
|-|
|AccountingStandard|

(2).Differencesinnetprofitandnetassetunderdomesticandoverseasaccountingstandards
InRMBYuan
||||||
|-|-|-|-|-|
||Netprofitattributabletotheshareholdersofthelistedcompany||Netassetattributabletotheshareholdersofthelistedcompany||
||Currentterm|Amountoflastterm|Endofterm|Beginningofterm|
|OnChineseAccountingStandard|-17,449,186.08|22,832,072.23|1,487,517,249.42|1,504,966,435.50|
|Accountsandamountsadjustedaccordingtooverseasaccountingstandard|||||
|OnIAS|-17,449,186.08|22,832,072.23|1,487,517,249.42|1,504,966,435.50|

 2.Returnonequityandearningspershare
Weightedaveragereturn Earningspershare(EPS) Profitofreportperiod
onnetassets(%) BasicEPS DilutedEPS-1.17% -0.04 -0.04 Netprofitattributabletoshareholdersofparentcompany
Netprofitafterdeductingnon-recurringgainsandlosses
-1.37% -0.05 -0.05 attributabletoshareholdersofparentcompany
3.Explanationfortheabnormityandchangeofmainitemsoffinancialstatements
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|-|-|-|-|-|-|
|No.|Project|OpeningBalance|ClosingBalance|Percentage|Reason|
|1|Monetaryfund|14,671.9|8,068.7|81.8%|Mainlycustomerreceivableincreasedandatthesametimecompressioncurrencypaymenttosupplier.|
|2|Notesreceivable|15,222.2|10,033.0|51.7%|Inthistermweincreasedlongnoteforsuppliers,reducesightbillpayment, receivableincreasedatthesametime,causinglargernotesreceivableyeargrowth.|
|3|Accountsreceivable|130,138.16|113,860.6|14.3%|Mainlytherisk-freehostcustomers increasegoods,fromtheindustryanalysis,accountsreceivablerise ismainlyconcentratedintherailwayindustry,carsandwindpower.|
|4|Otherreceivables|2,259.83|2,972.7|-24.0%|Mainlycompanycarriedoutunauthorizedtooffsettheinputtax9.21millionYuanoftheendof2013|
|5|inventory|112,664.8|119,673.4|-5.9%|Mainlycompanystrengthenstomanagecontracts, reducethefinishedproducts80.24millionthatislessthanatthestart ，thecompanystrengthenproductionmanagement,cuttheproduction,reduceproductionfundfortheyear7.51million,andreservesincreasefromayearearlier|
|6|Projectsunderconstruction|35,355.4|30,317.2|16.6%|Unfinishedprojectincluding:precisionrollingbodytransformanincreaseof23.18millionYuan,afinishedproducttransformanincreaseof8.09million,sevenproducttransformation,anincreaseof7.87millionmedium-sizeddeepgrooveballbearingproductionlineanincreaseof7.19million.|
|7|Notespayable|24,979.7|9,324.7|167.9%|Mainlythisincreaseforlongnotewhenpaymenttosupplier,leadtogrowthlargernotespayable.|
|8|Accountspayable|126,193.6|116,646.6|8.2%|Compressionforthecustomerpayment,annualgrowthisinaccountspayable|

WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport
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|-|-|-|-|-|-|
|||164,101.3|154,740.3|6.0%||
|10|Operatingcost|149,048.7|137,588.0|8.3%|pricesofcompanyproductisfall4.5%,the reduceprofitis34.1millionYuan.Thecostsis82.5Yuan,fellto1.4Yuan,including:onehundredYuanoutputvalueisexpectedtocostis48.7Yuan,fellto1.6Yuan.|
|11|Costofsales|11,873.3|10,266.0|15.7%|Salaryisanincreaseof4.08millionYuan,thefreightisanincreaseof7.85millionYuan,theseafreightisanincreaseof1.85millionYuan,useoftrademarkisanincreaseof1millionYuan.|
|12|Assetimpairmentloss|103.3|47.6|117.0%|Intheperiod,thecompanywrite-offthedifferentaccountwith ZhongQiBrige-boxwithamountof0.91millionYuan,withmakelossasassetsdepreciationincrease.|
|13|Returnoninvestment|226.1|571.2|-60.4%|MainlybecausetheSKFWazhouprofitabilitydecreasesharply,whichmaketheinvestmentincomedecrease.Besides,inlastperiod,thecompanyreceivedthe2008to2011dividendfromMEwithamountof0.68millionYuan.|
|14|Non-operatingincome|436.9|355.0|23.1%|。MainlybecauseLiaoZhouwrite-offaccountpayableincreasewithamountof1.21millionYuan.|
|15|Non-businessexpenses|80.2|132.1|-39.3%|Thelossfromdebtrecombineddecreasewith0.41millionYuancomparedwithlastperiod.|
|16|Incometaxexpenses|0.0|84.3|-100.0%|Mainlybecausethecompanyisloss,theincometaxisnotwithdrawn.|
|17|Netprofit|(1,744.9)|2,283.2|-176.4%|Mainlybecausethemainbusinessgrossratedecreases,profitspacecompressed.Inthelasthalfyear,themainbusinessgrossrateis8.7%,whichdecrease1%comparedwithlastperiod.|
|18|Thecashbysellinggoods,providinglaborservicesreceived|69,901.1|63,744.7|9.7%|Mainlybecausethecashfromtheclientsincrease.|
|19|Paidtotheworkerandthecashtopayfortheworker|17,129.2|14,974.4|14.4%|1,paythebenefitawardwithamountof5.78millionYuan;2,salaryincreasewithamountof10millionYuan;3,paythesalespersonQ1performancesalarywithamountof0.84millionYuan;4,thesalesubsidiarypaythe performancesalarywithamountof2millionYuan.|
|20|Obtaininvestmentincomereceivedincash|24.0|68.0|-64.7%|Lastperiodthecompanyreceivedthe2008to2011dividendfromAMEwithamountof0.68millionYuan,inthereportperiodreceive2012dividendwithamountof0.24millionYuan(thisisaccountedin2013).|
|21|Constructionoffixedassets,intangibleassetsandotherlong-termassetsandpaycash|3,234.9|107.6|2907.5%|MainlybecausepaytheGermanyimportmachineswithamountof19.51millionYuan,andthenotepayableexpirewithamountof8.67millionYuan.|
|22|Borrowmoneyreceivedincash|33,800.0|51,600.0|-34.5%|Mainlyaffectedbyloantransferred,whichmakethecashreceivedintheperioddecrease|
|23|Otherrelatedtothefinancingactivitiesofcash|0.0|472.3|-100.0%|In last period, the company received the financialsubsidy transferred from WBGC with amount of4.7232millionYuan.|

WafangdianBearingCo.,Ltd（WazhouB） 2014Mid-yearReport
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|24|Repaymentofthedebtpaymentbycash|29,932.3|46,685.0|-35.9%|Mainlyaffectedbyloantransferred,whichmakethecashshallpaidforloanintheperioddecrease.|
|25|Theimpactofexchangeratemovementsofcashandcashequivalents|116.4|-48.07|-342.1%|Mainlybecausethechangerateinthereportperiodincrease,whichmakeCNYdevalue,thechangeincomeincrease.|

ChapterX. List of referencedocuments
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|-|
|Listofreferencedocuments|
|1.TheAccountingstatementswhichiswiththesignaturesandsealsofthelegalrepresentative,financecontrollerandthedirectorofaccountingdepartmentoftheCompany.|
|2.OriginaldocumentsandnoticesoftheCompanydisclosedinnewspapersdesignatedbytheSecuritySupervisoryCommitteeofChinainreportperiod.|