WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport WWWWaaaaffffaaaannnnggggddddiiiiaaaannnn BBBBeeeeaaaarrrriiiinnnngggg CCCCoooommmmppppaaaannnnyyyy LLLLiiiimmmmiiiitttteeeedddd
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AAAApppprrrriiiillll22224444,,,,2222000011114444
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2013AnnualReport CCCChhhhaaaapppptttteeeerrrr IIII.... IIIImmmmppppoooorrrrttttaaaannnntttt PPPPrrrroooommmmppppttttssss,,,, TTTTaaaabbbblllleeee ooooffff CCCCoooonnnntttteeeennnnttttssss,,,, aaaannnndddd DDDDeeeeffffiiiinnnniiiittttiiiioooonnnnssss TTTThhhheeeeBBBBooooaaaarrrrddddooooffffDDDDiiiirrrreeeeccccttttoooorrrrssss,,,,bbbbooooaaaarrrrddddooooffffssssuuuuppppeeeerrrrvvvviiiissssoooorrrrssss,,,,ddddiiiirrrreeeeccccttttoooorrrrssss,,,,ssssuuuuppppeeeerrrrvvvviiiissssoooorrrrssss,,,,aaaannnnddddttttooooppppmmmmaaaannnnaaaaggggeeeemmmmeeeennnnttttoooofffftttthhhheeee CCCCoooommmmppppaaaannnnyyyy hhhheeeerrrreeeebbbbyyyy gggguuuuaaaarrrraaaannnntttteeeeeeee tttthhhhaaaatttt tttthhhheeeerrrreeee aaaarrrreeee nnnnoooo ffffaaaallllsssseeee rrrreeeeccccoooorrrrdddd,,,, mmmmiiiisssslllleeeeaaaaddddiiiinnnngggg ssssttttaaaatttteeeemmmmeeeennnnttttssss aaaannnndddd iiiimmmmppppoooorrrrttttaaaannnntttt oooommmmiiiissssssssiiiioooonnnn ooooffff tttthhhheeee mmmmaaaatttteeeerrrriiiiaaaallll iiiinnnn tttthhhhiiiissss rrrreeeeppppoooorrrrtttt,,,, aaaannnndddd aaaassssssssuuuummmmeeee tttthhhheeee iiiinnnnddddiiiivvvviiiidddduuuuaaaallll aaaannnndddd aaaassssssssoooocccciiiiaaaatttteeeedddd rrrreeeessssppppoooonnnnssssiiiibbbbiiiilllliiiittttiiiieeeessss ffffoooorrrr tttthhhheeeettttrrrruuuutttthhhh,,,,aaaaccccccccuuuurrrraaaaccccyyyyaaaannnnddddccccoooommmmpppplllleeeetttteeeennnneeeessssssssoooofffftttthhhheeeeccccoooonnnntttteeeennnnttttssss....
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|NNNNaaaammmmeeee|PPPPoooosssstttt|RRRReeeeaaaassssoooonnnnssss|AAAAssssssssiiiiggggnnnneeeeeeeennnnaaaammmmeeee|
|WuChunyou|Independentdirector|Healthproblem|ZhangLi|

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WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport TTTTaaaabbbblllleeee ooooffff CCCCoooonnnntttteeeennnnttttssss
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WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport GGGGlllloooossssssssaaaarrrryyyy
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|TTTTeeeerrrrmmmmssss|DDDDeeeeffffiiiinnnneeeeddddaaaassss|DDDDeeeessssccccrrrriiiippppttttiiiioooonnnn|
|Company,theCompany|DDDDeeeeffffiiiinnnneeeeddddaaaassss|WafangdianBearingCompanyLimited|
|WazhouGroup|DDDDeeeeffffiiiinnnneeeeddddaaaassss|WafangdianBearingGroupCompany|
|thereportperiod,thecurrentperiod,thecurrentyear|DDDDeeeeffffiiiinnnneeeeddddaaaassss|January1,2012–December31,2012|
|LiaozhouCo.,Ltd|DDDDeeeeffffiiiinnnneeeeddddaaaassss|WazhouLiaoyangBearingManufactureCo.,Ltd|
|Dalianmotor|DDDDeeeeffffiiiinnnneeeeddddaaaassss|DalianmotorBearingCo.,Ltd|
|TheBoardofDirectors|DDDDeeeeffffiiiinnnneeeeddddaaaassss|WafangdianBearingCompanyLimitedTheBoardofDirectors|
|TheSupervisoryCommittee|DDDDeeeeffffiiiinnnneeeeddddaaaassss|WafangdianBearingCompanyLimitedTheSupervisoryCommittee|
|WafangdianBearingCompanyLimited|DDDDeeeeffffiiiinnnneeeeddddaaaassss|WafangdianBearingCompanyLimitedTheShareholders’Meeting|
|ShenJiaoSuo|DDDDeeeeffffiiiinnnneeeeddddaaaassss|ShenZhenStockExchange|
|SRC|DDDDeeeeffffiiiinnnneeeeddddaaaassss|ChinaSecuritiesRegulatoryCommission|
|DalianSKFWazhouCompanyLimited|DDDDeeeeffffiiiinnnneeeeddddaaaassss|DalianSKFWazhou|

IIIImmmmppppoooorrrrttttaaaannnntttt RRRRiiiisssskkkk NNNNoooottttiiiicccceeee
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iiiinnnnvvvveeeessssttttoooorrrrssssaaaarrrreeeekkkkiiiinnnnddddllllyyyyrrrreeeemmmmiiiinnnnddddeeeeddddttttooooppppaaaayyyyaaaatttttttteeeennnnttttiiiioooonnnnttttooooppppoooossssssssiiiibbbblllleeeerrrriiiisssskkkkssss....
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport
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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|WangLushun|||
|Registeredaddress|No.1BeigongjiStreet,WafangdianCity,LiaoningProvince,China.|||
|P.C|116300|||
|officeaddress|No.1BeigongjiStreet,WafangdianCity,LiaoningProvince,China.|||
|officeP.C|116300|||
|Website|http//www.zwz-200706.com|||
|E-mail|zwz2308＠126.com|||

CCCChhhhaaaapppptttteeeerrrr IIIIIIII....CCCCoooommmmppppaaaannnnyyyy PPPPrrrrooooffffiiiilllleeee
IIII....CCCCoooommmmppppaaaannnnyyyyIIIInnnnffffoooorrrrmmmmaaaattttiiiioooonnnn
IIIIIIII....CCCCoooonnnnttttaaaaccccttttssss
||||
|-|-|-|
||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|

IIIIIIIIIIII....PPPPllllaaaacccceeeeffffoooorrrriiiinnnnffffoooorrrrmmmmaaaattttiiiioooonnnnddddiiiisssscccclllloooossssuuuurrrreeee
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|-|-|
|Informationdisclosurenewspapers|SecuritiesTimesandHongKongCommercialNewspaper|
|WebaddressfortheannualreportasassignedbyCSRC.|http://www.cninfo.com.cn|
|Placeforinquiryoftheannualreport|InvestmentandSecuritiesDepartmentoftheCompany|

WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport IIIIVVVV....CCCChhhhaaaannnnggggeeeeooooffffBBBBuuuussssiiiinnnneeeessssssssRRRReeeeggggiiiissssttttrrrraaaattttiiiioooonnnn
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|-|-|-|-|-|-|
||Registrationdate|Registrationplace|No.ofIncorporationCertificate|No.ofTaxationRegistration|Organizationcode|
|Primaryregistration|1997.03.20|No.1BeigongjiStreet,WafangdianCity,LiaoningProvince,China.|2102001101996|2102812242399712|24239971-2|
|Lastregistrationbeforetheendofreportperiod|2003.08.07|No.1BeigongjiStreet,WafangdianCity,LiaoningProvince,China.|210200000263248|2102812242399712|24239971-2|
|Changeofmainbusinesssincelisted||Company business scope in the original articles of association is the manufactureand sales of bearings, machinery equipment, automobile parts and componentsand other relative products, machinery equipment, examination of bearings andrelative machinery equipment and measuring apparatus. The change of mainbusiness sinceApril 7, 2013 is the manufacture and sales of bearings, machineryequipment, automobile parts and components and other relative products, leasingof machinery equipment and houses, examination of bearings and relativemachineryequipmentandmeasuringapparatus.||||
|Changeofcontrollingshareholderallprevious(ifany)||None||||

VVVV....MMMMiiiisssscccceeeellllllllaaaannnneeeeoooouuuussss iiiinnnnffffoooorrrrmmmmaaaattttiiiioooonnnn
CCCCPPPPAAAAhhhhiiiirrrreeeeddddbbbbyyyytttthhhheeeeCCCCoooommmmppppaaaannnnyyyy
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|-|-|
|NameoftheCPA|ShinewingCertifiedPublicAccountants|
|AddressoftheCPA|Floor9ofAsectionofFuHuamantion,No.8,NorthStreetofChaoYangdoor,DongChengarea,BeiJing.|
|Thenameofaccountants|LinLi,WangDong|

Sponsoring institution hired by the Company, which is responsible to overseeing theCompany’s operation on a continuous basis:
[]Applicable[V]Notapplicable
Financial consultancy institution hired by the Company, which is responsible to overseeing theCompany’s operation on a continuousbasis:
[]Applicable[V]Notapplicable
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport CCCChhhhaaaapppptttteeeerrrr IIIIIIIIIIII.... FFFFiiiinnnnaaaannnncccciiiiaaaallll HHHHiiiigggghhhhlllliiiigggghhhhttttssss
IIII....MMMMaaaaiiiinnnnaaaaccccccccoooouuuunnnnttttiiiinnnnggggddddaaaattttaaaaaaaannnnddddiiiinnnnddddiiiicccceeeessss
Are thereany retrospective adjustments or restatement of financialinformation of previousyear dueto change ofaccounting policiesorcorrectingofaccountingerrors?
[]Yes[V]No
IIIInnnnRRRRMMMMBBBBYYYYuuuuaaaannnn
||||||
|-|-|-|-|-|
||2013|2012|Changedoverlastyear(%)|2011|
|Turnover(RMB)|3,079,780,183.34|3,092,563,172.35|-0.41%|3,246,031,112.92|
|Netprofitattributabletoshareholdersofthelistedcompany(Yuan)|2,021,789.87|42,278,508.87|-95.22%|60,526,329.15|
|Netprofitattributabletotheshareholdersofthelistedcompanyandafterdeductingofnon-recurringgain/loss(RMB)|-4,484,031.91|18,657,064.32|-124.03%|35,174,228.67|
|NetCashflowgeneratedbybusinessoperation(RMB)|70,234,137.22|130,556,742.20|-46.2%|190,486,014.68|
|Basicearningspershare(Yuan/share)|0.01|0.11|-90.91%|0.15|
|Dilutedearningspershare(Yuan/share)|0.01|0.11|-90.91%|0.15|
|Netreturnonequity(%)|0.13%|2.81%|-2.68%|4.12%|
||2013|2012|Changedoverlastyear(%)|2011|
|TotalAssets(RMB)|3,717,797,889.26|3,618,360,177.55|2.75%|3,533,795,515.58|
|Owner’sEquityAttributedtoShareholdersofListedCompany(RMB)|1,504,966,435.50|1,515,934,147.74|-0.72%|1,489,759,638.87|

IIIIIIII....DDDDiiiiffffffffeeeerrrreeeennnncccceeeessssiiiinnnnaaaaccccccccoooouuuunnnnttttiiiinnnnggggiiiinnnnffffoooorrrrmmmmaaaattttiiiioooonnnnuuuunnnnddddeeeerrrrIIIIAAAASSSSaaaannnnddddddddoooommmmeeeessssttttiiiiccccaaaaccccccccoooouuuunnnnttttiiiinnnnggggssssttttaaaannnnddddaaaarrrrdddd
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||||||
|-|-|-|-|-|
||Netprofitattributabletotheshareholdersofthelistedcompany||Netassetattributabletotheshareholdersofthelistedcompany||
||Currentterm|Amountoflastterm|Endofterm|Beginningofterm|
|OnChineseAccountingStandard|2,021,789.87|42,278,508.87|1,504,966,435.50|1,515,934,147.74|
|ItemsandamountsadjustedonIAS|||||
|UnderInternationalAccountingStandard|2,021,789.87|42,278,508.87|1,504,966,435.50|1,515,934,147.74|

2222....DDDDiiiiffffffffeeeerrrreeeennnncccceeeessssiiiinnnnnnnneeeettttpppprrrrooooffffiiiittttaaaannnnddddnnnneeeettttaaaasssssssseeeettttuuuunnnnddddeeeerrrrddddoooommmmeeeessssttttiiiiccccaaaannnnddddoooovvvveeeerrrrsssseeeeaaaassssaaaaccccccccoooouuuunnnnttttiiiinnnnggggssssttttaaaannnnddddaaaarrrrddddssss
IIIInnnnRRRRMMMMBBBBYYYYuuuuaaaannnn
|||
|-|-|
|Netprofitattributabletotheshareholdersofthelistedcompany|Netassetattributabletotheshareholdersofthelistedcompany|

WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport
||||||
|-|-|-|-|-|
||Currentterm|Amountoflastterm|Endofterm|Beginningofterm|
|OnChineseAccountingStandard|2,021,789.87|42,278,508.87|1,504,966,435.50|1,515,934,147.74|
|Accountsandamountsadjustedaccordingtooverseasaccountingstandard|||||
|OnIAS|2,021,789.87|42,278,508.87|1,504,966,435.50|1,515,934,147.74|

 TTTThhhheeeerrrreeeeiiiissssnnnnooooddddiiiiffffffffeeeerrrreeeennnncccceeee,,,,aaaannnnddddtttthhhheeeerrrreeeessssuuuullllttttiiiissssnnnnoooottttaaaauuuuddddiiiitttteeeedddd....
3333....SSSSttttaaaatttteeeemmmmeeeennnnttttoooonnnntttthhhheeeeddddiiiiffffffffeeeerrrreeeennnncccceeeessssooooffffaaaaccccccccoooouuuunnnnttttiiiinnnnggggiiiinnnnffffoooorrrrmmmmaaaattttiiiioooonnnnoooonnnnIIIIAAAASSSSaaaannnnddddddddoooommmmeeeessssttttiiiiccccaaaaccccccccoooouuuunnnnttttiiiinnnnggggssssttttaaaannnnddddaaaarrrrdddd IIIIIIIIIIII....NNNNoooonnnn----rrrreeeeccccuuuurrrrrrrriiiinnnnggggggggaaaaiiiinnnn////lllloooossssssssiiiitttteeeemmmmssssaaaannnnddddaaaammmmoooouuuunnnnttttssss
IIIInnnnRRRRMMMMBBBBYYYYuuuuaaaannnn
||||||
|-|-|-|-|-|
|Items|Amountof2013|Amountof2012|Amountof2011|Remarks|
|Gain/lossofnon-currentassets(includestheneutralizedpartoftheassetimpairmentprovisiondrawnalready)|370,165.65|8,586,729.71|4,395,842.46||
|Gainsandlossesincludedinthecurrentperiodofgovernmentsubsidies,excludingthosegovernmentgrantswhicharecloselyrelatedtonormalbusinessandinlinewithnationalpolicy,orinaccordancewithfixedstandardsorquantities|4,446,901.27|4,164,235.88|14,770,590.88||
|Debtrestructuringgainsandlosses|-1,815,469.90|13,633,163.72|-953,101.33||
|Othernon-businessincomeandexpendituresotherthantheabove|4,059,088.68|2,686,504.47|9,038,846.63||
|Influencedamountofincometax|554,863.92|5,449,189.23|1,900,078.16||
|Total|6,505,821.78|23,621,444.55|25,352,100.48|--|

For theCompany‘s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering their Securities to thePublic–Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the ExplanatoryAnnouncement No.1 on Information Disclosure for Companies Offering their Securities to thePublic–Non-recurring Gains and Losses which have been defined as recurring gains and losses, it is necessarytoexplainthereason.
□Applicable√Inapplicable
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport CCCChhhhaaaapppptttteeeerrrrIIIIVVVVDDDDiiiirrrreeeeccccttttoooorrrrssssRRRReeeeppppoooorrrrtttt
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In 2013, company's powered by deepening the reform of enterprises, break through the high-end products and internationalmarketasthedirection,gaingreaterefficiencyasthecoreenterprise,implementthestrategyofthecommanding heights,speedupthetransformationofthetypeofenterprisedevelopmentandpromotetheproductstructureadjustment,the development of a number of high-end products, the formation of a number of high-end manufacturing, grab a number of high-end market, cultivating a batch of high-end strategic customers, continuously improve the enterprise management and innovation,revitalizetheenterpriseresourcescomprehensively,toimprove competitivenessfurther,tobuildalargebearing companywithinternationalcompetitionability.
Company'stotalassetsis3.7178billionYuanattheendoftheyear,rose2.75%comparedwiththebeginningofthisyear; Net assess attributing to shareholders of listed company 1.50497 billion Yuan, increased by0.72% compared with thenbeginningofthisyear;Operatingincomeis3.07978billionYuan,fellby0.41%comparedwiththesameperiodlastyear;Total profitis1.77millionYuan,fellby96.05%; comparedwiththesame periodlastyear;Netprofitofattributingtoshareholdersoftheparentcompanyis2.02millionYuan,droppedby95.22%comparedwiththesameperiodlastyear.
1.Promotethestrategyimplementationunswervingly
Duringthereportingperiod,thecompanypursuingperformanceexcellencemanagementmodelvigorously,startingfrom the company's overall strategic target, carrying out various performance indicators to the various business units and functional departments, focus on strategy execution ability and the core of competitiveness, further improve the company's basicmanagementandeconomicbenefits.
2.Repairinsideandoutsideand,cohesioninmarketing
Actively promote reform the system of marketing.According to the goals that increased the share ofmarket、products, customers , implement different marketing and the principle of a breakthrough in high-end market and export market, set up fourkindsofsalesmodel,strengthenthemarketsales,expandtheprofessionalsales,dividesalesofregionalization,promote internationalproducts.
3.Progressiveasymptotic,promotemanagementupgrade
During the reporting period, the company continued to promote high-quality goods project. Company "twelfth five-year" focus on brand and internationalization strategy, put forward the urgent request for the implementation of high-quality goods project, around the high-quality goods project, improve insufficient in the technical research and development, marketing, productionandmanufacturing,basicmanagement,furtherperfectthecompanyproduction,salesandintegration.
Duringthereportingperiod,thecompany regardinternalcontrolconstructionas anopportunitytostrengthenriskcontrol, according to the internal control construction plan, the company organize departments to combine business processes, and carry out modification and improvement of internal control manual, on the basis of the comprehensive evaluation, focus on procurement, sales, and asset management, accounts receivable, financial statements, contract management, and other important business link, the company strengthen the control through link of signing and implementation of contract, contain the momentum of rapid growth of the accountreceivable, the accounts receivable aging structure is improved, financialrisks iscontrolled.
During the reporting period, the company strengthen production management, outstanding varieties completion rate, meet customer demand; Strengthen quality management, promote U project of operation, improve the quality standards,
promote product engineering, improve product quality; Strengthen cost management, establish and perfect the supplier
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2013AnnualReport management platform, implement price bidding procurement. Implement the process improvement project, improve material utilization. Full implementation of "four clear" work, and reduce capital occupy and management cost; Strengthen safety environmentalhealthmanagement,throughthe"cleanerproductionaudit"ofDaliancityenvironmentalprotectionbureau. During the reporting period, the company to strengthen the construction of talent team, the full implementation of talent project, to speed up recruitment and training; Pay attention to the selection and training of reserve cadres, set up a backup talent pool; Big breakthrough in skills training; To strengthen the management team construction, we should perfect the with the mechanism; Pay special attention to the labor organization and human resource adjustment configuration, improve the workefficiency
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1.Overview
|||||
|-|-|-|-|
|Item|2013|2012|Changedby%YoY|
|MainBusinessIncome|2,576,934,561.27|2,635,056,987.06|-2.21|
|MainBusinessCost|2,333,372,508.33|2,349,637,970.97|-0.69|
|BuainessTaxandSurchanges|12,910,105.79|12,318,416.99|4.80|
|SalesExpenses|214,304,962.05|212,371,985.56|0.91|
|ManagementExpenses|73,329,986.82|69,945,827.17|4.84|
|FinancialExpenses|27,048,474.85|24,669,585.10|9.64|

 RRRReeeevvvviiiieeeewwwwoooonnnntttthhhheeeepppprrrrooooggggrrrreeeessssssssooooffffpppprrrriiiioooorrrrddddiiiisssscccclllloooossssuuuurrrreeeeddddeeeevvvveeeellllooooppppmmmmeeeennnnttttssssttttrrrraaaatttteeeeggggyyyyaaaannnnddddbbbbuuuussssiiiinnnneeeessssssssppppllllaaaannnndddduuuurrrriiiinnnnggggtttthhhheeeerrrreeeeppppoooorrrrttttiiiinnnnggggppppeeeerrrriiiioooodddd In 2013,the domestic market was more competitive, price of product was failing, profit margins was becoming narrowly.The international market competition was trending he domestic market, domestic competition internationalization was seriousdayby day,salespriceof bearingproductcontinuedto slide,productgrossmargin was failing, These reasons constituteabiggerthreattoimproveoperationquality,causethecompanydidnotfinishbusinessplan.
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OnJanuary25,2014,ourcompanyissued2013annualperformanceforecastthatnetprofitattributabletoshareholders oflistedcompanieswasexpectedtobe5-40million.OnApril12,2014,ourcompanyreleasedpreliminaryresultsofthefirst quarterof2014and2013annualresultslettersatthesametime.Theresultslettersdisclosedthatnetprofitattributableto shareholdersoflistedcompanieswas4028625.39yuan.Afterthereleaseoffirst-quarterof2014earningsforecast,
accordingtoannualmanagementsituation2013andthefirstquarterof2014andoutoftheprincipleofprudential,wedidnot deferthetemporarydifferencesresultingfrom2013asincometaxassetsorincometaxexpenses,thiswaswhythenetprofitreduced$2006835.52.
□Applicable√Inapplicable
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During thereportingperiod,becausetheproductpricesfallinrevenuesfell0.4%year-on-year.Whetherthesalesof products aregreaterthansalesofservices.
Whetherphysicalsalesrevenueisgreaterthanthelaborincome
[V]Yes[]No
||||||
|-|-|-|-|-|
|Businesscategories|Items|2013|2012|Changedby%YoY|
|Bearing|Sales|26,029,335|25,872,870|0.6%|
||Output|25,068,475|35,107,436|-28.59%|
||Inventory|15,967,384|16,928,244|-5.68%|

Note:TheunitsofabovedateisTao
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2013AnnualReportStatementonchangeofamountsover30%YoY.
□Applicable√Inapplicable
Importantorders
□Applicable√Inapplicable
Importantchangesoradjustmentofproductsorservices.
□Applicable√Inapplicable
Main Clients
|||
|-|-|
|TotalSalesRevenueofTop5Clients(RMB)|749,326,431.28|
|Ratioofsalesrevenuein2013(%)|24.32%|

 Information ofTop5Clients
√Applicable□Inapplicable
|||||
|-|-|-|-|
|No.|ClientName|SalesRevenue(RMB)|Ratioofsalesrevenue(%)|
|1|Frst|429,602,648.60|13.95%|
|2|Second|97,462,109.49|3.16%|
|3|Third|82,015,329.85|2.66%|
|4|Fourth|73,982,034.15|2.4%|
|5|Fifth|66,264,309.19|2.15%|
|Total|——|749,326,431.28|24.32%|

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Industry classification
||||||||
|-|-|-|-|-|-|-|
|Industryclassification|Items|2013 年||2012 年||Changed YoY(%)|
|||Amount|Percentageinoperationcost(%)|Amount|Percentage inoperationcost(%)||
|Traffic bearing||869,729,562.90|39.12%|910,587,425.20|40.83%|-1.7%|
|Special bearings||459,094,939.00|20.65%|283,711,818.10|12.72%|7.93%|
|Generalbearing||637,247,618.25|28.67%|793,172,032.41|35.56%|-6.9%|
|export||257,004,571.47|11.56%|242,992,091.01|10.89%|0.67%|

Product categories
||||||||
|-|-|-|-|-|-|-|
|Industryclassification|Items|2013 年||2012 年||Changed YoY(%)|
|||Amount|Percentageinoperationcost(%)|Amount|Percentage inoperationcost(%)||
|Bearing|Materials|1,703,321,361.12|76.62%|1,731,982,574.86|77.65%|-1.65%|
|Bearing|Artificialcompensation|210,343,215.22|9.46%|206,752,667.31|9.27%|1.74%|
|Bearing|Depreciation|77,390,695.84|3.48%|78,679,915.60|3.53%|-1.64%|
|Bearing|Energy|73,724,383.08|3.32%|73,844,528.54|3.31%|-0.16%|
|Bearing|Transport|16,104,987.16|0.72%|15,412,826.66|0.69%|4.49%|

Remark:Company operating cost over 276114 Yuan in2013,0.31% morethan last year.
MainsuppliersoftheCompany
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2013AnnualReport
|||
|-|-|
|Totalpurchasefromtop5suppliers(RMB)|1,113,398,980.46|
|Percentageofpurchasesfromtop5suppliersonannualtotalofpurchases(%)|31.19%|

Profilesoftop5suppliers
√Applicable□Inapplicable
|||||
|-|-|-|-|
|No.|Nameofsuppliers|Amountofpurchase(RMB)|Percentageintotalpurchaseofyear(%)|
|1|Frst|548,377,989.15|15.36%|
|2|Second|210,656,510.76|5.9%|
|3|Third|168,181,837.06|4.71%|
|4|Fourth|113,249,206.70|3.17%|
|5|Fifth|72,933,436.79|2.04%|
|Total|——|1,113,398,980.46|31.19%|

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One is the current deferred income tax liabilities back to 393600yuan,this year's operating profit and income tax expenses ofthecurrent period are less thanbefore.
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|||||
|-|-|-|-|
|Item|2013|2012|Increaseanddecrease|
|TotalR＆Dspending(RMB)|110,852,785.69|111,192,411.37|-339,625.68|
|R＆Dspendingtonetassetsratio(%)|7.37|7.33|0.03|
|Spendingonresearchanddevelopmentofthebusinessincomeratio|3.6|3.6|0.00|

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|||||
|-|-|-|-|
|Items|2013|2012|Changedby%YoY|
|Sub-totalofcashinflowfrombusinessactivities|1,680,460,237.84|1,850,332,115.03|-9.18%|
|Sub-totalofcashoutflowfrombusinessactivities|1,610,226,100.62|1,719,775,372.83|-6.37%|
|etCashFlowsfromOperatingActivities|70,234,137.22|130,556,742.20|-46.2%|
|Sub-totalofCashInflowsfromInvestingActivities|715,776.00|8,355,816.91|-91.43%|
|SubtotalofCashOutflowsfromInvestingActivities|87,812,191.90|78,184,309.82|12.31%|
|NetCashFlowsfromInvestingActivities|-87,096,415.90|-69,828,492.91|24.73%|
|SubtotalofCashInflowsfromFinancingActivities|1,006,000,000.00|1,184,058,410.98|-15.04%|
|Sub-totalofCashOutflowsfromFinancingActivities|988,030,286.03|1,246,495,924.20|-20.74%|
|NetCashFlowsfromFinancingActivities|17,969,713.97|-62,437,513.22|-128.78%|
|NetIncreaseinCashandCashEquivalents|612,452.88|-2,183,650.46|-128.05%|

Notetotheyear-on-yearchangeoftherelevantdatabyover30%
√Applicable□Inapplicable
Net cash flow generated by business activities fell46.2%.The ratio of activities cash outflows reduced was lower than
ratioofactivitiescashinflow.
Cash inflows of investment activities fell91.43%%, it is mainly to receivemonetary fund of the current disposalof fixed
assetsfallsharplycomparedwiththepreviousperiod.
Financing activities net cash flow of year-on-year increase of 80.41 million yuan, mainly is the current count is greater
thanthepayloansborrowedandmakefinancingactivitiesnetcashflowispositive.
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2013AnnualReport Net increase in cash and cash equivalents year-on-year increase of 2.8 million yuan,it is mainly the current financing activitiesnetcashflowincreasecomparedwiththepreviousperiod.
Notetothesignificantdifferencebetweencashflowfromoperatingactivitiesandnetprofitinthereportperiod.
□Applicable√Inapplicable
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||||||||
|-|-|-|-|-|-|-|
||OperatingRevenue|OperatingCost|GrossProfitRate(%)|IncreaseorDecreaseofOperatingRevenueovertheSamePeriodofLastYear%|IncreaseorDecreaseofoperatingCostovertheSamePeriodofLastYear%|IncreaseorDecreaseofGrossProfitRateovertheSamePeriodofLastYear%|
|ByIndustries|||||||
|Export|270,129,554.05|257,004,571.47|4.86%|13.39%|5.77%|4.88%|
|Civil|||||||
|Including:TrafficBearing|959,324,861.80|869,729,562.90|9.34%|-4.42%|-4.49%|9.25%|
|SpecialBearing|531,391,872.00|459,094,939.00|13.61%|52.95%|61.82%|13.42%|
|CommonBearing|723,123,281.16|637,247,618.25|11.88%|-23.24%|-19.66%|11.72%|
|Industrialincome|92,964,992.26|110,295,816.71|-18.64%|-10.29%|-7.45%|-18.49%|
|OnProducts|||||||
|Bearing|2,483,969,569.01|2,223,076,691.62|10.5%|-1.87%|-0.33%|10.38%|
|Industryoperation|92,964,992.26|110,295,816.71|-18.64%|-10.29%|-7.45%|-18.49%|
|ByRegions|||||||
|Civil|2,306,805,007.22|2,076,367,936.86|9.99%|-3.76%|-1.44%|9.87%|
|Foreign|270,129,554.05|257,004,571.47|4.86%|13.39%|5.77%|4.88%|

 If the statistics window of main business has been changed in the report period, the main business information of the latest yearafteradjustedaccordingtothenewstatisticswindow.
□Applicable√Inapplicable
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1.Majorchangeinassetitems
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||||||||
|-|-|-|-|-|-|-|
||Endof2013||Endof2012||Percentageofchange(%)|Statementonmajorchange|
||Amount|Percentintotalasset|Amount|Percentintotalasset|||
|Monetarycapital|80,687,086.92|2.17%|101,233,214.04|2.8%|-0.63%||
|Accountreceivable|1,138,605,661.45|30.63%|1,077,510,354.13|29.78%|0.85%||
|Inventories|1,196,734,228.79|32.19%|1,156,565,201.60|31.96%|0.23%||
|Long-termshareequityinvestment|108,272,431.11|2.91%|97,194,641.13|2.69%|0.22%||
|Fixedassets|572,492,122.56|15.4%|620,008,753.04|17.14%|-1.74%||
|Constructioninprocess|303,172,462.62|8.15%|240,524,680.98|6.65%|1.5%||

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2013AnnualReport 2222....MMMMaaaajjjjoooorrrrcccchhhhaaaannnnggggeeeeiiiinnnnlllliiiiaaaabbbbiiiilllliiiittttyyyyiiiitttteeeemmmmssss
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||||||||
|-|-|-|-|-|-|-|
||Endof2012||Endof2011||Percentageofchange(%)Amount|StatementonmajorchangePercentintotalasset|
||Amount|Percentintotalasset|Amount|Percentintotalasset|||
|Short-termloans|588,000,000.00|16.25%|523,590,235.14|14.82%|1.43%||
|Long-termborrowings|60,000,000.00|1.66%|||1.66%||
|Non-currentliabilitiesduewith1yean|||138,000,000.00|3.91%|-3.91%||

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As the country's largest bearing technology and productr&d and manufacturing base, company has accumulated more than seventy years practice experience in the field of bearings and related areas, set up perfect bearing technology innovation system, maintain close cooperation with domestic scientific research institutes, colleges and universities. As the main drafter of bearing industry a number of standard, company control the latest technology development trend in the industry. In technology research and development, product manufacturing, marketing , customer services and other aspects haveestablishedasignificantadvantage.
Company improve responsivenesstothe market andcustomer personalized demand,in line with customer'spersonalized designandneedsofmanufacturingprocessesbalancingcost,deliverytimeandcustomer,
Company has established strategic cooperative relations with key customers in domestic equipment applications, carry out the depthof marketing through involvement in customer value engineer,set firmly up the company's brandand influence in the domestic bearing market, the company has won the certification qualification of important target markets in the internationalmarket,theinternationalpopularityestablishedpreliminary.
The companyhas complete productservice systemand24-hourdynamic serviceabilityproductoperatingsite.Andwas praised with a good image of the "ten value-added services" by the majority customers. Company has strong manufacturing capability and quality assurance capabilities, extensive services in railway, automobile, metallurgy, mining, wind power, aviation,aerospace,completion,andotherindustriesandfields.
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Companiestoraisefundshavebeenusedin2002,thecompanyhasnoraisefundstouseduringthereportingperiod
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|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|CompanyName|Type|Industry|MainProductorService|RegisteredCapital|TotalAsset|NetAsset|OperatingRevenue|OperatingProfit|NetProfit|
|LiaoyangBearing|Subsidiary||ProductandSaleBearingandmachine-electricalequipment|19350000.00|131,907,383.42|-14,048,457.57|108,023,173.59|-12,460,439.68|-11,923,275.87|
|DalianElectrical|Subsidiary||ProductandSaleBearing|10,000,000.00|113,799,372.25|20,977,102.81|191,311,775.35|-4,968,459.77|-4,848,363.93|

WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport
||||||||||
|-|-|-|-|-|-|-|-|-|
|Equipment|||||||||
|DalianSKFWazhouBearingCo.,Ltd.|Joint-stockCompany|ProductandSalesSphericalRollerBearing|194,000,000.00|271,211,464.11|217,613,738.52|211,688,633.60|24,052,021.38|15,540,349.90|
|ShanghaiMEMachine-electricalEquipmentchainLtd.|Joint-stockCompany|Salemachine-electricalequipment、MetalMaterial、Computer、etc.|35000000.00|285,906,046.95|242,073,635.13|47,687,265.44|18,883,596.31|21,555,677.07|

AcquirementandDisposalofSubsidiariesintheReportingPeriod
一、Applicable√Inapplicable
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|||||||
|-|-|-|-|-|-|
|Project|TotalInvestment|Investmentinthereportperiod|Accumulatedinvestment|Progress|Earnings|
|Improvetheprecisionbearingsolidcagesupportingability|1,800|625|198|34.72|Perfectsolidcageproductioncapacity,improvetheproductionenvironment,andimproveproductionefficiency.|
|StampingformingCCtypesphericalrollerbearingcageproductioncapacity|2,800|||0|BecauseofCCstartupdelaytypesphericalrollerbearing,adjustedforthesecondhalfoftheyear|
|Formingprocessmodification|1,400|420|300|30|Formahighgraderollerproductioncapacity,improvethelevelofproductprecision|
|Sphericalrollergrinding|2,700|2,600|1,163|96.3|Formahighgraderollerproductioncapacity,improvethelevelofproductprecision|
|Taperedrollergrinding|2,800|1,800|480|64.29|Formahighgraderollerproductioncapacity,improvethelevelofproductprecision|
|Railwaywagonbearinglathework|1,800|1,041|775|57.83|Carryoutprocessing,grinding,assemblyautomationproductioncarmodification,maketherailwaywagonbearingproductionequipment,technologyleveltoreachinternationalstandardsProcessing,grinding,assemblyautomationproductioncarmodification,therailwaywagonbearingproductionequipment,technologylevelhasreachedinternationalstandards|
|Railwaywagonbearingthermaltransformation|2,700|1,896|930|70.22|Carryoutprocessing,grinding,assemblyautomationproductioncarmodification,maketherailwaywagonbearingproductionequipment,technologyleveltoreachinternationalstandardsProcessing,grinding,assemblyautomationproductioncarmodification,therailwaywagonbearingproductionequipment,technologylevelhasreachedinternationalstandards|
|Railwaywagonbearinggrinding|2,900|2,413|1,220|83.21|Carryoutprocessing,grinding,assemblyautomationproductioncarmodification,maketherailwaywagonbearingproductionequipment,technologyleveltoreachinternationalstandardsProcessing,grinding,assemblyautomationproductioncarmodification,therailwaywagonbearingproductionequipment,technologylevel|

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2013AnnualReport
|||||||
|-|-|-|-|-|-|
||||||hasreachedinternationalstandards|
|Railwaywagonbearingassembly|1,140|998|325|87.54|Carryoutprocessing,grinding,assemblyautomationproductioncarmodification,maketherailwaywagonbearingproductionequipment,technologyleveltoreachinternationalstandardsProcessing,grinding,assemblyautomationproductioncarmodification,therailwaywagonbearingproductionequipment,technologylevelhasreachedinternationalstandards|
|Grindingequipmentmodification|2,600|2,100|1,305|80.77|Rollforminghighgradeautomobileexportproductioncapacityof4millionsetsofbearings|
|Assemblytest|1,460|870|280|59.59|Rollforminghighgradeautomobileexportproductioncapacityof4millionsetsofbearings|
|Other|900|890|837|98.89|Ensurenormalproductionandoperationfacilitiesoperation|
|Total|25,000|15,653|7,813|--|--|

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Forecast to the next reporting period at the beginning of the final cumulative net profit may be a loss or substantial changeofyear-on-yearwarningandreasons
√Applicable□Inapplicable
Preliminaryresults:losses
Preliminaryresultsfillinthedatatype:exactquantity
||||||
|-|-|-|-|-|
||BeginningoftheyearTothenextfinalduringthereportingperiod|Thesameperiodoflastyear|Increaseordecrease（%）||
|Thecumulativenetprofitisexpectedtonumber（Tenthousandyuan）|-15,385,987.48|19,617,156.49|Faill|178.43%|
|BasicEPS （Yuan/shares）|-0.04|0.05|Faill|-180%|
|Preliminaryresults|1、Affectedbythemarketenvironment,bearingthemarketdemandisinsufficient,automobile,railtransportation,windpowerandotherproductsalespricesdecline,resultinginadeclineinmainbusinessgrossprofitmarginandprofitspacenarrowing;2、Labourshortages,risinglaborcosts;3、Investmententerprisesoperatingslide,reducedinvestmentincome.||||

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Thecompanydoesnotexistunderthecontrolofaspecialpurposeentity.
IIIIXXXX....PPPPrrrroooossssppppeeeeccccttttssssffffoooorrrrtttthhhheeeeFFFFuuuuttttuuuurrrreeeeDDDDeeeevvvveeeellllooooppppmmmmeeeennnntttt
1.Thecompanyisfacedwithseveresituation
(1)Lackofdemand,therearenooutstandinghighlight.
Under the influenceof domestic infrastructure contracture, industry export,credit scale and other indeterminacy factor, theindeterminacyfactorofbearingproductionorderscontinuesincrease.
(2)Therawmaterialandenergysourcessurplus,competitioninbearinglow-endmarket intense.
The problem of bearing capital surplus preeminent, due to capital surplus of real estate, steel, new energy, heavy auto,engineeringmachinery,generalmachinery,heavyequipmentaddotherindustries.Relyingonnationaleconomicgrowth andboostthegrowthof"arisingtideliftsallboats"ceasedtoexist.
(3Costsrise,pricesfall,corporate,profitsisobvious.
Laborcostcontinuedgrowth,andcompetitionbearingpricefalling,ledtotheenterpriseprofitsfalling.
(4)Competitionincreased,internationalcompetitionlocalization.
Multinational bearing company increased investment in China's bearing industry, they have been investing factory in
China, set upr&d center according to strong technology ability, strong capital capacity and brand advantages, now they has
alreadyformedthebulkofmanufacturingcapacity,partieshasoccupiedthemainstreammarketandcustomers,andformeda
hugepressureofcompetition.
2.Companiesarefacingnewmarketopportunities
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport (1)Themarketopportunity
Market reshuffle brought new opportunity of preempting market customers to us, in the high-and-middle-end market, replacing imported, developing high-end product exports, and the emerging market of strategic product faced with new marketopportunities.
(2)policyopportunities
Adjustment of national government policy of stimulating domestic demand and industry policy bring us new growth opportunities.
(3)Thereleaseofpotentialbringpositiveenergyofdevelopmentforenterprise.
Technology energy accumulated though technical renovation over the years can be released to the market quickly and create conditions for the development of new markets, implement, the strategy of market over the past two years laid a goodfoundationforthefuturedevelopmentofnewcustomersandnewproduct.
(4)Internationalizationdevelopmentopportunities
That foreign high-end customers ease the cost pressure is our opportunity to develop export of high-end products; Foreignbearingcompaniesoperatingdifficultiesisouropportunitytoimplementtheenterprisemergerandacquisitionandthe lowcostexpansion;Continuousfinancialcrisisisthegoodtimetointroducehigh-endtalent.
XXXX....EEEExxxxppppllllaaaannnnaaaattttiiiioooonnnnoooofffftttthhhheeeeBBBBooooaaaarrrrddddooooffffDDDDiiiirrrreeeeccccttttiiiioooonnnnssssoooonnnntttthhhheeeeQQQQuuuuaaaalllliiiiffffiiiieeeeddddAAAAuuuuddddiiiittttoooorrrr’’’’ssssRRRReeeeppppoooorrrrttttIIIIssssssssuuuueeeeddddbbbbyyyytttthhhheeee CCCCPPPPAAAAssss Thereisnothissituationduringthereportingperiod.
XXXXIIII....CCCChhhhaaaannnnggggeeeessss iiiinnnn AAAAccccccccoooouuuunnnnttttiiiinnnngggg PPPPoooolllliiiiccccyyyy,,,, AAAAccccccccoooouuuunnnnttttiiiinnnngggg EEEEssssttttiiiimmmmaaaattttiiiioooonnnn aaaannnndddd WWWWaaaayyyy ooooffff AAAAccccccccoooouuuunnnnttttiiiinnnngggg iiiinnnn CCCCoooommmmppppaaaarrrriiiissssoooonnnn wwwwiiiitttthhhh tttthhhheeeeLLLLaaaatttteeeessssttttAAAAnnnnnnnnuuuuaaaallllRRRReeeeppppoooorrrrtttt
This main accounting policy did not change during the reporting period, the accounting estimates and accounting methods havenochange.
XXXXIIIIIIII....RRRReeeettttrrrroooossssppppeeeeccccttttiiiivvvveeee RRRReeeessssttttaaaatttteeeemmmmeeeennnntttt NNNNeeeecccceeeessssssssaaaarrrryyyy ffffoooorrrr CCCCoooorrrrrrrreeeeccccttttiiiioooonnnn ooooffff SSSSiiiiggggnnnniiiiffffiiiiccccaaaannnntttt AAAAccccccccoooouuuunnnnttttiiiinnnngggg EEEErrrrrrrroooorrrrssss dddduuuurrrriiiinnnngggg tttthhhheeee RRRReeeeppppoooorrrrttttPPPPeeeerrrriiiioooodddd
Inapplicable
XXXXIIIIIIIIIIII.... CCCChhhhaaaannnnggggeeeessss iiiinnnnRRRRaaaannnnggggeeee ooooffff tttthhhheeee CCCCoooonnnnssssoooolllliiiiddddaaaatttteeeedddd SSSSttttaaaatttteeeemmmmeeeennnnttttssss iiiinnnnCCCCoooommmmppppaaaarrrriiiissssoooonnnn wwwwiiiitttthhhh tttthhhheeee FFFFiiiinnnnaaaannnncccciiiiaaaallll RRRReeeeppppoooorrrrtttt ooooffff tttthhhheeee PPPPrrrreeeevvvviiiioooouuuussssYYYYeeeeaaaarrrr....
Inapplicable
XXXXIIIIVVVV....DDDDiiiivvvviiiiddddeeeennnndddd DDDDiiiissssttttrrrriiiibbbbuuuuttttiiiioooonnnn
1.Profitaftertaxwillberationedamongtheshareholdersupontheirshareholdingportionaftermakingupof
previouslossesandprovidingofcommonreserves.
2.TheCompanyadoptsacontinuousandstabledividendpolicy.Thedividendaccumulatedinlatestthreeyears
shallnotbelowerthan30%ofthedistributableprofitinthesamethreeyears.
3.TheCompanydistributedividendsonceayearexceptforotherwisedecidedbytheshareholders’meetings.
Dividendsaredistributeduponfinanalsettlementofeachyear.Thedividendplanshallbeannouncedwithin4
monthsuponcompletionofeachfiscalyear,andimplementedinthe2ndquarterofthecurrentyear.
|||
|-|-|
|Cashdividendpolicyofspecialstatement||
|Whethercompliancewiththeprovisionsofthecompany'sarticlesofassociationorresolutionsoftheshareholders'generalmeetingrequirements:|yes|
|Whetherthestandardofshareoutbonusandtheproportionareclearr:|yes|
|Whetherrelateddecision-makingprocessandmechanismarecompleteness:|yes|
|Whethertheindependentdirectortakesofficeresponsibleandplayaproperrole:|yes|
|Whetherthesmallandmedium-sizedshareholdersthechancetofullyexpresstheirviewsanddemands;Whetherthelegitimaterightsandinterestswere protectedfully:|yes|
|Cashdividendpolicytoadjustorchange，whetherConditionsandtheprogramaretransparent:|Companiescashdividendpolicyisnottoadjustorchange.|

