Wafangdian Bearing Company Limited 2017 Midyear Report Wafangdian Bearing Company Limited
2017 Midyear Report
2017-34
August 18, 2017
WafangdianBearing Company Limited 2017 MidyearReport Chapter I. Important Prompts, Table of Contents, and Definitions
The Board of Directors, board of supervisors, directors, supervisors, and top management of the Company hereby guarantee that there are no false record, misleading statements and important omission of the material in this report, and assumetheindividualandassociatedresponsibilitiesforthetruth,accuracyandcompletenessofthecontents.
Besidesthefollowingdirectors,alltheotherdirectorsattendedtheBoardmeetinganddiscussedthereport.
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|-|-|-|-|
|Name|Post|Reasons|Assigneename|
|ZhangXinghai|director|Busywork|SunMaolin|
|WanShouyi|Independentdirector|Busywork|LiuYuping|
|TangYurong|director|Busywork|FangBo|

The Company plans not to distribute cash dividends or bonus shares or turn capital reserve into share capital.
Chairman Meng Wei , General Accountant Ms. Sun Najuan and accounting charger Mr. Wang Jiyuan declare:guaranteethetruthandcompletenessofthefinancialreportintheannualreport.
The description of the future development in this report does not constitute a commitment for investors.Investorsarerequestedtopayattentiontotherisksinvolvedinyourinvestment.
WafangdianBearing Company Limited 2017 MidyearReport Table of Contents
ChapterI. ImportantPrompts,TableofContents,andDefinitions.................................................................1 ChapterII.CompanyProfile.....................................................................................................................................3 Chapter III. Financial Highlights..........................................................................................................................4 ChapterIVDirectorsReport....................................................................................................................................5ChapterⅤ SignificantEvents................................................................................................................................10ii、Therelatedbusinessonassetpurchaseandsales...............................................................................15 iii.Majorrelatedbusinessonjointlyinvestment......................................................................................15iv、CreditandDebtwithrelevantparties................................................................................................15 V.Otherimportantrelatedbusiness..........................................................................................................15 X. Commitment made by sharehoder with over5% shares in the report or happen before but last to the report..................................................................................................................................................................15ChapterⅥ.ChangesinCapitalStockandShareholders...........................................................................................16ChapterⅦ.Relevantinformationaboutpreferredstock....................................................................................17ChapterⅧ.Directors,Supervisors,SeniorManagementandStaff...................................................................17 ChapterVIII.FinancialReport..................................................................................................................................18 I.AuditReport...................................................................................................................................................18 IV.Basisforthepreparationoffinancialstatements........................................................................................29 Governmentsubsidyitem.......................................................................................................................................59 OpeningBalance......................................................................................................................................................59 Increase.....................................................................................................................................................................59 LiaozhouIndustrydevelopment................................................................................................................................59 subsidies.....................................................................................................................................................................59 CompensationforDaLianplantsmoving................................................................................................................59 Developmentofintelligentmanufacturingequipmentsubsidies..............................................................................59 Total...........................................................................................................................................................................59 Governmentsubsidyitem.......................................................................................................................................62 OpeningBalance......................................................................................................................................................62 Total..........................................................................................................................................................................63 Profitorlossfromdebtsrestructuring.......................................................................................................................74 Effectfromincometax..............................................................................................................................................74
WafangdianBearing Company Limited 2017 MidyearReport Glossary
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|-|-|-|
|Terms|Definedas|Description|
|Company,theCompany|Definedas|WafangdianBearingCompanyLimited|
|WazhouGroup|Definedas|WafangdianBearingGroupCompany|
|thereportperiod,thecurrentperiod,thecurrentyear|Definedas|January1,2017–June30,2017|
|LiaozhouCo.,Ltd|Definedas|WazhouLiaoyangBearingManufactureCo.,Ltd|
|Dalianmotor|Definedas|DalianmotorBearingCo.,Ltd|
|SRBcompany|Definedas|Wazhouspherialrollerbearingcompanylimited|
|TheBoardofDirectors|Definedas|WafangdianBearingCompanyLimitedTheBoardofDirectors|
|TheSupervisoryCommittee|Definedas|WafangdianBearingCompanyLimitedTheSupervisoryCommittee|
|TheShareholders’Meeting|Definedas|WafangdianBearingCompanyLimitedTheShareholders’Meeting|
|ShenJiaoSuo|Definedas|ShenZhenStockExchange|
|SRC|Definedas|ChinaSecuritiesRegulatoryCommission|

WafangdianBearing Company Limited 2017 MidyearReport Chapter II.Company Profile
I.CompanyInformation
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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|MengWei|||
|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|||

II.Contacts
||||
|-|-|-|
||SecretaryoftheBoard|RepresentativeofStockAffairs|
|Name|SunNajuan|KeXin|
|Correspondenceaddress|No. 1 Beigongji Street, Wafangdian City,LiaoningProvince,China.|No. 1 Beigongji Street, Wafangdian City,LiaoningProvince,China.|
|Consultingtelephone|0411-39116369|0411-39116732|
|Fax|0411-39116738|0411-39116738|
|E-mail|zwz2308＠126.com|zwz2308＠126.com|