Profitdistributionorcommonreservecapitalizationinthelatest3years(includingthereportyear)
|||||
|-|-|-|-|
||Preplan2013|Year2012|Year2011|
|Commonsharedividendpayable|RMB0.4(taxincluded)ofcashforeach10shares|RMB0.4(taxincluded)ofcashforeach10shares|RMB0.4(taxincluded)ofcashforeach10shares|
|Commonsharedividendtransferredtocapitalshare|0|0|0|

TTTThhhheeee ddddiiiivvvviiiiddddeeeennnnddddddddiiiissssttttrrrriiiibbbbuuuuttttiiiioooonnnnsssscccchhhheeeemmmmeeeeiiiinnnntttthhhheeeerrrreeeeppppoooorrrrtttt ppppeeeerrrriiiiooooddddccccoooommmmpppplllliiiieeeeddddwwwwiiiitttthhhhtttthhhheeee AAAArrrrttttiiiicccclllleeeessss ooooffffAAAAssssssssoooocccciiiiaaaattttiiiioooonnnn....
DDDDiiiivvvviiiiddddeeeennnnddddddddiiiissssttttrrrriiiibbbbuuuuttttiiiioooonnnnsssscccchhhheeeemmmmeeee iiiinnnnllllaaaasssstttt3333yyyyeeeeaaaarrrrssss....
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport
|||||
|-|-|-|-|
|Dividendyear|Cashdividend(taxincluded)|NetprofitattributabletotheownersofthePLCintheconsolidatedstatement|ProportioninthenetprofitattributabletotheownersofthePLCintheconsolidatedfinancialstatement(%)|
|2013|16,104,000.00|2,021,789.87|796.52%|
|2012|16,104,000.00|42,278,508.87|38.09%|
|2011|16,104,000.00|60,526,329.15|26.61%|

 Making profit and theretainedprofit isapositive figure butnocash dividendpreplan was proposed:
□Applicable√Inapplicable
XXXXVVVV....TTTThhhheeee pppprrrrooooffffiiiitttt ddddiiiissssttttrrrriiiibbbbuuuuttttiiiioooonnnn dddduuuurrrriiiinnnngggg tttthhhheeee rrrreeeeppppoooorrrrttttiiiinnnngggg ppppeeeerrrriiiioooodddd aaaannnndddd CCCCaaaappppiiiittttaaaallll aaaaccccccccuuuummmmuuuullllaaaattttiiiioooonnnn ffffuuuunnnndddd ttttuuuurrrrnnnn aaaadddddddd eeeeqqqquuuuiiiittttyyyyppppllllaaaannnn
|||
|-|-|
|Numberofsharesforevery10sharestosendstocks（stocks）|0|
|Cashforevery10sharesdividend（Yuan）（taxincluded）|0.40|
|Distributionplanoftheequitybase（stocks）|402,600,000|
|Thetotalamountofcashdividends（Yuan）（taxincluded）|16,104,000.00|
|Distributableprofits（Yuan）|498,221,978.03|
|Proportionofthetotalamountofthecashdividendsofprofitdistribution（％）|100%|
|Cashdividendpolicy：||
|Others||
|Thedetailsoftheplanaboutprofitallocationorcapitalaccumulationfund||
|1、Companies in making profit distribution plan, pay attention to the reasonable return of investors, but also the long-termbenefitsforthe company,thewholeinterestsofallshareholdersandthecompany'ssustainabledevelopment.2、Adheretthedistributionoftheprofitsofcontinuityandstability.Incorporateearningsandcashtomeetcompanyunderthepremiseocontinuousoperationandlong-termdevelopment, thecompany in thepastthreeyearsin cashthecumulative distributionoprofitsisnotlessthanthelastthreeyearsthirtypercentoftheaverageannualdistributableprofits.||

XXXXVVVVIIII、、、、SSSSoooocccciiiiaaaallllrrrreeeessssppppoooonnnnssssiiiibbbbiiiilllliiiittttyyyy
The company is committed to long-term development and implementation of shareholder value at the same time, pay attention to the natural environment and resources, as well as to the shareholders, employees, customers, suppliers, communities and other stakeholders to assume corresponding responsibilities, to realize the sustainable development of company and social harmony, harmonious and unified.The listed company and its subsidiaries whether belong to heavy pollutionindustryformulatedbythestateenvironmentalprotectiondepartment.
□Yes√No□Inapplicable
whetherthelistedcompanyanditssubsidiarieshaveotherimportantsocialsecurityproblems
□Yes√No□Inapplicable
Whetherthecompanywasfinedduringthereportingperiod
□Yes√No□Inapplicable
XXXXVVVVIIIIIIII....RRRReeeecccceeeeppppttttiiiioooonnnnooooffffiiiinnnnvvvveeeessssttttiiiiggggaaaattttiiiioooonnnnssss,,,,ccccoooommmmmmmmuuuunnnniiiiccccaaaattttiiiioooonnnnssss,,,,oooorrrr iiiinnnntttteeeerrrrvvvviiiieeeewwwwssssiiiinnnntttthhhheeeerrrreeeeppppoooorrrrtttt ppppeeeerrrriiiioooodddd
|||||||
|-|-|-|-|-|-|
|Time/date|Place|Way|Typeofvisitors|Visitors|Maincontentinvolvedandmaterialprovided|
|2013.02.15|Office|Telephonecommunication|Privateinvestor|Privateinvestor|Thegeneralinformationofthecompany|
|2013.03.11|Office|Telephonecommunication|Privateinvestor|Privateinvestor|Thegeneralinformationofthecompany|
|2013.03.19|Office|Telephonecommunication|Privateinvestor|Privateinvestor|Thegeneralinformationofthecompany|
|2013.07.11|Office|Telephonecommunication|Privateinvestor|Privateinvestor|Thegeneralinformationofthecompany|
|2013.07.31|Office|Telephonecommunication|Privateinvestor|Privateinvestor|Thegeneralinformationofthecompany|
|2013.08.15|Office|Telephonecommunication|Privateinvestor|Privateinvestor|Thegeneralinformationofthecompany|
|2013.08.22|Office|Telephonecommunication|Privateinvestor|Privateinvestor|Thegeneralinformationofthecompany|
|2013.09.27|Office|Telephonecommunication|Privateinvestor|Privateinvestor|Thegeneralinformationofthecompany|

WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReportCCCChhhhaaaapppptttteeeerrrrⅤ SSSSiiiiggggnnnniiiiffffiiiiccccaaaannnntttt EEEEvvvveeeennnnttttssss
Ⅰ....MMMMaaaaiiiinnnnLLLLaaaawwwwssssuuuuiiiittttssssaaaannnnddddAAAArrrrbbbbiiiittttrrrraaaattttiiiioooonnnnAAAAffffffffaaaaiiiirrrrssss
□Applicable√Inapplicable
Therewerenoimportantlawsuitsandarbitrationaffairs.
IIIIIIII....MMMMeeeeddddiiiiaaaaqqqquuuueeeerrrryyyy....
□Applicable√Inapplicable
Therewasnomediaqueryinthereportperiod.
IIIIIIIIIIII....NNNNoooonnnn----ooooppppeeeerrrraaaattttiiiioooonnnnOOOOrrrriiiieeeennnntttteeeeddddFFFFuuuunnnnddddOOOOccccccccuuuuppppaaaannnnccccyyyybbbbyyyytttthhhheeeeCCCCoooonnnnttttrrrroooolllllllliiiinnnnggggSSSShhhhaaaarrrreeeehhhhoooollllddddeeeerrrraaaannnndddd////oooorrrrRRRReeeellllaaaatttteeeeddddPPPPaaaarrrrttttiiiieeeessss.... Inapplicable
IIIIVVVV....BBBBaaaannnnkkkkrrrruuuuppppttttccccyyyyaaaannnnddddRRRReeeeccccoooommmmbbbbiiiinnnnaaaattttiiiioooonnnn
Inapplicable
VVVV....AAAAsssssssseeeettttttttrrrraaaannnnssssaaaaccccttttiiiioooonnnnssss
（1）Acquisitionofassets
None
（2）Salesofasset
None
(3)amalgamationofenterprise
None
VVVVIIII....IIIImmmmpppplllleeeemmmmeeeennnnttttaaaattttiiiioooonnnnaaaannnnddddIIIInnnnfffflllluuuueeeennnncccceeeeooooffffEEEEqqqquuuuiiiittttyyyyIIIInnnncccceeeennnnttttiiiivvvveeeessss
Inapplicable
VVVVIIIIIIII....IIIImmmmppppoooorrrrttttaaaannnnttttRRRReeeellllaaaatttteeeeddddTTTTrrrraaaannnnssssaaaaccccttttiiiioooonnnnssss
1、Therelatetransactionsrelatedtotheday-to-dayoperations.
TTTThhhheeee
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|RRRReeeellllaaaattttiiiivvvveeeeppppaaaarrrrttttiiiieeeessss|RRRReeeellllaaaattttiiiioooonnnnsssshhhhiiiipppp|RRRReeeellllaaaattttiiiivvvveeeettttyyyyppppeeee|CCCCoooonnnntttteeeennnntttt|PPPPrrrriiiinnnncccciiiipppplllleeeeooooffffpppprrrriiiicccceeee|RRRReeeellllaaaattttiiiivvvveeeePPPPrrrriiiicccceeee|RRRReeeellllaaaattttiiiivvvveeeeAAAAmmmmoooouuuunnnntttt((((RRRRMMMMBBBB’’’’0000000000000000))))|TTTThhhheeeePPPPeeeerrrrcccceeeennnnttttaaaaggggeeeeooooffffaaaaccccccccoooouuuunnnntttteeeeddddffffoooorrrrssssiiiimmmmiiiillllaaaarrrrddddeeeeaaaallllssss((((%%%%))))|TTTThhhheeeeWWWWaaaayyyyOOOOffffAAAAccccccccoooouuuunnnntttt|MMMMaaaarrrrkkkkeeeettttpppprrrriiiicccceeee|DDDDiiiisssscccclllloooossssuuuurrrreeeeDDDDaaaatttteeee|DDDDiiiisssscccclllloooossssuuuurrrreeeeIIIInnnnddddeeeexxxx|
|DalianSKFWazhouBearingsCo.,Ltd|Associates|MerchandiseProcurement|BearingProduct|JusticeandEquity|Negotiatedprice|21,066|5.9%|CashPaymentorTheKnot||2014.04.26|http://www.cninfo.com.cn|
|||SalesofGoods|InstallationKit|JusticeandEquity|Negotiatedprice|5,892|1.91%|CashPaymentorTheKnot||2014.04.26|http://www.cninfo.com.cn|
|||RenderService|Heatatareatment|||417|0.16%|CashPaymentorTheKnot||2014.04.26|http://www.cninfo.com.cn|
|WazhouSteelBallCompany|OtherCompaniescontrolledbythesamecontrollingshare|MerchandiseProcurement|InstallationKit|JusticeandEquity|Marketprice|504|0.14%|CashPaymentorTheKnot||2014.04.26|http://www.cninfo.com.cn|
|||Salesofgoods|Goodsand|Justiceand|Marketprice|665|0.22%|CashPayment||2014.04.26|http://www.cninfo.com.cn|

WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||holdersandtheultimatecontrollingparty||Materials|Equity||||orTheKnot|||
||||LeaseofLand|||11|0%|CashPaymentorTheKnot|2014.04.26|http://www.cninfo.com.cn|
|||AcceptingService|Rentthehouse|||22|0.01%||2014.04.26|http://www.cninfo.com.cn|
|||RenderService|Heatatareatment|||74|0.03%|CashPaymentorTheKnot|2014.04.26|http://www.cninfo.com.cn|
|WazhouExactForgeLtd.,|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|MerchandiseProcurement|InstallationKit|JusticeandEquity|Marketprice|22,849|6.4%|CashPaymentorTheKnot|2014.04.26|http://www.cninfo.com.cn|
|||Salesofgoods|GoodsandMaterials|JusticeandEquity|Marketprice|42,960|13.95%|CashPaymentorTheKnot|2014.04.26|http://www.cninfo.com.cn|
||||LeaseofPlants|||35|0.01%|CashPaymentorTheKnot|2014.04.26|http://www.cninfo.com.cn|
|||RenderService|Heatatareatment|||0||CashPaymentorTheKnot|2014.04.26|http://www.cninfo.com.cn|
|DalianWazhouManufacturingEquipmentCo.,Ltd|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|MerchandiseProcurement|Production|JusticeandEquity|Marketprice|2,164|0.61%|CashPaymentorTheKnot|2013.04.23|http://www.cninfo.com.cn|
|||Salesofgoods|GoodsandMaterials|JusticeandEquity|Marketprice|260|0.08%|CashPaymentorTheKnot|2014.04.26|http://www.cninfo.com.cn|
|WazhouGroupTurnplateBearingLtd|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|MerchandiseProcurement|BearingProduct|JusticeandEquity|Marketprice|19,078|5.35%|CashPaymentorTheKnot|2014.04.26|http://www.cninfo.com.cn|
|||Salesofgoods|GoodsandMaterials|JusticeandEquity|Marketprice|1,339|0.43%|CashPaymentorTheKnot|2014.04.26|http://www.cninfo.com.cn|
|||RenderService|Heatatareatment|||0||CashPaymentorTheKnot|2014.04.26|http://www.cninfo.com.cn|
|WazhouGroupExactTransmissionBearingCo.,Ltd|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|MerchandiseProcurement|BearingProduct|JusticeandEquity|Marketprice|12,911|3.62%|CashPaymentorTheKnot|2014.04.26|http://www.cninfo.com.cn|
|||Salesofgoods|GoodsandMaterials|JusticeandEquity|Marketprice|2,628|0.85%|CashPaymentorTheKnot|2014.04.26|http://www.cninfo.com.cn|
|||RenderService|Heatatareatm|||254|0.1%|CashPayment|2014.04.26|http://www.cninfo.com.cn|

WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||ent|||||orTheKnot|||
|WazhouGroupPrecisionspecialBearingCompanyLimited|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|MerchandiseProcurement|BearingProduct|JusticeandEquity|Marketprice|31|0.01%|CashPaymentorTheKnot|2014.04.26|http://www.cninfo.com.cn|
|||Salesofgoods|GoodsandMaterials|JusticeandEquity|Marketprice|375|0.12%|CashPaymentorTheKnot|2014.04.26|http://www.cninfo.com.cn|
||||LeaseofPlants|||56|0.02%|CashPaymentorTheKnot|2014.04.26|http://www.cninfo.com.cn|
|||RenderService|Heatatareatment|||40|0.02%|CashPaymentorTheKnot|2014.04.26|http://www.cninfo.com.cn|
|DaLianWazhouFengyuanMachineCo.,Ltd|OtherRelatedparty|MerchandiseProcurement|BearingProduct|JusticeandEquity|Marketprice|11,325|3.17%|CashPaymentorTheKnot|2014.04.26|http://www.cninfo.com.cn|
|||Salesofgoods|GoodsandMaterials|JusticeandEquity|Marketprice|0|0%|CashPaymentorTheKnot|2014.04.26|http://www.cninfo.com.cn|
||||LeaseofPlants|||11|0%|CashPaymentorTheKnot|2014.04.26|http://www.cninfo.com.cn|
|DaLianWazhouJinZhouMachineCo.,Ltd|OtherRelatedparty|MerchandiseProcurement|BearingProduct|JusticeandEquity|Marketprice|10,077|1.74%|CashPaymentorTheKnot|2014.04.26|http://www.cninfo.com.cn|
|||Salesofgoods|GoodsandMaterials|JusticeandEquity|Marketprice|30|0.01%|CashPaymentorTheKnot|2014.04.26|http://www.cninfo.com.cn|
||||LeaseofPlants|||71|0.03%|CashPaymentorTheKnot|2014.04.26|http://www.cninfo.com.cn|
|||RenderService|Heatatareatment|||184|0.07%|CashPaymentorTheKnot|2014.04.26|http://www.cninfo.com.cn|
|Equipmenttechnicalengineering|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|MerchandiseProcurement|equipment|usticeandEquity|Marketprice|4,885|1.37%|CashPaymentorTheKnot|||
|WazhouGroup|Thecontrollingshareholdersand|AcceotService|SecurityandFireService|||334|0.09%|CashPaymentorTheKnot|2014.04.26|http://www.cninfo.com.cn|

WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||theultimatecontrollingparty||AnnouncementService|||82|0.02%|CashPaymentorTheKnot||2014.04.26|http://www.cninfo.com.cn|
||||TechnologyDevelopmentService|||540|0.15%|CashPaymentorTheKnot||2014.04.26|http://www.cninfo.com.cn|
||||UseofTrademark|||800|0.22%|CashPaymentorTheKnot||2014.04.26|http://www.cninfo.com.cn|
||||LeaseofHouses|||2,505|0.7%|CashPaymentorTheKnot||2014.04.26|http://www.cninfo.com.cn|
|||Salesofgoods|GoodsandMaterials|JusticeandEquity|Marketprice|102|0.03%|CashPaymentorTheKnot||2014.04.26|http://www.cninfo.com.cn|
|Wazhougroup(USA)bearingco.,LTD|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Salesofgoods|BearingProduct|JusticeandEquity|Marketprice|752|0.24%|CashPaymentorTheKnot||2014.04.26|http://www.cninfo.com.cn|
|Total||||--|--|172,200|--|--|--|--|--|

 2.Othersignificantrelatedtransactions
Thesecondlargestshareholderofthecompany---SKF(China)Co.Ltd.(hereinafter““““SSSSKKKKFFFF((((CCCChhhhiiiinnnnaaaa))))””””or““““TTTTrrrraaaannnnssssffffeeeerrrroooorrrr””””)andthecompanysigned<EquityTransferAgreement>,inlinewithwhichSKF(China)willtransferits51%equityinterestin DalianSKFWazhouCo.Ltd.(hereinafter““““SSSSKKKKFFFFWWWWaaaazzzzhhhhoooouuuu))))””””)tothecompanyatthepriceof45millionYuan,WBCagreeto purchasethisequity.
i.BecausetheparentcompanyofSKF(China)isWBC’ssecondlargestshareholderwhoholding19.7%shares.SKF(China)isthecompany’srelatedparty,thusthistradecomposesrelatedtransaction
ii.ThedeliverytimeisonNovember31,2014.
iii.Thistradehasbeenreviewedandunanimouslypassedbythe20133rdextraordinaryBoardofdirectormeeting.The relateddirectorMr.WangLushun,Mr,ShaoYang,Mrs.FangBo,Mr.RakeshMakhijaobviatefromtherelatedissues,andthe unrelateddirector,discussedandunanimouslypassedtheproposal.Theindependentdirectorsshowpre-confirmand independentopiniononthisproposal,
iv.InlinewiththerulesinAOA,Theissuesshallbepassedbyshareholder’smeeting,therelatedpartyshallbeavoidvotinginthemeeting.Andthistradeisnotbelongtomaterialassetsreorganizationrulesin<Managementrulesonmaterialassetsreorganizationinlistingcompany>
Therelatedwebsiteforimportantrelatedbusinessdisclosure.
||||
|-|-|-|
|Name|Dated|Website|
|AnnouncementofexternalinvestmentofWafangdianBearingCompanyLimited|2013年08月06日|http://www.cninfo.com.cn|

VVVVIIIIIIIIIIII....TTTThhhheeeeiiiimmmmpppplllleeeemmmmeeeennnnttttooooffffmmmmaaaajjjjoooorrrrccccoooonnnnttttrrrraaaaccccttttaaaannnnddddiiiittttssssppppeeeerrrrffffoooorrrrmmmmaaaannnncccceeee
VVVVIIIIIIIIIIIIIIII....TTTThhhheeeeiiiimmmmpppplllleeeemmmmeeeennnnttttooooffffccccoooommmmmmmmiiiittttmmmmeeeennnnttttssssrrrrccccoooonnnnttttrrrraaaacccctttt
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport XXXX....HHHHiiiirrrriiiinnnngggg,,,,ffffiiiirrrriiiinnnnggggcccceeeerrrrttttiiiiffffiiiieeeeddddppppuuuubbbblllliiiiccccaaaaccccccccoooouuuunnnnttttaaaannnnttttssss
oooo
CertifiedPublicAcc untantscurrentlyEngaged
|||
|-|-|
|NamesoftheDomesticCertifiedPublicAccountants|ShinewingCertifiedPublicAccountants|
|RewardforofaccountantsoftheDomesticCertifiedPublicAccountants（RMB’0000）|48|
|SuccessiveYearsOfferingAuditingServices|9Years|
|NamesofaccountantsoftheDomesticCertifiedPublicAccountants|LinLi,WangDong|

HastheCPAsbeenchangedinthereportperiod
□Yes√No
Internalcontrolauditcertifiedpublicaccountants,financialadviserorsponsors
□Yes√No
XXXXIIII....SSSSttttaaaatttteeeemmmmeeeennnnttttssssoooofffftttthhhheeeeSSSSuuuuppppeeeerrrrvvvviiiissssoooorrrryyyyCCCCoooommmmmmmmiiiitttttttteeeeeeeeaaaannnnddddIIIInnnnddddeeeeppppeeeennnnddddeeeennnnttttDDDDiiiirrrreeeeccccttttoooorrrrssss((((iiiiffffaaaapppppppplllliiiiccccaaaabbbblllleeee))))oooonnnntttthhhheeee
““““NNNNoooonnnn----ssssttttaaaannnnddddaaaarrrrddddAAAAuuuuddddiiiittttoooorrrrssss’’’’RRRReeeeppppoooorrrrtttt””””iiiissssssssuuuueeeeddddbbbbyyyytttthhhheeeeCCCCPPPPAAAA....
None
XXXXIIIIIIII....PPPPuuuunnnniiiisssshhhhmmmmeeeennnnttttaaaannnnddddrrrreeeeccccttttiiiiffffiiiiccccaaaattttiiiioooonnnn
None
ThesituationofDirectors,supervisorsandseniormanagement,shareholdersholdingmorethan5%whotheallegedillegal buyingandsellingcompanystockandthecompanyhasdisclosedtorecovertheallegedillegalproceeds
□Yes√No
XXXXIIIIIIIIIIII....SSSSuuuussssppppeeeennnnssssiiiioooonnnnaaaannnnddddtttteeeerrrrmmmmiiiinnnnaaaatttteeeeddddlllliiiissssttttiiiiggggaaaafffftttteeeerrrrtttthhhheeeeaaaannnnnnnnuuuuaaaallllrrrreeeeppppoooorrrrttttddddiiiisssscccclllloooossssuuuurrrreeee....
□Yes√No
XXXXIIIIVVVV....OOOOtttthhhheeeerrrriiiimmmmppppoooorrrrttttaaaannnnttttmmmmaaaatttttttteeeerrrrssss
□Yes√No
XXXXVVVV....IIIImmmmppppoooorrrrttttaaaannnnttttmmmmaaaatttttttteeeerrrrssssooooffffssssuuuubbbbssssiiiiddddiiiiaaaarrrryyyy
□Yes√No
ChapterⅥ. Changes in Capital Stock and Shareholders
IIII....CCCChhhhaaaannnnggggeeeessssiiiinnnnCCCCaaaappppiiiittttaaaallllSSSSttttoooocccckkkk
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||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%|

WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport ReasonofChangesofShares
□Applicable√Inapplicable
Thebasicsituationofstockchange.
□Applicable√Inapplicable
Thetransferofsharesof
□Applicable√Inapplicable
Influencefromtheshareholdingmovementsuponsuchfinancialindicatorsasearningspershare,netassetper
shareofthelatestyearandthelatestaccountingperiod
□Applicable√Inapplicable
OtherinformationastheCompanyconsidersnecessarytobedisclosedordemandedbythesecuritiesregulatory
authorityfordisclosing:
□Applicable√Inapplicable
IIIIIIII....SSSShhhhaaaarrrreeeehhhhoooollllddddeeeerrrrssssaaaannnnddddAAAAccccttttuuuuaaaallllCCCCoooonnnnttttrrrroooolllllllleeeerrrr
1.NumberofShareholdersandShares
Unit:Share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Totalnumberofshareholderattheendofreportperiod||8,915||Totalnumberofshareholders5tradingdaybeforeannualreportdisclosure|||||9，232|
|Shareholderswith5%oraboveShares||||||||||
|Name|Nature|Ratio（%）|Totalsharesheld||Increaseordecreaseinthereportperiod|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|
|GAOLINGFUND,L.P.|Foreignshareholder|0.81%|3,274,328||||3,274,328|||
|HuangYuejun|Domesticshareholder|0.7%|2,800,000||||2,800,000|||
|BOCISECURITIESLIMITED|Foreignshareholder|0.28%|1,115,061||||1,115,061|||
|YanJianhui|Domesticshareholder|0.21%|839,423||||839,423|||
|MaYuancheng|Domesticshareholder|0.19%|755,825||||755,825|||
|MAN,KWAIWINGWenGuirong|Foreignprivateshareholder|0.18%|713,101||||713,101|||
|HeiYouxin|Foreignprivateshareholder|0.13%|512,559||||512,559|||
|ChenZhongwu|Domesticshareholder|0.13%|509,585||||509,585|||
|ExplanationfortheAffiliatedRelationsorUnitedActionoftheTopTenShareholders||In thereport period, the frozen period of the shares purchased by the company’s strategic investorAKTIEBOLAGET SKF expired in 1999, and has not dealt with the releasing-procedure in this reportperiod.||||||||
|Notes to relationship or “action inconcert”amongthetoptenshareholders.||Therewasnorelationshipandconsistentactivitiesbetweenthefirstbigshareholderandothershareholdersorthetoptencommonstockholders;Therelationshipamongothershareholders,toptencirculationshareholders,toptencirculationshareholdersandothershareholderswasnotclear.||||||||
|TopTenTradableShareholders||||||||||
|Name||Currentsharesheldatendofyear(Note4)||||||||

WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport
|||||
|-|-|-|-|
|||Categoryof Shares||
|||Categories|Amount|
|AKTIEBOLAGETSKF|79,300,000|B|79,300,000|
|GAOLINGFUND,L.P.|3,274,328|B|3,274,328|
|HaungYuejun|2,800,000|B|2,800,000|
|BOCISECURITIESLIMITED|1,115,061|B|1,115,061|
|YanJianhui|839,423|B|839,423|
|MaYuancheng|755,825|B|755,825|
|MAN,KWAIWINGWenGuirong|713,101|B|713,101|
|HeiYouxin|512,559|B|512,559|
|ChenZhongwu|509,585|B|509,585|
|YangYufei|474,090|B|474,090|
|ExplanationfortheAffiliatedRelationsorUnitedActionoftheTopTenShareholdersandtheTopTenTradableShareholders|Therewasnorelationshipandconsistentactivitiesbetweenthefirstbigshareholderandothershareholdersorthetoptencommonstockholders;Therelationshipamongothershareholders,toptencirculationshareholders,toptencirculationshareholdersandothershareholderswasnotclear.|||

2.ControllingShareholder
LegalPerson
|||||||
|-|-|-|-|-|-|
|Name|LegalRepresentative|EstablishingDate|OrganizationCode|RegisterCapital|MainBusiness|
|WafangdianBearingGroupCorporation|CongHong||24238666-3|RMB413,793,100Yuan|Bearing、Mechanicalequipment、automobileinstallationandsoonrelatedproduction。|
|Operationresult,financialposition,cashflowandfuturedevelopmentstrategy,etc..|In2013,thecompanyproductionandoperationthecontinuousandstableoperation.Grossvalueofindustrialoutputgrewby3.9%yearonyear,completed100millionyuanworthofprofits.2013,wazhougroupwith"structureadjustmentandtransformationandupgrading"asthegoal,to"outsidethegraspmarket,withinthegraspmanagement"asthecenter,tofullyimplementthestrategyofthecommandingheights,optimizetheproductstructureandmarketstructure,omni-directionalhardskills,maketheenterpriseinthemarketdemand,excesscapacity,salespricesandmoneyistight,underthesituationofdifficultiesandcontradictions,maintainthestabledevelopmentofoverallbusiness,createanewsituationofeachwork.|||||

ChangeofControllingShareholderintheReportPeriod
□Applicable√Inapplicable
3.ActualController
LegalPerson
|||||||
|-|-|-|-|-|-|
|Name|LegalRepresentative|EstablishingDate|OrganizationCode|RegisterCapital|MainBusiness|
|DalianMunicipalGovernmentState-ownedAssetsSupervisingandManagingcommittee||||||
|Operationresult,financialposition,cashflowandfuture,developmentstrategy,etc..|None|||||

ChangeofactualControllerinreportperiod
□Applicable√Inapplicable
RelationshipofthepropertyrightandcontrollingbetweentheCompanyandactualController:
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport ActualControllercontrolledtheCompanybytrustorotherassetmanagementmethod.
□Applicable√Inapplicable
4.Othershareholderswithmorethan10%shares
|||||||
|-|-|-|-|-|-|
|Shareholder’sNameLegalRepresentativeEstablishingDate|Organization|Code|Dateofestablishment|Capital|MainBusiness|
|TomGohnstone|AKTIEBOLAGETSKF||1907.01.01|1，138，000，000(SKR)|Bearings,sealsandrelativeproducts,andrelativeservices|

 ThesituationofstakeinschemeputforwardorimplementbyTheshareholdersofacompanyanditsconcertedactionperson induringthereportingperiod.
Inapplicable
ChapterⅦ. Directors, Supervisors, Senior Management and Staff
IIII....CCCChhhhaaaannnnggggeeeessssooooffffSSSShhhhaaaarrrreeeesssshhhheeeellllddddbbbbyyyyDDDDiiiirrrreeeeccccttttoooorrrrssss,,,,SSSSuuuuppppeeeerrrrvvvviiiissssoooorrrrssssaaaannnnddddSSSSeeeennnniiiioooorrrrMMMMaaaannnnaaaaggggeeeemmmmeeeennnntttt
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|NamePositionOfficeStatusGenderAge|StartingDate|OfficeStatus|Gender|Age|StartingDateofTenure|ExpiryDateofTenure|SharesHeldonJan1,2012|Increase|Decrease|SharesHeldonDec31,2012|
|CongHong|Chairman|Incumbent|Male|55|2013.12.30||0|0|0|0|
|MengWei|Director|Incumbent|Male|46|2014.02.27||0|0|0|0|
|ShaoYang|GeneralManager|Incumbent|Male|48|2013.04.19||0|0|0|0|
|LiShi|Director|Incumbent|Male|49|2013.06.26||0|0|0|0|
|ChenJiajun|Director|Incumbent|Male|47|2013.06.26||0|0|0|0|
|SunNajuan|Generalaccountant|Incumbent|Female|46|2013.04.19||0|0|0|0|
|ZhuJiming|Director|Incumbent|Male|53|2013.06.26||0|0|0|0|

WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|FangBo|Director|Incumbent|Female|42|2009.06.29||1,500|0|0|1,500|
|LiuYuping|IndependentDirector|Incumbent|Male|58|2009.06.29||0|0|0|0|
|WuChunyou|IndependentDirector|Incumbent|Male|69|2013.06.26||0|0|0|0|
|ZhangLi|IndependentDirector|Incumbent|Female|54|2013.06.26||0|0|0|0|
|SunGuangguo|IndependentDirector|Incumbent|Male|43|2013.06.26||0|0|0|0|
|ZhangXinghai|PresidentofSupervisoryCommittee|Incumbent|Male|46|2013.06.26||0|0|0|0|
|WuZuoxian|Supervisor|Incumbent|Male|59|2014.02.27||0|0|0|0|
|LiXiumin|Supervisor|Incumbent|Female|52|2013.06.26||0|0|0|0|
|TanJianguang|Supervisor|Incumbent|Male|50|2013.06.26||0|0|0|0|
|WangLin|Supervisor|Incumbent|Female|33|2013.06.26||0|0|0|0|
|WangLongjie|Vice-G.M.|Incumbent|Male|52|2013.04.19||0|0|0|0|
|HuaYuehong|Vice-G.M.|Incumbent|Male|46|2013.04.19||0|0|0|0|
|WangLushun|Director|Resignation|Male|64|2009.06.29|2013.11.27|0|0|0|0|
|ZhangXinghai|Director|Resignation|Male|46|2009.06.29|2013.06.25|0|0|0|0|
|RakeshMakhija|Director|Resignation|Resignation|62|2010.10.22|2013.06.25|0|0|0||
|WangKeyi|IndependentDirector|Resignation|Male|70|2009.06.29|2013.06.25|0|0|0|0|
|ZhangQiluan|IndependentDirector|Resignation|Male|57|2009.06.29|2013.06.25|0|0|0|0|
|WangHuabin|IndependentDirector|Resignation|Male|73|2009.06.29|2013.06.25|0|0|0|0|
|QuRongjun|Supervisor|Resignation|Male|59|2009.06.29|2013.06.25|0|0|0|0|
|YaoChunjuan|Supervisor|Resignation|Female|48|2009.06.29|2013.06.25|0|0|0|0|
|SunMaolin|Supervisor|Resignation|Male|50|2009.06.29|2013.06.25|0|0|0|0|
|MengWei|Supervisor|Resignation|Male|46|2011.06.17|2013.12.17|0|0|0|0|
|HuXiuli|Supervisor|Resignation|Female|48|2012.08.29|2013.06.25|0|0|0|0|
|Total|--|--|--|--|--|--|1500|||1500|

 IIIIIIII....PPPPoooossssttttssss
WorkExperienceinthePastFiveYearsofDirectors,SupervisorsandSeniorManagementinCurrentOffice.
(1)Director
MMMMrrrr....CCCCoooonnnnggggHHHHoooonnnngggg,,,,wasborninApril1959,masterdegree,seniorpoliticengineer.
hasservedasvicemanagerofFuShun AaolinGroupCo.Ltd,theofficerofSupportAssociationinShenYang,thedeputyPartysecretaryandvice-generalmangerof theDCWCorporation,thedeputyPartysecretaryanddirectorofDHI.DCWGROUPCO.,LTD.NowhetakesChairmanof WBGC,ChairmanofDalianSKF-WazhouCompanyLimited,ChairmanofWafangdianBearingGroupspecialprecision bearingCompanyLimited,ChairmanofDalianKoyoWazhouAutomobileBearingCompanyLimited,Chairmanof
WafangdianGeneralBearingCompanyLimited,DaLianTHKWaZhouindustrialcompanylimited.
MMMMrrrr....MMMMeeeennnnggggWWWWeeeeiiii,,,,wasborninApril1968,hehassuccessivelyheldthepostsofdeputygeneralmanagerofWafangdianBearing Co.,LTD,nowheisheldthepostoflaborUnionchairman,secretaryofthecommissionfordisciplineinspectionof
WafangdianBearingGroupCo.,LTD.
MMMMrrrr....LLLLiiiisssshhhhiiiiwasborninApril1965,Masterdegree,seniorengineer,workedastechnicians,factoryvice-manager,factory managerandvice-generalmanager.Worked inWBGCsinceSeptember2010nowheworkasvice-generalmanagerof
WBGC.
MMMMrrrr....SSSShhhhaaaaooooYYYYaaaannnn,,,,wasborninNovember1966.BachelorDegree.Aftergraduation,hejoinedinWafangdianBearingFactory
andworkedasanengineer.HehasbeenappointedasamanagerofTechnicalSupervisorySection,AssistantChiefof
EngineeringCenter,ManagerofTechnicalDevelopmentDepartment,AssistantGeneralManagerandViceGeneralEngineer
ofWafangdianBearingGroupCorporation.AtpresentheistheManagerofWBC.
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport MMMMrrrrssss....SSSSuuuunnnnNNNNaaaajjjjuuuuaaaannnn,wasborninOctober1968withtitleofsenioreconomist.Masterdegree.Eversinceshejoinedinthe CompanyonSeptemberof1990,sheworkedasaccountantinFinancialDivisionofWBGC,sectionleaderofChecking Division,generalmanagerassistantofMaterialProvidingCompanyofWBC,andthegeneralmanagerassistantofSales CompanyofWBC.NowsheworksaschiefaccountantandthesecretaryofboardofdirectorsofWBC.
MMMMrrrr....CCCChhhheeeennnnJJJJiiiiaaaajjjjuuuun,male,wasbornonDecember1967.BachelorDegree.EversinceshejoinedintheCompanyonSeptember heworkedashead,Assistantcharger,deputycharger,andchargerofOperationandmanagingdepartmentofZWZGroup, NowheworkaschargerofOperationandmanagingdepartmentandgeneralmanagerassistant.
MMMMrrrr....ZZZZhhhhuuuuJJJJiiiimmmmiiiinnnngggg,,,,Mr.ZhuJiming,wasborninSeptember,1961,theAmericancitizenship,gratulatedBeijingForeignStudies
||||
|-|-|-|
|the|American|citizenship,|

 Universityin1982,MBAof BoothSchoolofBusinessinChicago,hehadholdthepostofVicePresidentandChairmanof CaterpillarChinasince1997to2010,PresidentofAlcoaIncsince2011to2013,PresidentofSKFChinasince2013tonow. Noneofsharesheld.NopunishmentandpenaltymadebyCSRC,otherdepartmentsorSecuritiesstockexchange,has sufferedbeforeHepossessesthequalificationforthedirectorcandidate,andconformstotheregulationsstipulatedbythe “CompanyLaw.”
MMMMrrrrssssFFFFaaaannnnggggBBBBoooo，MsFangBo,wasborninJune1972.Bachelordegree.ShehasservedasauditorinPWCAccountantFirm since1994.ShejoinedtheSKF(China)InvestmentCo.Ltdin1997,usedtobefinancemanagerinitssubsidiarycompany, financedirectorintheSKF(China)InvestmentCo.Ltd.NowsheoccupiesthefinancemanagerofSKF(China)InvestmentCo., LtdandSKF(Shanghai)InvestmentandConsultationCo.Ltd,andcapitaldeparmentmanagerinSKFChinaregion.
((((2222))))IIIInnnnddddeeeeppppeeeennnnddddeeeennnnttttddddiiiirrrreeeeccccttttoooorrrr
MMMMrrrr....WWWWuuuuCCCChhhhuuuunnnnyyyyoooouuuu,,,,wasborninDecember1945,master,Professor.NowworkasthedeanofManagementAcademyofDalianScience&EngineeringUniversity,theCommitteemanofManagementTeachingGuidingcommitteeofnationaleducation Department,chairmanofUniversityValueResearchingcommitteeofChina,DaLianEnterpriseManagementConsultingand ResearchingCommittee,theconcurrentpostofindependentdirectorofLiaoheJinmaOilFieldCompanyLimited.
MMMMrrrr....LLLLiiiiuuuuYYYYuuuuppppiiiinnnngggg,,,,wasborninAugust1956.HeisaprofessorwithPH.D..Aftergraduation,hehasbeenteachingatLaw schoolofDongbeiUniversityofFinanceandEconomics.NowheassumedasdirectorofLawschoolteachingdepartmentof UniversityofFinanceandEconomicsandpluralizesthefollowingduties:CommitteeofDalianArbitrationCommittee, arbitrator;LawyerofLiaoningZhengheLawFirm;LawcounselorofLiaoningDafengRealEstateCompany,LiaoningWuhuan ImportandExportCompany,EconomicandTechnologicalDevelopmentCompanyfoundedbyDongbeiUniversityofFinance andEconomics;VicepresidentofLiaoningInstituteofConstitutionalandAdministrativeLaw.Hehasabundantknowledgeof law.Nowheheldthepositionoftheindependentdirectorinthecompany.
MMMMrrrrssss....ZZZZhhhhaaaannnngggglllliiii,,,,wasborninMarch16,2013,economicbachelor,ProfessorofAccountant,MasterGuider,workasateacherin JiangSuuniversityofscienceandengineeringmanagementdepartmentsinceAugust1983,currentlyholdsthepostof ProfessoratDalianCommunicationuniversity,speciallyengagedprofessoratDalianenterprisermarketandDalianmanager unitedassociation.Holdpart-timejobasviceeconomistofDalianShantaiTechnologycompanylimited,financialconsultant ofDalianfirstclothesfactory,associateprofessorinDalianenterprisemanagecadretrainingleadingteam,holdingthepostofteacheratDalianProfession&TechnologyCollege.currentlyholdsthepostofindependentdirectoratYingkouharborCo., Ltd.
MMMMrrrr....SSSSuuuunnnnGGGGuuuuaaaannnngggggggguuuuoooo,,,,wasbornin1971,managerdoctor,professor.Since1998,workedinthenortheastuniversityoffinance andeconomicsaccountingcollege.successivelyinnortheastuniversityoffinanceandthefinancialandaccountingresearch center,deputydirector,deputydirectoroftheinstituteofaccounting,internalcontrolandriskmanagementresearchcenter, deputydirector,etc.ThecommitteememberofChineseaccountingassociationaccountingstandardforbusinessenterprises, thesecretarygeneraloftheChinainstituteoffinancialcostaccountingandaccountingassociationexecutivedirectorof Liaoningprovince.Electedintotheprojectof“Treasuryleading(backup)talent"bynationalaccounting.NowworkasVice Presidentoftheinstituteofnortheastuniversityoffinanceandaccounting,independentdirectorinDalianShengyaCo.,Ltd ((((3333))))SSSSuuuuppppeeeerrrrvvvviiiissssoooorrrr
MMMMrrrr....ZZZZhhhhaaaannnnggggXXXXiiiinnnngggghhhhaaaaiiii,,,,wasborninOctober1968,universityculture,senioraccountant.SincejoiningWazhouin1991,hehas successivelyheldthepostsofthedeputychiefaccountantandboardsecretaryofWafangdianBearingCo.,LTD,director,
chiefaccountantandboardsecretaryofWafangdianBearingCo.,LTD,nowheisheldthepostofthechiefaccountantof
WafangdianBearingGroupCo.,LTD.
MMMMssss....LLLLiiiiXXXXiiiiuuuummmmiiiinnnn,,,,wasborninMay1962,graduatedfromthenortheastuniversityoffinanceandeconomicsinJuly1987,
collegediploma,senioraccountant.JoinedinworkinNovember1980,shehassuccessivelyheldthepostsofaccountantin
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport financialauditdepartment,financialinspector,financialsectionchiefandassistantministerandsoon,nowsheisheldthe postofviceminister(host)infinancialauditdepartmentofWafangdianBearingGroupCo.,LTD.
MMMMrrrr....TTTTaaaannnnJJJJiiiiaaaannnngggguuuuaaaannnngggg,,,,borninDecember1964,graduatedfromthedalianindustrialschoolinAugust1986,technicalsecondary schooldegree,assistantengineer.JoinedinworkinAugust1986,hehassuccessivelyheldthepostsofworkshopdirectorin cagebranch,salesman,sectionchief,deputygeneralmanagerofMarketingDepartment,etc.nowheisheldthepostof assistantofgeneralmanagerofWafangdianBearingCo.,LTD,andthegeneralmanagerofrailwaydepartment,railway bearingsalescompany.
MMMMrrrrssss....WWWWaaaannnnggggLLLLiiiinnnn,,,,borninSeptember1981,graduatedfromthenorthwestagricultureandforestryuniversityofscienceand technologyinJuly2004,universitydegree,assistanteconomist.JoinedinworkJuly2004,shehassuccessivelyheldthe postsofthelegalcounselofcreditmanagementdepartment,officedirector,legaladviserassistantofministeranddeputy ministerofWafangdianBearingCo.,LTD,etc.Nownowsheisheldthepostofministerofinternalcontrolandcredit
managementdepartment.
MMMMrrrr....WWWWuuuuZZZZuuuuooooxxxxiiiiaaaannnn,,,,bornonDecember1955,seniorpoliticengineerSinceSeptember1972,hehastakenhispositionas assistanttotheheadofoffice,theviceheadofofficeinWBGC,nowhetakeshispositionasvicesecretaryofCommitteefor DisciplineInspection,alsoworksasthevicechargerofdisciplineandsupervisiondepartmentandchargerofarmed
departmentinWBGC.Nosharesheld.
((((4444))))TTTTooooppppmmmmaaaannnnaaaaggggeeeemmmmeeeennnntttt
MMMMrrrr....HHHHuuuuaaaayyyyuuuueeeehhhhoooonnnngggg,,,,wasborninAugust1968.HejoinedinLYZinJuly1991.HegraduatedfromHenanTechnologyUniversity, whospecializedinengineering.Engineer.FromSept.,1993toJan.,2005,hehasassumedasLYZworkshopdirector, assistantofgeneralmanagerofbranchfactory,deputymanager,vice-directoroftechnologycenter.Nowheassumedas vice-generalengineerofWBC.
MMMMrrrr....WWWWaaaannnnggggLLLLoooonnnnggggjjjjiiiieeee,,,,wasborninFebruary1962,andgraduatedfromLiaoningIndustryUniversityinJuly1987.Highengineer qualification.EversinceDecember1987,hehasundertakenthefollowingposition:productdesigner,deputymasterin technicaldepartmentinthe4thfactory,deputymanagerin6thfactory,managerinthe6thand7thfactory.Nowheassumes thepositionofVic-GMofWBC.
PostsinShareholder’sCompany
√Applicable□Inapplicable
|||||||
|-|-|-|-|-|-|
|Name|CompanyName|Position|StartingDateofTenure|ExpiryDateofTenure|Whetherreceivingremunerationfromthercompanies|
|CongHong|WafangdianBearingGroupCorporation|ChairmanofBoardofDirectors,|2013.12.26||Y|
|MengWei|WafangdianBearingGroupCorporation|GeneralManager|2013.12.26||Y|
|ZhangXinghai|WafangdianBearingGroupCorporation|Generalaccountant|2009.08.01||Y|
|ChenJiajun|WafangdianBearingGroupCorporation|VGM|2014.03.01||Y|
|LiShi|WafangdianBearingGroupCorporation|VGM|2010.09.01||Y|
|WuZuoxian|WafangdianBearingGroupCorporation|Vicechargerofdisciplineandsupervisiondepartment|2012.05.01||Y|
|LiXiumin|WafangdianBearingGroupCorporation|viceministerof financialsupervisordepartment|2009.06.01||Y|
|ZhuJiming|SKF(China)Co,.Ltd.Rgion|President|2010.01.01||Y|
|FangBo|SKF(China)CompanyLimited|FinancialCharger|2009.04.01||Y|