III.Otherinformation
i.Thewaytocontactwithcompay
InthereportperiodtheRegisteredaddress,P.C,officeaddress,officeP.Cofthecompanyisnochange.Detialscanbeseenin 2016annualreport.
ii.Placeforinformationdisclosure
Inthereportperiodtheplaceforinformationdisclosureisnochange.isnochange.Detialscanbeseenin2016annualreport.
IVFinancial Highlights
Are thereany retrospective adjustments or restatement of financialinformation of previousyear dueto change ofaccounting
WafangdianBearing Company Limited 2017 MidyearReport policiesorcorrectingofaccountingerrors?
[]Yes[V]No
InRMBYuan
|||||
|-|-|-|-|
||currentperiod|previousperiod|+/-（％）comparingwiththepreviousperiod|
|Turnover(RMB)|1,135,500,575.33|1,125,455,031.98|0.89%|
|Netprofitattributabletoshareholdersofthelistedcompany(Yuan)|2,633,635.55|-44,024,185.93|-105.98%|
|Netprofitattributabletotheshareholdersofthelistedcompanyandafterdeductingofnon-recurringgain/loss(RMB)|-1,562,254.31|-55,263,473.29|-97.17%|
|Net Cash flow generated by businessoperation(RMB)|-76,606,258.56|-8,389,665.15|813.10%|
|Basicearningspershare(Yuan/share)|0.007|-0.11|-106.36%|
|Dilutedearningspershare(Yuan/share)|0.007|-0.11|-106.36%|
|Netreturnonequity(%)|0.19%|-3.32%|3.51%|
||Endof2017.06.30|Endof2016.12.31|Changedoverlastyear(%)|
|TotalAssets(RMB)|3,504,897,240.39|3,553,947,227.09|-1.38%|
|Owner’sEquityAttributedtoShareholdersofListedCompany(RMB)|1,381,971,561.10|1,379,337,925.55|0.19%|

V.DifferencesinaccountinginformationunderIASanddomesticaccountingstandard
Nodifference
VI.Non-recurringgain/lossitemsandamounts
InRMBYuan
||||
|-|-|-|
|Items|Amount|Remarks|
|Gain/lossofnon-currentassets(includestheneutralizedpartoftheassetimpairmentprovisiondrawnalready)|10,771.00||
|Gainsandlossesincludedinthecurrentperiodofgovernmentsubsidies,excludingthosegovernmentgrantswhicharecloselyrelatedtonormalbusinessandinlinewithnationalpolicy,orinaccordancewithfixedstandardsorquantities|2,423,777.94||
|Debtrestructuringgainsandlosses|1,356,259.02||
|Othernon-businessincomeandexpendituresotherthantheabove|752,323.50||
|Influencedamountofincometax|347,241.60||
|Total|4,195,889.86|--|

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
Chapter III Business Summary
IPrincipalBusinessesinthe ReportingPeriod
The scope of operation is: manufacture and sales of bearings, bearing components mechanical equipment, bearing
WafangdianBearing Company Limited 2017 MidyearReport maintenanceandtechnologyservice,automobilepartsandfittingsandotherrelatedproducts,leaseofmechanicalequipment andbuildings,andinspectionofbearingsandotherrelatedmechanicalequipmentandmeasureinstruments.
Company has strong manufacturing capability and quality assurance capabilities, extensive services in railway, automobile, metallurgy,miningandotherindustriesandfields.
II.Significant Changesinthe PrimeAssets
Inapplicable
III.Analysis onCore Competitiveness
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 have establishedasignificantadvantage.
Company improve responsiveness to the market and customer personalized demand, in line with customer's personalizeddesignandneedsofmanufacturingprocessesbalancingcost,deliverytimeandcustomer,
The company has complete product service system and 24-hour dynamic service ability product operating site. And was 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, and other industriesandfields.
Company has established strategic cooperative relations with key customers in domestic equipment applications, carry out the depth of marketing through involvement in customer value engineer, set firmly up the company's brand and influence in the domestic bearing market, the company has won the certification qualification of important target markets in the internationalmarket,theinternationalpopularityestablishedpreliminary.
Chapter IV Discussion and Analysis of the Management I.Overview
At theendof June30,company'stotalassetsis3.50490billionYuan,whichdecrease1.38%compared withthebeginningof this year; Net assess attributing to shareholders of listed company 1.38197 billionYuan, increasedbyv0.19% compared with the beginningof this year; Operating income is 1.13550billionYuan,increaseby0.89% compared with the same period last year; Net profit of attributing to shareholders of the parent company is 2.63 million Yuan, in the last year was the lost is 44.02millionYuan.
IIAnalysisonPrincipalBusinesses
1.General
Referto“I.General”of“DiscussionandAnalysisoftheManagement”
2.RevenueandCosts
(1)Revenue
InRMBYuan
||||||
|-|-|-|-|-|
|Item|Reportperiod|Lastreportperiod|Changedby%YoY|Changereason|
|BusinessIncome|1,135,500,575.33|1,125,455,031.98|0.89%||
|BusinessCost|1,004,195,641.99|1,043,602,026.69|-3.78%||
|SalesExpenses|76,020,179.92|84,742,685.88|-10.29%||
|ManagementExpenses|31,245,721.82|36,646,177.56|-14.74%||
|FinancialExpenses|16,016,268.75|12,390,741.72|29.26%||

WafangdianBearing Company Limited 2017 MidyearReport
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|-|-|-|-|
|TaxExpenses||||
|Spendingonresearchanddevelopmentofthebusinessincomeratio|46,000,000.00|45,000,000.00|2.22%|
|NetCashFlowsfromOperatingActivities|-76,606,258.56|-8,389,665.15|813.10%|
|NetCashFlowsfromInvestingActivities|-1,449,577.77|-25,642,335.69|-94.35%|
|NetCashFlowsfromFinancingActivities|34,930,007.77|68,025,342.68|-48.65%|
|NetIncreaseinCashandCashEquivalents|-43,617,574.73|35,385,469.18|-223.26%|

Theprofitstructureorsourcechangegreatly
□Applicable√Inapplicable
Mainbusinesscomposition
InRMBYuan
||||||||
|-|-|-|-|-|-|-|
||Operatingincome|Operatingcost|BOI|+/-(%)ofoperatingincome|+/-(%)ofoperatingcost|+/-(%)ofBOI|
|ByIndustries|||||||
|Export|149,614,913.99|128,611,696.79|14.04%|-19.30%|-25.15%|6.71%|
|Civil|||||||
|Including:TrafficBearing|266,745,992.99|254,479,525.24|4.60%|-14.79%|-17.67%|3.34%|
|SpecialBearing|224,180,996.10|199,523,534.06|11.00%|-4.55%|-4.73%|0.16%|
|CommonBearing|277,694,289.63|214,493,584.51|22.76%|5.17%|-4.08%|7.45%|
|Industrialincome|67,931,900.72|65,453,889.94|3.65%|169.69%|112.21%|26.10%|
|OnProducts|||||||
|Bearing|918,236,192.71|797,108,340.60|13.19%|-7.93%|-12.78%|4.83%|
|Industryoperation|67,931,900.72|65,453,889.94|3.65%|169.69%|112.21%|26.10%|
|Region|||||||
|Civil|836,553,179.44|733,950,533.75|12.26%|-0.07%|-5.05%|4.60%|
|Foreign|149,614,913.99|128,611,696.79|14.04%|-19.30%|-25.15%|6.71%|

 III .AnalysisonNon-PrincipalBusinesses
None
IV.Situation of assets andliabilities
1. Majorchange in assetitem
||||||||
|-|-|-|-|-|-|-|
||Endof2017.06.30||Endof2016.06.30||Percentageofchange(%)|Statementonmajorchange|
||Amount|Percentintotalasset|Amount|Percentintotalasset|||
|Monetarycapital|111,589,576.25|3.18%|137,341,499.74|3.90%|-0.72%||
|Accountreceivable|1,311,182,169.81|37.41%|1,023,728,246.54|29.10%|8.31%||
|Inventories|767,894,842.95|21.91%|1,023,253,563.94|29.10%|-7.19%||
|Fixedassets|740,842,980.06|21.14%|616,407,430.76|17.50%|3.64%||
|Constructioninprocess|205,126,816.36|5.85%|328,735,373.03|9.30%|-3.45%||
|Shorttermloan|654,900,000.00|18.69%|468,000,000.00|13.30%|5.39%||
|Longtermloan|||230,000,000.00|6.50%|-6.50%||

V.Investment
WafangdianBearing Company Limited 2017 MidyearReport 1. Significant non-equityinvestment inprocess inthereporting period
Unit:RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|Investmentway|Fixassetinvestmentornot|Theitem’sindustry|Invesmentamountinthereportpeirod|Accumulatedinvestment|Capitalsource|Progress|Anticipatedincome|Totalincomeattheendof2016|Reasonsofthedfiirencebetweenplanandactual|DiscloseDate|Discloseindex|
|Reformonindustrialbearings|other|Yes|Bearingmanufacture|40,690,000.00|40,690,000.00|Self-raised|85.00%|200,000,000.00|120,000,000.00|Havenotbeenfullyoperate|||
|合计|--|--|--|||||||--|--|--|

 VI. Sales ofSignificantAssets andEquity
1. Salesof SignificantAssets
None
2. Sales ofSignificantEquity
Inapplicable
VII.Analysis onPrincipalSubsidiaries andMutual ShareholdingCompanies
||||||||||
|-|-|-|-|-|-|-|-|-|
|Companyname|Companytype|Principalbusiness|Leadingproductsandservices|Totalassets,inCNY|Netassets(CNY)|TurnoverinCNY|Operatingprofit(inCNY)|Netprofit(inCNY)|
|LiaoyangBearingcompany|Subsidiary|ProductandSaleBearingandmachine-electricalequipment|19,350,000.00|113,439,406.96|-49,380,045.04|64,355,936.03|-1,975,004.16|-1,706,153.02|
|DalianElectricalEquipment|Subsidiary|ProductandSaleBearing|10,000,000.00|122,371,439.10|23,225,792.08|82,118,010.65|1,097,464.09|1,097,464.09|
|Wzhouprecisionsphericalrollerbearing(Wafangdian)Co.,Ltd.|Subsidiary|ProductandSalesSphericalRollerBearing|194,000,000.00|267,884,676.89|221,571,330.72|61,215,256.92|-7,964,471.64|-7,896,314.97|