 OtherPosts
√Applicable□Inapplicable
|||||||
|-|-|-|-|-|-|
|Name|OtherCompanyName|Position|StartingDateofTenure|ExpiryDateofTenure|Whetherreceivingremunerationfromthercompanies|
|CongHong|DalianSKFWazhouBearingCo.,Ltd.|ChairmanofBoardofDirectors,|2013.12.11||Y|
|CongHong|DalianGuangyangWazhouCarBearingCo.,Ltd|ChairmanofBoardofDirectors,|2013.12.11||N|
|CongHong|DalianTHKWazhouIndustryCo.,Ltd|ChairmanofBoardof|2013.12.11||N|

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2013AnnualReport
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|-|-|-|-|-|
|||Directors,|||
|CongHong|WafangdianBearingGroupspecialprecisionbearingCompanyLimited|ChairmanofBoardofDirectors,|2013.12.11|N|
|ShaoYang|WazhouExactPrecisionCo.,Ltd|ChairmanofBoardofDirectors,|2010.08.01|N|
|ShaoYang|WazhouGroupPrecisionTransmissionBearingCo.,Ltd|ChairmanofBoardofDirectors,|2010.08.01|N|
|ShaoYang|WazhouGroupPrecisionTurnplateBearingCo.,Ltd|ChairmanofBoardofDirectors,|2010.08.01|N|
|ShaoYang|DaLianWazhouFengyuanMachineco.,Ltd|ChairmanofBoardofDirectors,|2011.05.01|N|
|ShaoYang|DaLianWazhouJinzhouMachineco.,Ltd|ChairmanofBoardofDirectors,|2011.05.01|N|
|ShaoYang|WazhouLiaoyangBearingManufacturingCo.,Ltd|ChairmanofBoardofDirectors,|2010.08.01|N|
|ZhangXinghai|WazhouGroupEquipmentTechnicalEngineeringCo.,Ltd|ChairmanofBoardofDirectors|2012.08.01|N|

IIIIIIIIIIII....TTTThhhheeeeRRRReeeemmmmuuuunnnneeeerrrraaaattttiiiioooonnnnooooffffDDDDiiiirrrreeeeccccttttoooorrrrssss,,,,SSSSuuuuppppeeeerrrrvvvviiiissssoooorrrrssssaaaannnnddddSSSSeeeennnniiiioooorrrrMMMMaaaannnnaaaaggggeeeemmmmeeeennnntttt
Decision-makingprocedures,basisfordeterminationandactualpaymentoftheremunerationtodirectors,
supervisorsandseniormanagement
Unit:0000'Yuan
|||||||||
|-|-|-|-|-|-|-|-|
|Name|Position|Gender|Age|OfficeStatus|RemunerationfromtheCompany|RemunerationfromShareholder|ActualRemunerationattheendofreportperiod|
|CongHong|Chairman|Male|55|Incumbent||10.68|10.68|
|MengWei|||46|Incumbent||8.16|8.16|
|ShaoYang|Director,GerneralManagement|Male|48|Incumbent|9.6||9.6|
|LiShi|Director|Male|49|Incumbent||7.2|7.2|
|ChenJiajun|Director|Male|47|Incumbent||6.48|6.48|
|SunNajuan|Director,GeneralAccountant|Female|46|Incumbent|7.56||7.56|
|ZhuJiming|Director|Male|53|Incumbent|0|||
|FangBo|Director|Female|42|Incumbent|0|||
|LiuYuping|IndependentDirector|Male|58|Incumbent|3.6||3.6|
|WuChunyou|IndependentDirector|Male|69|Incumbent|3.6||3.6|
|ZhangLi|IndependentDirector|Female|54|Incumbent|3.6||3.6|
|SuGuangguo|IndependentDirector|Male|43|Incumbent|3.6||3.6|
|ZhangXinghai|Supervisor|Male|46|Incumbent||8.16|8.16|
|WuZuoxian|Supervisor|Male|59|Incumbent||4.32|4.32|
|LiXiumin|Supervisor|Female|52|Incumbent||4.68|4.68|
|TanJianguang|Supervisor|Male|50|Incumbent|6.2||6.2|
|WangLin|Supervisor|Female|33|Incumbent|4.29||4.29|
|WangLongjie|Vice-G.M|Male|52|Incumbent|6.62||6.62|
|HuaYuehong|Vice-G.M|Male|46|Incumbent|7.2||7.2|
|WangLushun|Chairman|Male|64|Resignation||10.69|10.69|
|ZhangXinghai|Director|Male|46|Resignation||||
|RakeshMakhija|Director|Male|62|Resignation||||

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2013AnnualReport
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|-|-|-|-|-|-|-|-|
|WangKeyi|IndependentDirector|Male|70|Resignation|3.6||3.6|
|ZhangQiluan|IndependentDirector|Male|57|Resignation|3.6||3.6|
|WangHuabin|IndependentDirector|Male|73|Resignation|3.6||3.6|
|QuRongjun|Supervisor|Male|59|Resignation||5.76|5.76|
|YaoChunjuan|Supervisor|Female|48|Resignation|4.68||4.68|
|SunMaolin|Supervisor|Male|50|Resignation||8.64|8.64|
|MengWei|Supervisor|Male|46|Resignation||||
|HuXiuli|Supervisor|Female|48|Resignation|3.58||3.58|
|Total|--|--|--|--|74.93|74.77|149.7|

Incentiveequitytodirectors,supervisorsor/andseniormanagementinthereportperiod.
□Applicable√Inapplicable
IIIIVVVV....CCCChhhhaaaannnnggggeeeessssooooffffDDDDiiiirrrreeeeccccttttoooorrrrssss,,,,SSSSuuuuppppeeeerrrrvvvviiiissssoooorrrrssssaaaannnnddddSSSSeeeennnniiiioooorrrrMMMMaaaannnnaaaaggggeeeemmmmeeeennnntttt
||||||
|-|-|-|-|-|
|Name|Post|Type|Date|Reason|
|WangLushun|CongHong|Outofposition|2013.11.24|Retirement|
|CongHong|CongHong|Bevoted|2013.12.30||
|MengWei|Supervisor|Retirement|2013.12.30|Takehispositionasdirector|
|LiShi|Director|Bevoted|2013.06.26|expired|
|RakeshMakhija|Director|expired|2013.06.25|expired|
|ZhuJiming|Director|Bevoted|2013.06.26|Bevoted|
|ZhangXinghai|Director|expired|2013.06.25|TakehispositionasSupervisor|
|WangKeyi|IndependentDirector|expired|2013.06.25|expired|
|ZhangQiluan|IndependentDirector|expired|2013.06.25|expired|
|WangHuabin|IndependentDirector|expired|2013.06.25|expired|
|LiuYuping|IndependentDirector|Bevoted|2013.06.26|Bevoted|
|WuChunyou|IndependentDirector|Bevoted|2013.06.26|Bevoted|
|Zhangli|IndependentDirector|Bevoted|2013.06.26|Bevoted|
|SunGuangguo|IndependentDirector|Bevoted|2013.06.26|Bevoted|
|ZhangXinghai|Supervisor|Bevoted|2013.06.26|Bevoted|
|WuZuoxian|Supervisor|Bevoted|2013.06.26|Bevoted|
|LiXiumin|Supervisor|Bevoted|2013.06.26|Bevoted|
|TanJianguang|Supervisor|Bevoted|2013.06.26|Bevoted|
|WangLin|Supervisor|Bevoted|2013.06.26|expired|
|SunMaolin|Supervisor|expired|2013.06.25|expired|
|YaoChunjuan|Supervisor|expired|2013.06.25|expired|
|HuXiuli|Supervisor|expired|2013.06.25|expired|
|QuRongjun|Supervisor|expired|2013.06.25|expired|

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Inapplicable
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1.Thenumberandprofessionalcompositionofstaffz
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2013AnnualReport
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|-|-|-|-|-|-|-|-|-|-|-|-|
|CategoryOrganization|Productionstaff||Salestaff||Technologystaff||Financialstaff||Administrativestaff||Total|
||Amount|Rate|Amount|Rate|Amount|Rate|Amount|Ratio|Amount|Ratio||
||3410|74.9%|284|6.2%|231|5.1%|74|1.6%|553|12.2%|4552|
||426|88.9%|0|0|18|3.7%|6|1.3%|29|6.1%|479|
||378|82.2%|9|1.9%|15|3.3%|6|1.3%|52|11.3%|460|
||4214|76.7%|293|5.3%|264|4.8%|86|1.6%|634|11.5%|5491|

 2222....TTTThhhheeeennnnuuuummmmbbbbeeeerrrrooooffffrrrreeeettttiiiirrrreeeeddddwwwwoooorrrrkkkkeeeerrrrssssnnnneeeeeeeeddddccccoooommmmppppaaaannnnyyyyppppaaaayyyytttthhhheeeeccccoooossssttttiiiissss3333000077779999....
3333....TTTThhhheeeeeeeedddduuuuccccaaaattttiiiioooonnnnttttooootttthhhheeeessssttttaaaaffffffff
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|CategoryOrganization|Doctor||Master||College||Juniorcollege||Highschoolorbelow||Total|
||Amount|Ratio|Amount|Ratio|Amount|Ratio|Amount|Ratio|Amount|Ratio||
|Thesubjectofshare|0|0|18|0.4%|579|12.7%|695|15.3%|3260|71.6%|4552|
|Sub-company：PrecisionMotorCompany|0|0|1|0.2%|25|5.2%|49|10.2%|404|84.3%|479|
|LiaoYangBearingCompany|0|0|0|0|9|2.0%|68|14.8%|383|83.3%|460|
|Total|0|0|19|0.3%|613|11.2%|812|14.8%|4047|73.7%|5491|

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2013AnnualReport 4444....TTTThhhheeeettttrrrraaaaiiiinnnniiiinnnnggggttttooootttthhhheeeessssttttaaaaffffffff
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item|Clases|||number|||Cost （’0000RMB）|||
||Plan|Actual|Percentagecomplete|Plan|Actual|Percentagecomplete|Plan|Actual|Percentagecomplete|
|1-layertraining|23|21|91.30%|743|719|96.77%|88.294|60.6238|68.66%|
|2-layertraining|46|100|217.39%|12,626|10,822|85.71%|2.0812|0|0|
|Systemtraining|35|14|40.00%|10,265|11,827|115.22%|12.34|0|0|
|Sentouttraining|10|14|140.00%|98|349|356.12%|26.1|17.0285|65.24%|
|Total|114|149|130.70%|23732|23717|99.94%|128.8152|77.6523|60.28%|

 Description:
(1) in all kinds of training, the system of training completion is relatively ideal, the main reason for part of the system training costs and expenses of part-time teachers' about the training course and no consensus, need further consultation to discuss these issues after organizing the implementation; Other unfinished training is mainly due to the time is not enough, needtodelayuntil2014.
(2)tosendallitems outsidetrainingoverfulfilledismainly duetothe relevantassociation,department,customer forthe newpolicy,systemandstandardtrainingoftemporaryorganization,fortheadditionalplan.
(3)in2013thefocusofthetrainingprogramare:
Sales staff bearing knowledge (theory and practice) training: implement salesman LunXunBan seven sessions, and peiliangyou 208 person-time, through the theoretical study and practical operation to improve the sales staff bearing professionalknowledge,toguidetosolvepracticalproblemsinthesalesandserviceworkfortrainingfocusandtarget. Skill appraisal senior technician training: training lathe, grinder, metal heat treatment engineering, machine shop fitter, maintenance electrician, measurement appraisal, bearing inspection worker isoparametric culture 269 person-time, encourageoutstandingtalenttoobtaincorrespondingskillslevel,ensureskilltalentteamfromtheaspectsoftheory,practice infrontofthepromotionanddevelopmentofhighqualitytechnicaltalentsfortheenterprise.)
ChapterⅧ. Corporate Governance
Ⅰ....CCCCoooorrrrppppoooorrrraaaatttteeeeGGGGoooovvvveeeerrrrnnnnaaaannnncccceeee
Duringthereportperiod,theCompanyhadcontinuouslyobservedCompanyLaw,SecuritiesLaw,andGuidelinesof
CorporateGovernanceforListedCompanyandrelevantregulationstoimproveandenhanceitscorporategovernance.
1.1Theholdingoftheshareholders,boardofdirectorsandboardofsupervisors,thevotingproceduresandtheformationof
theresolutionsweretotallysubjecttotheseregulations.
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2013AnnualReport 1.2TheCompanyhasmadeitsinternalmanagementsystemsandregulationsforrestrictionofbudgeting,purchasing, logisticsandsale,etc,andexecutedthemstrictly.
1.3Thecompanyhasseparatedbusiness,personnel,assets,interiororganizationandfinancefromitsholdingshareholder: (1)TheCompanyhadindependentoperationsitself,withitsbusinessseparatedfromitsholdingshareholders;
(2)TheCompanywasindependentintermsofitspersonnel,laborandsalarymanagement,andhaditsownindependent laborandpersonnelmanagementsystems.ExcepttheChairmanofBoardofDirectorsoftheparentcompanyWafangdian BearingGroupCorporationwhooccupiesastheChairmanoftheCompany,theGeneralManager,Deputy-General
ManagersandtheFinanceControlleroftheCompanywereallindependentfromthecontrollingshareholder.
(3)Theproductionsystem,auxiliaryproductionsystemandsupplementaryfacilitiesoftheCompanywereindependentfrom thecontrollingshareholder.
(4)TheCompanyhasseparatedtheaccountingfromthecontrollingshareholder.TheCompanycarriedoutindependent financeandaccountingonitsownandpaidtaxesindependently.
(5)TheCompanyhasestablishedtheorganizationsindependentontheholdingshareholder
Doesthereexistanydifferenceincompliancewiththecorporategovernance,thePRCCompanyLawandthe
relevantprovisionsofCSRC.
□Yes√No
Thereexistnodifferenceincompliancewiththecorporategovernance,thePRCCompanyLawandtherelevant
provisionsofCSRC.
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Inthereportterm,theCompanyhasbeenstrictlyfollowingtheInformationDisclosureRules,TheRegulationsof
RegistrationSystemofInformationInsider(证监会公告【2011】30号),theArticlesofAssociation,andthe
RegistrationandAdministrationRulesofInformationInsidersoftheCompany,andconductedthefollowing
works:
(1)Responsibilitieswereidentified:Internalinformationmanagementworksareconductedandsupervisedbythe
Boardcollectively,ChairmanofBoardisthemainresponsibleperson,SecretaryofBoardisauthorizedto
undertakeactionsaboutinformationinsiders;
(2)Specialdepartmentwasestablished:InvestmentandSecuritiesDepartmentwassetuptocarryoutdailyworkswithin therangeofresponsibilitiesasgrantedtotheSecretaryofBoard;
(3)Workflowandprocedureswereclarifiedandoptimized:circulationofinformationtooutsideoftheCompany
shallbeverifiedandsignedbytheoutletdepartment,thenapprovedbytheSecretaryofBoard,andfiledwiththe
InvestmentandSecuritiesDepartment
(4)Registrationandfilingofinformationinsiders:asdisclosureofannualreports,thefilesofinsidersshallbe
signedbytheChairman,andfiledbeforereportedtoShenzhenStockExchange.
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1.AnnualGeneralMeetingintheReportPeriod
|||||||
|-|-|-|-|-|-|
|Sessions|MeetingDate|DescriptionofProposals|Resolution|DisclosureDate|DisclosureIndex|

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2013AnnualReport
|||||||
|-|-|-|-|-|-|
|2012AnnualGeneralMeeting|2012.06.26|Reviewtheannualreportandtheabstractof2012;Reviewthedirector’sreportof2012;Reviewthesupervisors’reportof2012; ReviewfinancialFinalReportof2012(audited);ReviewtheprofitdistributionPlanof2012; Reviewthe2013annualproductionandoperationplan(includingthe2012annualfinancialbudget);ReviewtheproposalofCertifiedpublicaccountantsengagementandawards;Theproposaloftheestimationofthedailyrelatedtransactionof2012；ReviewtheproposalonchangingelectionofBoardSession；ReviewtheproposalonchangingelectionofSupervisoryCommitteeSession|ReviewedandApproved|2012.06.26|http://www.cninfo.com.cn|

2.ExtraordinaryShareholders’MeetingsintheReportPeriod
|||||||
|-|-|-|-|-|-|
|Sessions|MeetingDate|DescriptionofProposals|Resolution|DisclosureDate|DisclosureIndex|
|20131stExtraordinaryshareholders’meeting|2013.08.22|Proposalofpurchasingequity(51%)ofDalianSKFWazhouBearingCo.,Ltd.andterminatetheChinese-ForeignEquityJointVenturesContract|ReviewedandApproved|2013.08.22.|http://www.cninfo.com.cn|

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1.AttendanceofBoardMeetingandShareholders’Meeting
||||||||
|-|-|-|-|-|-|-|
|AttendanceofBoardMeeting|||||||
|Name|Meetingsrequiredtobepresent|Attendanceinperson|Attendancebyfacsimile|Attendancebyproxy|Absencerate|Non-attendanceinpersonfortwoconsecutivetimes|
|WuChunyou|4|2|1|1|0|N|
|ZhangLi|4|2|2|0|0|N|
|LiuYuping|4|2|2|0|0|N|
|SunGuangguo|4|2|1|1|0|N|
|NumberofShareholders’MeetingAttended||1|||||

2.ObjectionofIndependentDirectorsonSomeRelevantIssues
Objectionofindependentdirectorsonsomerelevantissues
□Yes√No
3.OtherNotetothePerformanceofIndependentDirectors
Hasanindependentdirector‘sadvicetotheCompanybeenaccepted?
√Yes□No
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Explanationabout whether advices relatedto the Company fromthe independentdirectors were taken or not The Company, accordingto therelevantregulationsandrequirements ofCompany Law andGuidelineonEstablishingIndependentDirector SysteminListedCompany,ArticlesofAssociation,earnestlyfulfilledtheobligationsoflawsandregulations,articlesof association and independent director system, actively attended the board meetings andshareholders‘ general meetings, examined and guided the production and operation of the Company, proposed independent opinions on significant events, put forward many valuable and expert advices about internal control and daily operation decisions, fulfilled the duties
diligently, faithfully, brought their rolesinto full play andeffectivelysafeguardedthe interestsof listed companies andgeneral
shareholders.IV.PerformanceofSpecialCommitteesundertheBoardofDirectorsintheReportPeriod
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2013AnnualReport The board of directors of the Company set up nomination committee, remuneration and appraisal committee, audit and strategy committee. Each committee proposed expert advices and opinions about the development of the Company in line with its own responsibilities and promoted the standardized corporate development. In 2013,dutyperformanceofeachcommitteeaffiliatedtotheboardofdirectors:
1. The audit committee totally participated in the annual audit work for 2012 including formulation of plan on annual audit, examinationandverificationofthefirstdraftofannualauditreportTheauditcommitteeheld4meetingsin2013,renewingthe fixperiodreportplanandtheauditreportdraft.
2. In 2013, the remuneration committee held one meeting in total on which deliberated and approved proposal on remunerationdistributionofthemanagementfor2013.
3. In 2013, the nomination committee held one meetings in total on which deliberated and approved proposal on continue recruitGeneralManager,ViceGeneralManagerandCFO.
4. In 2013, thethe strategy committee held one meetings in total on which deliberated and approved proposal on marketdevelopmentstrategy
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DidtheBoardofSupervisorsfindanyriskexistinginperformingthesupervisionactivitiesinthereportperiod?
□Yes√No
TheBoardofSupervisorshasnoobjectionagainstanymattersundersupervisioninthereportperiod.
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Thecompany hasseparated business,personnel,assets,interior organizationand financefrom itsholdingshareholder with independent operation ability:(1) The Company had independent operations itself, with its business separated from its holdingshareholders;(2)TheCompany was independent interms ofitspersonnel,laborand salarymanagement, andhad its own independent labor and personnel management systems. Except the Chairman of Board of Directors of the parent company Wafangdian Bearing Group Corporation who occupies as the Chairman of the Company, the General Manager, Deputy-GeneralManagersandtheFinanceControlleroftheCompanywere allindependentfromthecontrollingshareholder. (3)The production system, auxiliary production system and supplementary facilities of the Company were independent from the controlling shareholder. (4)The Company has separated the accounting from the controlling shareholder. The Company carried out independent finance and accounting on its own and paid taxes independently. (5)The Company has established theorganizationsindependentontheholdingshareholder.
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None
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.
Companyimplement"releasing"managementapproachinwhichbaseannualsalaryplusbenefitannualsalaryfor salaryofdirector(notincludingtheindependentdirector),seniormanagementpersonnel(includingsupervisor).The
remunerationandappraisalcommitteecarryoutcomprehensiveevaluationassessmentforperformanceoftheboard directorsandseniormanagementpersonnel,determinetheassessmentprinciplesaccordingtoassessmentandprocedures, carryoutindividuallyscore,evaluation,summaryforthedirectorsandseniormanagers.Directors,executiveofficerspersonal advancemonthlysalaryaccordingtothebasicsalary,cashoutafterannualappraisal.Company'sperformanceassessment andincentivemechanismhasplayedapositiveroleinsupervision,spurandmotivatefordirectors,seniormanagement.
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2013AnnualReport IIII....IIIInnnntttteeeerrrrnnnnaaaallllCCCCoooonnnnttttrrrroooollllCCCCoooonnnnssssttttrrrruuuuccccttttiiiioooonnnn
Theinternalcontrolevaluationleadedbytheboardofdirectorsofthecompany,andauthorizedbytheboardofdirectors. Thecompanyestablishedinternalcontrolevaluationgroupandorganizetheinternalcontrolevaluation.
Theinternalcontrolevaluationgroupmakesageneralplan,confirmsthescope,principlesandmethods,considersthe internal environment, risk assessment, control activities, information and communication, internal supervision and other factors,andevaluatesthedesignandoperationoftheinternalcontrolofthecompanycomprehensively.
After examined and checked by the management, the audit committee discusses the evaluation method, standard, procedureandevaluationresults.Afterthat,thereportwillbesubmittedtotheboardmeeting.
Theinternalcontrolevaluationreportwillbedisclosedafterbeingreviewedandpassedbytheboardmeeting. IIIIIIII....SSSSttttaaaatttteeeemmmmeeeennnnttttoooofffftttthhhheeeeBBBBooooaaaarrrrddddooooffffDDDDiiiirrrreeeeccccttttoooorrrrssssoooonnnntttthhhheeeeRRRReeeessssppppoooonnnnssssiiiibbbbiiiilllliiiittttyyyyooooffffIIIInnnntttteeeerrrrnnnnaaaallllCCCCoooonnnnttttrrrroooollll
TheBoardofDirectorsanddirectorguaranteethattherearenoomissions,misstatement,ormisleading
information in this report. They are responsible, individually and jointly, for the authenticity, accuracy and integrity of the informationherein.Establishingandeffectivelyimplementinginternalcontrolistheresponsibility
forBoardofDirectors.TheBoardofSupervisorswouldsupervisetheactivityofBoardofDirectors.Thesenior
managementisinchargeofthedailyoperationofinternalcontrol.TheCompany’sgoalsforinternalcontrolare
guaranteeing theCompany’s legitimate business, asset safety, integrity and authenticity of financial report, improving its operationeffectivenessandpromotingitsstrategicdevelopment.
IIIIIIIIIIII....BBBBaaaassssiiiissssffffoooorrrrEEEEssssttttaaaabbbblllliiiisssshhhhmmmmeeeennnnttttooooffffIIIInnnntttteeeerrrrnnnnaaaallllCCCCoooonnnnttttrrrroooolllloooofffftttthhhheeeeFFFFiiiinnnnaaaannnncccciiiiaaaallllRRRReeeeppppoooorrrrtttt
Accordingtoenterpriseinternalcontrolstandardsystem(including<basicnorms>,<applicationguidelines>,
<evaluationguidelines>issuedbytheministryoffinance,securitiesandotherministries,combinedwiththeenterprise internalcontrolsystemandevaluationmethod,thepurposeoftheevaluationreportisevaluatingthevalidityofthedesignand operationbyDecember31,2013,onthebasisofdailysupervisionandspecialsuperviseofinternalcontrol.
IIIIVVVV....SSSSeeeellllffff----aaaasssssssseeeessssssssmmmmeeeennnnttttRRRReeeeppppoooorrrrttttooooffffIIIInnnntttteeeerrrrnnnnaaaallllCCCCoooonnnnttttrrrroooollll
|||
|-|-|
|AbouttheSignificantDefectsoftheInternalControlFoundintheInternalControlSelf-assessmentReportintheReportPeriod||
|None||
|DisclosureDateoftheSelf-assessmentReportofInternalControl|2013.04.24|
|DisclosureIndexoftheSelf-assessmentReportofInternalControl|http://www.cninfo.com.cn|

VVVV....IIIInnnntttteeeerrrrnnnnaaaallllCCCCoooonnnnttttrrrroooollllAAAAuuuuddddiiiittttRRRReeeeppppoooorrrrtttt
√applicable□inapplicable
|||
|-|-|
|ReviewOpinionsintheInternalControlAuditReport||
|Itisouropinionthat,asofDecember31,2012,theheadquarterofWafangdianBearingCo.,ltd.hasmaintainedefficiencyofinternalcontrolonfinancialstatementsineverymaterialaspect.||
|DisclosureDateofInternalControlAuditReport|2014.04.26|
|DisclosureIndexofInternalControlAuditReport|http://www.cninfo.com.cn|

HastheCPAsissuedaqualifiedauditor‘sreportofinternalcontrol.
□Yes√No
DoestheinternalcontrolauditreportissuedbytheCPAsagreewiththeself-assessmentreportoftheBoardof
Directors
√Yes□No
VVVVIIII....TTTThhhheeeeEEEEssssttttaaaabbbblllliiiisssshhhhmmmmeeeennnnttttaaaannnnddddIIIImmmmpppplllleeeemmmmeeeennnnttttaaaattttiiiioooonnnnoooofffftttthhhheeeeOOOObbbblllliiiiggggaaaattttiiiioooonnnnSSSSyyyysssstttteeeemmmmooooffffMMMMaaaajjjjoooorrrrEEEErrrrrrrroooorrrrssssiiiinnnn
AAAAnnnnnnnnuuuuaaaallllRRRReeeeppppoooorrrrttttDDDDiiiisssscccclllloooossssuuuurrrreeee
Thecompanyhassetupasystem,duringthereportwedidn’tfindanymajorerrors.
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReportChapterⅩ. Financial Report (Attachment)
IIII....AAAAuuuuddddiiiittttRRRReeeeppppoooorrrrtttt
|||
|-|-|
|OpinionTypeofAuditReport|Standardunqualifiedauditopinion|
|DateofAuditReport|April24,2014|
|NameofAuditOrganization|ShineWingCertifiedPublicAccountantsDalianBranch|
|No.ofAuditReport|XYZH/2012DLA1044-1|
|Nameoftheauditor|LinLi WangDong|

TTTTooootttthhhheeeeSSSShhhhaaaarrrreeeehhhhoooollllddddeeeerrrrssssooooffffWWWWaaaaFFFFaaaannnnggggDDDDiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooommmmppppaaaannnnyyyyLLLLiiiimmmmiiiitttteeeedddd
We have audited the accompanying financial statements (consolidated and parent company) of Wa Fang Dian Bearing Company Limited (“the Company”), which comprise the balance sheet as at 31 Dec. 2012, and the income statement, and the cash flow statement, and the statement of changes inshareholders’ equity for theyearthenended,andnotestothefinancialstatements.
MMMMaaaannnnaaaaggggeeeemmmmeeeennnntttt''''ssssRRRReeeessssppppoooonnnnssssiiiibbbbiiiilllliiiittttyyyyffffoooorrrrtttthhhheeeeFFFFiiiinnnnaaaannnncccciiiiaaaallllSSSSttttaaaatttteeeemmmmeeeennnnttttssss
TheCompany’s management is responsible for the preparation and fair presentation of these financial statements. This responsibility includes: (1) preparing these financial statements in accordance with Accounting Standards for Business Enterprises issued by the Ministry of Finance of thePeople‘s Republic of China, and fairly presenting them; (2) designing, implementing and maintaining internal control which is necessarytoenablethatthefinancialstatementsare freefrommaterialmisstatement, whetherduetofraudor error.
AAAAuuuuddddiiiittttoooorrrr''''ssssRRRReeeessssppppoooonnnnssssiiiibbbbiiiilllliiiittttyyyy
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with China Standards on Auditing for Certified Public Accountants. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates madeby management, aswell asevaluating theoverallpresentation ofthefinancialstatements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion.
OOOOppppiiiinnnniiiioooonnnn
In our opinion, the financial statements comply with the requirements of the Accounting Standards for BusinessEnterprises issued bytheMinistry of FinanceofthePeople’sRepublic ofChina andpresentfairly,in all material respects, the financial position of the Company as at 31 Dec.2012, and financial performance and cashflowsoftheCompanyfortheyearthenended.
IIIIIIII.... Financial Statement
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport 1.ConsolidatedBalanceSheet.
UUUUnnnniiiitttt::::RRRRMMMMBBBBYYYYuuuuaaaannnn
||||
|-|-|-|
|Item|OpeningBalance|ClosingBalance|
|CCCCuuuurrrrrrrreeeennnnttttaaaasssssssseeeettttssss ：|||
|Monetaryfund|80,687,086.92|101,233,214.04|
|Financialassetsheld-for-trading|||
|Billsreceivable|100,329,887.46|113,253,584.93|
|Accountreceivable|1,138,605,661.45|1,077,510,354.13|
|Accountpaidinadvance|33,712,904.14|33,883,731.60|
|Interestreceivable|240,000.00|0.00|
|Otherreceivables|29,727,292.33|19,891,810.30|
|Inventory|1,196,734,228.79|1,156,565,201.60|
|Non-currentassetsduewithin1year|||
|Othercurrentassets|2,772,988.57|2,672,185.24|
|TTTToooottttaaaallllccccuuuurrrrrrrreeeennnnttttaaaasssssssseeeettttssss|2,582,810,049.66|2,505,010,081.84|
|NNNNoooonnnn----ccccuuuurrrrrrrreeeennnnttttaaaasssssssseeeettttssss|||
|Financialassetsavailable-for-sale|||
|Investmentsheld-to-maturity|||
|Long-termreceivable|||
|Long-termequityinvestment|108,272,431.11|97,194,641.13|
|Investmentproperty|||
|Fixedassets|572,492,122.56|620,008,753.04|
|Constructioninprogress|303,172,462.62|240,524,680.98|
|Constructionmaterials|||
|Fixedassetsdisposal|||
|Biologicalassets|139,563,086.91|143,996,714.42|
|Gasandpetrolassets|||
|Intangibleassets|||
|Developmentexpenditure|||
|Goodwill|||
|Long-termprepaidexpense|724,852.75|792,683.11|
|Deferredtaxassets|10,762,883.65|10,832,623.03|
|Othernon-currentassets|||
|TTTToooottttaaaallllnnnnoooonnnn----ccccuuuurrrrrrrreeeennnnttttaaaasssssssseeeettttssss|1,134,987,839.60|1,113,350,095.71|
|TTTToooottttaaaallllaaaasssssssseeeettttssss|3,717,797,889.26|3,618,360,177.55|
|CCCCuuuurrrrrrrreeeennnnttttlllliiiiaaaabbbbiiiilllliiiittttiiiieeeessss|||
|Short-termloan|418,000,000.00|588,000,000.00|
|Notepayable|93,247,340.00|221,485,454.42|
|Accountspayable|1,166,466,116.64|968,244,826.46|
|Accountsreceivedinadvance|74,433,323.04|47,450,550.80|
|Commissionchargepayable|||
|Accruedpayroll|19,654,053.70|21,960,176.22|
|Taxpayable|5,762,579.01|-411,670.20|
|Interestpayable|1,728,222.22||
|Dividendspayable|||
|Otherpayables|136,673,398.82|143,928,598.47|
|Non-currentliabilitiesduewithinIyear|150,000,000.00||

WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport
||||
|-|-|-|
|Othercurrentliabilities|4,011,103.83||
|TTTToooottttaaaallllccccuuuurrrrrrrreeeennnnttttlllliiiiaaaabbbbiiiilllliiiittttiiiieeeessss|2,069,976,137.26|1,990,657,936.17|
|NNNNoooonnnn----ccccuuuurrrrrrrreeeennnnttttlllliiiiaaaabbbbiiiilllliiiittttiiiieeeessss|||
|Long-termloan|90,000,000.00|60,000,000.00|
|Debenturepayable|||
|Long-termpayables|100,000.00|100,000.00|
|Specialpayables|321,698.98|321,698.98|
|Contingentliabilities|||
|Deferredtaxliabilities|||
|Othernon-currentliabilities|52,433,617.52|50,952,773.24|
|TTTToooottttaaaallllnnnnoooonnnn----ccccuuuurrrrrrrreeeennnnttttlllliiiiaaaabbbbiiiilllliiiittttiiiieeeessss|142,855,316.50|111,768,093.64|
|TTTToooottttaaaalllllllliiiiaaaabbbbiiiilllliiiittttiiiieeeessss|2,212,831,453.76|2,102,426,029.81|
|OOOOwwwwnnnneeeerrrr’’’’sssseeeeqqqquuuuiiiittttyyyy((((sssshhhhaaaarrrreeeehhhhoooollllddddeeeerrrrssss’’’’eeeeqqqquuuuiiiittttyyyy))))|||
|Capitalstock|402,600,000.00|402,600,000.00|
|Capitalpublicreserves|488,805,548.36|485,691,050.47|
|Less:treasuryshare|||
|Surplusreserve|131,442,909.11|129,292,318.86|
|Undistributedprofit|482,117,978.03|498,350,778.41|
|Differenceofforeigncurrencytranslation|||
|Equityattributabletoparentcompany|1,504,966,435.50|1,515,934,147.74|
|Minorityinterest|||
|TTTToooottttaaaalllloooowwwwnnnneeeerrrr’’’’sssseeeeqqqquuuuiiiittttyyyy|1,504,966,435.50|1,515,934,147.74|
|TTTToooottttaaaalllloooowwwwnnnneeeerrrr’’’’sssseeeeqqqquuuuiiiittttyyyyaaaannnnddddlllliiiiaaaabbbbiiiilllliiiittttiiiieeeessss|3,717,797,889.26|3,618,360,177.55|

 Chairman: CongHong GeneralAccountant:SunNajuan Accountingcharger:YaoChunjuan 2222.... BBBBaaaallllaaaannnncccceeeeSSSShhhheeeeeeeettttOOOOffffPPPPaaaarrrreeeennnnttttCCCCoooommmmppppaaaannnnyyyy
UUUUnnnniiiitttt::::RRRRMMMMBBBBYYYYuuuuaaaannnn
||||
|-|-|-|
|Item|OpeningBalance|ClosingBalance|
|CCCCuuuurrrrrrrreeeennnnttttaaaasssssssseeeettttssss ：|||
|Monetaryfund|76,549,204.53|98,688,072.55|
|Financialassetsheld-for-trading|||
|Billsreceivable|99,829,887.46|109,923,584.93|
|Accountreceivable|1,139,776,660.21|1,082,311,050.10|
|Accountpaidinadvance|32,824,584.91|32,587,830.67|
|Interestreceivable|240,000.00||
|Otherreceivables|25,564,205.17|15,125,784.55|
|Inventory|1,125,983,146.27|1,080,300,720.82|
|Non-currentassetsduewithin1year|||
|Othercurrentassets|2,772,988.57|2,672,185.24|
|TTTToooottttaaaallllccccuuuurrrrrrrreeeennnnttttaaaasssssssseeeettttssss|2,503,540,677.12|2,421,609,228.86|
|NNNNoooonnnn----ccccuuuurrrrrrrreeeennnnttttaaaasssssssseeeettttssss|||
|Financialassetsavailable-for-sale|||
|Investmentsheld-to-maturity|164,550,445.44|154,297,703.96|
|Long-termreceivable|||
|Long-termequityinvestment|||
|Investmentproperty|||

WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport
||||
|-|-|-|
|Fixedassets|462,267,249.78|506,327,706.02|
|Constructioninprogress|303,169,052.62|240,524,680.98|
|Constructionmaterials|||
|Fixedassetsdisposal|||
|Biologicalassets|123,588,686.87|127,689,514.42|
|Gasandpetrolassets|||
|Intangibleassets|||
|Developmentexpenditure|||
|Goodwill|||
|Long-termprepaidexpense|724,852.75|792,683.11|
|Deferredtaxassets|10,762,883.65|10,832,623.03|
|Othernon-currentassets|||
|TTTToooottttaaaallllnnnnoooonnnn----ccccuuuurrrrrrrreeeennnnttttaaaasssssssseeeettttssss|1,065,063,171.11|1,040,464,911.52|
|TTTToooottttaaaallllaaaasssssssseeeettttssss|3,568,603,848.23|3,462,074,140.38|
|CCCCuuuurrrrrrrreeeennnnttttlllliiiiaaaabbbbiiiilllliiiittttiiiieeeessss|||
|Short-termloan|418,000,000.00|588,000,000.00|
|Notepayable|93,247,340.00|221,485,454.42|
|Accountspayable|1,017,390,652.18|842,791,947.56|
|Accountsreceivedinadvance|74,528,538.89|46,597,401.40|
|Commissionchargepayable|||
|Accruedpayroll|11,427,966.15|12,967,151.76|
|Taxpayable|3,078,968.63|-3,619,755.25|
|Interestpayable|1,728,222.22||
|Dividendspayable|||
|Otherpayables|95,022,064.02|88,997,888.85|
|Non-currentliabilitiesduewithinIyear|150,000,000.00||
|Othercurrentliabilities|3,913,555.83||
|TTTToooottttaaaallllccccuuuurrrrrrrreeeennnnttttlllliiiiaaaabbbbiiiilllliiiittttiiiieeeessss|1,868,337,307.92|1,797,220,088.74|
|NNNNoooonnnn----ccccuuuurrrrrrrreeeennnnttttlllliiiiaaaabbbbiiiilllliiiittttiiiieeeessss|||
|Long-termloan|90,000,000.00|60,000,000.00|
|Debenturepayable|||
|Long-termpayables|||
|Specialpayables|321,698.98|321,698.98|
|Contingentliabilities|||
|Deferredtaxliabilities|||
|Othernon-currentliabilities|47,848,861.52|50,952,773.24|
|TTTToooottttaaaallllnnnnoooonnnn----ccccuuuurrrrrrrreeeennnnttttlllliiiiaaaabbbbiiiilllliiiittttiiiieeeessss|138,170,560.50|111,274,472.22|
|TTTToooottttaaaalllllllliiiiaaaabbbbiiiilllliiiittttiiiieeeessss|2,006,507,868.42|1,908,494,560.96|
|OOOOwwwwnnnneeeerrrr’’’’sssseeeeqqqquuuuiiiittttyyyy((((sssshhhhaaaarrrreeeehhhhoooollllddddeeeerrrrssss’’’’eeeeqqqquuuuiiiittttyyyy))))|||
|Capitalstock|402,600,000.00|402,600,000.00|
|Capitalpublicreserves|485,678,443.26|482,563,945.37|
|Less:treasuryshare|||
|Surplusreserve|131,442,909.11|129,292,318.86|
|Undistributedprofit|542,374,627.44|539,123,315.19|
|Minorityinterest|||
|TTTToooottttaaaalllloooowwwwnnnneeeerrrr’’’’sssseeeeqqqquuuuiiiittttyyyy|1,562,095,979.81|1,553,579,579.42|
|TTTToooottttaaaalllloooowwwwnnnneeeerrrr’’’’sssseeeeqqqquuuuiiiittttyyyyaaaannnnddddlllliiiiaaaabbbbiiiilllliiiittttiiiieeeessss|3,568,603,848.23|3,462,074,140.38|

WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport Chairman: CongHong GeneralAccountant:SunNajuan Accountingcharger:YaoChunjuan 3333....CCCCoooonnnnssssoooolllliiiiddddaaaatttteeeeddddIIIInnnnccccoooommmmeeeeSSSShhhheeeeeeeetttt....
UUUUnnnniiiitttt::::RRRRMMMMBBBBYYYYuuuuaaaannnn
||||
|-|-|-|
|IIIItttteeeemmmm|Accountforthecurrentperiod|Accountforthepriorperiod|
|1111....TTTToooottttaaaallllooooppppeeeerrrraaaattttiiiinnnnggggiiiinnnnccccoooommmmeeee|3,079,780,183.34|3,092,563,172.35|
|Including:Operatingrevenue|3,079,780,183.34|3,092,563,172.35|
|Interestincome|||
|Handlingchargeandcommissionincome|||
|2222....TTTToooottttaaaallllooooppppeeeerrrraaaattttiiiinnnnggggccccoooosssstttt|3,092,680,388.36|3,081,698,636.84|
|Including:Operatingcost|2,761,141,381.33|2,752,495,588.08|
|Interestexpenses|||
|Handlingchargeandcommissionincome|||
|Tax&surchargesformainoperations|12,910,105.79|12,318,416.99|
|Sellingexpenses|214,304,962.05|212,371,985.56|
|Administrativeexpense|73,329,986.82|69,945,827.17|
|Financialexpense|27,048,474.85|24,669,585.10|
|Lossofimpairmentofassets|3,945,477.52|9,897,233.94|
|Add:Gainsofchangeoffairvalueofassets(losswith"-")|||
|Investmentincome(losswith"-")|7,609,310.77|4,916,516.10|
|Including:Incomeforminvestmentonassociatedenterpriseandjointlyenterprise|6,689,310.77|4,923,454.31|
|3333....OOOOppppeeeerrrraaaattttiiiinnnnggggpppprrrrooooffffiiiitttt((((lllloooosssssssswwwwiiiitttthhhh""""----""""))))|-5,290,894.25|15,781,051.61|
|Add:Non-operatingrevenue|10,200,141.35|31,916,918.18|
|Less:Non-operatingcost|3,139,455.65|2,839,346.19|
|Including:lossondisposalofnon-currentassets|526,502.27|49,086.47|
|4444....TTTToooottttaaaallllpppprrrrooooffffiiiitttt((((lllloooosssssssswwwwiiiitttthhhh""""----""""))))|1,769,791.45|44,858,623.60|
|Less:Incometaxexpenses|-251,998.42|2,580,114.73|
|5555....NNNNeeeettttpppprrrrooooffffiiiitttt((((LLLLoooosssssssswwwwiiiitttthhhh""""----""""))))|2,021,789.87|42,278,508.87|
|Netprofitattributabletoshareholdersofparentcompany|2,021,789.87|42,278,508.87|
|Minorityinterests|||
|6666....EEEEaaaarrrrnnnniiiinnnnggggssssppppeeeerrrrsssshhhhaaaarrrreeee|||
|(1)Basicearningspershare|0.01|0.11|
|(2)Dilutedearningspershare|0.01|0.11|
|7777....OOOOtttthhhheeeerrrrccccoooommmmpppprrrreeeehhhheeeennnnssssiiiivvvveeeerrrreeeettttuuuurrrrnnnnssss|2,647,323.21||
|8888....TTTToooottttaaaallllccccoooommmmpppprrrreeeehhhheeeennnnssssiiiivvvveeeerrrreeeettttuuuurrrrnnnnssss|4,669,113.08|42,278,508.87|
|Totalcomprehensivereturnsavailableforparentcompany|4,669,113.08|42,278,508.87|
|Totalcomprehensivereturnsavailableforminorityshareholders|||

Chairman: CongHong GeneralAccountant:SunNajuan Accountingcharger:YaoChunjuan
4444....IIIInnnnccccoooommmmeeeeSSSShhhheeeeeeeettttooooffffPPPPaaaarrrreeeennnnttttCCCCoooommmmppppaaaannnnyyyy....
UUUUnnnniiiitttt::::RRRRMMMMBBBBYYYYuuuuaaaannnn
||||
|-|-|-|
|IIIItttteeeemmmm|Accountforthecurrentperiod|Accountforthepriorperiod|
|1111....TTTToooottttaaaallllooooppppeeeerrrraaaattttiiiinnnnggggiiiinnnnccccoooommmmeeee|3,083,150,947.99|3,080,328,923.77|

WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport
||||
|-|-|-|
|2222....TTTToooottttaaaallllooooppppeeeerrrraaaattttiiiinnnnggggccccoooosssstttt|2,764,574,319.35|2,739,960,540.45|
|Tax&surchargesformainoperations|11,681,244.77|11,618,878.34|
|Sellingexpenses|213,021,673.97|210,929,917.11|
|Administrativeexpense|55,898,595.75|51,073,547.14|
|Financialexpense|27,014,695.44|24,470,321.09|
|Lossofimpairmentofassets|3,774,562.85|9,850,642.26|
|Add:Gainsofchangeoffairvalueofassets(losswith"-")|||
|Investmentincome(losswith"-")|8,058,243.59|5,016,928.29|
|Including:Incomeforminvestmentonassociatedenterpriseandjointlyenterprise|7,138,243.59|5,023,866.50|
|3333....OOOOppppeeeerrrraaaattttiiiinnnnggggpppprrrrooooffffiiiitttt((((lllloooosssssssswwwwiiiitttthhhh""""----""""))))|15,244,099.45|37,442,005.67|
|Add:Non-operatingrevenue|9,360,366.18|20,850,155.43|
|Less:Non-operatingcost|2,956,940.13|2,658,525.08|
|Including:lossondisposalofnon-currentassets|525,803.00|44,080.75|
|4444....TTTToooottttaaaallllpppprrrrooooffffiiiitttt((((lllloooosssssssswwwwiiiitttthhhh""""----""""))))|21,647,525.50|55,633,636.02|
|Less:Incometaxexpenses|141,623.00|2,433,129.10|
|5555....NNNNeeeettttpppprrrrooooffffiiiitttt((((LLLLoooosssssssswwwwiiiitttthhhh""""----""""))))|21,505,902.50|53,200,506.92|
|Netprofitattributabletoshareholdersofparentcompany|||
|Minorityinterests|||
|6666....EEEEaaaarrrrnnnniiiinnnnggggssssppppeeeerrrrsssshhhhaaaarrrreeee|||
|(1)Basicearningspershare|||
|(2)Dilutedearningspershare|||
|7777....OOOOtttthhhheeeerrrrccccoooommmmpppprrrreeeehhhheeeennnnssssiiiivvvveeeerrrreeeettttuuuurrrrnnnnssss|2,647,323.21||
|8888....TTTToooottttaaaallllccccoooommmmpppprrrreeeehhhheeeennnnssssiiiivvvveeeerrrreeeettttuuuurrrrnnnnssss|24,153,225.71|53,200,506.92|

 Chairman: CongHong GeneralAccountant:SunNajuan Accountingcharger:YaoChunjuan 5555....CCCCoooonnnnssssoooolllliiiiddddaaaatttteeeeddddCCCCaaaasssshhhhFFFFlllloooowwwwSSSSttttaaaatttteeeemmmmeeeennnntttt....
UUUUnnnniiiitttt::::RRRRMMMMBBBByyyyuuuuaaaannnn
||||
|-|-|-|
|IIIItttteeeemmmm|Accountforthecurrentperiod|Accountforthepriorperiod|
|1.Cashfromoperatingactivities|||
|Cashreceivedfromsaleofgoodsorrenderingofservices|1,618,536,604.15|1,816,693,040.84|
|Refundoftaxesandfares|313,402.31|1,607.08|
|Othercashreceivedrelatingtooperatingactivities|61,610,231.38|33,637,467.11|
|SSSSuuuubbbb----ttttoooottttaaaallllooooffffccccaaaasssshhhhiiiinnnnfffflllloooowwwwssss|1,680,460,237.84|1,850,332,115.03|
|Cashpaidforgoodsandservices|1,078,279,214.87|1,202,648,756.55|
|Cashpaidtooronbehalfoftheemployees|295,143,843.17|292,774,682.25|
|Taxpayments|88,319,629.40|87,664,441.83|
|Othercashpaidrelatingtooperatingactivities|148,483,413.18|136,687,492.20|
|SSSSuuuubbbb----ttttoooottttaaaallllooooffffccccaaaasssshhhhoooouuuuttttfffflllloooowwwwssss|1,610,226,100.62|1,719,775,372.83|
|NNNNeeeettttccccaaaasssshhhhfffflllloooowwwwssssffffrrrroooommmmooooppppeeeerrrraaaattttiiiinnnnggggaaaaccccttttiiiivvvviiiittttiiiieeeessss|70,234,137.22|130,556,742.20|
|2222....CCCCaaaasssshhhhfffflllloooowwwwssssffffrrrroooommmmiiiinnnnvvvveeeessssttttiiiinnnnggggaaaaccccttttiiiivvvviiiittttiiiieeeessss|||
|Cashreceivedfromreturnofinvestment||403,916.91|
|Cashreceivedfrominvestmentincomes|680,000.00||
|Net cash received from disposal of fixed assets, intangibleassetsandotherlong-termassets|35,776.00|7,951,900.00|
|Proceeds from sale of subsidiaries and other operating|||

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|-|-|-|
|units|||
|Othercashreceivedrelatingtoinvestingactivities|||
|SSSSuuuubbbb----ttttoooottttaaaallllooooffffccccaaaasssshhhhiiiinnnnfffflllloooowwwwssss|715,776.00|8,355,816.91|
|Cash paid to acquire fixed assets, intangible assets andotherlong-termassets|87,812,191.90|78,184,309.82|
|Cashpaidtoacquireinvestment|||
|Netcashusedinacquiringsubsidiariesandotheroperatingunits|||
|Othercashpaidrelatingtoinvestingactivities|||
|SSSSuuuubbbb----ttttoooottttaaaallllooooffffccccaaaasssshhhhoooouuuuttttfffflllloooowwwwssss|87,812,191.90|78,184,309.82|
|NNNNeeeettttccccaaaasssshhhhfffflllloooowwwwssssffffrrrroooommmmiiiinnnnvvvveeeessssttttmmmmeeeennnnttttaaaaccccttttiiiivvvviiiittttiiiieeeessss|-87,096,415.90|-69,828,492.91|
|3333....CCCCaaaasssshhhhfffflllloooowwwwssssffffrrrroooommmmffffiiiinnnnaaaannnncccciiiinnnnggggaaaaccccttttiiiivvvviiiittttiiiieeeessss|||
|Cashreceivedfromabsorbinginvestment|||
|Including:Cashreceivedfromincreaseinminorityinterest|||
|Proceedsfromborrowings|868,000,000.00|1,110,000,000.00|
|Otherproceedsrelatingtofinancingactivities|138,000,000.00|74,058,410.98|
|SSSSuuuubbbb----ttttoooottttaaaallllooooffffccccaaaasssshhhhiiiinnnnfffflllloooowwwwssss|1,006,000,000.00|1,184,058,410.98|
|Repaymentofborrowings|858,000,000.00|1,113,824,000.00|
|Distributionof dividendsorprofits&interestexpenses|42,030,286.03|57,465,403.06|
|Including:dividendsorprofitpaidtominorityinterest|||
|Cashpaidforotherfinancingactivities|88,000,000.00|75,206,521.14|
|SSSSuuuubbbb----ttttoooottttaaaallllooooffffccccaaaasssshhhhoooouuuuttttfffflllloooowwwwssss|988,030,286.03|1,246,495,924.20|
|NNNNeeeettttccccaaaasssshhhhfffflllloooowwwwssssffffrrrroooommmmffffiiiinnnnaaaannnncccciiiinnnnggggaaaaccccttttiiiivvvviiiittttiiiieeeessss|17,969,713.97|-62,437,513.22|
|4444....EEEEffffffffeeeeccccttttssssooooffffffffoooorrrreeeeiiiiggggnnnneeeexxxxcccchhhhaaaannnnggggeeeerrrraaaatttteeeecccchhhhaaaannnnggggeeeessssoooonnnnccccaaaasssshhhh|-494,982.41|-474,386.53|
|5555....NNNNeeeettttiiiinnnnccccrrrreeeeaaaasssseeeessssiiiinnnnccccaaaasssshhhhaaaannnnddddccccaaaasssshhhheeeeqqqquuuuiiiivvvvaaaalllleeeennnnttttssss|612,452.88|-2,183,650.46|
|Add:cashandcashequivalent,atthebeginningofyear|60,004,306.25|62,187,956.71|
|6666....CCCCaaaasssshhhhaaaannnnddddccccaaaasssshhhheeeeqqqquuuuiiiivvvvaaaalllleeeennnnttttaaaatttttttthhhheeeeeeeennnnddddoooofffftttthhhheeeeyyyyeeeeaaaarrrr|60,616,759.13|60,004,306.25|

 Chairman: CongHong GeneralAccountant:SunNajuan Accountingcharger:YaoChunjuan 6666....CCCCaaaasssshhhhFFFFlllloooowwwwSSSSttttaaaatttteeeemmmmeeeennnnttttOOOOffffPPPPaaaarrrreeeennnnttttCCCCoooommmmppppaaaannnnyyyy....
UUUUnnnniiiitttt::::RRRRMMMMBBBByyyyuuuuaaaannnn
||||
|-|-|-|
|IIIItttteeeemmmm|Accountforthecurrentperiod|Accountforthepriorperiod|
|1.Cashfromoperatingactivities|||
|Cashreceivedfromsaleofgoodsorrenderingofservices|1,615,918,694.11|1,804,792,195.85|
|Refundoftaxesandfares|313,402.31|1,607.08|
|Othercashreceivedrelatingtooperatingactivities|51,807,773.49|32,931,109.34|
|SSSSuuuubbbb----ttttoooottttaaaallllooooffffccccaaaasssshhhhiiiinnnnfffflllloooowwwwssss|1,668,039,869.91|1,837,724,912.27|
|Cashpaidforgoodsandservices|1,147,865,165.70|1,259,963,442.80|
|Cashpaidtooronbehalfoftheemployees|244,775,457.38|244,251,568.67|
|Taxpayments|74,682,132.41|79,382,969.81|
|Othercashpaidrelatingtooperatingactivities|145,459,956.91|127,085,180.19|
|SSSSuuuubbbb----ttttoooottttaaaallllooooffffccccaaaasssshhhhoooouuuuttttfffflllloooowwwwssss|1,612,782,712.40|1,710,683,161.47|
|NNNNeeeettttccccaaaasssshhhhfffflllloooowwwwssssffffrrrroooommmmooooppppeeeerrrraaaattttiiiinnnnggggaaaaccccttttiiiivvvviiiittttiiiieeeessss|55,257,157.51|127,041,750.80|
|2222....CCCCaaaasssshhhhfffflllloooowwwwssssffffrrrroooommmmiiiinnnnvvvveeeessssttttiiiinnnnggggaaaaccccttttiiiivvvviiiittttiiiieeeessss|||
|Cashreceivedfromreturnofinvestment||403,916.91|
|Cashreceivedfrominvestmentincomes|680,000.00||

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|-|-|-|
|Net cash received from disposal of fixed assets, intangibleassetsandotherlong-termassets|35,776.00|7,220,100.00|
|Proceeds from sale of subsidiaries and other operatingunits|||
|Othercashreceivedrelatingtoinvestingactivities|||
|SSSSuuuubbbb----ttttoooottttaaaallllooooffffccccaaaasssshhhhiiiinnnnfffflllloooowwwwssss|715,776.00|7,624,016.91|
|Cash paid to acquire fixed assets, intangible assets andotherlong-termassets|74,427,953.09|77,981,545.32|
|Cashpaidtoacquireinvestment|||
|Netcashusedinacquiringsubsidiariesandotheroperatingunits|||
|Othercashpaidrelatingtoinvestingactivities|||
|SSSSuuuubbbb----ttttoooottttaaaallllooooffffccccaaaasssshhhhoooouuuuttttfffflllloooowwwwssss|74,427,953.09|77,981,545.32|
|NNNNeeeettttccccaaaasssshhhhfffflllloooowwwwssssffffrrrroooommmmiiiinnnnvvvveeeessssttttmmmmeeeennnnttttaaaaccccttttiiiivvvviiiittttiiiieeeessss|-73,712,177.09|-70,357,528.41|
|3333....CCCCaaaasssshhhhfffflllloooowwwwssssffffrrrroooommmmffffiiiinnnnaaaannnncccciiiinnnnggggaaaaccccttttiiiivvvviiiittttiiiieeeessss|||
|Cashreceivedfromabsorbinginvestment|||
|Including:Cashreceivedfromincreaseinminorityinterest|||
|Proceedsfromborrowings|868,000,000.00|1,110,000,000.00|
|Otherproceedsrelatingtofinancingactivities|138,000,000.00|74,058,410.98|
|SSSSuuuubbbb----ttttoooottttaaaallllooooffffccccaaaasssshhhhiiiinnnnfffflllloooowwwwssss|1,006,000,000.00|1,184,058,410.98|
|Repaymentofborrowings|858,000,000.00|1,110,000,000.00|
|Distributionof dividendsorprofits&interestexpenses|42,030,286.03|57,344,652.22|
|Including:dividendsorprofitpaidtominorityinterest|88,000,000.00|75,206,521.14|
|Cashpaidforotherfinancingactivities|||
|SSSSuuuubbbb----ttttoooottttaaaallllooooffffccccaaaasssshhhhoooouuuuttttfffflllloooowwwwssss|988,030,286.03|1,242,551,173.36|
|NNNNeeeettttccccaaaasssshhhhfffflllloooowwwwssssffffrrrroooommmmffffiiiinnnnaaaannnncccciiiinnnnggggaaaaccccttttiiiivvvviiiittttiiiieeeessss|17,969,713.97|-58,492,762.38|
|4444....EEEEffffffffeeeeccccttttssssooooffffffffoooorrrreeeeiiiiggggnnnneeeexxxxcccchhhhaaaannnnggggeeeerrrraaaatttteeeecccchhhhaaaannnnggggeeeessssoooonnnnccccaaaasssshhhh|||
|5555....NNNNeeeettttiiiinnnnccccrrrreeeeaaaasssseeeessssiiiinnnnccccaaaasssshhhhaaaannnnddddccccaaaasssshhhheeeeqqqquuuuiiiivvvvaaaalllleeeennnnttttssss|||
|AAAAdddddddd:::: ccccaaaasssshhhh aaaannnndddd ccccaaaasssshhhh eeeeqqqquuuuiiiivvvvaaaalllleeeennnntttt,,,, aaaatttt tttthhhheeee bbbbeeeeggggiiiinnnnnnnniiiinnnngggg ooooffffyyyyeeeeaaaarrrr|||
|6666....CCCCaaaasssshhhhaaaannnnddddccccaaaasssshhhheeeeqqqquuuuiiiivvvvaaaalllleeeennnnttttaaaatttttttthhhheeeeeeeennnnddddoooofffftttthhhheeeeyyyyeeeeaaaarrrr|||

Chairman: CongHong GeneralAccountant:SunNajuan Accountingcharger:YaoChunjuan
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport
7777....CCCCoooonnnnssssoooolllliiiiddddaaaatttteeeeddddSSSShhhheeeeeeeettttOOOOffffCCCChhhhaaaannnnggggeeeessssIIIInnnnSSSShhhhaaaarrrreeeehhhhoooollllddddeeeerrrr’’’’ssssEEEEqqqquuuuiiiittttyyyy
UUUUnnnniiiitttt::::RRRRMMMMBBBByyyyuuuuaaaannnn
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item|Amountincurrentperiod|||||||||
||Owner’sequityattributabletoparentcompany|||||||Minorityshareholders’equity|Owner’sequity|
||Capitalstock|Capitalpublicreserves|less：treasurestock|Surpluspublicreserves|Generalprovisionforrisk|Undistributedprofits|Others|||
|1.Balanceattheendoflastyear|402,600,000.00|485,691,050.47||129,292,318.86||498,350,778.41|||1,515,934,147.74|
|Add:changesinaccountingpolicies||||||||||
|Changesinpreviouserrors||||||||||
|Others||||||||||
|2.Balanceatthebeginningofthisyear|402,600,000.00|485,691,050.47||129,292,318.86||498,350,778.41|||1,515,934,147.74|
|3.Thechangesinthisyear（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)Othercomprehensivereturns||3,114,497.89|||||||3,114,497.89|
|Total(1)and(2)||3,114,497.89||||2,021,789.87|||5,136,287.76|
|(3)Theassetsinvestedorreturnedbytheowners||||||||||
|1)capitalinvestedbyowners||||||||||
|2)The amountofsharepaymentrecordedowner’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)distributionforowner(shareholders)||||||-16,104,000.00|||-16,104,000.00|
|4)others||||||||||

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|-|-|-|-|-|-|
|(5）interiortransferenceofowner’sequity||||||
|1)capital(capitalstock)transferredbythecapitalpublicreserves||||||
|2)capital(capitalstock)transferredbythesurpluspublicreserves||||||
|3)lossoffsetbythesurpluspublicreserves||||||
|4)others||||||
|4.Balanceattheendofthecurrentperiod|402,600,000.00|488,805,548.36|131,442,909.11|482,117,978.03|1,504,966,435.50|

UUUUnnnniiiitttt::::RRRRMMMMBBBByyyyuuuuaaaannnn
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|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||123,972,268.17||477,496,320.23|||1,489,759,638.87|
|Add: changes in accountingpolicies||||||||||
|Changesinpreviouserrors||||||||||
|Others||||||||||
|2.Balance at the beginning ofthisyear|402,600,000.00|485,691,050.47||123,972,268.17||477,496,320.23|||1,489,759,638.87|
|3. The changes in this year（decreasewith“-”）||||5,320,050.69||20,854,458.18|||26,174,508.87|
|(1)Netprofits||||||42,278,508.87|||42,278,508.87|

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|||||||
|-|-|-|-|-|-|
|(2) Other comprehensivereturns||||||
|Total(1)and(2)||||42,278,508.87|42,278,508.87|
|(3) The assets invested orreturnedbytheowners||||||
|1)capitalinvestedbyowners||||||
|2)The amount of sharepayment recorded owner’sequity||||||
|3)others||||||
|(4）Profitsdistribution|||5,320,050.69|-21,424,050.69|-16,104,000.00|
|1)Provision for surplus publicreserves|||5,320,050.69|-5,320,050.69||
|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 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|485,691,050.47|129,292,318.86|498,350,778.41|1,515,934,147.74|

Chairman: CongHong GeneralAccountant:SunNajuan Accountingcharger:YaoChunjuan
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport
8888....SSSShhhheeeeeeeettttOOOOffffCCCChhhhaaaannnnggggeeeessssIIIInnnnSSSShhhhaaaarrrreeeehhhhoooollllddddeeeerrrr’’’’ssssEEEEqqqquuuuiiiittttyyyyOOOOffffPPPPaaaarrrreeeennnnttttCCCCoooommmmppppaaaammmmyyyy....
UUUUnnnniiiitttt::::RRRRMMMMBBBByyyyuuuuaaaannnn
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|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|482,563,945.37||129,292,318.86||||||
|Add: changes in accountingpolicies||||||||||
|Changesinpreviouserrors||||||||||
|Others||||||||||
|2.Balance at the beginning ofthisyear|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|||24,620,400.39|
|(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)Provision for surplus publicreserves||||2,150,590.25||-2,150,590.25||||
|2)provisionforgeneralrisks||||||||||
|3)distribution for||||||-16,104,000.00|||-16,104,000.00|

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2013AnnualReport
|||||||
|-|-|-|-|-|-|
|owner(shareholders)||||||
|4)others||||||
|(5） interior transference oowner’sequity|f|||||
|1)capital (capitastock)transferred by thecapitalpublicreserves|l|||||
|2)capital (capitastock)transferred by thesurpluspublicreserves|l|||||
|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|

UUUUnnnniiiitttt::::RRRRMMMMBBBByyyyuuuuaaaannnn
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|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||123,972,268.17||507,346,858.96|||1,516,483,072.50|
|Add:changes in accountingpolicies||||||||||
|Changesinpreviouserrors||||||||||
|Others||||||||||
|2.Balanceatthebeginningofthisyear|402,600,000.00|482,563,945.37||123,972,268.17||507,346,858.96|||1,516,483,072.50|
|3. The changes in this year（decreasewith“-”）||||5,320,050.69||31,776,456.23|||37,096,506.92|
|(1)Netprofits||||||53,200,506.92|||53,200,506.92|
|(2) Other comprehensivereturns||||||||||

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|-|-|-|-|-|-|
|Total(1)and(2)||||53,200,506.92|53,200,506.92|
|(3) The assets invested orreturnedbytheowners||||||
|1)capitalinvestedbyowners||||||
|2)The amount of sharepayment recorded owner’sequity||||||
|3)others|||||-16,104,000.00|
|(4）Profitsdistribution|||5,320,050.69|-21,424,050.69||
|1)Provision forsurplus publicreserves|||5,320,050.69|-5,320,050.69||
|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|482,563,945.37|129,292,318.86|539,123,315.19|1,553,579,579.42|