 VIII.StructurizedEntitiesControlledbythe Company
Inapplicable
IX. Estimatesfor operatingresultsfor January toSeptember 2017
Inapplicable
XThecompany facesrisks andresponse measures
With the world "manufacturing center" to the transfer of China, China's bearing industry, the competitive environment is more hot. World-class bearingenterprises have built manufacturing plants in China, the world's eight multinational bearing group in China, a number of factories, monopoly of most of the domestic high-end market, these advantages with high-quality products, advanced service concept, the use of local enterprises Of the large-scale expansion of sales channels, China's bearing industry continued tosqueeze the living space and profitmargins.
The current cost of raw material accessories rose sharply, to bring great pressure on the bearing
business, rising costs, profit margins narrow the contradiction is still outstanding. From the corporate
side, the Chinese economy is now in the transition stage, the advantages of traditional manufacturing is
gradually reduced, bearing steel and other raw materials and water,electricity,land and other means of
production costs, labor costs are rising. From the client to see, customers are the cost of the transfer to
WafangdianBearing Company Limited 2017 MidyearReport the upstream enterprises, bearing earnings narrowing and other issues have become increasingly prominent. Since the first half of 2017, China's economy has maintained a slow stabilization, steady and good momentum, the structural growth of the economy highlights the bright spot, new industries and high-tech industries continued to grow, the overall market demand to maintain steady growth. Especially with the deepening reform of the country,"all the way" strategy to promote a large number of key projects such as the opening of the construction, China's equipment manufacturing industry ushered in a new development opportunities, the Chinese bearing industry also ushered in a rare domestic alternative market.
The company in the economic environment is gradually realized from the original production-oriented to the demand-oriented change, "the structure in the reform optimization, kinetic energy in the conversion to enhance the quality of the upgrade in the transition" has become the company in the new normal development of new features and Bright spot. Companies closely around the "profit growth and cash flow profits," the operating principle of customer demand as the center, improve product quality and service quality, production and management to achieve steady development, the quality of operation to stabilize the better. The company to adjust the structure, improve the quality, to adapt to market and customer needs; to promote lean management, to management to efficiency; implementation of "cost reduction" measures toachieve profitgrowth; strengthencapital control,cashflow profits.
WafangdianBearing Company Limited 2017 MidyearReportChapterⅤ
Significant Events
I、The
relevant annual general meeting and extraordinary general meeting held in the report period
i.Shareholders' General Meeting in the report period
|||||||
|-|-|-|-|-|-|
|Meetingsession|Type|Investorparticipationratio|MeetingDate|DisclosureDate|Disclosureindex|
|2017 FirstExtraordinaryShareholer’sMeeting|ExtraordinaryShareholer’sMeeting|80.31%|2017.03.16|2017.03.17|http//www,cninfo,com,cn|
|2016AnnualShareholer’sMeeting|AnnualShareholer’sMeeting|80.31%|2017.05.18|2017.05.19|http//www,cninfo,com,cn|

ii.The shareholders of the preferred shareholders who have resumed the voting are required to convene an extraordinary general meeting
II. Preplan for Profit Distribution and Conversion of Capital Reserve into Share Capital in the Reporting Period
Inapplicable
III Commitments finished in implementation by the Company, shareholders, actual controller,acquirer, directors, supervisors, senior executives or other related parties in the reporting period and commitments unfinished in implementation at the end of the reporting period
Inapplicable
IV Engagement/Disengagement of CPAs
Inapplicable
V、Notice
of the Board of Directors and the Supervisory Committee on the "non-standard audit report" of the accounting firm during the reporting period
Inapplicable
VI、The
Board of Directors of the previous year, "non-standard audit report" the relevant circumstances of the note
Inapplicable
VII.MattersconcerningBankruptcy Reorganization
Inapplicable
VIII.Significant LawsuitsandArbitrations
Inapplicable
IX.PenaltyandRectification
Inapplicable
X.Integrityofthe Company and itsControllingShareholder andActualController
Inapplicable
XI. Implementation of theCompany’s Equit Incentive Plan, Employee Stock Ownership Plan or other EmployeeIncentive Measures
Inapplicable
XII.Important RelatedTransactions
1.Therelatetransactionsrelatedtotheday-to-dayoperations.
WafangdianBearing CompanyLimited 2017 Midyear Report
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|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Relativeparties|Relationship|Relativetype|Content|Principleofprice|RelativePrice|RelativeAmount(RMB’0000)|ThePercentageofaccountedforsimilardeals(%)|Approvalamount(RMB’0000)|Morethantheapprovedamountornot|TheWayOfAccount|Marketprice|DisclosureDate|DisclosureIndex|
|WazhouprecisionSteelBallCompany|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|MerchandiseProcurement|Components|JusticeandEquity|Marketprice|225|0.24%|300|No|CashPaymentorTheKnot||||
|WazhouprecisionSteelBallCompan|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Salesofgoods|GoodsandMaterials|JusticeandEquity|Marketprice|100|0.09%|450|No|CashPaymentorTheKnot||||
|WazhouprecisionSteelBallCompan|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Landrent|Landrent|JusticeandEquity|cost|10|0.01%|10|No|CashPaymentorTheKnot||||
|WazhouprecisionSteelBallCompan|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|ProvideService|Heattreatment|JusticeandEquity|Marketprice|76|0.07%|180|No|CashPaymentorTheKnot||||
|Wazhouprecisionforging Ltd.|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|MerchandiseProcurement|Components|JusticeandEquity|Marketprice|7,794|8.48%|15,000|No|CashPaymentorTheKnot||||

WafangdianBearing CompanyLimited 2017 Midyear Report
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|-|-|-|-|-|-|-|-|-|-|-|
|Wazhouprecisionforging Ltd.|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Salesofgoods|Materials|JusticeandEquity|Marketprice|8,838|7.78%|6,000|是|CashPaymentorTheKnot|
|Wazhouprecisionforging Ltd.|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Houserent|Houserent|JusticeandEquity|Marketprice|35|0.03%|130|No|CashPaymentorTheKnot|
|Wazhouprecisionforging Ltd.|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Landrent|Landrent|JusticeandEquity|cost|23|0.02%|80|No|CashPaymentorTheKnot|
|DalianWazhouManufacturingEquipmentCo.,Ltd|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|MerchandiseProcurement|Components|JusticeandEquity|Marketprice|681|0.71%|900|No|CashPaymentorTheKnot|
|DalianWazhouManufacturingEquipmentCo.,Ltd|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|GoodsProcureme|Product|JusticeandEquity|Marketprice|271|0.29%|1,000|No|CashPaymentorTheKnot|
|DalianWazhouManufacturingEquipmentCo.,Ltd|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Salesofgoods|Materials|JusticeandEquity|Marketprice|42|0.01%|120|No|CashPaymentorTheKnot|
|DalianWazhouManufacturingEquipmentCo.,Ltd|OtherCompaniescontrolledbythesamecontrolling|MerchandiseProcureme|MachineMachine|JusticeandEquity|Marketprice|72|0.08%|0|Yes|CashPaymentorTheKnot|

WafangdianBearing CompanyLimited 2017 Midyear Report
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|-|-|-|-|-|-|-|-|-|-|-|
||shareholdersandtheultimatecontrollingparty|nt|||||||||
|WazhouGroupprecisionTransmissionBearingCo.,Ltd|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|MerchandiseProcurement|Product|JusticeandEquity|Marketprice|3,565|3.88%|9,000|No|CashPaymentorTheKnot|
|WazhouGroupprecisionTransmissionBearingCo.,Ltd|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Salesofgoods|Components|JusticeandEquity|Marketprice|1,543|1.36%|4,500|No|CashPaymentorTheKnot|
|WazhouGroupprecisionTransmissionBearingCo.,Ltd|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|SalesofMaterials|Materials|JusticeandEquity|Marketprice|173|0.15%||Yes|CashPaymentorTheKnot|
|WazhouGroupPrecisionspecialBearingCompanyLimited|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Landrent|Landrent|JusticeandEquity|Cost|4|0.00%|9|No|CashPaymentorTheKnot|
|WazhouGroupPrecisionspecialBearingCompanyLimited|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|SalesofMaterials|Materials|JusticeandEquity|Marketprice|26|0.02%|50|No|CashPaymentorTheKnot|
|WazhouGroupPrecisionspecialBearingCompanyLimited|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Machinerent|Machinerent|JusticeandEquity|Cost|0|0.00%|3|No|CashPaymentorTheKnot|

WafangdianBearing CompanyLimited 2017 Midyear Report
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|-|-|-|-|-|-|-|-|-|-|-|
|WazhouGroupPrecisionspecialBearingCompanyLimited|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Houserent|Houserent|JusticeandEquity|Marketprice|26|0.02%|55|No|CashPaymentorTheKnot|
|WazhouGroupPrecisionspecialBearingCompanyLimited|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|ProvideService|Heattreatment|JusticeandEquity|Marketprice|30|0.03%|65|No|CashPaymentorTheKnot|
|Equipmenttechnicalengineering|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|MachineProcurement|Machine|JusticeandEquity|Marketprice|655|0.71%|500|Yes|CashPaymentorTheKnot|
|WafangdianTongdaBearingManufacturingCo.,Ltd|Other Relatedparty|MerchandiseProcurement|Product|JusticeandEquity|Marketprice|3,597|3.91%|7,000|No|CashPaymentorTheKnot|
|WafangdianTongdaBearingManufacturingCo.,Ltd|Other Relatedparty|SalesofMaterials|Materials|JusticeandEquity|Marketprice|23|0.02%|0|Yes|CashPaymentorTheKnot|
|DaLianWazhouFengyuanMachineCo.,Ltd|Other Relatedparty|MerchandiseProcurement|Components|JusticeandEquity|Marketprice|4,075|4.31%|11,000|No|CashPaymentorTheKnot|
|DaLianWazhouFengyuanMachineCo.,Ltd|Other Relatedparty|Houserent|Houserent|JusticeandEquity|Marketprice|5|0.00%|10|No|CashPaymentorTheKnot|
|DaLianWazhouJinZhouMachineCo.,Ltd|Other Relatedparty|MerchandiseProcurement|Components|JusticeandEquity|Marketprice|3,288|3.57%|0|Yes|CashPaymentorTheKnot|
|DaLianWazhouJinZhouMachine|Other Relatedparty|Houserent|Houserent|JusticeandEquity|Marketprice|40|0.04%|77|No|CashPaymentor|