Chairman: CongHong GeneralAccountant:SunNajuan Accountingcharger:YaoChunjuan
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport IIII....GGGGeeeennnneeeerrrraaaallllIIIInnnnffffoooorrrrmmmmaaaattttiiiioooonnnn
Wafangdian Bearing Company Limited (the “Company”) is a joint stock limited company established in thePeople’s Republic of China (the “PRC”) on 16 July 1997. In the opinion of the directors, its parent and ultimate holding companyisWafangdianBearingGroupCompanyLimited(“WazhouGroup”).
TheCompany’sBshareshavebeenlistedontheShenzhenStockExchangesince29February1997.
The addresses of the registered office and principal place of business of the Company are No.1, Phrase 1, Gongji Street,WafangdianNorth,LiaoningProvince,andthePRC.
The Company is principally engaged in the manufacturing and sale of bearing products, engineering equipment, automobilesparepartsandrelatingproducts.
TheCompanytogetherwithitssubsidiariesiscollectivelyreferredtoasthe“Group”.
IIIIIIII....SSSSiiiiggggnnnniiiiffffiiiiccccaaaannnnttttAAAAccccccccoooouuuunnnnttttiiiinnnnggggPPPPoooolllliiiicccciiiieeeessss,,,,AAAAccccccccoooouuuunnnnttttiiiinnnnggggEEEEssssttttiiiimmmmaaaatttteeeessssaaaannnnddddMMMMeeeetttthhhhooooddddffffoooorrrrPPPPrrrreeeeppppaaaarrrraaaattttiiiioooonnnnooooffffCCCCoooonnnnssssoooolllliiiiddddaaaatttteeeeddddFFFFiiiinnnnaaaannnncccciiiiaaaallll SSSSttttaaaatttteeeemmmmeeeennnnttttssss
1111....BBBBaaaassssiiiissssffffoooorrrrtttthhhheeeepppprrrreeeeppppaaaarrrraaaattttiiiioooonnnnooooffffffffiiiinnnnaaaannnncccciiiiaaaallllssssttttaaaatttteeeemmmmeeeennnnttttssss
The Group preparesthe financial statementson the basis of goingconcern and actual transactionsand events, and in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance of thePeople’sRepublicofChina,andbasedontheaccountingpoliciesandestimatesinthenote4“Significantaccounting policies,accountingestimatesandmethodforpreparationofconsolidatedfinancialstatements”.
2222....CCCCoooommmmppppllllyyyyiiiinnnnggggwwwwiiiitttthhhhAAAAccccccccoooouuuunnnnttttiiiinnnnggggSSSSttttaaaannnnddddaaaarrrrddddffffoooorrrrBBBBuuuussssiiiinnnneeeessssssssEEEEnnnntttteeeerrrrpppprrrriiiisssseeee
The financial statements are prepared by the Group according to the requirements of Accounting Standard for BusinessEnterprise,andreflecttherelativeinformationforthefinancialposition,operatingperformance,cashflowof theGrouptrulyandfully.
3333....AAAAccccccccoooouuuunnnnttttiiiinnnnggggppppeeeerrrriiiioooodddd
TheGroupadoptstheGregoriancalendaryearasaccountingperiod,i.e.fromJan1toDec31.
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TheGroup adoptsRMBasfunctionalcurrency.
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2013AnnualReport The accrual basis shall be adopted for accounting treatment to follow the historical cost method, except that the financialassetsheldfortradingandsalearemeasuredatfairvalue.
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Business combination refers to transaction or event bringing together two or more separate enterprises into one reporting entity. The Group should recognize the acquired assets and liabilities at the combining date or acquisition date. The combining date or acquisition date is the date when the Group acquired actually acquiree and combined party.
The assets and liabilities that the combining party obtains in a business combination under the same control should be measured on the basis of theircarrying amount in the combined partyon the combining date.As forthe balance between the carrying amount of the net assets obtained by the combining party and the carrying amount of the consideration paid by it, the capital surplus shall be adjusted. If the capital surplus is not sufficient to be offset, the retainedearningsshallbeadjusted.
For a business combination not under same control, the combination cost shall be the fair value, on the acquisition date, of the assets paid, the liabilities incurred or assumed and equity securities issued by the acquirerin exchange forthecontroloftheacquiree.Thedifferencewhencombinationcostexceedsthefairvalueofidentifiablenetassets of acquireeshouldberecognized asgoodwill. If thecombinationcostislessthanthehe fairvalue ofidentifiable net assetsofacquiree,thedifferenceshouldberecognizedascurrentprofitorloss.
Ifthecombinationisachievedinstages,whichisnotundercommoncontrol,theaccountingmethodforparent’sand consolidatedfinancialstatementisasfollows:
(1) Onacquirer’s financial statement, the initial investment cost is measured at the purchased additional investment costpluspreviouslyheldinvestmentbookvaluepriortotheadditionalacquisitiondate.Inpriorreportingperiods, the acquirer may have recognized changes in the value of its equity interest in the acquiree in other comprehensive income. If so, the amount that was recognized in other comprehensive income shall be recognizediftheacquirerhaddisposeddirectlyofthepreviouslyheldequityinterest
(2) On consolidated financial statement, the acquirer shall remeasure its previously held equity interest in the acquireeatitsacquisition-datefairvalueandrecognizetheresultinggainorloss,ifany,inprofitorlossorother comprehensiveincome,asappropriate.Inpriorreportingperiods,theacquirermayhaverecognizedchangesin the value of its equity interest in the acquiree in other comprehensive income. If so, the amount that was recognized in other comprehensive income shall be recognized on the same basis as would be required if the acquirerhaddisposeddirectlyofthepreviouslyheldequityinterest
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(1)Recognitionprincipleofscopeofconsolidation
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2013AnnualReport Scope of consolidated financial statements should include all subsidiaries of the parent and the special purpose entities.
(2)Accountingmethodofconsolidatedfinancialstatements
TheGroup’s consolidated financial statements had been prepared in accordance with “Accounting Standard for Business Enterprise No.33– Consolidated Financial Statements” and related regulations. All material internal transaction and balance had been eliminated in full. The parts ofsubsidiaries’ equity non-attributable to parent companyshallbeasminorityinterestpresentedintheintheconsolidatedbalancesheetwithinequity.
Where there are inconsistent accounting policies or accounting period, when preparing the consolidated financial statements, the Group shall adjust thesubsidiaries’ financial statements in accordance with theGroup’s accounting policiesandaccountingperiod.
Forthe subsidiary obtained under different control, when preparing the consolidated financialstatements, the Group shall adjust theseparate financial statements based on the fairvalue of identifiablenet assets at the purchasedate; for the subsidiaries combined by the Group under the same control, regard the subsidiaries that they have been existing since the beginning of the period, and the assets, liabilities, operation performance and cash flows shall be consolidatedinto the financial statements of the beginning of the combination period according to theiroriginal book value.
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The cash listed on the cash flow statements of the Group refers to cash on hand and bank deposit. The cash equivalentsrefertoshort-term(normallywithoriginalmaturitiesofthreemonthsorless)andliquidinvestmentswhich arereadilyconvertibletoknownamountsofcashandsubjecttoaninsignificantriskofchangesinvalue.
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(1)Foreigncurrencytransaction
Foreign currency transactions are translated at the spot exchange rate issued byPeople’s Bank of China (“PBOC”) when the transaction incurs. Monetary assets and liabilities in foreign currencies are translated into RMB at the exchange rate prevailing at the balance sheet day. Exchange differences arising from the settlement of monetary items are charged as in profit or loss for the period. Exchange differences of specific borrowings related to the acquisition or construction of a fixed asset should be capitalized as occurred, before the relevant fixed asset being acquired or constructed is ready for its intended uses. The foreign currency non-monetary items recorded at fair value are translated at the exchange rate issued on the date of fair value recognized. Exchange differences are charged as profit and loss of change of fair value. The foreign currency non-monetary items recorded at historical costare translated at the exchange rate issued on the date when the transaction incurs,anddon’t change the RMB
amount.
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2013AnnualReport (2)Translationofforeigncurrencyfinancialstatements
Theassetandliabilityitemsintheforeigncurrencybalancesheetshouldbetranslatedataspotexchangerateatthe balance sheet date. Among theower’s equity items except “undistributed profit”, others should be translated at the spot exchange rate when they are incurred. The income and expense should be translated at spot exchange rate when the transaction incurs. Translation difference of foreign currency financial statements should be presented separatelyundertheower’s equity item. Forthe foreigncurrency monetaryitemsthat formsubstantiallytheoversea businessnetinvestment,theirexchangedifferenceofmovementofexchangerateshouldbepresentedseparatelyas 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 differenceofforeigncurrencyfinancialstatementrelatedtotheoverseasbusinessintothedisposalprofitsandlosses of current period. Foreign currency cash flows are translated at the spot exchange rate on the day when the cash flows incur. The amounts resulted from change of exchange rate are presented separately in the cash flow statement.
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(1)Financialassets
1)Classification
The Group classifies its financial assets in the following categories: at fair value through profit or loss, loans and receivables, held-to-maturity financial assets and available-for-sale. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition.
a)Financialassetsatfairvaluethroughprofitorloss
Financialassetsatfairvaluethroughprofitorlossarefinancialassetsheldfortrading.Afinancialasset
isclassifiedinthiscategoryifacquiredprincipallyforthepurposeofsellingintheshortterm.Derivatives
are also categorised as held for trading unless they are designated as hedges. Assets in this category
areclassifiedascurrentassetsifexpectedtobesettledwithin12months;otherwise,theyareclassified
asnon-current.
b)Loansandreceivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are
notquotedinanactivemarket.Theyareincludedincurrentassets,exceptformaturitiesgreaterthan12
monthsafterthereportingperiod,whichareclassifiedasnon-currentassets.
c)Held-to-maturityfinancialassets
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2013AnnualReport Held-to-maturityfinancialassetsarenon-derivativefinancialassetswithfixedordeterminablepayments
and fixed maturities that the Group s management has the positive intention and ability to hold to
maturity.IftheGroupweretosellotherthananinsignificantamountofheld-to-maturityfinancialassets,
the whole category would be tainted and reclassified as available for sale. Held-to-maturity financial
assetsareincludedinnon-currentassets,exceptforthosewithmaturitieslessthan12monthsfromthe
endofthereportingperiod,whichareclassifiedascurrentassets.
d)Available-for-salefinancialassets
Available-for-sale financial assets are non-derivatives that are either designated in this category or not
classified in anyof the othercategories. They are included in non-current assets unless the investment
maturesormanagementintendstodisposeofitwithin12monthsoftheendofthereportingperiod.
2)Recognitionandmeasurement
Financialassets are recognized at fair value on the balance sheet when theGroup becomesa partyto
thecontractualprovisionsofthefinancialinstrument.Transactioncostsoffinancialassetscarriedatthe
fair value through profit or loss are expensed in the income statement;Transaction costs of other
financialassetsareincludedinfinancialassetsatinitialrecognition.
Available-for-sale financial assets are subsequently measured at fair value. Investments inequity
instrumentsaremeasuredatcostwhentheydonothaveaquotedmarketpriceinanactivemarketand
whose fair value cannot be reliably measured. Loans and receivables are measured at amortised cost
usingtheeffectiveinterestmethod.
A gain or loss arising from change in fair value of an available-for-sale financial asset is recognised
directly in equity, except for impairment losses and foreign exchange gains and losses arising from the
translationofmonetaryfinancialassets.Whensuchfinancialassetisderecognised,thecumulativegain
orloss previouslyrecognised in equity is recognised in income statement. Interest on available forsale
debtinstrument,calculatedusingeffectiveinterestmethod,andcashdividendsdeclaredbytheinvestee
onavailable-for-saleequityinstrumentsarerecognisedasinvestmentincomeinincomestatement.
3)Impairmentoffinancialassets
The Group assesses the carrying amount of financial assets other than financial assets at fair value
throughprofitorlossateachbalancesheetdate.Ifthereisobjectiveevidencethatthefinancialassetis
impaired,theGroupshalldeterminetheamountofanyimpairmentlossaccounts.
If an impairment loss on a financial asset carried at amortized cost has been incurred, the amount of
loss is measured at the difference between theasset’s carrying amount and the present value of
estimated future cash flows (excluding future credit losses that have not been incurred). If there is
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2013AnnualReport objective evidence that the value of the financial asset recovered and the recovery can be related
objectively to an event occurring after the impairment was recognized, the previously recognized
impairmentlossisreversedandtheamountofreversalisrecognizedinincomestatement.
If objective evidence shows that impairment for available-for-sale financial assets will occur,the
cumulative loss arising from the decline in fair value that had been recognized directly in equity is
removed from equity and recognized as impairment loss. For an available for sale debt instrument, if
there is objective evidence that the value of the financial asset recovered and the recovery can be
relatedobjectivelytoaneventoccurringaftertheimpairmentwasrecognized,thepreviouslyrecognized
impairment loss is reversed and the amount of reversal is recognized in income statement. For an
available for sale equity instrument, if there is objective evidence that the value recovered and the
recovery can be objectively related to an event occurring after the impairment loss recognized, the
previouslyrecognizedimpairmentlossisreversedanddirectlyrecognizedinequity.
4)Derecognitionoffinancialassets
Financial assets are derecognized when: i) the contractual rights to receive the cash flows from the
financialassetshaveexpired;orii)allsubstantialrisksandrewardsofownershipofthefinancialassets
havebeentransferred;oriii)thecontroloverthefinancialassethasbeenwaivedeveniftheGroupdoes
nottransferorretainnearlyalloftherisksandrewardsrelatingtotheownershipofafinancialasset.
Onderecognition ofa financialasset,the difference between thecarryingamount and theaggregate of
consideration received and the accumulative amount of changes of fair value originally recorded in the
owner’sequityisrecognisedintheincomestatement.
(2)Financialliabilities
The financial liabilities are classified into the financial liability at fair value through profit or loss and other financial liabilityfortheinitialrecognition.
The financial liabilities at fair value through profit or loss include the financial liabilities held for trading and the designated financial liabilities at fair value through profit or loss when initial recognized. For this kind of financial liabilitiesshouldbemeasuredatfairvalue,variationoffairvalueshouldberecordedintothecurrentprofitorloss. Other financial liabilities should be subsequently measured at amortization cost by adopting actual interest rate method.
(3)Fairvaluemeasurmentoffinancialassetsandliabilities
a) If the market for a fiancial instrument is active, an entity establishes fair value by using the quoted price in the
active market. In the active market, the Group meausres the fair value of its holding financial assets and contingent
financial liabilities by using the current quoted price; the Group measures the fair value of its contingent financial
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2013AnnualReport assets and holding financial liabilties by using the curent quoted price. If there are no current quoted prices for the financial assets and liabilties, and no significant change in the economic environment after the settlement date, the quotedpricesoftherecenttransactionsshouldbeusedtomeasurethefairvalueofthefinancialassetsandliabilties. b)Ifthemarketforafinancialinstrumentisnotactive,anentityestablishesfairvaluebyusingavaluationtechnique.Valuationtechniquesincludeusingrecentarm’slengthmarkettransactionsbetweenknowledgeable,willingparties,if available,referencetothecurrentfairvalueofanotherinstrumentthatissubstantiallythesame,discountedcashflow analysisandoptionpricingmodels.
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TheGroupshallreviewthecarryingamountofreceivablesfullyatthebalancesheetdate.TheGroupshall calculate the full provision for bad debts for the following receivables: debtor has been log-out, bankruptcy, minus net asset, significant poor cash flow and significant nature disaster leads to discontinue production and the debtors could not payforthedebtswithintheforeseeabletime.Othersolidevidencesindicatesthatthereceivablescoundnotbepaid orbeofaslimchance.
The allowance method is applied to the potential loss of bad debt. The Group should make the impairment test separatelyorin combinationandaccurethe bad debt provisionswhich shallbe recordedinto currentprofitorloss attheendoftheperiod.Ifthereisdefinedevidenceforthereceivablesnottoornotlikelytobereceived,whichshall berecognizedasthelossofbaddebtandwriteofftheaccruedbaddebtsprovisionsaftergoingthroughtheapproval procedureoftheGroup.
(1)Individuallysignificantamountsofaccountsreceivableaccruedbaddebtprovisionasperportfolio
ThereceivableswithmorethanRMB3millionindividual
Judgmentbasisoramountstandardsof
amountshallberecognizedasthesignificant
individuallysignificantamounts
receivables;
Theaccruingmethodofthereceivableswith Thebaddebtprovisionsshallbeaccruedbasedonthe
individuallysignificantamounts differencebetweencurrentvalueoffuturecashflow
andthecarryingamounts.
(2)Accountsreceivableaccruedbaddebtprovisionbyportfolio
Thebasisofportfolio
Usetheaccountingagingofthereceivablesasthecredit
Accountingaging
riskcharacteristicstoclassifytheportfolio
Usetheamountcharacteristicsofthereceivables,ifthe
Relatedparties transactionparty isrelatedpartiescharacteristicsneed
toclassifytheportfolio
Usetheamountcharacteristicsofthereceivables,the
creditoftransactionparty,thenatureoftheamounts
Risk-free
and thesafeguardmechanismoftransactionas
characteristicstoclassifytheportfolio
Theaccrualmethodforbaddebtprovisionbyportfolio
Accrue the bad debt provision by accounting aging
Accountingaging
analysismethod
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2013AnnualReport Accruethebad debtprovisionbyindividual identification
Relatedparties
method
Accruethebad debtprovisionbyindividual identification
Risk-free
method
1)Thepercentageofprovisionforbaddebtsbasedontheageofreceivablesasfollowings:
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Within1year 1 1
1-2years 5 5
2-3years 20 20
Over3years 50 50
2)Theothermethodsisappliedtoaccrualingofbaddebtsprovision
Relatedparties Accruethebaddebtprovisionbyindividualidentification method
Risk-free Accruethebaddebtprovisionbyindividualidentification method
(3)Individuallyinsignificantamountaccountsreceivablebutaccruedbaddebtprovisionasperportfolio
The individual amount is not significant, but the accrued
Accrualreason baddebtprovisiononthebasisofportfoliocannotreflect
itsriskcharacteristic
Thebaddebtprovisionsshouldbeaccruedbasedonthe
Accrualmethod difference between current value of future cash flow and
thecarryingamount.
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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 stored based on theirstandard cost. The raw materials are priced daily on their standard costs. The differences between the standard and actual costs is recorded into the costs of materials and for sending out according to proportion of storage and sending out of materials, and adjust the planned costs of raw material into actualcosts. Theworking-in-progressfinishedgoodsare priced ontheirstandardcosts;the differencesbetween the standard and actual costs are recorded into the costs of working-in-progress and finished goods according to the receivingandsendingoutproportion,andfinalyadjusttheplannedcostsintoactualcosts.
At the balance sheet date inventory should be measured at the lower of the cost and net realizable value. For the
inventorieswhicharedamaged,fullyorpartlyobsoletedandsellingpricebelowcost,theGroupshouldcalculate the
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2013AnnualReport provisionforimpairmentofinventoriesaccordingtotheestimatednonrecoverablepartofcost.Finishedgoodsanda largeamountrawmaterialsshouldbecalculatedprovisionforimpairmentbasedonthedifferenceofthecostexceed the realizable value of single item. For raw and accessorial materials with a large quantities and lower unit price shouldbecalculatedprovisonforimpairmentaccordingtoclassifyofinventory.
For the finished goods, working in progress and raw material held for sale etc which shall be sold directly, the net realizable value should be confirmed at the estimated selling price less estimated selling expenses and related tax andexpenses.Therawmaterialheldforproduction,itsrealizablevalueshouldbeconfirmedattheestimatedselling price of finished goods less estimated cost of completion, estimated selling expenses and related tax. The net realizablevalueofinventoriesheldforexecutionofsalecontractsorlaborcontractsshallbecalculatedbasedonthe contract price. If the quantities of inventories in the Group are more than quantities if inventories subscribed in the sales contracts, the net realizable value of the excessive part of the inventories should be calculated based on the generalsellingprice.
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Long-term equity investments include the equity investments which the Group can control, joint control or have significantinfluenceontheinvestee,ortheGroupcannotcontrol,jointcontrolorsignificantinfluenceontheinvestee andthereisnoofferintheactivemarket,fairvaluecannotbereliablymeasured.
Jointcontrolreferstothecontroloveraneconomicactivityinaccordancewithcontract.Anypartyofjointventurecan notseparatelycontrolthebusinessactivityofjointventure.Thedecisionrelatedtoprincipaloperatingactivitiesneed unanimousconsentfromanyparty
Significant influence refers to the power to participate in making decisions on the financial and operating policies of investee, but not to control or do joint control together with other parties over the formulation of these policies. SignificantinfluenceconfirmaccordingtotheGroupholdstheover20%(including20%)butlowerthan50%voteing shares. Unless there is evidence which indicate the Group can not participate in the decision of production and operatingundertheconditionsabove.
The initial cost of long term equity investments formed in the merger of enterprise under the same control shall be recognized at the carry amounts of equity of the merged enterprise. The initial cost of long term equity investments acquired in the merger of enterprise under the different control shall be recognized at fair value of the assets paid, liabilitiesrisenorcharged,andequitysecuritiesissued.
Besidesthe long-termequityinvestmentsacquiredby themergerof enterprises,the initialcost ofa long-termequity investmentobtainedbyothermeansshallbeascertainedinaccordancewiththeprovisionsasfollows:
(1) The initial cost of a long-term equity investment obtained by making payment in cash shall be the purchase cost which is actually paid. The initial cost consists of the expenses directly relevant to the obtaining of the long-term
equityinvestment,taxesandothernecessaryexpenses.
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2013AnnualReport (2)Theinitialcostofalong-termequityinvestmentobtainedonthe basisofissuingequitysecuritiesshallbethefair valueoftheequitysecuritiesissued.
(3)Theinitialcostofalong-termequityinvestmentofaninvestorshallbethevaluestatedintheinvestmentcontract oragreementexcepttheunfairvaluestatedinthecontractoragreement.
(4)Theinitialcostofalong-terminvestmentobtainedbytheexchangeofnon-monetaryassetsandtheinitialcostof a long-term equity investment obtained by debts restructuring shall be ascertained in accordance with related AccountingStandardsforEnterprises.
For the long-term equity investment in subsidiaries of the Group shall be measured in accordance with the cost method, and shall be adjusted when preparing consolidated financial statements in accordance with equity method. Forthelong-termequityinvestmentofjointventureshallbemeasuredinaccordancewithequitymethod.
For the long-term equity investment of the investing enterprise that does not do joint control or does not have significantinfluencesontheinvestedentity,andhasnoofferintheactivemarketanditsfairvaluecannotbereliably measuredshouldbemeasuredinaccordancewithcostmethod.Forthelong-termequityinvestmentoftheinvesting enterprisethatdoesnotdojointcontrolordoesnothavesignificantinfluencesontheinvestedentity,andhasofferin theactivemarketanditsfairvaluecanbereliablymeasuredshouldbemeasuredastheassetsavailableforsale. 11114444....FFFFiiiixxxxeeeeddddaaaasssssssseeeetttt
Recognitioncriteriaoffixedassets:Fixedassetsaredefinedasthetangibleassetswhichareheldforthepurposeofproducinggoods,renderingservices,leasingorforoperation&management,andhavemorethanoneyearofuseful life,andwhoseunitpriceisoverRMB2,000.
Classificationoffixedassets:Building,machinery,transportationequipment,electronicequipmentandothers. Measurementoffixedassets:Initialmeasurementoffixedassetsshallbeconductedonfixedassetsaccordingtothe actual cost when obtained, including, the cost of purchased fixed asset including purchase price, value added tax, duty and other related tax and fee, other expenses that bring the fixed asset to the expected conditions for use and thatmayberelegatedtothefixedasset.Thecostofaself-constructedfixedassetshallbeformedbythenecessary expenses incurred for bringing the asset to the expected conditions for use. The cost of fixed asset which was invested by investor should be recorded in accordance with the price stipulated in the contract or agreement, other than those of unfair value as stipulated in the contract or agreement. The cost of fixed assets which is obtained by financialleasingshouldbemeasuredattheloweroneoffairvalueandtheminimumleasepaymentinthebeginning oflease.
Depreciation method: the Group withdraws depreciation for all fixed assets except for the fixed assets which had been fully depreciated and are still being used. The Group withdraws depreciation by adopting straight-line method
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2013AnnualReport and depreciation rate of unit item on monthly basis, and brings it cost or expenses in current period. Estimated netresidualvaluerateis3%,usefullife,depreciationrateasfollows:
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HousingandBuildings
Including:Buildings 15 3 6.47%
Housingforproductive 30 3 3.23%
Housing for 35 3 2.77%
non-productive
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%
Specialized electronic 8 3 12.13%
equipments
Automated controlling 8 3 12.13%
equipments
Automated controlling 8 3 12.13%
meters
Othersequipments
Including:Industrialkiln 7 3 13.86%
Tools&otherproductiontools 9 3 10.78%
Transmissionequipments 15 3 6.47%
Non-operationalequipmentsandtools 18 3 5.39%
The Group should reviewthe estimated useful life, estimated net residual value and depreciation method at the end ofeachyear.Ifanychangehasoccurred,itshallberegardedasachangeintheaccountingestimates.
The Company should derecognized fixed asset when the fixed asset has been disposed, or the fixed assetscan’t generateanyfutureeconomicbenefitthroughusinganddisposal.Theamountthatincomeresultingfromdisposalof fixed asset deducts fixedasset’s book value and relevant tax shall be recorded in the profit and loss for the current period.
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2013AnnualReport MeasurementofCIP:Construction-in-progressisrecognizedatactualcost.Self-constructionprojectisrecognizedat the cost of material, labour cost and construction expenses. Contractual construction is recognized at project price whichshould be paid. Installed construction is recognized at the value of equipment,installation and assembly cost. Besidesabove,thecostofCIPcomprisesborrowingcostandprofitandlossresultingfromforeignexchange. The criteria and time spot of constructions inprogress’s being transferred to fixed assets: Constructions in progress are carried down to fixed assets on their actual costs when completing and achieving estimated usable status. The fixed assets that have been completed and reached estimated usable status but have not yet been through completion and settlement procedures are charged to an account according to their estimate values; adjustment will be conducted upon confirmation of their actual values. The Group should withdraw depreciation in the next month aftercompletion.
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Recognition principles on capitalisation of borrowing cost: The Group should capitalizes the borrowing cost directly attributable to the acquisition, construction or production of a qualifying asset and record borrowing cost into cost of related asset. The Group should recognize the other borrowing cost as the current expense and charged it as profit and loss of current period. A qualifying asset refers to fixed asset, investment property and inventory need be constructedforsolongtimetoitsintendeduseorsale.
Durationofcapitalisationofborrowingcost:Whenexpendituresandborrowingcostarebeingincurred,andactivities that are necessaryto put the asset available foruse orsale are in progress, the capitalisation of borrowing costs as partofthecostofaqualifyingassetshouldcommence.Capitalisationofborrowingcostsshouldbesuspendedduring extended periods in which active development is interrupted and interruption period last for over 3 month. The borrowingcost incurredduring theperiodshould berecognizedas expensesandrecordedintothe profit andlossin the current period. When all the activities for bringing the asset to its intended use or sale are completed, the capitalization of borrowing costsceases,and the borrowing costsshould be recognizedas an expense in theperiod incurred.
Measurement of borrowing cost:As forspecifically borrowedloansforthe acquisitionandconstruction orproduction of assets eligible forcapitalization, the to-be-capitalized amount of interests shall be determined as the difference of theactualcostincurredofthespeciallyborrowedloanatthepresentperiodminustheincomeofinterestsearnedon the unused borrowing loans as a deposit in the bank or as a temporary investment. Where a general borrowing is used for the acquisition and construction or production of assets eligible for capitalization, the Group shall calculate and determine the to-be-capitalized amount of interests on the general borrowing by multiplying the weighted averageassetdisbursementofthepartoftheaccumulativeassetdisbursementsminusthegeneralborrowingbythe capitalization rate of the general borrowing used. The capitalization rate shall be calculated and determined at the weightedaverageinterestrateofthegeneralborrowing.
11117777....IIIInnnnttttaaaannnnggggiiiibbbblllleeeeaaaasssssssseeeettttssss
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport Measurement of intangible assets: The intangible assets of the Group refer to land use right, ERP system software. The cost of outsourcing intangible assets shall include the purchase price, relevant taxes and other necessary expenditures directly attributable to intangible assets. The cost invested into intangible assets by investors shall be determinedaccordingtothestatedvalueintheinvestmentcontractoragreement,except forthoseofunfairvaluein thecontractoragreement.
Amortisation method and period: The Group shall amortise land use right on the basis of its useful life by adopting straight line method from the time of acquiring. ERP systemsoftware and otherintangible assets shall be amortised on the basis of shorter of estimated useful life, stated beneficial year in the contract, and legal available year. The amortizationamountshouldberecordedintothecostorexpenseofrelevantinthecurrentperiod.
TheGroupshallchecktheestimatedusefullifeandamortizationmethodofintangibleassetswithlimitedusefullifeat theendofeachyear,ifanychangehasbeenmade,itshallbeadjusted.TheGroupshallchecktheestimateduseful life of intangible assets with uncertain useful life during the each accounting period. If there are evidences to prove theusefullifeofintangibleassetsislimited,theGroupshallestimatetheusefullifeandamortizetheintangibleassets withinestimatedusefullife.
11118888....IIIImmmmppppaaaaiiiirrrrmmmmeeeennnnttttooooffffnnnnoooonnnn----ffffiiiinnnnaaaannnncccciiiiaaaallllaaaasssssssseeeetttt
The Group checks the long-term equity investment for its subsidiaries, association and joint venture, fixed asset, construction-in-progress, intangible asset and others on each balance sheet date. There may be an impairment of assetwhenoneof followingindicationsoccurs. TheGroupshouldtestimpairments.TheGroupteststheimpairment of goodwill, intangible asset with uncertain useful life on the end of every year. When it is difficult to measure the recoverableamountofasset,itshouldmeasuretherecoverableamountofassetonthebasisofassetgroup. After impairment test, if the book value exceeds the recoverable amount of the asset, the difference should be recognized as impairment loss. Once any loss of impairment is recognized, it shall not be reversed in the future accounting periods. The recoverable amount of asset refers to the higher one of the net amount of the fair value of assetminusdisposalexpenseandthepresentvalueofestimatedfuturecashflowofasset.
Indicationsofimpairmentasfollows:
(1)Duringtheperiod,afairvalueoftheassetinthemarkethasdeclinedsignificantly,whichexceedstheexpected declineastimepassingornormaluse;
(2)Significant changeswithanadverseeffectonthe Grouphavetakenplace duringthe period,orwill takeplace in the nearfuture, in the technological, market, economic or legal environment in which the entity operates or in the markettowhichanassetisdedicated;
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport (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'srecoverableamountmaterially;
(4)Evidenceisavailableofobsolescenceorphysicaldamageofanasset;
(5)Theassethasbeenidleorisbecomingidle,discontinued,orplanstodisposeofanassetbeforethepreviously expecteddate;
(6)Evidenceisavailablefrominternalreportingthatindicatesthattheeconomicperformanceofanassetis,orwill be,worsethanexpected;and
(7)Otherevidenceindicatesimpairmentofasset.
11119999....LLLLoooonnnngggg----tttteeeerrrrmmmmddddeeeeffffeeeerrrrrrrreeeeddddeeeexxxxppppeeeennnnsssseeeessss
Long-term deferredexpenses of the Group referto expenses which are paid and should be deferred overthe future period. The amortization period shall be more than one year (no including 1 year). The expenses should be amortizedaveragely overthe beneficial period. If the deferred expense cannot take benefit for the future accounting period,theunamortizedbalanceofthedeferredexpensesshouldbetransferredintothecurrentprofitorloss. 22220000....EEEEmmmmppppllllooooyyyyeeeeeeeebbbbeeeennnneeeeffffiiiittttssss
Employee compensation comprises salary, bonus, allowance, welfare, social insurance, housing fund, labour union expenditure,employeeeducationexpenditureandotherrelevantexpendituresofservicerenderedbytheemployees. TheGroupshouldrecognizetheemployeecompensationasliabilityduringtheperiodofemployeeprovideserviceto company. In accordance with the beneficiaries of the service rendered by employee, the Group should record the employee benefits into relevant cost and expense. Forthe compensation for employee due to cancellation of labour contract,theGroupshouldchargethecompensationastheprofitandlossduringthecurrentperiod.
Termination benefits are benefits payable as a result of cancellation of labour contract between the company and employees. For the termination plans with instalment or voluntary termination advice, when planning and checking the recognition condition of contingent liability for each period or stage, then the contingent liability caused by providingterminationbenefits shallbeconfirmed,andcharged asmanagementexpensessatisfyingthe confirmation conditionsofcontingentliabilityforthecurrentperiod.
22221111....CCCCoooonnnnttttiiiinnnnggggeeeennnnttttlllliiiiaaaabbbbiiiilllliiiittttiiiieeeessss
Theobligationpertinenttoacontingencyshallberecognizedasanestimateddebtwhenthefollowingconditionsare
satisfiedsimultaneously:
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport (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 performance of the current obligation, and the Group shall take into full consideration of the risks, uncertainty, time value of money, and other factors pertinent to the contingencies. If the time value of money is of great significance,thebestestimateamountsshallbedeterminedafterdiscountingtherelevantfutureoutflowofcash.The Group shall check the book value of the estimated debts on the balance sheet date. If there is any exact evidence indicatingthatthebookvaluecannotreallyreflectthecurrentbestestimateamounts,theGroupshalladjustthebook valueinaccordancewiththecurrentbestestimateamounts.
22222222....PPPPrrrriiiinnnncccciiiipppplllleeeeooooffffrrrreeeeccccooooggggnnnniiiittttiiiioooonnnnooooffffrrrreeeevvvveeeennnnuuuueeee
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 effectivecontroloverthesoldgoods;
3)Theamountofrevenuescanbemeasuredreliably;
4)TherelevanteconomicbenefitsarelikelytoflowintotheGroup;and
5)Theincurredcostorintendedcostcanbemeasuredreliably.
(2)Recognitionofrevenuefromprovidinglabourservices:
1) Total revenue and total cost can be measured reliably; the relevant economic benefits are likely to flow into the Group;andthestageofcompletioncanbeconfirmedreliably;
2)If the Group can,on thedate of the balance sheet day, reliably estimate the outcomeof a transaction concerning the labour services it provides, it shall recognize the revenue from providing services employing the stage of completionmethod.Iftheoutcomecannotbeestimatedreliablyandincurredcostcanbeoffset,therevenueshould berecognisedbythecompensation.Whenthestandardscannotbesatisfied,therevenueshouldnotberecognised,
andtheincurredcostshouldberecordedintothecurrentprofitandloss.
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport (3)Revenuefromabalienatingtheuserightofuseassets
The revenue from abalienating of use right of assets shall be recognized, when the relevant economic benefits are likelytoflowintotheGroup,andtheamountofrevenuescanbe measuredreliably.
22223333....GGGGoooovvvveeeerrrrnnnnmmmmeeeennnnttttggggrrrraaaannnnttttssss
A government subsidy of the Group shall be recognized if the Group can meet the conditions for the government subsidyandalsocanobtainthegovernmentsubsidy.
Ifagovernmentsubsidyisamonetaryasset,itshallbemeasuredinthelightofthereceivedorreceivableamount.If a government subsidy is a non-monetary asset, it shall be measured at its fair value; if its fair value cannot be obtainedinareliableway,itshallbemeasuredatitsnominalamount(RMB1).
Government grant of the Group is classified into grant in relation to asset and grant in relation to income. Grants relatedtoassetsaregovernmentgrantswhoseprimaryconditionisthatanentityqualifyingforthemshouldpurchase, construct or otherwise acquire long-term assets. Grants related to income are government grants other than those related to assets. If not clearly given the assisted objective in government document, the Group shall make judgementbasedontheprinciplementionedabove.
The government subsidies pertinent to assets shall be recognized as deferred income, equally distributed within the usefullivesoftherelevantassets,andincludedinthecurrentprofitsandlosses.Thegovernmentsubsidiespertinent to incomes shall be treated respectively in accordance with the indications as follows: (1) those subsidies used for compensating the related future expenses or losses of the Group shall be recognized as deferred income and shall includedin the current profits andlosses during the period when the relevant expenses are recognized; or (2)those subsidies used for compensating the related expenses or losses incurred to the Group shall be directly included in thecurrentprofitsandlosses.
22224444....DDDDeeeeffffeeeerrrrrrrreeeeddddttttaaaaxxxxaaaasssssssseeeettttssssaaaannnnddddddddeeeeffffeeeerrrrrrrreeeeddddttttaaaaxxxxlllliiiiaaaabbbbiiiilllliiiittttiiiieeeessss
Deferredtaxassetsanddeferredtaxliabilityshouldbe recognizedatthedifferences(taxabletemporarydifferences) betweenthetaxbaseofanassetorliabilityanditscarryingamount.TheGroupshallrecognizethedeferredincome taxassetsarisingfromadeductibletemporarydifferencetotheextentoftheamountofthetaxableincomewhichitis mostlikelytoobtainandwhichcanbedeductedfromthedeductibletemporarydifference.Atthebalancesheetdate, deferredtaxassetanddeferredtaxliabilityshouldbemeasuredatapplicabletaxrate.
TheGroupshallrecognizethedeferredtaxassetsarisingfromadeductibletemporarydifferencetotheextentofthe amount of the taxable income which is most likely to obtain which can be deducted from the deductible temporary difference. For the deferred tax assets which already have been recognized, where there is any evidence showing that the Group is probably unable to acquire sufficient amount of taxable income tax in a future period to offset
againstthedeductibletemporarydifference,thebookvalueof thedeferredtaxassetsshall bededucted.Whereitis
likelytoacquiresufficientamountoftaxableincometax,theamountdeductedshallbereversed.
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport 22225555....LLLLeeeeaaaasssseeee
TheleasesoftheGrouprefertooperatinglease.
Therentsfromoperatingleasesshallberecordedbythelesseeintotherelevantassetcostsortheprofitsandlosses ofthecurrentperiodbyusingthestraight-linemethodovereachperiodoftheleaseterm.
22226666....AAAAccccccccoooouuuunnnnttttiiiinnnnggggttttrrrreeeeaaaattttmmmmeeeennnnttttmmmmeeeetttthhhhooooddddooooffffiiiinnnnccccoooommmmeeeettttaaaaxxxx
TheGroupshall recognize incometaxbybalancesheetliabilitymethod. Theincometaxesofthecurrentperiodand deferredincometaxoftheGroupshallbetreatedasincometaxexpensesorincomes,andshallberecordedintothe current profits and losses, excluding the income taxes incurred in the following circumstances: (1) the business combination; and (2) the transactions or events directly recognized as theowner’s equity. The income taxes of the current period and deferred income tax related to the transactions or events directly recorded as theowner’s equityshallberecordedintotheowner’sequity.
The income tax expenses for the current period the amount payable to the Tax Office which are calculated and recognizedaccordingtothetaxlawandtransactionsandeventsofthecurrentperiod,i.e.incometaxespayable;the deferredincometaxesrefertothedifferencesrecognizedbetweentheamountsattheendoftheperiodandamounts recognizedoriginallyofdeferredtaxassetsandliabilitiesaccordingtothebalancesheetliabilitymethod.
22227777....SSSSeeeeggggmmmmeeeennnnttttrrrreeeeppppoooorrrrtttt
Business segment is confirmed in accordance with governance structure, management requests, internal reporting system,andtheGroupconfirmthereportsegmentonthebasisofbusinesssegment.
BusinesssegmentisacomponentoftheGroupthatsatisfiesthefollowingconditionssimultaneously:thecomponent cantakerevenueandexpenses;themanagementlevelcanappraisetheoperatingperformanceofthecomponentin order to allocation of resource and appraise the performance; and the Group can acquire the financial position, operatingperformanceandcashflowofthecomponentetc.
22228888....DDDDiiiissssccccoooonnnnttttiiiinnnnuuuueeeeddddooooppppeeeerrrraaaattttiiiioooonnnn
Discontinued operation represents the component of the Group that had been disposed or plan to sell, and the component can be separately divided when operating and preparing financial statements. The component shall bedisposedpartlyorwhollyinaccordancewiththeGroup’splan.
ThecomponentoftheGroupshallberecognizedasthecomponentheldforsellingwhensatisfyingtheconditionsas below:
1)TheGrouphadmadeadecisionondisposalofthecomponent;
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport 2)TheGrouphadsignedtheirrepealablyTransferAgreementwithtransferee;and
3)Thetransfershallbefinishedwithinoneyear.
IIIIIIIIIIII....CCCChhhhaaaannnnggggeeeessssiiiinnnnAAAAccccccccoooouuuunnnnttttiiiinnnnggggPPPPoooolllliiiicccciiiieeeessss,,,,AAAAccccccccoooouuuunnnnttttiiiinnnnggggEEEEssssttttiiiimmmmaaaatttteeeessssaaaannnnddddCCCCoooorrrrrrrreeeeccccttttiiiioooonnnnooooffffPPPPrrrreeeevvvviiiioooouuuussssEEEErrrrrrrroooorrrrssss
Therearenochangesinaccountingpolicies,accountingestimatesandcorrectionofpreviouserrorsin2013. IIIIVVVV....TTTTaaaaxxxxaaaattttiiiioooonnnn
1.ThemainapplicabletaxandratetotheGroupasfollows:
TTTTaaaaxxxx TTTTaaaaxxxxbbbbaaaasssseeee TTTTaaaaxxxxrrrraaaatttteeee
Value-addedtax(VAT) SalesrevenueorPurchase 17%,13%，11%，6%，3%
Businesstax Revenuefrompropertylease 5%
Cityconstructiontax Value-addedtaxpayables,businesstax 7%
Educationsurcharge Value-addedtaxpayables,businesstax 3%
Localeducationsurcharge Value-addedtaxpayables,businesstax 2%
Enterpriseincometax(EIT) Currentperiodtaxableprofit 15%
70%ofcostofownpropertyorrevenue
Realestatetax 1.2%or12%
fromleasingproperty
Landusetax Landusingrightarea RMB6persquaremeter
TheenterpriseincometaxrateofLiaoyangBearing(thecompany’ssubsidiary)is25%.
TheenterpriseincometaxrateofDalianElectricalEquipment(thecompany’ssubsidiary)is25%.
2.Taxpreferenceandapproval
The company obtained the qualification of high and new technology enterprises at 14 Oct 2011.The Certificate number is GR201121200028, and the period of validity is three years. According to the provisions of the tax law the company can enjoy the preferential tax policy of enterprise income tax rate of15% in three years (including 2011).
VVVV....BBBBuuuussssiiiinnnneeeessssssssCCCCoooommmmbbbbiiiinnnnaaaattttiiiioooonnnnaaaannnnddddCCCCoooonnnnssssoooolllliiiiddddaaaatttteeeeddddFFFFiiiinnnnaaaannnncccciiiiaaaallllSSSSttttaaaatttteeeemmmmeeeennnnttttssss
1.Subsidiaries
CCCCoooommmmppppaaaannnnyyyy CCCCoooommmmppppaaaannnnyyyyttttyyyyppppeeee RRRReeeeggggiiiisssstttteeeerrrreeeeddddaaaaddddddddrrrreeeessssssss NNNNaaaattttuuuurrrreeeeooooffff RRRReeeeggggiiiisssstttteeeerrrreeeeddddccccaaaappppiiiittttaaaallll
nnnnaaaammmmeeee ooooppppeeeerrrraaaattttiiiioooonnnn
Productionand
No.61,Weiguoroad,
Liaoyang salesofbearing
Limited BaitadistrictLiaoyang 19,350,000.00
Bearing andmachinery
city
manufacturing
No.12,Shisanli Productionand
Dalian
yongshengstreet, salesofbearing
Electrical Limited 10,000,000.00
freetradezoneDalian andmachinery
Equipment
city manufacturing
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport (Continued)
CCCCoooommmmppppaaaannnnyyyy BBBBuuuussssiiiinnnneeeessssssss TTTToooottttaaaallll HHHHoooollllddddiiiinnnngggg%%%% VVVVoooottttiiiinnnngggg%%%% CCCCoooonnnnssssoooolllliiiiddddaaaattttiiiioooonnnn
NNNNaaaammmmeeee ssssccccooooppppeeee iiiinnnnvvvveeeessssttttmmmmeeeennnntttt
aaaammmmoooouuuunnnnttttssss
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
VVVVIIII....NNNNooootttteeeessssttttooooCCCCoooonnnnssssoooolllliiiiddddaaaatttteeeeddddFFFFiiiinnnnaaaannnncccciiiiaaaallllSSSSttttaaaatttteeeemmmmeeeennnnttttssss
1.Cashandcashinbank
CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee
IIIItttteeeemmmmssss OOOOrrrriiiiggggiiiinnnnaaaallll EEEExxxxcccchhhhaaaannnnggggeeee AAAAmmmmoooouuuunnnntttt OOOOrrrriiiiggggiiiinnnnaaaallll EEEExxxxcccchhhhaaaannnnggggeeee AAAAmmmmoooouuuunnnntttt
ccccuuuurrrrrrrreeeennnnccccyyyy rrrraaaatttteeee ((((RRRRMMMMBBBB)))) ccccuuuurrrrrrrreeeennnnccccyyyy rrrraaaatttteeee ((((RRRRMMMMBBBB))))
Cash
- -
on 222299994444,,,,777700006666....88889999
- -
222299992222,,,,666633332222....99998888
hand
294,706.89 1.0000 294,706.89 292,632.98 1.0000 292,632.98
RMB
Cash
in
- -
66660000,,,,333322222222,,,,000055552222....22224444
- -
55559999,,,,777711111111,,,,666677773333....22227777
bank
40,579,655.69 1.0000 40,579,655.69 55,851,714.09 1.0000 55,851,714.09
RMB
USD
3,237,689.79 6.0969 19,739,870.88 614,105.35 6.2855 3,859,959.18
300.00 8.4189 2,525.67 - -
----
Euro
Other
- -
22220000,,,,000077770000,,,,333322227777....77779999
- -
44441111,,,,222222228888,,,,999900007777....77779999
cash
20,070,327.79 1.0000 20,070,327.79 41,228,907.79 1.0000 41,228,907.79
RMB
TTTToooottttaaaallll
— —
88880000,,,,666688887777,,,,000088886666....99992222
— —
111100001111,,,,222233333333,,,,222211114444....00004444
Note1:Theendingbalanceofothercashisthesecuritydepositforbankacceptancenotes.Itisdeductedfromthe endingbalanceofcashandequivalentsduetoitsrestrictiononuse.
2.Notesreceivable
(1)Categoryofnotesreceivable
IIIItttteeeemmmmssss 2222000011113333....11112222....33331111 2222000011112222....11112222....33331111
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport Bank acceptance notes 79,689,279.98 95,459,955.84 Commercialacceptance notes 20,640,607.48 17,793,629.09 TTTToooottttaaaallll 111100000000,,,,333322229999,,,,888888887777....44446666 111111113333,,,,222255553333,,,,555588884444....99993333 (2)NopledgednotesreceivableuptoDecember312013.
(3)Notesreceivableendorsedtootherpartiesnotmatureattheendofyear
UptoDecember312013,thenotesreceivableendorsedtootherpartiesbutnotmatureattheendofyearareRMB 537,691,111.27Yuan.Thetop5amountsareasfollows:
IIIItttteeeemmmmssss NNNNooootttteeeeiiiissssssssuuuueeeerrrr IIIIssssssssuuuuiiiinnnnggggddddaaaatttteeee MMMMaaaattttuuuurrrriiiittttyyyy AAAAmmmmoooouuuunnnntttt
Bank
acceptance CSRERQICo.,Ltd 2013-10-18 2014-4-18 14,997,000.00 notes
Bank
CSRInvestmentand
acceptance 2013-11-27 2014-5-27 10,000,000.00 LeasingCo.,Ltd
notes
Bank
FuyangFAWXinyeAuto
acceptance 2013-10-28 2014-4-27 8,000,000.00 TradingCo.,Ltd
notes
Bank CSIC(Chongqing)Hai
acceptance ZhuangWindpower 2013-10-20 2014-4-24 6,000,000.00 notes
EquipmentCo.,Ltd
Bank
CSRInvestmentand
acceptance 2013-9-29 2014-3-29 5,110,000.00 LeasingCo.,Ltd
notes
TTTToooottttaaaallll
— — —
44444444,,,,111100007777,,,,000000000000
.00Notes：Attheendofthisyear,theamountofdiscountedunduebankacceptancenoteswasRMB19,470,400.00. 3.Accountsreceivable
(1)Categoryofaccountsreceivable
2222000011113333....11112222....33331111
PPPPrrrroooovvvviiiissssiiiioooonnnnffffoooorrrrbbbbaaaaddddaaaannnndddd
BBBBooooooookkkkiiiinnnnggggbbbbaaaallllaaaannnncccceeee
IIIItttteeeemmmmssss
ddddoooouuuubbbbttttffffuuuullllddddeeeebbbbttttssss
PPPPeeeerrrrcccceeeennnnttttaaaaggggeeee PPPPeeeerrrrcccceeeennnnttttaaaaggggeeee
AAAAmmmmoooouuuunnnntttt AAAAmmmmoooouuuunnnntttt
((((%%%%)))) ((((%%%%))))
Accountsreceivablewith
individualsignificantamount
3,910,007.43 0.32 3,910,007.43 100.00
andidentificationseparately
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport baddebtprovision
Accountsreceivableaccrued
- - - -
baddebtprovisionbyportfolio
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
Accountsreceivablewith
individualinsignificantamount
11,796,099.81 0.99 11,796,099.81 100.00
andidentificationseparately
baddebtprovision
TTTToooottttaaaallll
1111,,,,222200000000,,,,444444444444,,,,666699994444....88887777 111100000000....00000000 66661111,,,,888833339999,,,,000033333333....44442222 ————
(Continued)
2222000011112222....11112222....33331111
BBBBooooooookkkkiiiinnnnggggbbbbaaaallllaaaannnncccceeee PPPPrrrroooovvvviiiissssiiiioooonnnnffffoooorrrrbbbbaaaaddddaaaannnndddd
ddddoooouuuubbbbttttffffuuuullllddddeeeebbbbttttssss
IIIItttteeeemmmmssss
PPPPeeeerrrrcccceeeennnnttttaaaagggg PPPPeeeerrrrcccceeeennnnttttaaaaggggeeee
AAAAmmmmoooouuuunnnntttt AAAAmmmmoooouuuunnnntttt
eeee
((((%%%%))))
((((%%%%))))
Accountsreceivablewith
individualsignificantamountand
3,910,007.43 0.34 3,910,007.43 100.00
identificationseparatelybad
debtprovision
Accountsreceivableaccrued
—— —— —— ——
baddebtprovisionbyportfolio
Accountingagingportfolio
1,106,861,753.94 97.25 44,948,646.06 4.06
Relatedpartiesportfolio
15,597,246.25 1.37 — —
Risk-freeportfolio
— — — —
Subtotalofportfolio
1,122,459,000.19 98.62 44,948,646.06 3.98
Accountsreceivablewith
individualinsignificantamount
11,813,753.94 1.04 11,813,753.94 100.00
andidentificationseparatelybad
debtprovision
TTTToooottttaaaallll
1111,,,,111133338888,,,,111188882222,,,,777766661111....55556666 111100000000....00000000 66660000,,,,666677772222,,,,444400007777....44443333 ————
1)Accountsreceivablewithindividualsignificantamountandidentificationseparatelybaddebtprovisionattheendof 2013
BBBBooooooookkkkiiiinnnngggg PPPPrrrroooovvvviiiissssiiiioooonnnnffffoooorrrr PPPPrrrroooovvvviiiissssiiiioooonnnn
CCCCoooommmmppppaaaannnnyyyynnnnaaaammmmeeee RRRReeeeaaaassssoooonnnnssssffffoooorrrrpppprrrroooovvvviiiissssiiiioooonnnn
bbbbaaaallllaaaannnncccceeee bbbbaaaaddddddddeeeebbbbttttssss rrrraaaatttteeee
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport((((%%%%))))
BaodingNorthChina A/Rwithover5years
Machine&Electronic 3,910,007.43 3,910,007.43 100.00 aging,unlikelytobe
EquipmentCo.,Ltd. collected
TTTToooottttaaaallll 3333,,,,999911110000,,,,000000007777....44443333 3333,,,,999911110000,,,,000000007777....44443333 ———— ————
2)Accountsreceivableaccruedthebaddebtprovisionsunderaccountingaginganalysismethod
IIIItttteeeemmmmssss 2222000011113333....11112222....33331111 2222000011112222....11112222....33331111
PPPPeeeerrrrcccceeeennnnttttaaaaggggeeee PPPPeeeerrrrcccceeeennnnttttaaaaggggeeee
AAAAmmmmoooouuuunnnntttt PPPPrrrroooovvvviiiissssiiiioooonnnn AAAAmmmmoooouuuunnnntttt PPPPrrrroooovvvviiiissssiiiioooonnnn((((%%%%)))) ((((%%%%))))
ffffoooorrrrbbbbaaaadddd ffffoooorrrrbbbbaaaadddd
ddddeeeebbbbttttssss ddddeeeebbbbttttssss
Within
1year 987,605,318.88 82.27 9,876,053.19 906,609,161.15 79.65 9,066,091.60 1to2years 93,380,711.97 7.78 4,669,035.60 118,285,473.83 10.39 5,914,273.69 2to3years 40,816,693.16 3.90 8,163,338.63 36,717,595.73 3.23 7,343,519.15 Over3
45,249,523.23 3.98 22,624,761.62 years 46,848,997.53 3.90 23,424,498.76
TTTToooottttaaaallll 1111,,,,111166668888,,,,666655551111,,,,777722221111....55554444 99997777....33335555 44446666,,,,111133332222,,,,999922226666....11118888 1111,,,,111100006666,,,,888866661111,,,,777755553333....99994444 99997777....22225555 44444444,,,,999944448888,,,,666644446666....00006666 3) Individually insignificant amount accounts receivable but accrued bad debt provision separately at the end of 2013
PPPPrrrrooooppppoooorrrrttttiiiioooo
BBBBooooooookkkkiiiinnnngggg PPPPrrrroooovvvviiiissssiiiioooonnnnffffoooorrrr
CCCCoooommmmppppaaaannnnyyyynnnnaaaammmmeeee nnnn RRRReeeeaaaassssoooonnnnssssffffoooorrrrpppprrrroooovvvviiiissssiiiioooonnnn
bbbbaaaallllaaaannnncccceeee bbbbaaaaddddddddeeeebbbbttttssss
((((%%%%))))
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
BearingCo.,Ltd unlikelytobecollected
Tiefacoalsector A/Rwithover3yearsaging,
2,352,760.15 2,352,760.15
100.00
GroupCompany unlikelytobecollected
Shuangyashan
A/Rwithover3yearsaging,
Miningindustry 1,368,257.55 1,368,257.55
100.00
unlikelytobecollected
GroupCompany
Chongqing
A/Rwithover3yearsaging,
Sailimengelectrical 650,758.88 650,758.88
100.00
unlikelytobecollected
machineLLC
QingdaoQingte 590,898.99 590,898.99
100.00
A/Rwithover3yearsaging,
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport ZhongliaxleCo.,Ltd unlikelytobecollected
Othersporadic A/Rwithover5yearsaging,
1,674,582.53 1,674,582.53 100.00
accountsreceivable unlikelytobecollected
TTTToooottttaaaallll 11111111,,,,777799996666,,,,000099999999....88881111 11111111,,,,777799996666,,,,000099999999....88881111
(2)Write-offofaccountsreceivablesduringthereportingperiod
RRRReeeellllaaaatttteeeedddd
ppppaaaarrrrttttyyyy
CCCCoooommmmppppaaaannnnyyyynnnnaaaammmmeeee NNNNaaaattttuuuurrrreeee AAAAmmmmoooouuuunnnntttt RRRReeeeaaaassssoooonnnnooooffffwwwwrrrriiiitttteeee----ooooffffffff
ttttrrrraaaannnnssssaaaaccccttttiiiioooonnnn
((((YYYYoooorrrrNNNN))))
StateOwnedYunna Amountduefrom Liquidationoftheother
5,498.02 N
MachineErChang
customer party
ShenHuaGroup Taxlossarisingfrom
Amountduefrom
Zhunge’erEnergyCo.，
687,570.71 notinvoicedreturned N
Ltd customer
goods
Compensationfor
HongkongJuFengShi Amountduefrom
129,468.02
client’slossdueto
N
Ye
customer goodstransferdelay
ChangshuXingYuNew
Amountduefrom Loss arising from court
BuildingMaterialsCo.,
518,563.45 N
Ltd customer decision
ChangshuXingHai
Amountduefrom Loss arising from court
NewBuildingMaterials
717,137.51 N
Co.,Ltd customer decision
ChangshuXingDao
Amountduefrom Loss arising from court
NewBuildingMaterials
88,846.26 N
Co.,Ltd customer decision
Amountduefrom Goodslostwhen
ZhuzhouGearCo.,Ltd
1,913.65 N
customer mailing
TTTToooottttaaaallll
—
2222,,,,111144448888,,,,999999997777....66662222
— —
(3)Accountsreceivableduefromshareholdersholdingover5%(including5%)oftheCompany’sshares
2222000011113333....11112222....33331111 2222000011112222....11112222....33331111
CCCCoooommmmppppaaaannnnyyyynnnnaaaammmmeeee AAAAmmmmoooouuuunnnntttt PPPPrrrroooovvvviiiissssiiiioooonnnnffffoooorrrr AAAAmmmmoooouuuunnnntttt PPPPrrrroooovvvviiiissssiiiioooonnnnffffoooorrrr
bbbbaaaaddddddddeeeebbbbtttt bbbbaaaaddddddddeeeebbbbtttt
WazhouGroup 6,903,361.61 — 6,116,707.30 —
TTTToooottttaaaallll 6666,,,,999900003333,,,,333366661111....66661111 ———— 6666,,,,111111116666,,,,777700007777....33330000
—
(4)Accountsreceivableforthetop5companies
RRRReeeellllaaaattttiiiioooonnnnsssshhhhiiiipppp
PPPPeeeerrrrcccceeeennnnttttaaaaggggeeee
CCCCoooommmmppppaaaannnnyyyynnnnaaaammmmeeee wwwwiiiitttthhhhtttthhhheeee AAAAmmmmoooouuuunnnntttt AAAAggggiiiinnnngggg
iiiinnnntttthhhheeeettttoooottttaaaallll
CCCCoooommmmppppaaaannnnyyyy
AAAARRRR((((%%%%))))
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport TaiyuanHeavyIndustry
Unrelatedparty 44,750,264.60 Within1year 3.73
Co.,Ltd
DongFangElectricGroup Within1year
DongFangTurbine Unrelatedparty
38,494,944.54
1-2years,2-3year 3.21
Co.,Ltd s
SiemensEnergyInc Unrelatedparty
26,237,324.55
Within1year 2.19
ChinaNationalHeavyDuty
TruckGroupJinan
Unrelatedparty
25,651,982.40
Within1year 2.14
Axle&TransmissionCo.,
Ltd
Xi’anFastAutoDrive Within1year
Unrelatedparty
23,771,208.56
1.98
GroupFastGearCo.,Ltd
TTTToooottttaaaallll ———— 111155558888,,,,999900005555,,,,777722224444....66665555 ———— 11113333....22225555
(5)Accountsreceivableduefromrelatedparties
PPPPeeeerrrrcccceeeennnnttttaaaaggggeeeeiiiinnnntttthhhheeee
RRRReeeellllaaaattttiiiioooonnnnsssshhhhiiiippppwwwwiiiitttthhhhtttthhhheeee
CCCCoooommmmppppaaaannnnyyyynnnnaaaammmmeeee AAAAmmmmoooouuuunnnntttt
ttttoooottttaaaallllaaaaccccccccoooouuuunnnnttttssss
CCCCoooommmmppppaaaannnnyyyy rrrreeeecccceeeeiiiivvvvaaaabbbblllleeee((((%%%%))))
WazhouGroup Parentcompany 6,903,361.61 0.58 WazhouGroupSpecial Othercompaniescontrolledby
7,525,346.79
0.63 PrecisionBearingCo.,Ltd thesameparentcompany
WazhouGroup(US) Othercompaniescontrolledby
1,658,157.69
0.14 BearingCo.,Ltd thesameparentcompany
TTTToooottttaaaallll ———— 11116666,,,,000088886666,,,,888866666666....00009999 ———— 4.Advancestosuppliers
(1)Agingofadvancestosuppliers
2222000011113333....11112222....33331111 2222000011112222....11112222....33331111
IIIItttteeeemmmmssss
AAAAmmmmoooouuuunnnntttt PPPPeeeerrrrcccceeeennnnttttaaaaggggeeee((((%%%%)))) AAAAmmmmoooouuuunnnntttt PPPPeeeerrrrcccceeeennnnttttaaaaggggeeee((((%%%%)))) Within1year
28,330,096.29
84.03
29,405,218.97
86.78 1to2years
1,164,471.54
3.45
2,343,243.15
6.92 2to3years
2,203,266.20
6.54
104,369.37
0.31 Over3years
2,015,070.11
5.98
2,030,900.11
5.99 TTTToooottttaaaallll
33333333,,,,777711112222,,,,999900004444....11114444
111100000000....00000000
33333333,,,,888888883333,,,,777733331111....66660000
111100000000....00000000 (2)Mainadvancestosuppliers
CCCCoooommmmppppaaaannnnyyyynnnnaaaammmmeeee RRRReeeellllaaaattttiiiioooonnnnsssshhhhiiiipppp AAAAmmmmoooouuuunnnntttt AAAAggggiiiinnnngggg PPPPeeeennnnddddiiiinnnnggggrrrreeeeaaaassssoooonnnn
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport wwwwiiiitttthhhhtttthhhheeee
CCCCoooommmmppppaaaannnnyyyy
ShanxiTaigangStainless Transactionnotyet Unrelatedparty
8,756,769.96
Within1year
SteelCo.,Ltd completed
FushunSpecialSteel Transactionnotyet Unrelatedparty
7,317,076.47
Within1year
CompanyLimited completed
QiqiHa’erBeixingspecial Transactionnotyet Unrelatedparty
4,916,307.76
Within1year
steelCo.,Ltd completed
WazhouDynamicheating Transactionnotyet Unrelatedparty
3,764,712.00
Within1year
EngineeringCo.,Ltd. completed
LuoyangZhongzhong 1-2years, Disagreementon Unrelatedparty
2,906,200.56
FoundingCo.,Ltd 2-3years goodsquality
TTTToooottttaaaallll ———— 22227777,,,,666666661111,,,,000066666666....77775555 ———— ————
Noadvancestosuppliersareduefromshareholdersholdingover5%(including5%)oftheCompany’ssharesatthe endof2013.
5.Dividendreceivable
RRRReeeeaaaassssoooonnnnffffoooorrrr
IIIItttteeeemmmmssss 2222000011112222....11112222....33331111 IIIInnnnccccrrrreeeeaaaasssseeee DDDDeeeeccccrrrreeeeaaaasssseeee 2222000011113333....11112222....33331111 IIIImmmmppppaaaaiiiirrrrmmmmeeeennnntttt uuuunnnnccccoooolllllllleeeeccccttttiiiioooonnnn
Dividend — —
receivable
duewithin1 - 240,000.00 - 240,000.00
year
Ofwhich: - - — —
ShanghaiME — —
machine-elect
rical - 240,000.00 - 240,000.00
equipment
chainLtd
TTTToooottttaaaallll ---- 222244440000,,,,000000000000....00000000 ---- 222244440000,,,,000000000000....00000000
— —
6.Otherreceivables
(1)Thecategoriesofotherreceivable
2222000011113333....11112222....33331111
PPPPrrrroooovvvviiiissssiiiioooonnnnffffoooorrrrbbbbaaaaddddaaaannnndddd
IIIItttteeeemmmmssss BBBBooooooookkkkiiiinnnnggggbbbbaaaallllaaaannnncccceeee
ddddoooouuuubbbbttttffffuuuullllddddeeeebbbbttttssss
AAAAmmmmoooouuuunnnntttt PPPPeeeerrrrcccceeeennnnttttaaaaggggeeee AAAAmmmmoooouuuunnnntttt PPPPeeeerrrrcccceeeennnnttttaaaaggggeeee
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport((((%%%%)))) ((((%%%%))))
Otherreceivableswithindividual
significantamountandidentification
- - - -
separatelybaddebtprovision
Otherreceivablesaccruedbaddebt
- - - -
provisionbyportfolio
Accountingagingportfolio
18,307,069.77 54.26 4,013,105.80 21.92
Relatedpartiesportfolio
- - - -
Risk-freeportfolio
15,433,328.36 45.74 - -
Subtotalofportfolio
33,740,398.13 100.00 4,013,105.80 11.89
Otherreceivableswithindividual
insignificantamountand
- - - -
identificationseparatelybaddebt
provision
TTTToooottttaaaallll
33333333,,,,777744440000,,,,333399998888....11113333 111100000000....00000000 4444,,,,000011113333,,,,111100005555....88880000
—
(Continued)
2222000011112222....11112222....33331111
PPPPrrrroooovvvviiiissssiiiioooonnnnffffoooorrrrbbbbaaaaddddaaaannnndddd
BBBBooooooookkkkiiiinnnnggggbbbbaaaallllaaaannnncccceeee
IIIItttteeeemmmmssss ddddoooouuuubbbbttttffffuuuullllddddeeeebbbbttttssss
AAAAmmmmoooouuuunnnntttt PPPPeeeerrrrcccceeeennnnttttaaaaggggeeee AAAAmmmmoooouuuunnnntttt PPPPeeeerrrrcccceeeennnnttttaaaaggggeeee
((((%%%%)))) ((((%%%%))))
Otherreceivableswithindividual
significantamountandidentification
— — — —
separatelybaddebtprovision
Otherreceivablesaccruedbaddebt
— — — —
provisionbyportfolio
Accountingagingportfolio
17,637,468.19 74.63 3,741,341.49 21.21
Relatedpartiesportfolio
— — — —
Risk-freeportfolio
5,995,683.60 25.37 — —
Subtotalofportfolio
23,633,151.79 100.00 3,741,341.49 15.83
Otherreceivableswithindividual
insignificantamountand
— — — —
identificationseparatelybaddebt
provision
TTTToooottttaaaallll
22223333,,,,666633333333,,,,111155551111....77779999 111100000000....00000000 3333,,,,777744441111,,,,333344441111....44449999 ————
1)Otherreceivablesaccruedthebaddebtprovisionsunderaccountingaginganalysismethod
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport 2222000011113333....11112222....33331111 2222000011112222....11112222....33331111
IIIItttteeeemmmmssss PPPPeeeerrrrcccceeeennnnttttaaaaggggeeee PPPPeeeerrrrcccceeeennnnttttaaaaggggeeee
AAAAmmmmoooouuuunnnntttt PPPPrrrroooovvvviiiissssiiiioooonnnn AAAAmmmmoooouuuunnnntttt PPPPrrrroooovvvviiiissssiiiioooonnnn
((((%%%%)))) ((((%%%%))))
Withi
n1
8,314,567.63 24.64 83,145.67
7,623,265.85
32.26
76,232.66 year
1to
2
1,691,648.13 5.01 84,582.40
2,636,691.48
11.16
131,834.58 year
s
2to
3
1,016,830.94 3.01 203,366.19
518,270.58
2.19
103,654.12 year
s
Over
3
7,284,023.07 21.60 3,642,011.54
6,859,240.28
29.02
3,429,620.13 year
s
TTTToooottttaaaallll
11118888,,,,333300007777,,,,000066669999....77777777 55554444....22226666
4,013,105.80 11117777,,,,666633337777,,,,444466668888....11119999
77774444....66663333
3333,,,,777744441111,,,,333344441111....44449999Nootherreceivablesareduefromshareholdersholdingover5%(including5%)oftheCompany’ssharesattheend of2013.
(2)Otherreceivablesfromthetop5debtors
%%%%ooooffff
RRRReeeellllaaaattttiiiioooonnnnsssshhhhiiiipppp
tttthhhheeee NNNNaaaattttuuuurrrreeeeoooorrrr CCCCoooommmmppppaaaannnnyyyynnnnaaaammmmeeee wwwwiiiitttthhhhtttthhhheeee AAAAmmmmoooouuuunnnnttttssss AAAAggggiiiinnnngggg
ttttoooottttaaaallll ccccoooonnnntttteeeennnnttttssss CCCCoooommmmppppaaaannnnyyyy
OOOORRRR
Liaoning power supply
Unrelatedparty 3,385,685.91 Within1year
10.03 Electriccharge (Dalian)Co.,Ltd
DaqinRailwayCo.,Ltd
TaiyuanStockSupply Unrelatedparty 469,000.00 Within1year 1.39 Deposit Station
Kunming Railway Bureau
Unrelatedparty 370,000.00 Within1year
1.10 Deposit MaterialSupplyStation
Nanning Railway Bureau
Unrelatedparty 297,480.00 Within1year 0.88 Deposit
materialexchange
ShenHuaEnergyRailway
Unrelatedparty 279,000.00 Within1year
0.83 Deposit
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport FreightTransportation
Branch
TTTToooottttaaaallll ———— 4444,,,,888800001111,,,,111166665555....99991111 ———— 11114444....22223333 ————
7.Inventories
(1)Categoriesofinventories
2222000011113333....11112222....33331111 2222000011112222....11112222....33331111
PPPPrrrroooovvvviiiissssiiiioooonnnn
IIIItttteeeemmmm PPPPrrrroooovvvviiiissssiiiioooonnnn NNNNeeeettttbbbbooooooookkkk NNNNeeeettttbbbbooooooookkkk
CCCCoooosssstttt CCCCoooosssstttt ffffoooorrrr
ffffoooorrrrddddeeeecccclllliiiinnnneeee vvvvaaaalllluuuueeee vvvvaaaalllluuuueeee
ddddeeeecccclllliiiinnnneeeessss
Rawmaterials 156,386,450.54 2,385,945.20 154,000,505.34 162,613,357.20 2,658,311.39 159,955,045.81 Wrappage 2,080,576.50 2,080,576.50 541,853.35 — 541,853.35 Low-value consu — — — - - -
mable
Finishedgoods 924,735,016.96 56,976,781.48 867,758,235.48 874,203,094.28 56,358,265.81 817,844,828.47 Working
173,497,408.33 602,496.86 172,894,911.47 178,825,970.83 602,496.86 178,223,473.97 inprogress
TTTToooottttaaaallll 1111,,,,222255556666,,,,666699999999,,,,444455552222....33333333 55559999,,,,999966665555,,,,222222223333....55554444 1111,,,,111199996666,,,,777733334444,,,,222222228888....77779999 1111,,,,222211116666,,,,111188884444,,,,222277775555....66666666 55559999,,,,666611119999,,,,000077774444....00006666 1111,,,,111155556666,,,,555566665555,,,,222200001111....66660000 (2)Provisionfordeclineinthevalueofinventories
DDDDeeeeccccrrrreeeeaaaasssseeee
IIIItttteeeemmmmssss 2222000011112222....11112222....33331111 IIIInnnnccccrrrreeeeaaaasssseeee OOOOtttthhhheeeerrrrssss 2222000011113333....11112222....33331111
RRRReeeevvvveeeerrrrsssseeee
ttttrrrraaaannnnssssffffeeeerrrrrrrreeeedddd
Rawmaterials 2,658,311.39
- 272,366.19
—
2,385,945.20
Finishedgoods 56,358,265.81
618,515.67 -
—
56,976,781.48
Workingin —
- - 602,496.86
progress 602,496.86
TTTToooottttaaaallll 55559999,,,,666611119999,,,,000077774444....00006666
666611118888,,,,555511115555....66667777 222277772222,,,,333366666666....11119999
—
55559999,,,,999966665555,,,,222222223333....55554444
8.Othercurrentassets
IIIItttteeeemmmm 2222000011113333....11112222....33331111 2222000011112222....11112222....33331111 NNNNaaaattttuuuurrrreeee
Rental 908,658.20 848,331.13 Unamortizedrent
Overpaidincometax 1,864,330.37 1,823,854.11 IncomeTax
TTTToooottttaaaallll 2222,,,,777777772222,,,,999988888888....55557777 2222,,,,666677772222,,,,111188885555....22224444
—
9.Long-termequityinvestments
(1)Categoryoflong-termequityinvestments
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport IIIItttteeeemmmmssss 2222000011113333....11112222....33331111 2222000011112222....11112222....33331111
Long-termequityinvestmentsunder
2,000,000.00 2,000,000.00 costmethod
Long-termequityinvestmentsunder
106,055,329.24 95,194,641.13 equitymethod
TTTToooottttaaaallll 111100008888,,,,000055555555,,,,333322229999....22224444 99997777,,,,111199994444,,,,666644441111....11113333 Less:provisionforimpairment - — NNNNeeeettttvvvvaaaalllluuuueeee 111100008888,,,,000055555555,,,,333322229999....22224444 99997777,,,,111199994444,,,,666644441111....11113333 (2)Long-termequityinvestmentsundercostandequitymethod
OOOOrrrriiiiggggiiiinnnnaaaallll
IIIInnnnvvvveeeesssstttteeeeeeee HHHHoooollllddddiiiinnnngggg%%%%VVVVoooottttiiiinnnngggg%%%%
AAAAmmmmoooouuuunnnnttttssss
Costmethod - - -
ShanghaiMEmachine-electricalequipmentchainLtd. 4.76 4.76 2,000,000.00
SSSSuuuubbbb----ttttoooottttaaaallll — — 2222,,,,000000000000,,,,000000000000....00000000
Equitymethod - - -
ShanghaiZhenxinWazhouMachineryandElectricityCo.,Ltd. 49.00 49.00 95,060,000.00
SSSSuuuubbbb----ttttoooottttaaaallll — — 99995555,,,,000066660000,,,,000000000000....00000000
TTTToooottttaaaallll — — 99997777,,,,000066660000,,,,000000000000....00000000
(Continued)
CCCCaaaasssshhhh
ddddiiiivvvviiiiddddeeeennnnddddssss
IIIInnnnvvvveeeesssseeeeeeeessss 2222000011112222....11112222....33331111 IIIInnnnccccrrrreeeeaaaasssseeee DDDDeeeeccccrrrreeeeaaaasssseeee 2222000011113333....11112222....33331111
rrrreeeecccceeeeiiiivvvveeeedddd
iiiinnnn2222000011112222
Costmethod - - - - -
ShanghaiME
machine-electrical
2,000,000.00
- -
2,000,000.00 920,000.00
equipmentchainLtd.
SSSSuuuubbbb----ttttoooottttaaaallll 2222,,,,000000000000,,,,000000000000....00000000 — — 2222,,,,000000000000,,,,000000000000....00000000
—
Equitymethod - - - - -
ShanghaiZhenxinWazhou
MachineryandElectricityCo., 95,194,641.13 11,077,789.98 106,272,431.11 -
Ltd.
SSSSuuuubbbb----ttttoooottttaaaallll 99995555,,,,111199994444,,,,666644441111....11113333 11111111,,,,000077777777,,,,777788889999....99998888 111100008888,,,,222277772222,,,,444433331111....11111111
—
TTTToooottttaaaallll 99997777,,,,111199994444,,,,666644441111....11113333 11111111,,,,000077777777,,,,777788889999....99998888 111100008888,,,,222277772222,,,,444433331111....11111111 999922220000,,,,000000000000....00000000
(3)Investmentinassociatedcompany
Monetaryunit:RMBTenThousandYuan
TTTToooottttaaaallllaaaasssssssseeeettttssss TTTToooottttaaaallll TTTToooottttaaaallllnnnneeeetttt TTTToooottttaaaallll NNNNeeeetttt
HHHHoooollllddddiiiinnnngggg VVVVoooottttiiiinnnngggg
IIIInnnnvvvveeeesssstttteeeeeeee aaaassssaaaattttDDDDeeeecccc33331111 lllliiiiaaaabbbbiiiilllliiiittttiiiieeeessss aaaasssssssseeeettttssssaaaassss ssssaaaalllleeeessss pppprrrrooooffffiiiittttssssiiiinnnn
%%%% %%%%
2222000011112222 aaaassssaaaattttDDDDeeeecccc aaaattttDDDDeeeecccc33331111 rrrreeeevvvveeeennnnuuuueeeeiiiinnnn 2222000011112222
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport 333311112222000011112222 2222000011112222 2222000011112222
Associated
———— ———— ———— ———— ———— ———— ————
company
DalianSKF
Wazhou
49.00 49.00 27,121.15 5,359.77 21,761.37 21,168.86 1,554.03
Bearings
Co.,Ltd.
TTTToooottttaaaallll
10.Fixedassets
(1)Fixedassetsdetail
IIIItttteeeemmmm OOOOppppeeeennnniiiinnnngggg CCCClllloooossssiiiinnnngggg IIIInnnnccccrrrreeeeaaaasssseeee DDDDeeeeccccrrrreeeeaaaasssseeee
BBBBaaaallllaaaannnncccceeee BBBBaaaallllaaaannnncccceeee IIIInnnniiiittttiiiiaaaallllCCCCoooosssstttt
1111,,,,555533335555,,,,222266668888,,,,222266663333....55551111 33333333,,,,000055551111,,,,111177779999....11115555 11115555,,,,222233336666,,,,111111119999....55551111 1111,,,,555555553333,,,,000088883333,,,,333322223333....11115555 Property
385,061,768.70 2,034,513.99 - 387,096,282.69 Machinery
889,854,185.86 25,360,232.04 13,239,826.18 901,974,591.72 Equipments
Transportation
19,250,791.84 1,560,014.81
933,889.73
19,876,916.92
||
|-|
|70,266,205.61|
|173,869,326.21|

999911112222,,,,000055555555,,,,333300004444....22220000 AAAAnnnnnnnnuuuuaaaallll AAAAnnnnnnnnuuuuaaaallll
DDDDeeeepppprrrreeeecccciiiiaaaattttiiiioooonnnn 11112222,,,,222288885555,,,,333355557777....22222222
999977777777,,,,888855551111,,,,999922223333....55554444 IIIInnnnccccrrrreeeeaaaasssseeee WWWWiiiitttthhhhddddrrrraaaawwwwiiiinnnngggg
Property
164,982,722.58
- 12,407,371.31
-
177,390,093.89 Machinery
10,884,250.20
691,280.72 48,259,834.85 586,510,794.50 Equipments 548,443,929.13
Transportation
12,936,152.86
- 1,074,823.90 449,945.14 13,561,031.62
||||||
|-|-|-|-|-|
|ElectronicDevice|54,017,597.91|- 4,961,084.69|951,161.88|58,027,520.72|
|OtherEquipments|131,674,901.72||-|142,362,482.81|

666622223333,,,,222211112222,,,,999955559999....33331111
— —
555577775555,,,,222233331111,,,,333399999999....66661111 Property
220,079,046.12 - - 209,706,188.80 Machinery
- - 315,463,797.22 Equipments 341,410,256.73
Transportation
6,314,638.98 - - 6,315,885.30 ElectronicDevice
12,912,258.77 - - 12,238,684.89 OtherEquipments
42,496,758.71 - - 31,506,843.40 IIIImmmmppppaaaaiiiirrrrmmmmeeeennnnttttRRRReeeesssseeeerrrrvvvveeee
3333,,,,222200004444,,,,222200006666....22227777 2222,,,,777733339999,,,,222277777777....00005555—
Property
- - -
- Machinery
3,003,046.76
- 464,929.22
2,538,117.54
Equipments
Transportation
200,000.00 - -
200,000.00
ElectronicDevice
-
- - -
OtherEquipments
1,159.51 - - 1,159.51
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport BBBBooooooookkkkVVVVaaaalllluuuueeee
666622220000,,,,000000008888,,,,777755553333....00004444
— —
555577772222,,,,444499992222,,,,111122222222....55556666 Property 220,079,046.12 - - 209,706,188.80 Machinery
338,407,209.97 - - 312,925,679.68 Equipments
Transportation 6,114,638.98 - - 6,115,885.30 ElectronicDevice 12,912,258.77 - - 12,238,684.89 OtherEquipments
42,495,599.20 - - 31,505,683.89 Note: within the increased fixed assets, the amount transfer from construction in process is 22,094,552.18 Yuan; within increased accumulated depreciation during the year, depreciation for current year is 77,390,695.84Yuan.
Thereisnofixedassetusedasmortgageorguarantee.
(2)Temporaryunoccupiedfixedassets
AAAAccccccccuuuummmmuuuullllaaaatttteeeedddd BBBBooooooookkkkVVVVaaaalllluuuueeee
IIIItttteeeemmmm IIIInnnniiiittttiiiiaaaallllCCCCoooosssstttt PPPPrrrroooovvvviiiissssiiiioooonnnn NNNNooootttteeee DDDDeeeepppprrrreeeeccccaaaattttiiiioooonnnn
Property
9,151,839.00 6,425,627.57 - 2,726,211.43
Machinery
32,237,829.03 27,526,281.72 2,738,117.54 1,973,429.77 - Equipments
Transportation
- - - - - Electronic
- - - - - Device
Other
426,854.92 371,914.05 1,159.51 53,781.36 - Equipments
TTTToooottttaaaallll
44441111,,,,888811116666,,,,555522222222....99995555 33334444,,,,333322223333,,,,888822223333....33334444 2222,,,,777733339999,,,,222277777777....00005555 4444,,,,777755553333,,,,444422222222....55556666
— (3)Fixedassetsasoperatinglease
IIIItttteeeemmmm BBBBooooooookkkkVVVVaaaalllluuuueeee
Property 35,285,907.66
TTTToooottttaaaallll
33335555,,,,222288885555,,,,999900007777....66666666
(4)Fixedassetsaspendingcertificateofownership
RRRReeeeaaaassssoooonnnnffffoooorrrrPPPPeeeennnnddddiiiinnnngggg
IIIItttteeeemmmm EEEExxxxppppeeeeccccttttTTTTiiiimmmmeeeeffffoooorrrrCCCCeeeerrrrttttiiiiffffiiiiccccaaaatttteeeeLiaoyangBearing’sMain
Landcertificatepending 2014
workshop
LiaoyangBearing’sOffice
Landcertificatepending 2014
building
LiaoyangBearing’s
Landcertificatepending 2014
Processingworkshop
LiaoyangBearing’sStaff
Landcertificatepending 2014
canteen
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport AutoBearingWestern
Completionacceptancepending
IndustrialZoneworkshop
(cone)
AutoBearingWestern
Completionacceptancepending
IndustrialZoneworkshop
(column)
Dalianmachineindustry
Landcertificatepending 2014
areabearingfactory
11.Construction-in-progress
(1)Constructioninprogressdetails
CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee
IIIItttteeeemmmm
BBBBooooooookkkkBBBBaaaallllaaaannnncccceeee PPPPrrrroooovvvviiiissssiiiioooonnnn BBBBooooooookkkkVVVVaaaalllluuuueeee BBBBooooooookkkkBBBBaaaallllaaaannnncccceeee PPPPrrrroooovvvviiiissssiiiioooonnnn BBBBooooooookkkkVVVVaaaalllluuuueeee M250Grinding
- -
Machine 130,730.53 130,730.53 130,730.53 130,730.53 Improvement
Forkedtruck 1,739,365.29
-
1,739,365.29 1,950,485.37
-
1,950,485.37 Improvementof
7,370,997.06
-
7,370,997.06 5,000,473.77
-
5,000,473.77 plant
Installationof
- -
superfinish 1,280,668.30 1,280,668.30 1,351,173.24 1,351,173.24 machine
Improvementof
- -
finishedgoods 10,081,207.24 10,081,207.24 10,395,850.45 10,395,850.45 storage
Dalianindustry
17,791,792.04
-
17,791,792.04 20,565,071.25
-
20,565,071.25 parkproject
CraneProject 2,860,733.35
-
2,860,733.35 3,317,410.04
-
3,317,410.04 Computer
1,535,381.58
-
1,535,381.58 2,032,624.60
-
2,032,624.60 Project
Improvementof
- -
grinding 14,748,946.41 14,748,946.41 14,422,811.50 14,422,811.50 machine
Grinding
12,449,271.43
-
12,449,271.43 12,273,932.05
-
12,273,932.05 productline
Improvementof
- -
seven-finished 31,672,411.92 31,672,411.92 7,398,962.60 7,398,962.60 products
Heattreatment
1,485,321.71
-
1,485,321.71 1,512,348.50
-
1,512,348.50 productline
DigitalBoring
1,873,327.72
-
1,873,327.72 5,583,145.92
-
5,583,145.92 machine
Improvementof
- -
exploration 785,812.85 785,812.85 467,787.14 467,787.14
machinery
Improvementof
82,262,814.56
-
82,262,814.56 70,823,754.42
-
70,823,754.42
one-finished
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport products
Instruments 1,197,252.35
-
1,197,252.35 1,602,437.64
-
1,602,437.64 Improvementof
1,835,259.09 - 1,835,259.09 - - - Amerauto
Mediumsized
-
deepgroove
37,928,717.99 37,928,717.99 36,023,932.13 36,023,932.13 ballbearing
productline
Assemblingline 18,007,638.86 18,007,638.86 15,892,337.65
-
15,892,337.65 Improvementof
-
precisionroller 19,150,962.11 19,150,962.11 7,509,145.15 7,509,145.15 branch
Improvementof
-
speciallarge 4,251,393.54 4,251,393.54 2,734,319.94 2,734,319.94 branch
Improvementof
13,916,307.14 13,916,307.14 1,358,768.24
-
1,358,768.24 liaoyangbearing
Improvementof
two-finished 3,459,601.61 3,459,601.61 1,763,639.14
-
1,763,639.14 products
Others 15,356,547.93 15,353,137.93 16,413,539.71
-
16,413,539.71 TTTToooottttaaaallll
333300003333,,,,111177772222,,,,444466662222....66661111 333300003333,,,,111166669999,,,,000055552222....66661111 222244440000,,,,555522224444,,,,666688880000....99998888
—
222244440000,,,,555522224444,,,,666688880000....99998888 (2)Changeinthesignificantconstructioninprogress
|||||
|-|-|-|-|
|NNNNaaaammmmeeee|OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee|IIIInnnnccccrrrreeeeaaaasssseeee|DDDDeeeeccccrrrreeeeaaaasssseeee|

Improvementof
5,000,473.77 2,370,523.29 -
-
7,370,997.06
plant
Installationof
superfinish 1,351,173.24 43,696.77 114,201.71
-
1,280,668.30
machine
Improvementof
finishedgoods 10,395,850.45 18,521.75 333,164.96
-
10,081,207.24
storage
Dalianindustry
20,565,071.25 2,083,857.57 -
4,857,136.78
17,791,792.04 parkproject
CraneProject 3,317,410.04 156,143.82 612,820.51 - 2,860,733.35 Computer
2,032,624.60 457,256.87 954,499.89 - 1,535,381.58 Project
Improvementof
grinding 14,422,811.50 408,186.19 82,051.28 - 14,748,946.41 machine
Grinding
12,273,932.05 289,271.01 113,931.63 - 12,449,271.43
productline
Improvementof
seven-finished 7,398,962.60 24,273,449.32 - - 31,672,411.92
products
Heattreatment 1,512,348.50 31,992.66 59,019.45 - 1,485,321.71
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport productline
DigitalBoring
5,583,145.92 74,424.68 3,784,242.88 - 1,873,327.72 machine
Improvementof
exploration 467,787.14 440,076.99 122,051.28 - 785,812.85 machinery
Improvementof
one-finished 70,823,754.42 11,637,956.13 198,895.99 - 82,262,814.56 products
Instruments 1,602,437.64 28,518.23 433,703.52 - 1,197,252.35 Improvementof
-
1,835,259.09 - - 1,835,259.09 Amerauto
Mediumsized
deepgroove
36,023,932.13 1,904,785.86 - - 37,928,717.99 ballbearing
productline
Assemblingline 15,892,337.65 2,115,301.21 - - 18,007,638.86 Improvementof
precisionroller 7,509,145.15 19,026,997.39 7,385,180.43 - 19,150,962.11 branch
Improvementof
speciallarge 2,734,319.94 1,890,720.72 373,647.12 - 4,251,393.54 branch
Improvementof
Liaoyang 1,358,768.24 12,557,538.90 - - 13,916,307.14 bearing
Improvementof
two-finished 1,763,639.14 1,695,962.47 - - 3,459,601.61 products
TTTToooottttaaaallll 222222222222,,,,000022229999,,,,999922225555....33337777 88883333,,,,333344440000,,,,444444440000....99992222 11114444,,,,555566667777,,,,444411110000....66665555
4,857,136.78
222288885555,,,,999944445555,,,,888811118888....88886666 (Continued)
|||||||||
|-|-|-|-|-|-|-|-|
|NNNNaaaammmmeeee|BBBBuuuuddddggggeeeetttt|PPPPeeeerrrrcccceeeennnnttttooooffffiiiinnnnvvvveeeessssttttmmmmeeeennnnttttaaaaggggaaaaiiiinnnnssssttttbbbbuuuuddddggggeeeetttt|CCCCoooonnnnssssttttrrrruuuuccccttttiiiioooonnnnpppprrrrooooggggrrrreeeessssssss((((%%%%))))|AAAAccccccccuuuummmmuuuullllaaaatttteeeeddddccccaaaappppiiiittttaaaalllliiiizzzzeeeeddddiiiinnnntttteeeerrrreeeesssstttt|IIIInnnncccclllluuuuddddiiiinnnngggg::::AAAAccccccccuuuummmmuuuullllaaaatttteeeeddddccccaaaappppiiiittttaaaalllliiiizzzzeeeeddddiiiinnnntttteeeerrrreeeesssstttt|IIIInnnntttteeeerrrreeeessssttttccccaaaappppiiiittttaaaalllliiiizzzzaaaattttiiiioooonnnnrrrraaaatttteeee((((%%%%))))|SSSSoooouuuurrrrcccceeeeooooffffffffuuuunnnnddddssss|
|Improvementofplant|8,300,890.70|88.03|88.03|1,138,116.60|63,435.08|5.20|Loan/Selffinancing|
|Installationofsuperfinishmachine|1,357,596.00|91.99|91.99|903,653.74|31,798.79|5.20|Loan/Selffinancing|
|Improvementoffinishedgoodsstorage|11,338,368.60|88.87|88.87|275,183.88|4,545.69|5.20|Loan/Selffinancing|
|Dalianindustryparkproject|40,506,240.61|43.34|43.34|8,275,878.97|235,455.56|5.20|Loan/Selffinancing|
|CraneProject|3,021,136.00|91.94|91.94|284,834.21|82,997.40|5.20|Loan/Selffinancing|
|ComputerProject|1,781,592.00|86.18|86.18|1,349,936.48|-|5.20|Loan/Selffinancing|

WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport
|||||||||
|-|-|-|-|-|-|-|-|
|Improvementofgrindingmachine|20,201,600.00|70.91|70.91|505,406.00|424,727.54|5.20|Loan/Selffinancing|
|Grindingproductline|23,250,000.00|52.00|52.00|829,164.45|359,040.85|5.20|Loan/Selffinancing|
|Improvementofseven-finishedproducts|62,918,851.00|49.39|49.39|2,771,438.97|593,875.53|5.20|Loan/Selffinancing|
|Heattreatmentproductline|1,539,900.00|95.78|95.78|450,094.22|10,470.26|5.20|Loan/Selffinancing|
|DigitalBoringmachine|2,790,000.00|65.22|65.22|553,052.41|53,806.74|5.20|Loan/Selffinancing|
|Improvementofexplorationmachinery|2,150,600.00|34.75|34.75|274,422.94|38,372.00|5.20|Loan/Selffinancing|
|Improvementofone-finishedproducts|100,551,701.00|79.35|79.35|5,136,560.21|2,472,421.70|5.20|Loan/Selffinancing|
|Instruments|1,343,460.00|89.12|89.12|197,942.65|-|5.20|Loan/Selffinancing|
|ImprovementofAmerauto|2,030,970.00|87.61|87.61|55,925.77|55,925.77|5.20|Loan/Selffinancing|
|Mediumsizeddeepgrooveballbearingproductline|50,260,000.00|71.38|71.38|2,194,568.91|2,051,866.12|5.20|Loan/Selffinancing|
|Assemblingline|21,536,000.00|79.24|79.24|1,049,356.06|942,042.71|5.20|Loan/Selffinancing|
|Improvementofprecisionrollerbranch|64,227,826.00|29.52|29.52|6,102,033.83|189,969.98|5.20|Loan/Selffinancing|
|Improvementofspeciallargebranch|5,018,300.00|82.42|82.42|145,601.60|115,537.83|5.20|Loan/Selffinancing|