WafangdianBearing CompanyLimited 2017 Midyear Report
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Co.,Ltd||||||||||TheKnot|
|DaLianWazhouJinZhouMachineCo.,Ltd|Other Relatedparty|ProvideService|Heattreatment|JusticeandEquity|Marketprice|9|0.01%|30|No|CashPaymentorTheKnot|
|Wazhougroup(USA)bearingco.,LTD|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Salesofgoods|Product|JusticeandEquity|Marketprice|3,346|2.95%|12,500|No|CashPaymentorTheKnot|
|Wazhougrouphigh-endautomobilebearingco.,LTD|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|MerchandiseProcurement|Product|JusticeandEquity|Marketprice|6,403|6.97%|20,000|No|CashPaymentorTheKnot|
|Wazhougrouphigh-endautomobilebearingco.,LTD|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Salesofgoods|Product|JusticeandEquity|Marketprice|8,402|7.40%|6,500|Yes|CashPaymentorTheKnot|
|Wazhougrouphigh-endautomobilebearingco.,LTD|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|SalesofMaterials|Materials|JusticeandEquity|Marketprice|135|0.12%|700|No|CashPaymentorTheKnot|
|Wazhougrouphigh-endautomobilebearingco.,LTD|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Salesofgoods|Components|JusticeandEquity|Marketprice|4,429|3.89%|3,500|Yes|CashPaymentorTheKnot|
|Wazhougrouphigh-endautomobilebearingco.,LTD|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Houserent|Houserent|JusticeandEquity|Marketprice|258|0.23%|260|No|CashPaymentorTheKnot|
|Wazhougrouphigh-endautomobilebearingco.,LTD|OtherCompaniescontrolledbythesamecontrollingshareholdersandthe|Machinerent|Machinerent|JusticeandEquity|Cost|438|0.39%|0|Yes|CashPaymentorTheKnot|

WafangdianBearing CompanyLimited 2017 Midyear Report
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||ultimatecontrollingparty||||||||||
|WazhouGroupPrecisionRollerlimitedcompany|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|MerchandiseProcurement|Components|JusticeandEquity|Marketprice|4,782|5.20%|9,500|No|CashPaymentorTheKnot|
|WazhouGroupPrecisionRollerlimitedcompany|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Salesofgoods|Components|JusticeandEquity|Marketprice|358|0.32%|0|Yes|CashPaymentorTheKnot|
|WazhouGroupPrecisionRollerlimitedcompany|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Houserent|Houserent|JusticeandEquity|Marketprice|26|0.02%|55|No|CashPaymentorTheKnot|
|WazhouGroupPrecisionRollerlimitedcompany|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Machinerent|Machinerent|JusticeandEquity|Cost|492|0.43%|950|No|CashPaymentorTheKnot|
|WazhouGroupPrecisionRollerlimitedcompany|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Landrent|Landrent|JusticeandEquity|Cost|10|0.01%|20|No|CashPaymentorTheKnot|
|WazhouGroupPrecisionRollerlimitedcompany|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|ProvideService|Heattreatment|JusticeandEquity|Marketprice|858|0.76%|1,000|No|CashPaymentorTheKnot|
|WazhouGroup|OtherCompanies|Salesof|Merchandis|Justiceand|Market|2,115|1.86%|1,500|Yes|Cash|

WafangdianBearing CompanyLimited 2017 Midyear Report
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|PrecisionRollerlimitedcompany|controlledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Merchandise|e|Equity|price|||||PaymentorTheKnot|
|WazhouGroupPrecisionRetainerLimitedCompany|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|MerchandiseProcurement|Components|JusticeandEquity|Marketprice|2,793|3.04%|5,000|No|CashPaymentorTheKnot|
|WazhouGroupPrecisionRetainerLimitedCompany|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|SalesofMerchandise|Merchandise|JusticeandEquity|Marketprice|158|0.14%|850|No|CashPaymentorTheKnot|
|WazhouGroupPrecisionRetainerLimitedCompany|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Machinerent|Machinerent|JusticeandEquity|Cost|107|0.09%|210|No|CashPaymentorTheKnot|
|WazhouGroupPrecisionRetainerLimitedCompany|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Landrent|Landrent|JusticeandEquity|Cost|13|0.01%|30|No|CashPaymentorTheKnot|
|WazhouGroupPrecisionRetainerLimitedCompany|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Salesofgoods|Components|JusticeandEquity|Marketprice|23|0.02%|0|Yes|CashPaymentorTheKnot|
|WazhouGroupPrecisionRetainerLimitedCompany|OtherCompaniescontrolledbythesamecontrollingshareholdersand|Houserent|Houserent|JusticeandEquity|Marketprice|38|0.03%|72|No|CashPaymentorTheKnot|

WafangdianBearing CompanyLimited 2017 Midyear Report
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||theultimatecontrollingparty||||||||||
|Wazhou GroupWindpowerBearingLtd|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|MerchandiseProcurement|Product|JusticeandEquity|Marketprice|6,790|7.39%|15,000|No|CashPaymentorTheKnot|
|Wazhou GroupWindpowerBearingLtd|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Salesofgoods|Product|JusticeandEquity|Marketprice|1,495|1.32%|4,500|No|CashPaymentorTheKnot|
|Wazhou GroupWindpowerBearingLtd|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|SalesofMerchandise|Merchandise|JusticeandEquity|Marketprice|18|0.02%|500|No|CashPaymentorTheKnot|
|Kugel-undRollenlagerwerkLeipzigGmbH|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|MerchandiseProcurement|Goods|JusticeandEquity|Marketprice|0|0.00%|500|No|CashPaymentorTheKnot|
|Kugel-undRollenlagerwerkLeipzigGmbH|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Salesofgoods|Product|JusticeandEquity|Marketprice|155|0.14%|50|Yes|CashPaymentorTheKnot|
|WafangdianbearingPowerLimitedCompany|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|PowerProcurement|warter|JusticeandEquity|Cost|8|0.01%|13|No|CashPaymentorTheKnot|
|Wafangdianbearing|OtherCompanies|Power|electrictity|Justiceand|Cost|870|0.95%|1,200|No|Cash|

WafangdianBearing CompanyLimited 2017 Midyear Report
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|PowerLimitedCompany|controlledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Procurement||Equity||||||PaymentorTheKnot|
|WafangdianbearingPowerLimitedCompany|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|PowerProcurement|heating|JusticeandEquity|Governmentprice|161|0.18%|260|No|CashPaymentorTheKnot|
|Wazhou GroupBearingEngineeringtechnology researchcenter|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|ReceiveService|TechnologyDevelopmentService|JusticeandEquity|Agreement|151|0.16%|0|Yes|CashPaymentorTheKnot|
|WazhouGroup（auto）|OtherCompaniescontrolledbythesamecontrollingshareholdersandtheultimatecontrollingparty|Landmachine|Landmachine|JusticeandEquity|Cost|0|0.00%|880|No|CashPaymentorTheKnot|
|WazhouGroup|Thecontrollingshareholdersandtheultimatecontrollingparty|LeaseofHouses|LeaseofHouses|JusticeandEquity|Marketprice|512|0.56%|1,000|No|CashPaymentorTheKnot|
|WazhouGroup|Thecontrollingshareholdersandtheultimatecontrollingparty|Leaseofland|Leaseofland|JusticeandEquity|Cost|55|0.06%|520|No|CashPaymentorTheKnot|
|WazhouGroup|Thecontrollingshareholdersandtheultimatecontrollingparty|LeaseofHouses|Leaseofmanchine|JusticeandEquity|Cost|124|0.14%|65|Yes|CashPaymentorTheKnot|
|WazhouGroup|Thecontrollingshareholdersandtheultimatecontrollingparty|SalesofMerchandise|Merchandise|JusticeandEquity|Marketprice|11|0.01%|0|Yes|CashPaymentorTheKnot|

WafangdianBearing CompanyLimited 2017 Midyear Report
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|WazhouGroup|Thecontrollingshareholdersandtheultimatecontrollingparty|Landhouse|houserent|JusticeandEquity|Marketprice|0|0.00%|350|No|CashPaymentorTheKnot|||
|WazhouGroup|Thecontrollingshareholdersandtheultimatecontrollingparty|ProvideService|SecurityandFireService|JusticeandEquity|Agreement|107|0.12%|240|No|CashPaymentorTheKnot|||
|WazhouGroup|Thecontrollingshareholdersandtheultimatecontrollingparty|ProvideService|AnnouncementService|JusticeandEquity|Agreement|0|0.00%|70|No|CashPaymentorTheKnot|||
|WazhouGroup|Thecontrollingshareholdersandtheultimatecontrollingparty|ProvideService|TechnologyDevelopmentService|JusticeandEquity|Agreement|0|0.00%|850|No|CashPaymentorTheKnot|||
|WazhouGroup|Thecontrollingshareholdersandtheultimatecontrollingparty|ProvideService|Trademark|JusticeandEquity|Agreement|93|0.10%|800|No|CashPaymentorTheKnot|||
|WazhouGroup|Thecontrollingshareholdersandtheultimatecontrollingparty|Salesofgoods|Components|JusticeandEquity|Marketprice|0|0.00%|3,400|No|CashPaymentorTheKnot|||
||||||--|80,960|--|149,314|--|--|--|--|
|Detailsoftherejectionofthegoodsalreadysoldinbigamount||||non|||||||||
|Incasethetotalamountoftheregularrelatedtransactionincurredinthereportingperiodhasbeenpredictedbasedoncategories,statetheactualimplementationoftheinthereportingperiod(ifany)||||non|||||||||
|Causeofthebigdifferencebetweenthetransactionpriceandthemarketreferenceprice.(ifapplicable)||||In-applicable|||||||||