 Improvementof Loan/Self 19,682,175.00 67.85 67.85 562,704.51 562,079.12 5.20
Liaoyangbearing financing Improvementof
Loan/Self two-finished 5,328,672.00 63.24 63.24 101,310.20 89,509.66 5.20
financing products
TTTToooottttaaaallll
444444449999,,,,111133335555,,,,888877778888....99991111
— —
33333333,,,,111155557777,,,,111188886666....66661111 8888,,,,333377777777,,,,888877778888....33333333
— — 12.Intangibleassets
IIIItttteeeemmmm OOOOppppeeeennnniiiinnnnggggbbbbaaaallllaaaannnncccceeee IIIInnnnccccrrrreeeeaaaasssseeee DDDDeeeeccccrrrreeeeaaaasssseeee CCCClllloooossssiiiinnnnggggbbbbaaaallllaaaannnncccceeee
IIIInnnniiiittttiiiiaaaallllccccoooosssstttt 111177770000,,,,999988884444,,,,000088884444....77779999 111144447777,,,,000000008888....55555555
—
111177771111,,,,111133331111,,,,000099993333....33334444
Landuseright 165,422,429.50
----
- 165,422,429.50
ERPsoftware 4,985,843.33 100,000.00 - 5,085,843.33
Others 575,811.96 47,008.55 - 622,820.51
AAAAmmmmoooorrrrttttiiiizzzzaaaattttiiiioooonnnn 22226666,,,,999988887777,,,,333377770000....33337777 4444,,,,555588880000,,,,666633336666....00006666
—
33331111,,,,555566668888,,,,000000006666....44443333
Landuseright
22,927,451.23
4,052,315.40 - 26,979,766.63
ERPsoftware
3,490,089.93
502,750.93 - 3,992,840.86
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport Others
569,829.21
25,569.73 - 595,398.94
NNNNeeeettttbbbbooooooookkkkvvvvaaaalllluuuueeee 111144443333,,,,999999996666,,,,777711114444....44442222 ———— ———— 111133339999,,,,555566663333,,,,000088886666....99991111
Landuseright
142,494,978.27
- - 138,442,662.87
ERPsoftware
1,495,753.40
- - 1,093,002.47
Others
5,982.75
- - 27,421.57
PPPPrrrroooovvvviiiissssiiiioooonnnn
— — — —
ffffoooorrrriiiimmmmppppaaaaiiiirrrrmmmmeeeennnntttt
Landuseright - - - -
ERPsoftware - - - -
Others - - - -
BBBBooooooookkkkvvvvaaaalllluuuueeee 111144443333,,,,999999996666,,,,777711114444....44442222
— —
111133339999,,,,555566663333,,,,000088886666....99991111
Landuseright
142,494,978.27
- - 138,442,662.87
ERPsoftware
1,495,753.40
- - 1,093,002.47
Others
5,982.75
- - 27,421.57
Note: The increased accumulated amortization of this year includes normal amortization of intangible assets for RMB4,580,636.06Yuan.
13.Long-termrepayments
IIIItttteeeemmmm CCCClllloooossssiiiinnnngggg OOOOtttthhhheeeerrrr OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee
IIIInnnnccccrrrreeeeaaaasssseeee
AAAAmmmmoooorrrrttttiiiizzzzaaaattttiiiioooonnnn
DDDDeeeeccccrrrreeeeaaaasssseeee
BBBBaaaallllaaaannnncccceeee DDDDeeeeccccrrrreeeeaaaasssseeee Righttouse
premiseof
792,683.11 - 67,830.36 - 724,852.75 - Shanghai
salesoffice
TTTToooottttaaaallll 777799992222,,,,666688883333....11111111 ———— 66667777,,,,888833330000....33336666 ———— 777722224444,,,,888855552222....77775555 ———— 14.Deferredtaxesassetsanddeferredtaxliabilities
(1)Recognizeddeferredtaxassetsanddeferredtaxliabilities
IIIItttteeeemmmm CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee
DDDDeeeeffffeeeerrrrrrrreeeeddddttttaaaaxxxxaaaasssssssseeeettttssss ---- ----
Provisionforimpairmentofassets
8,971,775.64 9,041,515.02
Differenceduetodepreciationoffixed
1,791,108.01 1,791,108.01
assets
TTTToooottttaaaallll 11110000,,,,777766662222,,,,888888883333....66665555 11110000,,,,888833332222,,,,666622223333....00003333
DDDDeeeeffffeeeerrrrrrrreeeeddddttttaaaaxxxxlllliiiiaaaabbbbiiiilllliiiittttiiiieeeessss ---- ----
Unrealizedinternalloss - 393,621.42
TTTToooottttaaaallll ---- 333399993333,,,,666622221111....44442222
(2)Differencesoftaxpayableanddeductableitemsdetail
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport IIIItttteeeemmmm AAAAmmmmoooouuuunnnntttt
TTTTaaaaxxxxaaaabbbblllleeeeddddiiiiffffffffeeeerrrreeeennnncccceeeessss ————
Unrealizedinternalloss
SSSSuuuubbbbttttoooottttaaaallll
DDDDeeeedddduuuuccccttttiiiibbbblllleeeeddddiiiiffffffffeeeerrrreeeennnncccceeeessss ————
24,890,103.98
Provisionforbaddebts
Provisionforimpairmentoffixedassets
2,739,277.05
32,128,138.59
Provisionforimpairmentofinventories
Differenceofdepreciationoffixedassets
11,940,720.08
SSSSuuuubbbbttttoooottttaaaallll 77771111,,,,666699998888,,,,222233339999....77770000
15.Detailsofprovisionofimpairmentfixedassets
DDDDeeeeccccrrrreeeeaaaasssseeee
OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee AAAAccccccccrrrruuuuaaaallll
RRRReeeevvvveeeerrrrssssaaaallll OOOOtttthhhheeeerrrrssssttttrrrraaaannnnssssffffeeeerrrr CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee
Provisionfor
64,413,748.92 3,599,328.04 - 2,160,937.74 65,852,139.22
bad-debts
Provisionfor
impairment 59,619,074.06 618,515.67 272,366.19 - 59,965,223.54
inventories
Provisionfor
impairmentof 3,204,206.27 - 464,929.22 2,739,277.05
fixedassets
TTTToooottttaaaallll
111122227777,,,,222233337777,,,,000022229999....22225555 4444,,,,222211117777,,,,888844443333....77771111 222277772222,,,,333366666666....11119999 2222,,,,666622225555,,,,888866666666....99996666 111122228888,,,,555555556666,,,,666633339999....88881111
16.Short-termloan
(1)Categoryofshorttermloan
LLLLooooaaaannnnccccaaaatttteeeeggggoooorrrryyyy CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee
Creditloan 418,000,000.00 498,000,000.00
Mortgageloan -
Guaranteedloan 90,000,000.00
TTTToooottttaaaallll 444411118888,,,,000000000000,,,,000000000000....00000000 555588888888,,,,000000000000,,,,000000000000
.00
17.Notespayable
IIIItttteeeemmmm CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee
Bankacceptancenotes
90,347,340.00
221,485,454.42
Commercialacceptance notes
2,900,000.00
-
TTTToooottttaaaallll 99993333,,,,222244447777,,,,333344440000 222222221111,,,,444488885555,,,,444455554444....44442222
.00
RMB93,247,340.00Yuanwillbedueinnextaccountingperiod.
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport 18.Accountspayable
(1)Accountspayable
IIIItttteeeemmmm CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee
TTTToooottttaaaallll
1111,,,,111166666666,,,,444466666666,,,,111111116666....66664444 999966668888,,,,222244444444,,,,888822226666....44446666Including：morethan1year 252,417,585.15
112,391,051.36 Note: Accounts payable with age over 1 year arise mainly due to the fact that the accounts payable related to materialspurchaseandconstructionprojecthasnotbeenpaid.
(2)Noaccountspayableisduetoshareholdersholdingover5%(including5%)oftheCompany’ssharesattheend ofperiod.
19.Receivedinadvance
(1)Receivedinadvance
IIIItttteeeemmmm CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee
TTTToooottttaaaallll 77774444,,,,444433333333,,,,333322223333....00004444 44447777,,,,444455550000,,,,555555550000....88880000 Including:morethan1year 7,812,454.60 6,011,300.95(2)Noadvancesfromcustomersareduetoshareholdersholdingover5%(including5%)oftheCompany’sshares attheendofperiod.
20.Employee’spayable
IIIItttteeeemmmm OOOOppppeeeennnniiiinnnngggg IIIInnnnccccrrrreeeeaaaasssseeee DDDDeeeeccccrrrreeeeaaaasssseeee CCCClllloooossssiiiinnnngggg
BBBBaaaallllaaaannnncccceeee BBBBaaaallllaaaannnncccceeee
Salaries,bonus,
allowance,and 530,751.14 193,068,622.86 192,857,256.96 742,117.04 subsidy
Welfare - 15,113,491.25 15,113,491.25 - Socialinsurance 9,952,866.06 68,258,378.23 69,144,490.04 9,066,754.25 Include:Medical
30,121.91 16,520,400.48 16,653,618.53 -103,096.14 insurance
Pension 9,333,565.86 44,205,939.23 44,908,664.45 8,630,840.64 Unemployment
306,944.39 3,783,500.87 3,813,546.19 276,899.07 insurance
Industrial
injury 215,311.44 2,495,645.08 2,509,412.07 201,544.45
insurance
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport Maternity
66,922.46 1,252,892.57 1,259,248.80 60,566.23 insurance
Housing
3,132,942.85 13,146,995.19 13,431,383.28 2,848,554.76 funds
Labourunionand
8,343,616.17 1,305,977.46 2,652,965.98 6,996,627.65 trainingexpense
Compensationfor
cancellationof - 287,901.00 287,901.00 - labourrelationship
Non-cashwelfare - 763,698.56 763,698.56 - TTTToooottttaaaallll 22221111,,,,999966660000,,,,111177776666....22222222 222299991111,,,,999944445555,,,,000066664444....55555555 222299994444,,,,222255551111,,,,111188887777....00007777 11119999,,,,666655554444,,,,000055553333....77770000 ThecompensationforcancellationoflabourrelationshipisRMB287,901.00Yuan.
21.Taxpayable
IIIItttteeeemmmm CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee
Value-addedtax 4,057,635.57 -1,354,921.87 Businesstax 123,617.77 173,964.24 Individualincometax 68,747.03 21,688.42 Enterpriseincometax 6,153.34 - Citymaintenanceandconstructiontax 650,506.01 203,872.75 Realestatetax 29,633.15 55,208.80 Landusetax
350.00 39,376.00 Stamptax
133,171.97 151,889.61 Educationsurcharge
472,093.58 133,406.39 Rivertollfee
218,868.28 4,037.58 Others
1,802.31 159,807.88 TTTToooottttaaaallll
5555,,,,777766662222,,,,555577779999....00001111 ----444411111111,,,,666677770000....22220000 22. Interestpayable
IIIItttteeeemmmm CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee
Interestforshort-termloan 1,728,222.22 - TTTToooottttaaaallll 1111,,,,777722228888,,,,222222222222....22222222 ———— 23. Otheraccountspayable
(1)Otherpayables
IIIItttteeeemmmm CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport TTTToooottttaaaallll 111133336666,,,,666677773333,,,,333399998888....88882222 111144443333,,,,999922228888,,,,555599998888....44447777 Including:over1year 81,897,839.15 66,047,893.97Note:Theotherpayableswithageover1yeararemainlyduetoWazhouGroup，andaccountspayableofthecompanysubsidiary—LiaoyangBearingwithLiaoyangBaolinRealEstateDevelopmentCo.,Ltd.
(2)Otherpayablesduetoshareholderswhoholdmorethan5%(including5%)oftheGroup’sshares
CCCCoooommmmppppaaaannnnyyyynnnnaaaammmmeeee CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee
WazhouGroup 15,513,083.10 29,092,653.21 TTTToooottttaaaallll 11115555,,,,555511113333,,,,000088883333....11110000 22229999,,,,000099992222,,,,666655553333....22221111 (3) Significantotherpayablesattheendoftheperiod
IIIItttteeeemmmm AAAAmmmmoooouuuunnnntttt AAAAggggiiiinnnngggg NNNNaaaattttuuuurrrreeeeoooorrrrccccoooonnnntttteeeennnnttttssss Within1year,
LiaoyangBaolinRealEstate
34,038,434.70 1-2,and2-3 Currentaccount
DevelopmentCo.,Ltd.
years
DalianMeishangInternational
21,593,807.12 Within1year Currentaccount
LogisticsCo.Ltd.
WazhouGroup 15,513,083.10 1-2years Currentaccount
LiaoyangBaotaiconstructionand
2,378,761.27 1-2years Constructionfee
InstallationEngineeringCo.,Ltd.
TianjinHuameiBearingSalesCo.
1,670,000.00 Within1year Currentaccount
Ltd.
TTTToooottttaaaallll 77775555,,,,111199994444,,,,000088886666....11119999
— —
24. Non-currentliabilitiesduewithinoneyear
IIIItttteeeemmmm CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee
Long-termloanduewithinoneyear 150,000,000.00 -
TTTToooottttaaaallll 111155550000,,,,000000000000,,,,000000000000....00000000
—
25. Othernon-currentliabilities
IIIItttteeeemmmm CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee
Governmentsubsidywithin1year 4,011,103.83 - TTTToooottttaaaallll 4444,,,,000011111111,,,,111100003333....88883333 —
(1)Governmentsubsidy
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport RRRReeeeccccoooorrrrddddeeeedddd
OOOOppppeeeennnniiiinnnngggg IIIInnnnccccrrrreeeeaaaassss iiiinnnnttttoooonnnnoooonnnn OOOOtttthhhheeeerrrr CCCClllloooossssiiiinnnngggg RRRReeeellllaaaatttteeeeddddwwwwiiiitttthhhh IIIItttteeeemmmm
BBBBaaaallllaaaannnncccceeee eeee ----ooooppppeeeerrrraaaattttiiiioooonnnn CCCChhhhaaaannnnggggeeee BBBBaaaallllaaaannnncccceeee aaaasssssssseeeetttt////eeeeqqqquuuuiiiittttyyyy iiiinnnnccccoooommmmeeee
Technologysubsidy 737,000.00 737,000.00 withasset fromprovince
Daliansub-factory 2,704,235.83 2,704,235.83 withasset removesubsidy
High-endbearing 472,320.00 472,320.00 withasset improvementproject
Supportfunddueto 97,548.00 97,548.00 withasset LiaoYangCompany
moveintoLiaoYang
developmentzones
TTTToooottttaaaallll 4444,,,,000011111111,,,,111100003333....88883333 4444,,,,000011111111,,,,111100003333....88883333
26. Long-termloan
(1)Categoryoflong-termloan
CCCCaaaatttteeeeggggoooorrrryyyy CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee
Creditloan 90,000,000.00 60,000,000.00
TTTToooottttaaaallll 99990000,,,,000000000000,,,,000000000000....00000000 66660000,,,,000000000000,,,,000000000000....00000000
(2)Detailsoflong-termloan
SSSSttttaaaarrrrttttiiiinnnngggg CCCCuuuurrrrrrrreeeennnncccc CCCClllloooossssiiiinnnngggg OOOOppppeeeennnniiiinnnngggg
CCCCrrrreeeeddddiiiittttoooorrrr MMMMaaaattttuuuurrrriiiittttyyyy IIIInnnntttteeeerrrreeeessssttttrrrraaaatttteeee((((%%%%))))
ddddaaaatttteeee yyyy BBBBaaaallllaaaannnncccceeee BBBBaaaallllaaaannnncccceeee
Importand Thepeople'sBank
Export ofexportbusiness
2013-7-23 2015-7-22
RMB 90,000,000.00 60,000,000.00
Bankof creditinterestrate,
China adjustedbyquarter
27. Long-termpayables
IIIItttteeeemmmmssss LLLLooooaaaannnn 2222000011111111....11112222....33331111 IIIInnnntttteeeerrrreeeesssstttt IIIInnnntttteeeerrrreeeesssstttt 2222000011112222....11112222....33331111 LLLLooooaaaannnn
ppppeeeerrrriiiioooodddd rrrraaaatttteeee((((%%%%)))) ppppaaaayyyyaaaabbbblllleeee ccccoooonnnnddddiiiittttiiiioooonnnnssss
LiaoyangBureau
—
111100000000,,,,000000000000....00000000
— —
111100000000,,,,000000000000....00000000
—
ofEnvironment
TTTToooottttaaaallll
- 100,000.00 - - 100,000.00 -
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport This is the special loan for the improvement of forging from Liaoyang Bureau of Environment in 1999. Theloandidn’trepayaftertheprojectiscompleted.
28. Specialpayables
IIIItttteeeemmmmssss 2222000011111111....11112222....33331111 IIIInnnnccccrrrreeeeaaaasssseeee DDDDeeeeccccrrrreeeeaaaasssseeee 2222000011112222....11112222....33331111
Specialpollutiontreatment 221,698.98 - - 221,698.98
InformatizationConstruction 100,000.00 - - 100,000.00
TTTToooottttaaaallll 333322221111,,,,666699998888....99998888 ———— ———— 333322221111,,,,666699998888....99998888
SpecialpollutiontreatmentistheenvironmentalprotectionsubsidygrantedbyWafangdianBureauofFinanceand Wafangdian Bureau of Environment Protection for the treatment of waste water pursuant to the circular withapprovalwith“WaCaiZhiQiNo.[2004]217”.
ThebalanceofinformatizationconstructioncomesfromDalianFinancialBureauandMunicipalOfficeofEconomicandInformationTechnologyCommitteewithApprovalwith“DaCaiZhiQiNo.[2012]917”and“DaJingXinFaNo.[2012]199”.
29. Othernon-currentliabilities
IIIItttteeeemmmm CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee
Improvementsubsidy
2,210,999.97 3,684,999.98
Compensationforplantsmoving 43,267,773.26
37,859,301.55
Developmentofintelligent
4,000,000.00
4,000,000.00
manufacturingequipmentsubsidies
Improvementofhigh-endbearing
----
3,778,560.00
productionsubsidies
SupportfundduetoLiaoYang
CompanymoveintoLiaoYang 4,584,756.00
developmentzones
TTTToooottttaaaallll 55552222,,,,444433333333,,,,666611117777....55552222 55550000,,,,999955552222,,,,777777773333....22224444
(1)Note:Theimprovementsubsidyistherailwaytransportationbearingtechnologicimprovementsubsidywith total amount of RMB 7,370,000.00 granted by Bureau of Finance Liaoning province. The subsidy should be deferred over the useful life of related asset (i.e. 10 years). In 2013 the revenue should be recognized at RMB 737,000.01.
The compensation for plants moving is RMB 59,820,000.00. And the amount of making up for the removal loss of the current period is RMB11,143,755.05；The rest of 48,676,244.95 is recognized as the removal compensation
relatedwith assets, which is amortized 18 years, according to the new fixed assets formed after the Dalian branch
removal.TheincomeconfirmedinthisyearisRMB2,704,235.83
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport The RMB 4,000,000.00 of development of intelligent manufacturing equipment subsidies is distributed by Dalian City Finance Bureau in 2012.The subsidies are used in the project ”Grinding vehicle integration and processing digitalization”. UptoDec31,2013,thisprojectisstillconstructioninprocess,andnorevenuehasbeenrecognized incurrentperiod.
The RMB 4,723,200 Yuan interest subsidy of “Improvement of bearing base in high-end equipment sector” is distributed by Wafangdian Finance Bureau in 2013 for the year of 2011. The subsidy is specially used to improve theprojectofimprovementofbearingbaseinhigh-endequipmentsector.Theitemisamortizedwithin10yearsand 472,320.00RMBisrecognizedinthecurrentyear.
The4,877,400.00Yuan,intheotherun-flowdebt,the“SupportfundduetoLiaoYangCompanymoveintoLiaoYang developmentzones”isdistributedby theLiaoyangEconomicandDevelopment districtBureau ofFinancein2013.. RMB195,096.00Yuanisrecognizedinthisperiod.
(2)Governmentsubsidy
AAAAmmmmoooouuuunnnnttttssss OOOOtttthhhheeeerrrr
OOOOppppeeeennnniiiinnnngggg RRRReeeeaaaassssoooonnnnffffoooorrrr GGGGoooovvvveeeerrrrnnnnmmmmeeeennnntttt rrrreeeeccccooooggggnnnniiiizzzzeeeeddddiiiinnnnttttoooo cccchhhhaaaannnnggggeeee CCCClllloooossssiiiinnnngggg
IIIInnnnccccrrrreeeeaaaasssseeee rrrreeeeiiiimmmmbbbbuuuurrrrsssseeee ssssuuuubbbbssssiiiiddddyyyyccccaaaatttteeeeggggoooorrrryyyy
BBBBaaaallllaaaannnncccceeee
ccccuuuurrrrrrrreeeennnnttttpppprrrrooooffffiiiitttt BBBBaaaallllaaaannnncccceeee
mmmmeeeennnntttt oooorrrrlllloooossssssss
Improvement
3,684,999.98 737,000.01 -737,000.00 2,210,999.97 Investment subsidy
Compensationfor
43,267,773.26 2,704,235.88 -2,704,235.83 37,859,301.55 Investment plantsmoving
Developmentof
intelligent
manufacturing 4,000,000.00 4,000,000.00 Investment equipment
subsidies
Improvementof
high-endbearing
4,723,200.00 472,320.00 -472,320.00 3,778,560.00 Investment production
subsidies
Supportfunddue
toLiaoYang
Companymove 4,877,400.00 195,096.00 -97,548.00 4,584,756.00 Investment intoLiaoYang
developmentzones
TTTToooottttaaaallll
50,952,773.24 9,600,600.00 4,108,651.89 -4,011,103.83 52,433,617.52 ———— 30.Sharecapital
SSSShhhhaaaarrrreeeehhhhoooollllddddeeeerrrrssssnnnnaaaammmmeeee////ccccaaaatttteeeeggggoooorrrryyyy OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee CCCChhhhaaaannnnggggeeeeffffoooorrrrccccuuuurrrrrrrreeeennnnttttppppeeeerrrriiiioooodddd CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport IIIIssssssssuuuuiiiinnnngggg TTTTrrrraaaannnnssssffffeeeerrrrrrrriiiinnnngggg
DDDDiiiissssttttrrrriiiibbbbuuuuttttiiiinnnngggg
AAAAmmmmoooouuuunnnnttttssss %%%% nnnneeeewwww ccccaaaappppiiiittttaaaallllrrrreeeesssseeeerrrrvvvveeeessss OOOOtttthhhheeeerrrrssss SSSSuuuubbbbttttoooottttaaaallll AAAAmmmmoooouuuunnnnttttssss %%%% sssshhhhaaaarrrreeeessss
sssshhhhaaaarrrreeeessss ttttoooosssshhhhaaaarrrreeeeccccaaaappppiiiittttaaaallll
Sharesunderrestrictionfor
- - - - - - - - - sale
Domesticallylegalperson 244,000,000.0 244,000,000. 60.61 - - - - - 60.61 shares
0 00 TTTToooottttaaaallll sssshhhhaaaarrrreeeessssuuuunnnnddddeeeerrrr 222244444444,,,,000000000000,,,,000000000000....0000 222244444444,,,,000000000000,,,,000000000000.... 66660000....66661111 ———— ———— ———— ———— ———— 66660000....66661111 rrrreeeessssttttrrrriiiiccccttttiiiioooonnnnffffoooorrrrssssaaaalllleeee
0000 00000000 Shareswithoutrestrictionfor
- - - - - - - - - sale
Domesticallylistedforeign 158,600,000.0 158,600,000. 39.39 - - - - - 39.39 shares
0 00 TTTToooottttaaaallll sssshhhhaaaarrrreeeesssswwwwiiiitttthhhhoooouuuutttt 111155558888,,,,666600000000,,,,000000000000....0000 111155558888,,,,666600000000,,,,000000000000.... 33339999....33339999 ———— ———— ———— ———— ———— 33339999....33339999 rrrreeeessssttttrrrriiiiccccttttiiiioooonnnnffffoooorrrrssssaaaalllleeee
0000 00000000 444400002222,,,,666600000000,,,,000000000000....0000 444400002222,,,,666600000000,,,,000000000000.... 111100000000....0000 TTTToooottttaaaallllsssshhhhaaaarrrreeeessss 111100000000....00000000 ———— ———— ———— ———— ————
0000 00000000 0000 31.Capitalreserves
IIIItttteeeemmmmssss OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee IIIInnnnccccrrrreeeeaaaasssseeee DDDDeeeeccccrrrreeeeaaaasssseeee CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee Sharepremium 201,956,446.52 - - 201,956,446.52 Other -
283,734,603.95 3,114,497.89 286,849,101.84 capitalreserves
TTTToooottttaaaallll 444488885555,,,,666699991111,,,,000055550000....44447777 3333,,,,111111114444,,,,444499997777....88889999
—
444488888888,,,,888800005555,,,,555544448888....33336666 32.Surplusreserves
IIIItttteeeemmmm OOOOppppeeeennnniiiinnnngggg IIIInnnnccccrrrreeeeaaaasssseeee DDDDeeeeccccrrrreeeeaaaasssseeee CCCClllloooossssiiiinnnngggg
BBBBaaaallllaaaannnncccceeee BBBBaaaallllaaaannnncccceeee
Statutory -
108,701,699.95 2,150,590.25 110,852,290.20
surplusreserve
Discretionary - -
20,590,618.91 20,590,618.91
surplusreserve
TTTToooottttaaaallll 111122229999,,,,222299992222,,,,333311118888....88886666 2222,,,,111155550000,,,,555599990000....22225555
—
111133331111,,,,444444442222,,,,999900009999....11111111
33. Undistributedprofit
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport PPPPrrrroooovvvviiiissssiiiioooonnnnoooorrrr
IIIItttteeeemmmm AAAAmmmmoooouuuunnnntttt
ddddiiiissssttttrrrriiiibbbbuuuuttttiiiioooonnnn%%%%
EEEEnnnnddddiiiinnnnggggbbbbaaaallllaaaannnncccceeeeooooffff2222000011112222 444499998888,,,,333355550000,,,,777777778888....44441111
—
Add:Adjustmentstotheopeningbalanceofundistributed - -
profits
Including:Otherchangeofpolicy - -
Significanterrorschange - -
Changeinthesamescopecontrol - -
Otherfactors - -
OOOOppppeeeennnniiiinnnnggggbbbbaaaallllaaaannnncccceeeeooooffff2222000011113333 444499998888,,,,333355550000,,,,777777778888....44441111
—
Add:Currentnetprofitattributabletoshareholdersof -
2,021,789.87
parentcompany
Less:Provisionforstatutorysurplusreserve 2,150,590.25 10
Provisionforanysurplusreserve - -
Provisionofgeneralrisk - -
Dividendspayableforcommonshares 16,104,000.00 -
Sharedividends - -
CCCClllloooossssiiiinnnnggggbbbbaaaallllaaaannnncccceeeeooooffff2222000011113333 444488882222,,,,111111117777,,,,999977778888....00003333
—
Note1: The dividends payable for ordinary shares is based on total 40,260shares at the end of year 2012 accordingtothedecisionsofthe13th meetingof5thBoardsession. Thedistributionschemeis acashdividendof RMB 0.4 (including tax) per ten shares based on capital stock of 402.6 million at the end of 2012, totalling distributedcashRMB16,104,000.00.
34.Operatingrevenueandcost
IIIItttteeeemmmmssss 2222000011113333 2222000011112222
Revenuefrommainoperation 2,576,934,561.27
2,635,056,987.06 Revenuefromotheroperation
502,845,622.07 457,506,185.29 TTTToooottttaaaallll 3333,,,,000077779999,,,,777788880000,,,,111188883333....33334444 3333,,,,000099992222,,,,555566663333,,,,111177772222....33335555 Costofmainoperation
2,333,372,508.33 2,349,637,970.97 Costofotheroperation
427,768,873.00 402,857,617.11 TTTToooottttaaaallll
2222,,,,777766661111,,,,111144441111,,,,333388881111....33333333 2222,,,,777755552222,,,,444499995555,,,,555588888888....00008888 (1)Mainoperation-classifiedaccordingtoproductsoroperation
2222000011113333 2222000011112222
IIIItttteeeemmmmssss
SSSSaaaalllleeeessssrrrreeeevvvveeeennnnuuuueeee CCCCoooossssttttooooffffssssaaaalllleeeessss SSSSaaaalllleeeessssrrrreeeevvvveeeennnnuuuueeee CCCCoooossssttttooooffffssssaaaalllleeeessss
EEEExxxxppppoooorrrrtttt 222277770000,,,,111122229999,,,,555555554444....00005555 222255557777,,,,000000004444,,,,555577771111....44447777 222233338888,,,,222222228888,,,,555500007777....88883333 222244442222,,,,999999992222,,,,000099991111....00001111
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport DDDDoooommmmeeeessssttttiiiicccc 2222,,,,222211113333,,,,888844440000,,,,000011114444....99996666 1111,,,,999966666666,,,,000077772222,,,,111122220000....11115555 2222,,,,222299993333,,,,111199995555,,,,444444442222....22229999 1111,,,,999988887777,,,,444477771111,,,,222277775555....77771111
Including:
Transportation
vehiclebearings 959,324,861.80 869,729,562.90 1,003,686,210.38 910,587,425.20
Specialusebearings
531,391,872.00 459,094,939.00 283,711,818.10
347,430,587.92
Generalusebearings 723,123,281.16 637,247,618.25 942,078,643.99 793,172,032.41
IIIInnnndddduuuussssttttrrrriiiiaaaallllOOOOppppeeeerrrraaaattttiiiioooonnnnssss 99992222,,,,999966664444,,,,999999992222....22226666 111111110000,,,,222299995555,,,,888811116666....77771111 111100003333,,,,666633333333,,,,000033336666....99994444 111111119999,,,,111177774444,,,,666600004444....22225555
TTTToooottttaaaallll 2222,,,,555577776666,,,,999933334444,,,,555566661111....22227777 2222,,,,333333333333,,,,333377772222,,,,555500008888....33333333 2222,,,,666633335555,,,,000055556666,,,,999988887777....00006666 2222,,,,333344449999,,,,666633337777,,,,999977770000....99997777
(2)Salesrevenuefromtopfivecustomers
IIIItttteeeemmmmssss SSSSaaaalllleeeessssrrrreeeevvvveeeennnnuuuueeee AAAAccccccccoooouuuunnnnttttiiiinnnnggggffffoooorrrr
pppprrrrooooppppoooorrrrttttiiiioooonnnn((((%%%%))))
WazhouExactForgeLtd., 429,602,648.60
13.95 China National Heavy Duty Truck Group Jinan
97,462,109.49
3.16Axle&TransmissionCo.,Ltd
BeijingCNRLogisticsDevelopmentCo.,Ltd 82,015,329.85
2.66 Siemens(USA) 73,982,034.15
2.40 GuangzhouWazhouRailwayBearingSalesCo.,
66,264,309.19
2.15 Ltd
TTTToooottttaaaallll 777744449999,,,,333322226666,,,,444433331111....22228888 22224444....33332222 35.Operatingtaxesandsurcharges
IIIItttteeeemmmmssss 2222000011113333 2222000011112222 BBBBaaaasssseeeeooooffffccccaaaallllccccuuuullllaaaattttiiiioooonnnn
Businesstax
861,855.77 1,106,790.20
5%ofrentalrevenue
Cityconstructiontax
6,981,913.82 6,524,531.72
7%ofturnovertax
Educationsurcharge
4,964,174.25 4,570,273.53
5%ofturnovertax
Other
102,161.95 116,821.54
—
TTTToooottttaaaallll 11112222,,,,999911110000,,,,111100005555....77779999 11112222,,,,333311118888,,,,444411116666....99999999
—
36.Sellingexpenses
IIIItttteeeemmmmssss 2222000011113333 2222000011112222
Transportationexpense 64,850,909.09 79,363,523.50 Employeebenefit 32,790,556.44 29,744,852.28 Travelexpense 23,427,857.76 20,350,946.58
Conferenceexpense 13,788,825.49 19,969,522.25
Trademarkusefee 8,000,000.00 9,000,000.00
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport Otherexpense 71,446,813.27 53,943,140.95 TTTToooottttaaaallll 222211114444,,,,333300004444,,,,999966662222....00005555 222211112222,,,,333377771111,,,,999988885555....55556666 37.Administrativeexpenses
IIIItttteeeemmmmssss 2222000011113333 2222000011112222
Employeebenefit 24,204,752.53 23,300,813.82 Taxexpense 8,692,006.85 8,036,192.41 Technologydevelopmentexpense 7,943,029.47 6,762,793.04 Intangibleassetsamortization 4,580,636.06 4,622,694.64 Guideandfirefightingexpense 3,341,800.00 3,402,576.28 Depreciationexpense 3,437,295.03 3,362,349.10 Businessentertainingexpense 1,343,471.60 1,969,213.10 Travelexpense 1,406,301.90 1,516,675.00 Otherexpense 18,380,693.38 16,972,519.78 TTTToooottttaaaallll 77773333,,,,333322229999,,,,999988886666....88882222 66669999,,,,999944445555,,,,888822227777....11117777 38.Financialexpenses
IIIItttteeeemmmmssss 2222000011113333 2222000011112222
Interestexpenses 29,162,610.27 33,310,796.39 Less:interestincome 6,244,330.43 12,480,805.82 Add:Exchangelosses 1,962,589.13 1,205,384.94 Add:Othersexpenditure 2,167,605.88 2,634,209.59 TTTToooottttaaaallll 22227777,,,,000044448888,,,,444477774444....88885555 22224444,,,,666666669999,,,,555588885555....11110000 39.Assetsimpairmentlosses
IIIItttteeeemmmmssss 2222000011113333 2222000011112222
Lossofbaddebts 3,599,328.04 9,897,233.94 Provisionforimpairmentinventory 346,149.48
TTTToooottttaaaallll 3333,,,,999944445555,,,,444477777777....55552222 9999,,,,888899997777,,,,222233333333....99994444 40.Investmentincome
(1)Sourcesofinvestmentincome
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport IIIItttteeeemmmmssss 2222000011113333 2222000011112222
- Long-termequityinvestmentincomeundercost
920,000.00
method
6,689,310.77 4,923,454.31 Long-termequityinvestmentincomeunder
equitymethod
-6,938.21 Investment income from disposal of long-term
equityinvestment
7777,,,,666600009999,,,,333311110000....77777777 4444,,,,999911116666,,,,555511116666....11110000 TTTToooottttaaaallll
(2)Long-termequityinvestmentincomeunderequitymethod
IIIItttteeeemmmmssss 2222000011113333 2222000011112222 RRRReeeeaaaassssoooonnnnffffoooorrrrcccchhhhaaaannnnggggeeee
TTTToooottttaaaallll 6666,,,,666688889999,,,,333311110000....77777777 4444,,,,999922223333,,,,444455554444....33331111
—
Including: - —
Theassociatesprofits
DalianSKFWazhou
6,689,310.77 4,923,454.31 increasecomparedwith
BearingsCo.,Ltd.
lastyear
41.Non-operatingincome
(1)Non-operatingincomelist
AAAAmmmmoooouuuunnnnttttssssrrrreeeeccccooooggggnnnniiiizzzzeeeeddddiiiinnnnttttoooo IIIItttteeeemmmm 2222000011113333 2222000011112222 ccccuuuurrrrrrrreeeennnnttttnnnnoooonnnn----rrrreeeeccccuuuurrrrrrrriiiinnnnggggpppprrrrooooffffiiiitttt oooorrrrlllloooossssssss
Gainsondisposalof
896,667.92 8,642,754.39
non-currentassets
Including:gainsondisposal
896,667.92 8,642,754.39
offixedassets
Incomefromdebt
473,114.23 15,949,015.97
restructuring
Governmentgrants
4,446,901.27 4,164,235.88
Noreimbursementof
3,697,147.97 1,164,133.38
liabilities
Penaltyincome 100,854.13 15,368.00
Others 585,455.83 1,981,410.56
TTTToooottttaaaallll
11110000,,,,222200000000,,,,111144441111....33335555 33331111,,,,999911116666,,,,999911118888....11118888
(2)Governmentgrantslist
2222000011113333 2222000011112222 WWWWiiiitttthhhhaaaasssssssseeeetttt////eeeeqqqquuuuiiiittttyyyy NNNNoooonnnn----rrrreeeeccccuuuurrrrrrrriiiinnnngggg IIIItttteeeemmmm
GGGGaaaaiiiinnnn////lllloooossssssssoooorrrrnnnnooootttt
Amortizationoftechnology withasset Non-recurring
737,000.01 737,000.02
improvementsubsidy Gain/loss
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport withasset Non-recurring Compensationforplantsmoving 2,704,235.88 2,704,235.86
Gain/loss withequity Non-recurring Governmentgrantsforelectricity 720,000.00
Gain/loss withequity Non-recurring Othergovernmentgrants 237,549.38 3,000.00
Gain/loss Subsidyfortheexporttradeby withequity Non-recurring 100,700.00
BureauofBusinessofWafangdian Gain/loss High-endimprovementofbearing withasset Non-recurring 472,320.00
project Gain/loss SupportfundduetoLiaoYang 195,096.00 withasset Non-recurring CompanymoveintoLiaoYang Gain/loss developmentzones
TTTToooottttaaaallll 4444,,,,444444446666,,,,999900001111....22227777 4444,,,,111166664444,,,,222233335555....88888888
42.Non-operatingexpenses
AAAAmmmmoooouuuunnnnttttssssrrrreeeeccccooooggggnnnniiiizzzzeeeedddd iiiinnnnttttooooccccuuuurrrrrrrreeeennnntttt
IIIItttteeeemmmm 2222000011113333 2222000011112222
nnnnoooonnnn----rrrreeeeccccuuuurrrrrrrriiiinnnnggggpppprrrrooooffffiiiittttoooorrrr lllloooossssssss
Lossondisposalofnon-currentassets 526,502.27 49,086.47 526,502.27 Including:Lossondisposaloffixedassets 526,502.27 49,086.47 526,502.27 Lossfromdebtrestructuring 2,288,584.13 2,315,852.25 2,288,584.13 Lossonphysicalcount 20,820.02 20,820.02 Others 303,549.23 474,407.47 303,549.23 TTTToooottttaaaallll 3333,,,,111133339999,,,,444455555555....66665555 2222,,,,888833339999,,,,333344446666....11119999 3333,,,,111133339999,,,,444455555555....66665555 43.Incometaxexpenses
IIIItttteeeemmmmssss 2222000011113333 2222000011112222
Currentincometaxexpenses 71,883.62 3,776,268.89 Deferredincometaxexpenses -323,882.04 -1,196,154.16 TTTToooottttaaaallll ----222255551111,,,,999999998888....44442222 2222,,,,555588880000,,,,111111114444....77773333 44.Calculationofbasicearningspershareanddilutedearningspershare
IIIItttteeeemmmmssss NNNNoooo.... 2222000011113333 2222000011112222
Netprofitattributabletoshareholdersof 1 2,021,789.87 42,278,508.87
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport parentcompany
Non-operatingprofitandlossattributable
2 6,505,821.78 23,621,444.55
toshareholdersofparentcompany
Netprofitafterdeductingnon-operating
profitandlossattributableto 3=1-2 -4,484,031.91 18,657,064.32
shareholdersofparentcompany
Totalnumberofsharesattheperiod
402,600,000.00 402,600,000.00
begin 4
Thenumberofsharesincreaseddueto
transferringcapitalreserveintoshare
5 - -
capitalordividenddistributionofshares
duringreportperiod(Ⅰ)
Thenumberofsharesincreaseddueto
issuanceofnewsharesordebtforequity 6 - -
swapduringthereportperiod(Ⅱ)
thenumberofshares(Ⅱ)fromthenext
monthtotheendofthereportperiodfor 7 - -
increaseofshares
Thenumberofmonthsdecreaseddueto
stockrepurchaseordrawbackstock 8 - -
duringthereportperiod
Thenumberofmonthsfromthenext
monthtotheendofthereportperiodfor 9 - -
decreaseofshares
Thenumberofsharesfordecreaseof
10 - -
shares
Durationoftheperiodintermsofmonth 11 - -
Weightedaveragenumberofordinary 12=4+5+6×7÷11
402,600,000.00 402,600,000.00
sharesissuedout -8×9÷11-10
EEEEPPPPSSSS––––bbbbaaaassssiiiissss((((Ⅰ))))
13=1÷12 0.005 0.11
EEEEPPPPSSSS––––bbbbaaaassssiiiissss((((Ⅱ))))
14=3÷12 -0.011 0.05
Potentialdilutedinterestsofordinary
15 - -
sharesrecognizedasexpense
Transferfee 16 - -
EITrate 17 - -
Weightedaverageamountofordinary
sharesincreasedduetowarrant,share 18 - -
options
19=[1+(15-16)×(1-
EEEEPPPPSSSS––––ddddiiiilllluuuutttteeeedddd((((Ⅰ))))
0.005 0.11
17)]÷(12+18)
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport19=[3+(15-16)×(1-
EEEEPPPPSSSS––––ddddiiiilllluuuutttteeeedddd((((Ⅱ))))
-0.011 0.05
17)]÷(12+18)
45.Othercomprehensiveincome
IIIItttteeeemmmmssss 2222000011113333 2222000011112222
Sharedportionofinvestedcompany‘sothercomprehensiveunder
3,114,497.89 - equitymethod
Less: taxeffecton shared portionof investedcompany‘s other
467,174.68 - comprehensiveunderequitymethod
Net profit recognized in current period which was previously
- recognizedasothercomprehensiveincome
TTTToooottttaaaallll
2,647,323.21
---- 46.Notestocashflowstatement
(1)Cashreceipt/paymentofotheroperating/investing/financingactivities
1)Othercashreceivedrelatingtooperatingactivities
IIIItttteeeemmmmssss 2222111100003333
Interestincome 451,852.50
Governmentsubsidy 9,938,849.38
ACorAP 27,132,913.57
Returnofreservefund,depositetc. 1,582,365.18
others 22,504,250.75
TTTToooottttaaaallll 66661111,,,,666611110000,,,,222233331111....33338888
2)Othercashpaidrelatingtooperatingactivities
IIIItttteeeemmmmssss 2222000011113333
Travelexpenses 24,370,996.91
Conferenceexpense
14,414,101.91
Advertisingexpense
2,130,616.88
Trademarkusefee 4,824,300.00
Rentexpense 7,027,109.09
Businesspromotionexpense
11,329,473.92
Freightserviceexpense
25,284,136.38
Guardandfirefightingexpense
-
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport Officeexpense
8,291,586.31
Collectionandpaymentforothers 13,695,019.98
Otherexpense 37,116,071.80
TTTToooottttaaaallll
111144448888,,,,444488883333,,,,444411113333....11118888
3)Otherscashreceivedrelatingtofinancingactivities
IIIItttteeeemmmmssss 2222000011113333
Borrowingsbypresentingreceivedorder 138,000,000.00
TTTToooottttaaaallll 111133338888,,,,000000000000,,,,000000000000....00000000
4)Otherscashpaidrelatingtofinancingactivities
IIIItttteeeemmmmssss 2222000011113333
Repaymentofborrowings 88,000,000.00
TTTToooottttaaaallll 88888888,,,,000000000000,,,,000000000000....00000000
(2)Supplementaryinformationofconsolidatedcashflowstatement
IIIItttteeeemmmmssss 2222000011113333 2222000011112222
1111....AAAAddddjjjjuuuussssttttiiiinnnnggggnnnneeeettttpppprrrrooooffffiiiittttiiiinnnnttttooooccccaaaasssshhhhfffflllloooowwwwssssooooffffooooppppeeeerrrraaaattttiiiinnnngggg
— —
aaaaccccttttiiiivvvviiiittttiiiieeeessss::::
Netprofit 2,021,789.87 42,278,508.87
Add:Provisionforimpairmentofassets 3,945,477.52 9,897,233.94
Depreciationoffixedassets 77,390,695.84 78,679,915.60
Amortizationofintangibleassets 4,580,636.06 4,622,694.64
Amortizationoflong-termdeferredexpenses 67,830.36 76,821.89
Lossesondisposaloffixedassets,intangibleassets,and
-370,165.65 -8,593,667.92
long-termassets(incomelistedwith”-”)
Lossesonwrite-offoffixedassets(incomelistedwith”-”) - -
Changeoffairvalueprofitorloss - -
Financialexpense(incomelistedwith”-”) 29,162,610.27 33,310,796.39
Investmentloss(incomelistedwith”-”) -8,058,243,59 -4,916,516.10
Decreaseofdeferredtaxassets(increaselisted
69,739.38 -1,343,139.79
with”-”)
Increaseofdeferredtaxliabilities(decrease
-393,621.42 146,985.63
listedwith”-”)
Decreaseofinventories(increaselistedwith”-”) -41,340,225.17 39,973,768.83
Decreaseofoperatingreceivables(increaselisted
-71,318,698.58 -99,561,339.62
with”-”)
Increaseofoperatingpayables(decreaselisted
74,476,312.33 35,984,679.84
with”-”)
Others -
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport Netcashflowsarisingfromoperatingactivities 70,234,137.22 130,556,742.20
2222....SSSSiiiiggggnnnniiiiffffiiiiccccaaaannnnttttiiiinnnnvvvveeeessssttttmmmmeeeennnnttttaaaannnnddddffffiiiinnnnaaaannnncccciiiinnnnggggaaaaccccttttiiiivvvviiiittttiiiieeeessssuuuunnnnrrrreeeellllaaaatttteeeedddd
— —
ttttooooccccaaaasssshhhhiiiinnnnccccoooommmmeeeeaaaannnnddddeeeexxxxppppeeeennnnsssseeeessss
Liabilitiestransferredtocapital - -
Convertiblebondswithin1year - -
Financingleasedfixedassets - -
3333....NNNNeeeettttiiiinnnnccccrrrreeeeaaaasssseeee((((ddddeeeeccccrrrreeeeaaaasssseeee))))ooooffffccccaaaasssshhhhaaaannnnddddccccaaaasssshhhheeeeqqqquuuuiiiivvvvaaaalllleeeennnntttt
— —
Endingbalanceofcash 60,616,759.13 60,004,306.25
Less:Openingbalanceofcash 60,004,306.25 62,187,956.71
Add:Endingbalanceofcashequivalent -
Less:Openingbalanceofcashequivalent -
Netincreaseofcashandcashequivalent 612,452.88 -2,183,650.46
(3)Cashandcashequivalents
IIIItttteeeemmmmssss 2222000011113333 2222000011112222
Cash 60,616,759.13 60,004,306.25
Including:Cashonhand 294,706.89 292,632.98
Bankdepositusedfor
60,322,052.24 59,711,673.27
payingatanymoment
Othercashusedfor
- -
payingatanymoment
Centralbankdepositusedforpayingat
- -
anymoment
Depositheldforsamecategory - -
Breakforsamecategory - -
Cashequivalents - -
Including:Bondinvestmentduewithin3months - -
Closingbalanceofcashandcashequivalents 60,616,759.13 60,004,306.25
Including:Cashandcashequivalentswithrestricteduseright
— —
byparentcompanyorsubsidiariesoftheGroup
ThedifferencebetweencashandcashequivalentandcashattheendofthisyearreferstonotesVI.1.
VVVVIIIIIIII....RRRReeeellllaaaatttteeeeddddPPPPaaaarrrrttttiiiieeeessssRRRReeeellllaaaattttiiiioooonnnnsssshhhhiiiippppaaaannnnddddTTTTrrrraaaannnnssssaaaaccccttttiiiioooonnnnssss
1111....RRRReeeellllaaaatttteeeeddddppppaaaarrrrttttiiiieeeessssrrrreeeellllaaaattttiiiioooonnnnsssshhhhiiiipppp
(1)Parentcompanyandultimatecontroller
1)Parentcompanyandultimatecontroller
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport PPPPaaaarrrreeeennnntttt EEEEnnnntttteeeerrrrpppprrrriiiisssseeee RRRReeeeggggiiiisssstttteeeerrrreeeedddd BBBBuuuussssiiiinnnneeeessssssss LLLLeeeeggggaaaallll OOOOrrrrggggaaaannnniiiizzzzaaaattttiiiioooonnnn
ccccoooommmmppppaaaannnnyyyy nnnnaaaattttuuuurrrreeee aaaaddddddddrrrreeeessssssss nnnnaaaattttuuuurrrreeee rrrreeeepppprrrreeeesssseeeennnnttttaaaattttiiiivvvveeee ccccooooddddeeee
No.1North Manufactureand
Wazhou State-owned GongjiStreet, salesofbearing
CongHong 24238666-3
Group Limited WafangdianCity, andother
Dalian equipments
2)Registeredcapitalanditsmovementofparentcompany
PPPPaaaarrrreeeennnnttttccccoooommmmppppaaaannnnyyyy OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee IIIInnnnccccrrrreeeeaaaasssseeee DDDDeeeeccccrrrreeeeaaaasssseeee CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee
WazhouGroup 413,793,100.00 — — 413,793,100.00
3)Shareheldanditsmovementofparentcompany
PPPPaaaarrrreeeennnnttttccccoooommmmppppaaaannnnyyyy AAAAmmmmoooouuuunnnntttt SSSShhhhaaaarrrreeeehhhhoooollllddddiiiinnnngggg
((((%%%%))))
CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee CCCClllloooossssiiiinnnngggg OOOOppppeeeennnniiiinnnngggg
BBBBaaaallllaaaannnncccceeee BBBBaaaallllaaaannnncccceeee
WazhouGroup 244,000,000.00 244,000,000.00 60.61 60.61
(2)Subsidiaries
1)Subsidiaries
SSSSuuuubbbbssssiiiiddddiiiiaaaarrrriiiieeeessss EEEEnnnntttteeeerrrrpppprrrriiiisssseeee RRRReeeeggggiiiisssstttteeeerrrreeeedddd BBBBuuuussssiiiinnnneeeessssssssnnnnaaaattttuuuurrrreeee LLLLeeeeggggaaaallll OOOOrrrrggggaaaannnniiiizzzzaaaattttiiiioooonnnn nnnnaaaattttuuuurrrreeee aaaaddddddddrrrreeeessssssss rrrreeeepppprrrreeeesssseeeennnnttttaaaattttiiiivvvv ccccooooddddeeee
eeee
No.61,Weiguo Manufactureand
Liaoyang
Limited Road,BaitaDistrict salesofbearingand ShaoYang 12199127-7 Bearing
Liaoyangcity machinemanufacture
No.12,Shisanli
Manufactureand
DalianElectrical yongshengStreet,
Limited salesofbearingand ShaoYang 55980608-0 Equipment freetradezone
machinemanufacture
Daliancity
2)Registeredcapitalanditsmovementofsubsidiaries
SSSSuuuubbbbssssiiiiddddiiiiaaaarrrryyyy OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee IIIInnnnccccrrrreeeeaaaasssseeee DDDDeeeeccccrrrreeeeaaaasssseeee CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee
LiaoyangBearing 19,350,000.00 — — 19,350,000.00
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport DalianElectrical
10,000,000.00 — — 10,000,000.00
Equipment
3)Stockholdingpercentageorequityanditsmovementofsubsidiaries
AAAAmmmmoooouuuunnnntttt SSSShhhhaaaarrrreeeehhhhoooollllddddiiiinnnngggg((((%%%%))))
SSSSuuuubbbbssssiiiiddddiiiiaaaarrrryyyy CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee OOOOppppeeeennnniiiinnnngggg CCCClllloooossssiiiinnnngggg OOOOppppeeeennnniiiinnnngggg
BBBBaaaallllaaaannnncccceeee BBBBaaaallllaaaannnncccceeee BBBBaaaallllaaaannnncccceeee
LiaoyangBearing 19,350,000.00 19,350,000.00 100.00 100.00
DalianElectricalEquipment 10,000,000.00 10,000,000.00 100.00 100.00
(3)Associates
1)Associates
AAAAssssssssoooocccciiiiaaaatttteeeessss EEEEnnnntttteeeerrrrpppprrrriiiisssseeee RRRReeeeggggiiiisssstttteeeerrrreeeeddddaaaaddddddddrrrreeeessssssss LLLLeeeeggggaaaallll BBBBuuuussssiiiinnnneeeessssssss
nnnnaaaattttuuuurrrreeee rrrreeeepppprrrreeeesssseeeennnnttttaaaattttiiiivvvveeee nnnnaaaattttuuuurrrreeee
Manufactureand
Chinese-fore No.1,Phrase1,Gongji
DalianSKFWazhou salesof
ignequity Street,Wafangdian CongHong
BearingsCo.,Ltd. ball-surfacerolling
jointventure North
bearing
(Continued)
AAAAssssssssoooocccciiiiaaaatttteeeessss RRRReeeeggggiiiisssstttteeeerrrreeeedddd SSSShhhhaaaarrrreeeehhhhoooollllddddiiiinnnngggg%%%% VVVVoooottttiiiinnnngggg%%%% OOOOrrrrggggaaaannnniiiizzzzaaaattttiiiioooonnnnccccooooddddeeee
ccccaaaappppiiiittttaaaallll
DalianSKFWazhou
BearingsCo.,Ltd. 194million 49.00 49.00 70218806-0
(4)Otherrelatedparties
RRRReeeellllaaaatttteeeeddddppppaaaarrrrttttyyyy OOOOrrrrggggaaaannnniiiizzzzaaaattttiiiioooonnnn
NNNNaaaammmmeeeeooooffffrrrreeeellllaaaatttteeeeddddppppaaaarrrrttttyyyy MMMMaaaaiiiinnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnnssss
rrrreeeellllaaaattttiiiioooonnnnsssshhhhiiiipppp ccccooooddddeeee
Othercompanies Purchaseandsalesof
DalianWazhouManufacturing
controlledbythe rawmaterialsand 24239291-6
EquipmentCo.,Ltd
sameparent goods
companyand Salesofworkingin
ultimate WazhouSteelBallCompany progressandpurchase 76078283-4
controllingparty ofraw materials
Salesofworkingin
WazhouExactForgeLtd., progressandpurchase 76079407-7
ofraw materials
WazhouGroupTurnplateBearingLtd Purchaseofgoods 66112524-9
WazhouGroupExactTransmission Salesofrawmaterials 66582213-x
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport BearingCo.,Ltd
WazhouGroupEquipment
Purchasingequipment 66112524-9
TechnologyProjectCo.,Ltd.
WazhouGroupSpecialPrecision Salesofrawmaterials
56552248X
BearingCo.,Ltd. andpurchaseofgoods
DalianWazhouJinzhouMachinery Purchaseofworkingin
57605032-6
Co.,Ltd progress
DalianWazhouFengyuanMachinery Purchaseofworkingin
57605568-8
Co.,Ltd progress
WazhouGroup(USA)BearingCO.,
Sellingproducts
Ltd.
2222....RRRReeeellllaaaatttteeeeddddppppaaaarrrrttttyyyyttttrrrraaaannnnssssaaaaccccttttiiiioooonnnnssss
(1)Purchaseofgoods
RRRReeeellllaaaatttteeeeddddppppaaaarrrrttttyyyyttttyyyyppppeeeeaaaannnnddddnnnnaaaammmmeeee 2222000011113333 2222000011112222
AAAAmmmmoooouuuunnnntttt %%%% AAAAmmmmoooouuuunnnnttttssss %%%%
AAAAssssssssoooocccciiiiaaaatttteeeessss::::
— — — —
Including:DalianSKFWazhouBearingsCo.,Ltd. 210,656,510.76 5.90 201,963,936.85 6.45
OOOOtttthhhheeeerrrrccccoooommmmppppaaaannnniiiieeeessssccccoooonnnnttttrrrroooolllllllleeeeddddbbbbyyyytttthhhheeeessssaaaammmmeeee
— — — —
ppppaaaarrrreeeennnnttttccccoooommmmppppaaaannnnyyyy
Including:WazhouSteelBallCompany 5,038,462.69 0.14 1,265,428.83 0.04
WazhouExactForgeLtd., 228,489,786.37 6.40 253,188,787.86 8.08
DalianWazhouManufacturing
21,639,631.22 0.61 19,908,462.63 0.64
EquipmentCo.,Ltd
WazhouGroupTurnplateBearingLtd 190,781,160.28 5.35 104,668,588.47 3.34
WazhouGroupExactTransmission
129,107,042.50 3.62 102,957,159.74 3.29
BearingCo.,Ltd
WazhouGroupSpecialPrecision
313,525.57 0.01 43,653.4 0.01
BearingCo.,Ltd.
WazhouGroupEquipment
48,853,808.74 1.37
TechnologyProjectCo.,Ltd.
DalianWazhouFengyuanMachinery
113,249,206.70 3.17 117,677,588.76 3.76
Co.,Ltd
DalianWazhouJinzhouMachinery
168,181,837.06 4.71 100,772,793.31 3.22
Co.,Ltd
TTTToooottttaaaallll 1111,,,,111111116666,,,,333311110000,,,,999977771111....88889999 33331111....22228888 999900002222,,,,444444446666,,,,333399999999....88885555 22228888....88883333
TheCompany’spurchasepricefromDalianSKFWazhouBearingsCo.,Ltdwasthecontractpricedeterminedin2002 andthepriceadjustedbasedonfinishedgoodsin2012.ThecompanyusesthepricethatisapprovedbytheWazhou ExactForgeLtd.in2013.
(2)Salesofgoods
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport RRRReeeellllaaaatttteeeeddddppppaaaarrrrttttyyyyttttyyyyppppeeeeaaaannnnddddccccoooommmmppppaaaannnnyyyy 2222000011113333 2222000011112222
AAAAmmmmoooouuuunnnntttt %%%% AAAAmmmmoooouuuunnnntttt %%%%
PPPPaaaarrrreeeennnnttttccccoooommmmppppaaaannnnyyyy::::
— — — —
Including:WazhouGroup 1,016,393.37 0.03 1,282,577.44 0.05
AAAAssssssssoooocccciiiiaaaatttteeeessss::::
— — — —
Including:DalianSKFWazhouBearingsCo.,Ltd. 58,923,350.35 1.91 53,873,831.71 2.09
OOOOtttthhhheeeerrrrccccoooommmmppppaaaannnniiiieeeessssccccoooonnnnttttrrrroooolllllllleeeeddddbbbbyyyytttthhhheeeessssaaaammmmeeee
— — — —
ppppaaaarrrreeeennnnttttccccoooommmmppppaaaannnnyyyy
Including:WazhouSteelBallCompany 6,646,829.05 0.22 6,640,377.26 0.26
WazhouExactForgeLtd. 429,602,648.60 13.95 390,122,849.98 15.14
DalianWazhouManufacturing
2,596,466.69 0.08 3,507,460.83 0.14
EquipmentCo.,Ltd
WazhouGroupTurnplateBearing
13,388,072.29 0.43 8,850,342.70 0.34
Ltd
WazhouGroupExactTransmission
26,275,799.62 0.85 31,209,506.19 1.21
BearingCo.,Ltd
WazhouGroupSpecialPrecision
3,753,004.18 0.12 8,321,456.14 0.32
BearingCo.,Ltd
DalianWazhouJinzhouMachinery
3,232,079.60 0.10 299,798.90 0.01
Co.,Ltd
WazhouGroup(USA)BearingCO.,
7,524,349.22 0.24
Ltd.
TTTToooottttaaaallll 555555552222,,,,999955558888,,,,999999992222....99997777 11117777....99995555 555500004444,,,,111100008888,,,,222200001111....11115555 11119999....55556666
TheCompany’ssalespriceofworkinginprogressandrawmaterialstoDalianSKFWazhouBearingsCo.,Ltd wasthecontractpricedeterminedin2002;thesalespriceofrawmaterialstoWazhouSteelBallCompanyand Wazhou Exact Forge Ltd was the contract plus the expense occurred in the purchase on behalf of the customers;othersrelatedpartysalespricewasmarketprice.
(3)Renderingservice
RRRReeeellllaaaatttteeeeddddppppaaaarrrrttttyyyyttttyyyyppppeeeeaaaannnnddddnnnnaaaammmmeeee 2222000011113333 2222000011112222
AAAAmmmmoooouuuunnnntttt %%%% AAAAmmmmoooouuuunnnntttt %%%%
AAAAssssssssoooocccciiiiaaaatttteeeessss
— — — —
Including:DalianSKFWazhouBearingsCo.,Ltd. 4,172,966.99 0.16 4,221,662.69 0.16
OOOOtttthhhheeeerrrrccccoooommmmppppaaaannnniiiieeeessssccccoooonnnnttttrrrroooolllllllleeeeddddbbbbyyyytttthhhheeeessssaaaammmmeeee
— —
ppppaaaarrrreeeennnnttttccccoooommmmppppaaaannnnyyyy
Including:WazhouSteelBallCompany 744,708.59 0.03 591,166.46 0.02
WazhouGroupExactTransmission
BearingCo.,Ltd 2,535,229.15 0.10 1,842,297.35 0.07
WazhouExactForgeLtd. 80,745.21 0.00
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport WazhouGroupTurnplateBearingLtd 1,444,024.14 0.06
WazhouGroupSpecialPrecision
192,492.12 0.01
BearingCo.,Ltd 397,210.13 0.02
DalianWazhouJinzhouMachinery
Co.,Ltd 122,919.96 0.01 1,841,284.97 0.07
TTTToooottttaaaallll
7777,,,,999977773333,,,,000033334444....88882222 0000....333322222222 11110000,,,,222211113333,,,,666677772222....99994444
0000....44440000
(4)Assetsrentout
LLLLeeeeaaaasssseeeeiiiinnnnccccoooommmmeeee BBBBaaaassssiiiissssooooffff
CCCCaaaatttteeeeggggoooorrrryyyyooooffffaaaasssssssseeeettttssss SSSSttttaaaarrrrttttiiiinnnngggg rrrreeeeccccooooggggnnnniiiizzzzeeeeddddiiiinnnn LLLLeeeessssssssoooorrrr LLLLeeeesssssssseeeeeeee MMMMaaaattttuuuurrrreeeeddddaaaatttteeee lllleeeeaaaasssseeee
rrrreeeennnnttttoooouuuutttt ddddaaaatttteeee ccccuuuurrrrrrrreeeennnntttt pppprrrriiiicccciiiinnnngggg
ppppeeeerrrriiiioooodddd 2013-1-1 2012-12-31 - Land(locatedin
WazhouExact No.1,Phrase1,North
TheCompany Free
ForgeLtd. GongjiStreet,with
areaof7,881m².
- Land(locatedin
No.1,Phrase1,
WazhouExact No fixed
TheCompany
NorthGongjiStreet,
2012-1-1 Free
ForgeLtd.
withareaof period
48,220.82m².
105,368.00 Contract
Land(locatedin
Lawsof
WazhouSteel No.1,Phrase1,North
TheCompany 2013-1-1 2013-12-31
Chinaand
BallCompany GongjiStreet,with
No.58[1997]
areaof13,171m².
Dazhengfa
46,915.20 Land(locatedin Contract
WazhouGroup
Lawsof
Special No.1,Phrase1,North
TheCompany 2013-1-1 2013-12-31
Chinaand
Precision
GongjiStreet,with No.58[1997]
BearingCo.,Ltd
Dazhengfa
areaof5,864.40m².
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport 345,515.00 Contract
Lawsof
WazhouExact
TheCompany Buildings 2013-1-1 2013-12-31
Chinaand
ForgeLtd.
No.58[1997]
Dazhengfa
514,303.17 WazhouGroup
Special Thesameas
TheCompany Buildings 2013-1-1 2013-12-31
Precision above
BearingCo.,Ltd
DalianWazhou 107,460.00 Fengyuan Thesameas
TheCompany Buildings 2012-6-1 2013-12-31
MachineryCo., above
Ltd
DalianWazhou 803,160.00 Jinzhou Thesameas
TheCompany Buildings 2012-6-1 2013-12-31
MachineryCo., above
Ltd
Note: According to the No.3[2012] Wazhou Group Fa<Provisions on the payment of land usetax> issued by the Wazhou Group, from January 2012, Wazhou Group should be responsible for checking, putting on records to thetax bureau, and modifying theregistrationinformationof land useon internet, if theland of Wazhou Group and the Company is used. The units using land are responsible for declaring and paying land use tax according to the statutoryregulations andthe land areacheckedbythe departmentof corporationlayoutand development,security equipment energyof Wazhou Group. Wazhou Group and the Companyare no longer collecting and paying land usetaxonbehalfoftheunitswhousingtheland.
(5)Assetsunderlease
LLLLeeeeaaaasssseeeeeeeexxxxppppeeeennnnsssseeee CCCCaaaatttteeeeggggoooorrrryyyyooooffff SSSSttttaaaarrrrttttiiiinnnngggg BBBBaaaassssiiiissssooooffff
LLLLeeeessssssssoooorrrr LLLLeeeesssssssseeeeeeee MMMMaaaattttuuuurrrreeeeddddaaaatttteeee rrrreeeeccccooooggggnnnniiiizzzzeeeeddddiiiinnnn aaaasssssssseeeettttssssrrrreeeennnnttttiiiinnnn ddddaaaatttteeee lllleeeeaaaasssseeeepppprrrriiiicccciiiinnnngggg
ccccuuuurrrrrrrreeeennnnttttppppeeeerrrriiiioooodddd Land(locatedin
Twofinished WazhouGroup
WazhouGr
branchofthe industrialpark,
2013-1-1 2013-12-31
Free
－
oup Company withareaof
14,418.00m².
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport Land(locatedin
No.1,Phrase1,
Wazhou
TheCompany NorthGongji
2013-1-1 2013-12-31
Free
－
Group Street,witharea
of715.20m².
Land(locatedin
Thephysical
WazhouGroup
Wazhou distribution
industrialpark, 2013-1-1 2013-12-31 Free
－
branchofthe
Group withareaof
company
17,829.00m².
Land(locatedin
No.1,Phrase1,
Wazhou
TheCompany NorthGongji
2012-1-1 Nofixedperiod
Free
－
Group Street,witharea
of21,692.06m².
Land(locatedin
Wazhou westindustrial
TheCompany Free －
park,witharea 2012-1-1 Nofixedperiod
Group
of58,500m².
Land(locatedin
Precision WazhouGroup
Wazhou
bearingbranch industrialpark, Free －
2013-1-1 2013-12-31
Group oftheCompany withareaof
30,380m².
Land(locatedin
Speciallarge WazhouGroup
Wazhou
branchofthe industrialpark, Free －
2013-1-1 2013-12-31
Group Company withareaof
20,207m².
Land(locatedin
Speciallarge WazhouGroup
Wazhou
branchofthe industrialpark, 2013-1-1 2013-12-31 Free －
Group Company withareaof
16,388.00m².
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport Land(locatedin
ContractLaws
Theprecision WazhouGroup
Wazhou ofChinaand
rollingcompany industrialpark, 2013-1-1 2013-12-31
No.58[1997]
Group oftheCompany withareaof 57,600.00 Dazhengfa
7,199.00m².
ContractLaws
Wazhou ofChinaand
TheCompany
Buildings 2013-1-1 2013-12-31 213,200.00No.58[1997]
Group
Dazhengfa
Precision
Wazhou Thesameas
bearingbranch
Buildings 2013-1-1 2013-12-31 3,244,200.00 above
Group oftheCompany
Twofinished
Wazhou Thesameas
branchofthe
Buildings 2013-1-1 2013-12-31 1,771,800.00 above
Group Company
Speciallarge
Wazhou Thesameas
branchofthe
Buildings 2013-1-1 2013-12-31 2,773,500.00 above
Group Company
Theprecision
Wazhou Thesameas
rollingcompany
Buildings 2013-1-1 2013-12-31 892,000.00 above
Group oftheCompany
Thephysical
Wazhou distribution Thesameas
Buildings 2013-1-1 2013-12-31 557,600.00 branchofthe above
Group
company
Speciallarge
Wazhou Thesameas
branchofthe
Buildings 2013-1-1 2013-12-31 2,604,000.00 above
Group Company
Wazhou
Theprecision
Thesameas
SteelBall
rollingcompany
Buildings 2013-1-1 2013-12-31 224,208.00 above
oftheCompany
Company
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport Twofinished
Wazhou ContractLaws
branchofthe Equipment 2013-1-1 2013-12-31 106,273.50 Group ofChina
Company
Theprecision
Wazhou Thesameas
rollingcompany Equipment 2013-1-1 2013-12-31 6,766,229.62 Group above
oftheCompany
Theauto
Wazhou bearing Thesameas
Equipment 2011-9-20 2016-9-20 294,840.00 Group companyofthe above
Company
Speciallarge
Wazhou Thesameas
branchofthe Equipment 2013-1-1 2013-12-31 5,771,362.29 Group above
Company
(6)Warrantyprovidedbyrelatedparties
WWWWaaaarrrrrrrraaaannnnttttoooorrrr WWWWaaaarrrrrrrraaaannnntttteeeeeeee AAAAmmmmoooouuuunnnnttttssss IIIInnnncccceeeeppppttttiiiioooonnnnooooffff MMMMaaaattttuuuurrrriiiittttyyyyooooffff WWWWhhhheeeetttthhhheeeerrrrtttthhhheeee
wwwwaaaarrrrrrrraaaannnntttteeeedddd wwwwaaaarrrrrrrraaaannnnttttyyyy wwwwaaaarrrrrrrraaaannnnttttyyyy wwwwaaaarrrrrrrraaaannnnttttyyyy
ffffiiiinnnniiiisssshhhheeeedddd
((((YYYYoooorrrrNNNN))))
WazhouGroup TheCompany 300,000,000.00 7 Mar. 2007 7Mar.2015 Y(Note1)
WazhouGroup TheCompany 90,000,000.00 9Mar.2010 9Mar.2014 Y(Note2)
WazhouGroup TheCompany 90,000,000.00 15Mar.2012 15Mar.2015 Y(Note3)
Note1: The warranty is Wazhou Group guarantying for theCompany’s long-term loan from China Development BankwiththeamountofRMB300million.AsattheendofDec31,2013,theendingbalanceoftheloanisRMB0. Note2:ThewarrantyisWazhouGroupguarantyingfortheCompany’slong-termloanfromImportandExportBank withtheamountofRMB90million.AsattheendofDec31,2013,theendingbalanceoftheloanisRMB0.
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport Note3:ThewarrantyisWazhouGroupguarantyingfortheCompany’slong-termloanfromImportandExportBank withtheamountofRMB90million.AsattheendofDec31,2013,theendingbalanceoftheloanisRMB90million. (7)Useoftrademark
Pursuant to‘Trademark UseAgreement’ which is valid until December 31, 2014, made by the Company andWazhouGrouponJanuary1,2012,theCompanyshouldpay1%ofnetsalestotheWazhouGroupduetotheuse theWazhoutrademarkontheproductsselfmadeandsold.Accordingtothisagreement,thepayablefeein2013is RMB8,000,000.00.Thetrademarkusefeeofthisyearhasnotbeenpaidinfull.
(8)Receiptofcomprehensiveservices
Inthisfiscalyear,otherfeeswhichshouldbepaidtoWazhouGroupareasfollows:
IIIItttteeeemmmmssss 2222000011113333 2222000011112222
Securityandfireprotectionfees 3,341,800.00 3,240,000.00
Technicaldevelopmentexpenses 5,400,000.00 5,400,000.00
Publicityexpenses 821,400.00 780,000.00
TTTToooottttaaaallll 9999,,,,555566663333,,,,222200000000....00000000 9999,,,,444422220000,,,,000000000000
.00
Asat31December2013,theabovefeeshavenotbeenpaidinfull.
3333....BBBBaaaallllaaaannnncccceeeesssswwwwiiiitttthhhhrrrreeeellllaaaatttteeeeddddppppaaaarrrrttttiiiieeeessss
(1)Accountsreceivableduefromrelatedparties
CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee
RRRReeeellllaaaatttteeeeddddppppaaaarrrrttttyyyy BBBBooooooookkkkBBBBaaaallllaaaannnncccceeee PPPPrrrroooovvvviiii BBBBooooooookkkkBBBBaaaallllaaaannnncccceeee PPPPrrrroooovvvviiiissssiiiioooonnnn ssssiiiioooonnnn
PPPPaaaarrrreeeennnnttttccccoooommmmppppaaaannnnyyyy
— — — — Including:WazhouGroup 6,903,361.61
----
6,116,707.30
---- OOOOtttthhhheeeerrrrccccoooommmmppppaaaannnniiiieeeessssccccoooonnnnttttrrrroooolllllllleeeeddddbbbbyyyytttthhhheeeessssaaaammmmeeeeppppaaaarrrreeeennnntttt
— — — — ccccoooommmmppppaaaannnnyyyy
Including: Wazhou Group Special Precision Bearing 7,525,346.79
---- 9,480,538.95---- ---- Co.,Ltd
WazhouGroup(US)BearingCo.,Ltd 1,658,157.69
---- ---- ----
(2)Accountspayableduetorelatedparties
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee RRRReeeellllaaaatttteeeeddddppppaaaarrrrttttyyyy
AAAAssssssssoooocccciiiiaaaatttteeeessss — — 70,617,717.03 135,593,236.84 Including:DalianSKFWazhouBearingsCo.,Ltd.
OOOOtttthhhheeeerrrrccccoooommmmppppaaaannnniiiieeeessssccccoooonnnnttttrrrroooolllllllleeeeddddbbbbyyyytttthhhheeeessssaaaammmmeeeeppppaaaarrrreeeennnnttttccccoooommmmppppaaaannnnyyyy — — Including:WazhouExactForgeLtd.
36,757,360.03 16,958,002.15 WazhouGroupTurnplateBearingLtd
61,781,330.93 3,792,635.96 WazhouSteelBallCompany
1,498,795.06 1,102,129.43 WazhouGroupExactTransmissionBearingCo.,
94,934,478.93 66,138,578.06 Ltd
4,923,156.28 3,689,706.72 DalianWazhouManufacturing
EquipmentCo.,Ltd
WazhouGroupSpecialPrecisionBearing Co., 18,087.07 Ltd
WazhouGroupEquipmentTechnologyProjectCo., 24,955,761.96
Ltd.
DalianWazhouJinzhouMachineryCo.,Ltd
12,911,691.20 4,374,613.55 3,731,824.50 3,676,604.71 DalianWazhouFengyuanMachineryCo.,Ltd
VVVVIIIIIIIIIIII....CCCCoooonnnnttttiiiinnnnggggeeeennnnccccyyyy
Asat31December2013,theGroupdoesnothaveanyothercontingencies.
IIIIXXXX....CCCCoooommmmmmmmiiiittttmmmmeeeennnntttt
Asat31December2013,theGroupdoesnothaveanyothersignificantcommitments.
XXXX....EEEEvvvveeeennnnttttssssaaaafffftttteeeerrrrtttthhhheeeeBBBBaaaallllaaaannnncccceeeeSSSShhhheeeeeeeettttDDDDaaaatttteeee
1.DistributabledividendbasedontheCompany’sProfitDistributableACTordividendapprovedtoannouncetoallocate According to the decision of meetings of the 13th meeting of 5th Board session Board on 19 April 2013, the Board recommended the general meeting the scheme of distribution for the year of 2012 a cash dividend of RMB 0.4(includingtax)pertensharesbasedoncapitalstockof402.6millionattheendof2012,totallingdistributingcash RMB16,104,000.00.
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport 2.Asat31Dec2013,theGroupdoesnothaveanyothereventsafterthebalancesheetdatebesidestheabove. XXXXIIII....OOOOtttthhhheeeerrrrSSSSiiiiggggnnnniiiiffffiiiiccccaaaannnnttttEEEEvvvveeeennnnttttssss
1.Debtrestructuring
In 2013, the Company has signed the‘Debt RestructuringAgreement’ with the customers, through cash reimbursement less than the debt-equity carrying value, and implemented the restructuring, the amounts of debt restructuringisRMB49,332,334.20Yuan.whichresultinthedebtrestructuringlossesRMB2,288,584.13Yuan,and wererecognizedintonon-operatingexpenses.
In 2013, the Company has signed the‘Debt RestructuringAgreement’ with the creditors, through cash or bank notes reimbursement less than the debt-equity carrying value, and implemented the restructuring, the amounts of debt restructuring is RMB 7,410,825.30Yuan, which result in the debt restructuring income RMB 473,114.23Yuan andwererecognizedintonon-operatingrevenue.
2.Assetsrentoutunderoperatinglease
AAAAsssssssseeeettttccccaaaatttteeeeggggoooorrrryyyy CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee
Plant 35,285,907.66 27,548,894.81
Landuseright 19,250,698.02 19,250,698.02
TTTToooottttaaaallll 55554444,,,,555533336666,,,,666600005555....66668888 44446666,,,,777799999999,,,,555599992222....88883333
XXXXIIIIIIII....NNNNooootttteeeessssttttooootttthhhheeeeMMMMaaaaiiiinnnnIIIItttteeeemmmmssssoooofffftttthhhheeeeFFFFiiiinnnnaaaannnncccciiiiaaaallllSSSSttttaaaatttteeeemmmmeeeennnnttttssssooooffffPPPPaaaarrrreeeennnnttttCCCCoooommmmppppaaaannnnyyyy
1.Accountsreceivable
(1)Accountsreceivablecategory
CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee
IIIItttteeeemmmm BBBBooooooookkkkiiiinnnnggggbbbbaaaallllaaaannnncccceeee PPPPrrrroooovvvviiiissssiiiioooonnnn
AAAAmmmmoooouuuunnnntttt %%%% AAAAmmmmoooouuuunnnntttt %%%%
Accountsreceivablewith
individualsignificantamountand
3,910,007.43 0.33 3,910,007.43 100.00
identificationseparatelybad
debtprovision
Accountsreceivableaccrued
- - - -
baddebtprovisionbyportfolio
Accountingagingportfolio
1,156,136,444.23 96.55 41,988,314.44 3.63
Relatedpartiesportfolio
25,628,530.42 2.13 - -
- -
Risk-freeportfolio
Subtotalofportfolio
1,181,764,974.65 98.68 41,988,314.44 3.55
Accountsreceivablewith
11,796,099.81 0.99 11,796,099.81 100.00
individualinsignificantamount
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport andidentificationseparatelybad
debtprovision
TTTToooottttaaaallll
1111,,,,111199997777,,,,444477771111,,,,000088881111....88889999 111100000000....00000000 55557777,,,,666699994444,,,,444422221111....66668888 ————
(Continued)
OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee
IIIItttteeeemmmm BBBBooooooookkkkiiiinnnnggggbbbbaaaallllaaaannnncccceeee PPPPrrrroooovvvviiiissssiiiioooonnnn
AAAAmmmmoooouuuunnnntttt %%%% AAAAmmmmoooouuuunnnntttt %%%%
Accountsreceivablewith
individualsignificantamount
3,910,007.43 0.34 3,910,007.43 100.00
andidentificationseparately
baddebtprovision
Accountsreceivableaccrued
- - - -
baddebtprovisionbyportfolio
Accountingagingportfolio
1,094,616,573.92 96.11 40,911,937.07 3.74
Relatedpartiesportfolio
28,606,413.25 2.51 - -
- - - -
Risk-freeportfolio
Subtotalofportfolio
1,123,222,987.17 98.62 40,911,937.07 3.64
Accountsreceivablewith
individualinsignificantamount
11,813,753.94 1.04 11,813,753.94 100.00
andidentificationseparately
baddebtprovision
TTTToooottttaaaallll
1111,,,,111133338888,,,,999944446666,,,,777744448888....55554444 111100000000....00000000 55556666,,,,666633335555,,,,666699998888....44444444
—
1)Individuallysignificantamountsofaccountsreceivableaccruedthebaddebtprovisionseparatelyattheendof2013 BBBBooooooookkkkiiiinnnngggg PPPPrrrroooovvvviiiissssiiiioooonnnnffffoooorrrr PPPPrrrrooooppppoooorrrrttttiiiioooonnnn RRRReeeeaaaassssoooonnnnssssffffoooorrrr
DDDDeeeebbbbttttoooorrrrssssnnnnaaaammmmeeee
bbbbaaaallllaaaannnncccceeee bbbbaaaaddddddddeeeebbbbttttssss ((((%%%%)))) pppprrrroooovvvviiiissssiiiioooonnnn
A/Rwithover
BaodingNorthChinaMachine
5yearsaging,
&ElectronicEquipmentCo.,
3,910,007.43 3,910,007.43 100.00
unlikelytobe
Ltd
collected
TTTToooottttaaaallll
3333,,,,999911110000,,,,000000007777....44443333 3333,,,,999911110000,,,,000000007777....44443333
— —
2)Accountsreceivableaccruedthebaddebtprovisionsintheportfolioasaccountingaginganalysismethod
CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee
IIIItttteeeemmmmssss
AAAAmmmmoooouuuunnnntttt %%%% PPPPrrrroooovvvviiiissssiiiioooonnnn AAAAmmmmoooouuuunnnntttt %%%% PPPPrrrroooovvvviiiissssiiiioooonnnn Within1
984,412,200.17 82.21 9,844,122.00 903,501,819.80 79.33 9,035,018.20
year
1-2years
92,785,902.07 7.75 4,639,295.10 117,102,766.91 10.28 5,855,138.33
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport 2-3years
39,880,912.19 3.33 7,976,182.44 36,614,043.59 3.21 7,322,808.72 Over3
39,057,429.8 3.26 19,528,714.9 37,397,943.62 3.28 18,698,971.82 years
TTTToooottttaaaallll
1111,,,,111155556666,,,,111133336666,,,,444444444444....22223333 99996666....55555555 44441111,,,,999988888888,,,,333311114444....44444444 1111,,,,000099994444,,,,666611116666,,,,555577773333....99992222 99996666....1111
1
44440000,,,,999911111111,,,,999933337777....00007777 3)Individuallyinsignificantamountaccountsreceivablebutaccruedbaddebtprovisionseparatelyattheendof2013 PPPPrrrrooooppppoooorrrrttttiiiioooo
BBBBooooooookkkkiiiinnnngggg PPPPrrrroooovvvviiiissssiiiioooonnnnffffoooorrrr
CCCCoooommmmppppaaaannnnyyyynnnnaaaammmmeeee nnnn RRRReeeeaaaassssoooonnnnssssffffoooorrrrpppprrrroooovvvviiiissssiiiioooonnnn
bbbbaaaallllaaaannnncccceeee bbbbaaaaddddddddeeeebbbbttttssss
((((%%%%))))
Shenyang
A/Rwithover5yearsaging,
Sewerage 2,706,703.13 2,706,703.13 100.00
unlikelytobecollected
EquipmentCo.,Ltd
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
Shuangyashan
A/Rwithover3yearsaging,
Miningindustry 1,368,257.55 1,368,257.55
100.00
unlikelytobecollected
GroupCompany
Chongqing
A/Rwithover3yearsaging,
Sailimengelectrical 650,758.88 650,758.88
100.00
unlikelytobecollected
machineLLC
QingdaoQingte
A/Rwithover3yearsaging,
ZhongliaxleCo., 590,898.99 590,898.99
100.00
unlikelytobecollected
Ltd
Othersporadic A/Rwithover5yearsaging,
1,674,582.53 1,674,582.53 100.00
accountsreceivable unlikelytobecollected
TTTToooottttaaaallll 11111111,,,,777799996666,,,,000099999999....88881111 11111111,,,,777799996666,,,,000099999999....88881111
—
—
(2)Write-offofaccountsreceivableduringthereportingperiod
CCCCoooommmmppppaaaannnnyyyynnnnaaaammmmeeee NNNNaaaattttuuuurrrreeee AAAAmmmmoooouuuunnnntttt RRRReeeeaaaassssoooonnnnooooffffwwwwrrrriiiitttteeee----ooooffffffff RRRReeeellllaaaatttteeeeddddppppaaaarrrrttttyyyy
ttttrrrraaaannnnssssaaaaccccttttiiiioooonnnn
((((YYYYoooorrrrNNNN))))
StateOwnedYunna Amountduefrom Liquidationoftheother
5,498.02 N
MachineErChang party
customer
ShenHuaGroup Amountduefrom Pricediscrepancyand
Zhunge’erEnergyCo.，Ltd
687,570.71
agingmorethan3years
N
customer
Amountduefrom Pricediscrepancyand
HongkongJuFengShiYe
129,468.02 N
agingmorethan3years
customer
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport ChangshuXingYuNew Amountduefrom Lossarisingfromcourt
518,563.45 N
BuildingMaterialsCo.,Ltd
customer decision
ChangshuXingHaiNew Amountduefrom Lossarisingfromcourt
717,137.51 N
BuildingMaterialsCo.,Ltd decision
customer
ChangshuXingDaoNew Amountduefrom Lossarisingfromcourt
88,846.26 N
BuildingMaterialsCo.,Ltd decision
customer
TTTToooottttaaaallll 2222,,,,111144447777,,,,000088883333....99997777
(3)Accountsreceivableduefromshareholdersholdingover5%(including5%)oftheCompany’sshares
CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee
DDDDeeeebbbbttttoooorrrrnnnnaaaammmmeeee AAAAmmmmoooouuuunnnntttt PPPPrrrroooovvvviiiissssiiiioooonnnnffffoooorrrr AAAAmmmmoooouuuunnnntttt PPPPrrrroooovvvviiiissssiiiioooonnnnffffoooorrrr
bbbbaaaaddddddddeeeebbbbtttt bbbbaaaaddddddddeeeebbbbtttt
WazhouGroup 6,903,361.61 - 6,116,707.30 -
TTTToooottttaaaallll 6666,,,,999900003333,,,,333366661111....66661111 ———— 6666,,,,111111116666,,,,777700007777....33330000 ————
(4)Accountsreceivableforthetop5companies
RRRReeeellllaaaattttiiiioooonnnnsssshhhhiiiipppp
PPPPeeeerrrrcccceeeennnnttttaaaaggggeeee
CCCCoooommmmppppaaaannnnyyyynnnnaaaammmmeeee wwwwiiiitttthhhhtttthhhheeee AAAAmmmmoooouuuunnnntttt AAAAggggiiiinnnngggg
iiiinnnntttthhhheeeettttoooottttaaaallll
CCCCoooommmmppppaaaannnnyyyy
AAAARRRR((((%%%%))))
TaiyuanHeavyIndustryCo.,Ltd Unrelatedparty
44,750,264.60
Within1year
3.74
Within1year
DongFangElectricGroupDong Unrelatedparty
38,494,944.54
1-2years,2-3
3.21
FangTurbineCo.,Ltd years
SiemensEnergyInc Unrelatedparty
26,237,324.55
Within1year
2.19
ChinaNationalHeavyDutyTruck
GroupJinanAxle&Transmission Unrelatedparty
25,651,982.40
Within1year
2.14
Co.,Ltd
Xi’anFastAutoDriveGroupFast Within1year
Unrelatedparty
23,771,208.56 1.99
GearCo.,Ltd 1-2years
TTTToooottttaaaallll
—
111155558888,,,,999900005555,,,,777722224444....66665555
—
13.27
(5)Accountsreceivableduefromrelatedparties
RRRReeeellllaaaattttiiiioooonnnnsssshhhhiiiippppwwwwiiiitttthhhhtttthhhheeee %%%%iiiinnnntttthhhheeeettttoooottttaaaallll
CCCCoooommmmppppaaaannnnyyyynnnnaaaammmmeeee AAAAmmmmoooouuuunnnnttttssss
CCCCoooommmmppppaaaannnnyyyy AAAARRRR
WazhouGroup Parentcompany 6,903,361.61
0.58
Othercompanies
WazhouGroupSpecialPrecision
controlledbythesame
7,523,331.45 0.63
Bearing Co.,Ltd
parentcompany
Othercompanies
Wazhou(USA)BearingCo.Ltd 1,658,157.69 0.14
controlledbythesame
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport parentcompany
WazhouLiaoyangBearing
Subsidiary 9,543,679.67
0.80
constructionCo.,Ltd
TTTToooottttaaaallll
—
22225555,,,,666622228888,,,,555533330000....44442222 2.14
2.Otherreceivables
(1)Thecategoryofotherreceivable
CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee
IIIItttteeeemmmmssss BBBBooooooookkkkiiiinnnnggggbbbbaaaallllaaaannnncccceeee PPPPrrrroooovvvviiiissssiiiioooonnnn
AAAAmmmmoooouuuunnnntttt %%%% AAAAmmmmoooouuuunnnntttt %%%%
Otherreceivableswithindividual
significantamountand
- - - -
identificationseparatelybaddebt
provision
Otherreceivablesaccruedbad
- - - -
debtprovisionbyportfolio
Accountingagingportfolio
11,844,521.56 44.01 1,347,121.11 11.37
- - - -
Relatedpartiesportfolio
Risk-freeportfolio
15,066,804.72 55.99
- -
Subtotalofportfolio
26,911,326.28 100.00 1,347,121.11 5.01
Otherreceivableswithindividual
insignificantamountand
- - - -
identificationseparatelybaddebt
provision
TTTToooottttaaaallll
22226666,,,,999911111111,,,,333322226666....22228888 111100000000....00000000 1111,,,,333344447777,,,,111122221111....11111111 ————
（Continued）
OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee
IIIItttteeeemmmmssss BBBBooooooookkkkiiiinnnnggggbbbbaaaallllaaaannnncccceeee PPPPrrrroooovvvviiiissssiiiioooonnnn
AAAAmmmmoooouuuunnnntttt %%%% AAAAmmmmoooouuuunnnntttt %%%%
Otherreceivableswithindividual
significantamountandidentification
- - - -
separatelybaddebtprovision
Otherreceivablesaccruedbaddebt
- - - -
provisionbyportfolio
Accountingagingportfolio
10,287,420.85 63.25 1,138,368.72 11.07
- - - -
Relatedpartiesportfolio
Risk-freeportfolio
5,976,732.42 36.75
- -
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport Subtotalofportfolio
16,264,153.27 100.00 1,138,368.72 7.00
Otherreceivableswithindividual
insignificantamountandidentification
- - - -
separatelybaddebtprovision
TTTToooottttaaaallll
11116666,,,,222266664444,,,,111155553333....22227777 111100000000....00000000 1111,,,,111133338888,,,,333366668888....77772222 111100000000....00000000
1)Otherreceivableaccruedthebaddebtprovisionsintheportfolioasaccountingaginganalysismethod
CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee
IIIItttteeeemmmmssss
AAAAmmmmoooouuuunnnntttt %%%% PPPPrrrroooovvvviiiissssiiiioooonnnn AAAAmmmmoooouuuunnnntttt %%%% PPPPrrrroooovvvviiiissssiiiioooonnnn Within1
7,875,751.87 29.27 78,757.52 7,107,506.08 43.70 71,075.06 year
1-2years
1,373,068.49 5.10 68,653.42 832,860.57 5.12 41,643.03 2-3years
327,134.79 1.22 65,426.96 492,921.58 3.03 98,584.32 Over3
2,268,566.41 8.42 1,134,283.21 1,854,132.62 11.40 927,066.31 years
TTTToooottttaaaallll
11111111,,,,888844444444,,,,555522221111....55556666 44444444....00001111 1111,,,,333344447777,,,,111122221111....11111111 11110000,,,,222288887777,,,,444422220000....88885555 66663333....22225555 1111,,,,111133338888,,,,333366668888....77772222Nootherreceivableisduefromshareholdersholdingover5%(including5%)oftheCompany’ssharesattheend ofperiod.
2)Otherreceivablesfromthetop5debtors
RRRReeeellllaaaattttiiiioooonnnnsssshhhhiiiipppp %%%%oooofffftttthhhheeee
NNNNaaaattttuuuurrrreeeeoooorrrr DDDDeeeettttoooorrrrnnnnaaaammmmeeee wwwwiiiitttthhhhtttthhhheeee AAAAmmmmoooouuuunnnnttttssss AAAAggggiiiinnnngggg ttttoooottttaaaallllOOOORRRR
ccccoooonnnntttteeeennnnttttssss CCCCoooommmmppppaaaannnnyyyy
Liaoningpowersupply Within1 Electric Unrelatedparty 3,385,685.91 12.58
year charge (Dalian)Co.,Ltd
DaqinRailwayCo.,LtdTaiyuan Within1
Unrelatedparty 469,000.00 1.74 Deposit year
StockSupplyStation
KunmingRailwayBureau
Unrelatedparty 370,000.00 1.37 Deposit MaterialSupplyStation
NanningRailwayBureau Within1
Unrelatedparty 297,480.00 1.11 Deposit year
materialexchange
ShenHuaEnergyRailway Within1
Unrelatedparty 279,000.00 1.04 Deposit FreightTransportationBranch
year
TTTToooottttaaaallll
— 4444,,,,888800001111,,,,111166665555....99991111 — 11117777....88884444 —
3.Long-termequityinvestments
(1)Categoryoflong-termequityinvestments
IIIItttteeeemmmmssss CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee
Long-termequityinvestmentsundercostmethod 64,816,216.32 64,816,216.32
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport Long-termequityinvestmentsunderequitymethod 99,734,229.12 89,481,487.64
TTTToooottttaaaalllloooofffflllloooonnnngggg----tttteeeerrrrmmmmeeeeqqqquuuuiiiittttyyyyiiiinnnnvvvveeeessssttttmmmmeeeennnnttttssss 111166664444,,,,555555550000,,,,444444445555....44444444 111155554444,,,,222299997777,,,,777700003333....99996666
Less:Provisionforimpairmentoflong-termequity investments - -
NNNNeeeettttaaaammmmoooouuuunnnnttttssss 111166664444,,,,555555550000,,,,444444445555....44444444 111155554444,,,,222299997777,,,,777700003333....99996666
(2)Long-termequityinvestmentsundercostandequitymethod
IIIInnnnvvvveeeesssstttteeeeeeee SSSShhhhaaaarrrreeeehhhhoooollllddddiiiinnnngggg VVVVoooottttiiiinnnngggg%%%% OOOOrrrriiiiggggiiiinnnnaaaallll
%%%% AAAAmmmmoooouuuunnnnttttssss
Costmethod - - -
ShanghaiMEmachine-electricalequipment
4.76 4.76 2,000,000.00
chainLtd.
LiaoyangBearing
100.00 100.00 17,337,259.95
DalianWazhouPrecisionMotorCarBearing
100.00 100.00 10,478,956.37
CompanyLimited
SSSSuuuubbbbttttoooottttaaaallll
— —
22229999,,,,888811116666,,,,222211116666....33332222
Equitymethod - - -
DalianSKFWazhouBearingsCo.,Ltd.
49.00 49.00 95,060,000.00
99995555,,,,000066660000,,,,000000000000....00000000
Subtotal — —
TTTToooottttaaaallll
— —
111122224444,,,,888877776666,,,,222211116666....33332222
(Continued)
IIIInnnnvvvveeeesssstttteeeeeeee OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee IIIInnnnccccrrrreeeeaaaasssseeee DDDDeeeeccccrrrreeeeaaaasssseeee CCCClllloooossssiiiinnnnggggBBBBaaaallllaaaannnncccceeee CCCCaaaasssshhhh
ddddiiiivvvviiiiddddeeeennnnddddssss
iiiinnnn2222000011113333
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
SSSSuuuubbbbttttoooottttaaaallll 66664444,,,,888811116666,,,,222211116666....33332222
— —
66664444,,,,888811116666,,,,222211116666....33332222
—
Equitymethod - - - - -
DalianSKFWazhou
89,481,487.64 10,252,741.48 99,734,229.12
-
BearingsCo.,Ltd.
SSSSuuuubbbbttttoooottttaaaallll
88889999,,,,444488881111,,,,444488887777....66664444 11110000,,,,222255552222,,,,777744441111....44448888 99999999,,,,777733334444,,,,222222229999....11112222
————
TTTToooottttaaaallll
111155554444,,,,222299997777,,,,777700003333....99996666 11110000,,,,222255552222,,,,777744441111....44448888 111166664444,,,,555555550000,,,,444444445555....44444444
—
(3)Investmentinassociates
Monetaryunit:RMBTenThousandYuan
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport TTTToooottttaaaallll TTTToooottttaaaallllnnnneeeetttt
TTTToooottttaaaallllaaaasssssssseeeettttssss TTTToooottttaaaallllssssaaaalllleeeessss NNNNeeeetttt
HHHHoooollllddddiiiinnnngggg VVVVoooottttiiiinnnngggg lllliiiiaaaabbbbiiiilllliiiittttiiiieeeessss aaaasssssssseeeettttssssaaaassss
IIIInnnnvvvveeeesssstttteeeeeeee aaaassssaaaattttDDDDeeeecccc33331111 rrrreeeevvvveeeennnnuuuueeeeiiiinnnn pppprrrrooooffffiiiittttssssiiiinnnn
%%%% %%%% aaaassssaaaattttDDDDeeeecccc aaaattttDDDDeeeecccc33331111
2222000011113333 2222000011113333 2222000011113333
333311112222000011113333 2222000011113333
Associates - - - - - - -
Dalian SKF
Wazhou
49.00 49.00 27,121.15 5,359.77 21,761.37 21,168.86 1,554.03
Bearings
Co.,Ltd.
TTTToooottttaaaallll 22227777,,,,111122221111....11115555 5555,,,,333355559999....77777777 22221111,,,,777766661111....33337777 22221111,,,,111166668888....88886666 1111,,,,555555554444....00003333
— —
4.Operatingrevenueandcost
IIIItttteeeemmmmssss 2222000011113333 2222000011112222
Revenuefrommainoperation 2,576,045,680.96 2,618,456,392.94 Revenuefromotheroperation 507,105,267.03 461,872,530.83 TTTToooottttaaaallll 3333,,,,000088883333,,,,111155550000,,,,999944447777....99999999 3333,,,,000088880000,,,,333322228888,,,,999922223333....77777777 Costofmainoperation 2,332,868,856.46 2,331,820,256.20 Costofotheroperation 431,705,462.89 408,140,284.25 TTTToooottttaaaallll 2222,,,,777766664444,,,,555577774444,,,,333311119999....33335555 2222,,,,777733339999,,,,999966660000,,,,555544440000....44445555 (1)Mainoperation-classifiedaccordingtoIndustries
2222000011113333 2222000011112222
IIIInnnndddduuuussssttttrrrriiiieeeessss
SSSSaaaalllleeeessssrrrreeeevvvveeeennnnuuuueeee CCCCoooossssttttooooffffssssaaaalllleeeessss SSSSaaaalllleeeessssrrrreeeevvvveeeennnnuuuueeee CCCCoooossssttttooooffffssssaaaalllleeeessss EEEExxxxppppoooorrrrtttt 222277770000,,,,111122229999,,,,555555554444....00005555 222255557777,,,,222255557777,,,,999900002222....66663333 222233338888,,,,222222228888,,,,555500007777....88883333 222244442222,,,,999999992222,,,,000099991111....00001111 DDDDoooommmmeeeessssttttiiiicccc 2222,,,,222200009999,,,,666666661111,,,,333377774444....44445555 1111,,,,999966661111,,,,666600001111,,,,444466661111....11114444 2222,,,,222277774444,,,,777788886666,,,,888899998888....11110000 1111,,,,999966667777,,,,222211116666,,,,999977772222....55557777 Including:Transportation
959,324,861.80 869,729,562.90 1,002,389,320.07 910,587,425.20 vehiclebearings
Specialusebearings
531,391,872.00 459,094,939.00 347,430,587.92 283,711,818.10 Generalusebearings
718,944,640.65 632,776,959.24 924,966,990.11 772,917,729.27 IIIInnnndddduuuussssttttrrrriiiiaaaallllOOOOppppeeeerrrraaaattttiiiioooonnnnssss 99996666,,,,222255554444,,,,777755552222....44446666 111111114444,,,,000000009999,,,,444499992222....66669999 111100005555,,,,444444440000,,,,999988887777....00001111 111122221111,,,,666611111111,,,,111199992222....66662222 TTTToooottttaaaallll 2222,,,,555577776666,,,,000044445555,,,,666688880000....99996666 2222,,,,333333332222,,,,888866668888,,,,888855556666....44446666 2222,,,,666611118888,,,,444455556666,,,,333399992222....99994444 2222,,,,333333331111,,,,888822220000,,,,222255556666....22220000 (2)Salesrevenuefromtop5customers
IIIItttteeeemmmmssss SSSSaaaalllleeeessssrrrreeeevvvveeeennnnuuuueeee AAAAccccccccoooouuuunnnnttttiiiinnnnggggffffoooorrrr pppprrrrooooppppoooorrrrttttiiiioooonnnnooooffffttttoooottttaaaallll WazhouExactForgeLtd.
429,602,648.60
13.93 China National Heavy Duty Truck Group Jinan
97,462,109.49
3.16Axle&TransmissionCo.,Ltd
BeijingCNRLogisticsDevelopmentCo., Ltd. 82,015,329.85
2.66
Siemens(USA) 73,982,034.15
2.40
GuangzhouWazhouRailwayBearingSalesCo.,Ltd 66,264,309.19
2.15
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport TTTToooottttaaaallll 777744449999,,,,333322226666,,,,444433331111....22228888 22224444....33330000 5.Investmentincome
(1)Sourceofinvestmentincome
IIIItttteeeemmmmssss 2222000011113333 2222000011112222
Incomefromlong-termequityinvestmentsunder - 920,000.00
costmethod
Incomefromlong-termequityinvestmentsunder
7,138,243.59 5,023,866.50 equitymethod
Earnings from Disposing of a long-term equity
-6,938.21 investment
TTTToooottttaaaallll 8888,,,,000055558888,,,,222244443333....55559999 5555,,,,000011116666,,,,999922228888....22229999 (2)Long-termequityinvestmentincomeunderequitymethod
IIIItttteeeemmmmssss 2222000011113333 2222000011112222 RRRReeeeaaaassssoooonnnnffffoooorrrrcccchhhhaaaannnnggggeeee
TTTToooottttaaaallll 7777,,,,111133338888,,,,222244443333....55559999 5555,,,,000022223333,,,,888866666666....55550000
—
Theassociatesprofits
Including:DalianSKFWazhou
7,138,243.59 5,023,866.50 increasedcompared
BearingsCo.,Ltd.
withlastyear
6.Supplementaryinformationofconsolidatedcashflowstatementofparentcompany
IIIItttteeeemmmmssss 2222000011113333 2222000011112222
1111....AAAAddddjjjjuuuussssttttiiiinnnnggggnnnneeeettttpppprrrrooooffffiiiittttiiiinnnnttttooooccccaaaasssshhhhfffflllloooowwwwssssooooffffooooppppeeeerrrraaaattttiiiinnnngggg
— —
aaaaccccttttiiiivvvviiiittttiiiieeeessss::::
Netprofit 21,505,902.50 53,200,506.92
Add:Provisionforimpairmentofassets 3,774,562.85 9,850,642.26
Depreciationoffixedassets 67,555,556.60 69,155,001.97
Amortizationofintangibleassets 4,247,836.10 4,289,894.64
Amortizationoflong-termdeferredexpenses 67,830.36 76,821.89
Lossesondisposaloffixedassets,intangibleassets,and
-166,561.74 -8,081,177.84
long-termassets(incomelistedwith”-”)
Lossesonwrite-offoffixedassets(incomelistedwith”-”) -
Fairvaluechangeprofitorloss
Financialexpense(incomelistedwith”-”) 29,162,610.27 33,166,879.73
Investmentloss(incomelistedwith”-”) -8,058,243.59 -5,016,928.29
Decreaseofdeferredtaxassets(increaselistedwith”-”) 69,739.38 -1,343,139.79
Increaseofdeferredtaxliabilities(decreaselisted
-
with”-”)
Decreaseofinventories(increaselistedwith”-”) -46,028,574.93 33,464,636.05
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport Decreaseofoperatingreceivables(increaselisted
-59,314,563.13 -74,282,732.35
with”-”)
Increaseofoperatingpayables(decreaselistedwith”-”) 42,441,062.84 12,561,345.61
Others -
Netcashflowsarisingfromoperatingactivities 55,257,157.51 127,041,750.80
2222....SSSSiiiiggggnnnniiiiffffiiiiccccaaaannnnttttiiiinnnnvvvveeeessssttttmmmmeeeennnnttttaaaannnnddddffffiiiinnnnaaaannnncccciiiinnnnggggaaaaccccttttiiiivvvviiiittttiiiieeeessss
uuuunnnnrrrreeeellllaaaatttteeeeddddttttooooccccaaaasssshhhhiiiinnnnccccoooommmmeeeeaaaannnnddddeeeexxxxppppeeeennnnsssseeeessss
Liabilitiestransferredtocapital —
Convertiblebondswithin1year -
Financingleasedfixedassets -
3333....NNNNeeeettttiiiinnnnccccrrrreeeeaaaasssseeee((((ddddeeeeccccrrrreeeeaaaasssseeee))))ooooffffccccaaaasssshhhhaaaannnnddddccccaaaasssshhhheeeeqqqquuuuiiiivvvvaaaalllleeeennnntttt
-
Endingbalanceofcash 56,478,876.74 57,459,164.76
Less:Openingbalanceofcash 57,459,164.76 59,742,088.63
Add:Endingbalanceofcashequivalent
Less:Openingbalanceofcashequivalent -
Netincreaseofcashandcashequivalent -980,288.02 -2,282,923.87
XXXXIIIIIIIIIIII....AAAApppppppprrrroooovvvvaaaallllooooffffFFFFiiiinnnnaaaannnncccciiiiaaaallllSSSSttttaaaatttteeeemmmmeeeennnnttttssss
SSSSuuuupppppppplllleeeemmmmeeeennnnttttaaaarrrryyyyIIIInnnnffffoooorrrrmmmmaaaattttiiiioooonnnnttttooootttthhhheeeeFFFFiiiinnnnaaaannnncccciiiiaaaallllSSSSttttaaaatttteeeemmmmeeeennnnttttssss
1.Non-operatingprofitorloss
Based on Explanation and announcement of Information Disclosure and Presentation Rules for Companies Making PublicOffering No.1 on Non-operatingProfit or Loss(2008)issuedby China SecuritiesRegulatory Commission, theCompany’sNon-operatingprofitorlossin2013isasfollows:
IIIItttteeeemmmmssss 2222000011113333 2222000011112222
Gainorlossfromdisposalofnon-currentassets
370,165.65 8,586,729.71
Governmentgrantsrecordedintoprofitorloss
4,446,901.27 4,164,235.88
duringcurrentperiod
Profitorlossfromdebtsrestructuring
-1,815,469.90 13,633,163.72
Othersnon-operatingrevenueandexpensebesides
4,059,088.68 2,686,504.47
theaboveitems
SSSSuuuubbbbttttoooottttaaaallll 7,060,685.70 29,070,633.78
Effectfromincometax
-554,863.92 -5,449,189.23
Effectofminorityinterests(aftertax)
- -
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6666,,,,555500005555,,,,888822221111....77778888 22223333,,,,666622221111,,,,444444444444....55555555
2.Returnonequityandearningspershare
Pursuant to Information Disclosure and Presentation Rulesfor Companies Making PublicOffering No.9 computation
and disclosure of Return on net assets and earnings per share (revised in 2010) issued by China Securities
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2013AnnualReport Regulatory Commission, the weighted average return on net assets, basic earnings per share and diluted earnings pershareoftheCompanyforthefinancialyearof2013areasfollows:
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oooonnnnnnnneeeettttaaaasssssssseeeettttssss((((%%%%)))) BBBBaaaassssiiiiccccEEEEPPPPSSSS DDDDiiiilllluuuutttteeeeddddEEEEPPPPSSSS Netprofitattributabletoshareholdersofparent
0.13 0.005 0.005 company
Netprofitafterdeductingnon-recurringgainsand
lossesattributabletoshareholdersofparent -0.30 -0.011 -0.011 company
3.Explanationfortheabnormityandchangeofmainitemsoffinancialstatements
Theitemswithsubstantialchangebetweenendingbalanceandbeginningbalanceintheconsolidatedbalancesheet arelistedasfollows:
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IIIItttteeeemmmmssss OOOOppppeeeennnniiiinnnnggggBBBBaaaallllaaaannnncccceeee CCCChhhhaaaannnnggggeeee（%%%%） NNNNooootttteeee BBBBaaaallllaaaannnncccceeee
Notesreceivable 100,329,887.46 113,253,584.93 -11.41 1 Accountsreceivable 1,138,605,661.4
1,077,510,354.13 5.67 2 5
Otheraccountsreceivable 29,727,292.33 19,891,810.30 49.44 3 Long-termequityinvestments 108,272,431.11 97,194,641.13 11.40 4 Constructioninprogress 303,172,462.62 240,524,680.98 26.05 5 Deferredtaxassets 12,769,719.17 10,832,623.03 17.88 6 Short-termloan 418,000,000.00 588,000,000.00 28.91 7 Notespayable 93,247,340.00 221,485,454.42 57.90 8 Accountspayable 1,166,466,116.6
968,244,826.46 20.47 9 4
Taxespayable 5,762,579.01 -411,670.20 -1499.80 10 Non-currentliabilitiesduewithinoneyear 150,000,000.00 - 11 Long-termloan 90,000,000.00 50.00 12 60,000,000.00
Note: 1. Note receivable decreased mainly due to economic environment effect which caused thedebtor’s capital shortage anddelaythepayment.
2. By influence of state policy and tightening sector policy, the debtors are short of capital and collected debts decreased.Accountreceivableincreasedmainlyinwindpower,railway,andautomobilesector.
3. Other receivable increased is because input VAT of RMB 9.99million has not been verified yet and is still in the account.
4.Increasedlong-termequityinvestmentisarisingfromcomplexincomefromSKFassociate,Wazhouincreasedlong-termequityinvestmentin accordancewithequitymethod.
5. The construction in progress increased because the renovation project for 7th finished goods and 1stfinished goods not complete and not transferredtothefixedassetsyet.
6. Deferred tax asset increased due to recognized deferred income arising from government grant, in accordance with tax law, the Company
increasetaxableincomesotorecognizedeductibledifference
WWWWaaaaffffaaaannnnggggddddiiiiaaaannnnBBBBeeeeaaaarrrriiiinnnnggggCCCCoooo....,,,,LLLLttttdddd（WazhouB）
2013AnnualReport 7.Short-termloandecreasedbecauseofrepaymentofthematuredshort-termloaninthisyear,alsotheCompanyhadnewlong-termborrowings. 8.Thereasonfordecreaseofnotespayableisthattighteningpaymenttosupplierinthisyearandlessbankacceptancenoteissued.
9.Theaccountspayabledecreasedasfortighteningpaymenttosupplierinthisyear
10.TaxpayableincreasedincomparisonwithlastyearbecausethereisInputVATofRMB
3.17millionwaitingtobedeductedatbeginningoftheyear.
11.Nocurrentliabilityduewithinoneyearattheendofthisyearisreclassifiedfromlong-term
loan.
12.Long-termloanincreasedinthisyearisduefromanewlyacquiredlong-termloanof90million
fromImportingandExportingBank.Theopeningamountof60millionhasbeentransferredinto
long-termloanduewithinoneyear.
Theitemswithsubstantialchangebetweenthisyearandlastyearintheconsolidatedincomestatementsarelistedasfollows:
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Operatingrevenue 3,079,780,183.34 3,092,563,172.35 -0.41 1
Sellingexpenses 214,304,962.05 212,371,985.56 0.91 2
Administrativeexpenses 73,329,986.82 69,945,827.17 4.84 3
Financialexpenses 27,048,474.85 24,669,585.10 9.64 4
Assetsimpairmentlosses 3,945,477.52 9,897,233.94 -60.14 5
Investmentincome 7,609,310.77 4,916,516.10 54.77 6
Non-operatingincome 10,200,141.35 31,916,918.18 -68.04 7
Incometaxexpenses -251,998.42 2,580,114.73 -109.77 8
Note:1.Theoperatingrevenuedecreasedcomparedwithlastyear,mainlybecauseoftheshrinkingmarketdemandondomesticsales,highlycompetitive marketinrailwayandwindpowerandfallingprice.Exportsalesroseduetoincreasingexportofequipment.
2.Thesellingexpensesincreasedisbecauseofincreasedcommissiononsalesnetwork.
3.Theadministrativeexpensesincreasedcomparedwithlastyearduetotheincreaseofemployeecostsof
RMB2.8million,andtechnologyresearchexpenseofRMB1.18million.
4.Thefinancialexpensesincreasedcomparedwithlastyearduetotheincreaseofinterestexpenseandless
capitalisedinterestexpense.
5.TheassetsimpairmentlossesdecreasedduetothecollectionofagingreceivableaccountsfromDongbei
SpecialSteelGroupCo.,LtdofRMB20millionYuan.
6.Theinvestmentincomeincreasedmainlyduetotheincreaseofnetprofitoftheassociate–SKFand
receiveddividendofRMB0.92millionYuanfromShanghaiMEmachine-electricalequipmentchainLtdfor
theyearbetween2008and2012.
7.Thenon-operatingincomedecreasedduetogainondebtrestructuringdecreasedbyRMB6.11million
YuancomparedwithlastyearandgainonfixedassetdisposaldecreasedbyRMB7.25millionYuan.
8. Corporationtaxexpensedecreasedincomparisonwithpreviousyear,onereasonisthe
reverseofdeferredtaxliability,andtheotheristheoperatingprofitdecreased.
CCCChhhhaaaapppptttteeeerrrrEEEElllleeeevvvveeeennnn....LLLLiiiissssttttooooffffrrrreeeeffffeeeerrrreeeennnncccceeeeddddooooccccuuuummmmeeeennnnttttssss
1.Accounting statements with the signatures and seals of the legal representative, financial controller and the director of the
accountingdepartmentofthecompany;
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2013AnnualReport 2.The2013annualauditreportandthefinancialstatementwiththesealoftheCertifiedPublicAccountantsandthepersonal signatureandsealofthecertifiedpublicaccountant.
3.ThedocumentsandnoticesofthecompanydisclosedinnewspapersdesignatedbytheSecuritySupervisoryCommitteeof Chinainthereportperiod.
AbovedocumentswerekeptintheInvestmentandSecuritiesDepartmentofthecompany