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearalReport 2. Relatedtransactions concerningacquisition and sales of assetsor equity
Inapplicable
3. Relatedtransactions concerningjoint investment inforeign countries
Inapplicable
4. CurrentAssociatedRightsof Credit andLiabilities
Applicable
Whether there are non -operating related debtand debttransactionsInapplicable
Inapplicable
5. Other Major RelatedTransactions
Inapplicable
XIII. Non-operational Occupancy of theCompany’s Capital by the Controlling Shareholder and its Related Parties
Inapplicable
XIV.Important Contracts andImplementation
1. Custody, Contacting andLeases
(1) Custody
Inapplicable
(2) Contracting
Inapplicable
(3) Leases
.Related lease: this part of the contents of the twelve, related party transactions and related party transactions 5 (3) related to the lease"
2. Significant Guarantees
Inapplicable
3. Other Major Contracts
Inapplicable
XV.SocialResponsibility
In mid-May this year, we received a notice from the Dalian Municipal Government documents, designated Dalian City, poverty alleviation units by the city of Shuangshan Bay Shuangshan Village adjusted to tile city camel mountain village Longhe village.
According to the spirit of the document and the specific requirements of the municipal government, in order to better implement the spirit of the work of helping the central, provincial and municipal governments to help the poor, Wazhou Group held a special meeting to study the deployment of poverty alleviation measures, Poverty alleviation, medical aid, poverty alleviation, trade poverty alleviation, etc., and regularly visit the poverty alleviation units, to understand the mastery of the poverty alleviation program, the use of the existing advantages and conditions of the
implementation of employment poverty alleviation, vocational skills training poverty alleviation, The situation of the object of poverty alleviation, find out the base, to develop the corresponding poverty alleviation measures, then we and the help units were contacted, in late June, the help unit and we had a contact communication, the initial agreement reached.
XVI.NotestoOther Signficiant Events
Inapplicable
XVII.Significant Eventsof theCompany’sSubsidiaries
Inapplicable
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearalReportChapterⅥ.
Changes in Capital Stock and Shareholders
I.Changes inCapitalStock
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||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%|

Reason ofChanges ofShares
□Applicable√Inapplicable
Thebasic situationofstock change.
□Applicable√Inapplicable
Thetransfer ofshares of
□Applicable√Inapplicable
Influence from the shareholding movements upon such financial indicators as earnings per share, net asset per
shareof the latestyear and the latestaccounting period
□Applicable√Inapplicable
Other information as the Company considers necessary to be disclosed or demanded by the securities regulatory
authority for disclosing:
□Applicable√Inapplicable
II. IssuingandListing
III. ShareholdersandActualControllingShareholder
1. Number ofShareholders andShares
Unit:Share
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Totalnumberofshareholderattheendofreportperiod|||6,876||Totalnumberofshareholderattheendofreportperiodwithpreferredstock||||0||
|Shareholderswith5%oraboveShares|||||||||||
|Name|Nature|Ratio（%）||Totalsharesheld|IncreaseorDecreaseinhereportperiod|Non-currentsharesheld|Currentsharesheld|ImpawnedorFrozenShares|||
|||||||||Status||Amount|
|WafangdianBearingGroupCorporation|State-ownedshareholder|60.60%||244,000,000||244,000,000|||||
|AKTIEBOLAGET|Foreign|19.70%||79,300,000|||||||

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearalReport
||||||||
|-|-|-|-|-|-|-|
|SKF|shareholder||||||
|BOCISECURITIESLIMITED|Foreignshareholder|1.26%||5,056,953|||
|HuangJunyue|Domesticshareholder|1.16%||4,680,000|||
|HuXiaofeng|Domesticshareholder|0.47%||1,879,277|||
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED|Foreignshareholder|0.36%||1,454,840|||
|JinYunhua|Domesticshareholder|0.33%||1,311,256|||
|MAN,KWAIWING文贵荣|Foreignprivateshareholder|0.18%||713,101|||
|ZhouJie|Domesticshareholder|0.17%||684,200|||
|MaYuancheng|Domesticshareholder|0.15%||596,966|||
|ExplanationfortheAffiliatedRelationsorUnitedActionoftheTopTenShareholders||AKTIEBOLAGETSKisthestrategicinvestor|||||
|Notes to relationship or “action inconcert”among the top tenshareholders.||Therewasnorelationshipandconsistentactivitiesbetweenthefirstbigshareholderandothershareholdersorthetoptencommonstockholders;|||||
|TopTenTradableShareholders|||||||
|Name|||Currentsharesheldatendofyear||Categoryof Shares||
||||||Categories|Amount|
|WafangdianBearingGroupCorporation|||79,300,000||B|79,300,000|
|AKTIEBOLAGETSKF|||5,056,953||B|5,056,953|
|BOCISECURITIESLIMITED|||4,680,000||B|4,680,000|
|HuangJunyue|||1,879,277||B|1,879,277|
|HuXiaofeng|||1,454,840||B|1,454,840|
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED|||1,311,256||B|1,311,256|
|JinYunhua|||713,101||B|713,101|
|MAN,KWAIWING文贵荣|||684,200||B|684,200|
|ZhouJie|||596,966||B|596,966|
|ZhouJunlin|||545,600||B|545,600|
|ExplanationfortheAffiliatedRelationsorUnitedActionoftheTopTenShareholdersandtheTopTenTradableShareholders|||Therewasnorelationshipandconsistentactivitiesbetweenthefirstbigshareholderandothershareholdersorthetoptencommonstockholders;Therelationshipamongothershareholders,toptencirculationshareholders,toptencirculationshareholdersandothershareholderswasnotclear.||||

IVChangeofControllingShareholderActualControllerintheReportPeriod
□Applicable√Inapplicable
ChapterⅦ.
Relevant information about preferred stock
ChapterⅧ.
Directors, Supervisors, Senior Management and Staff
I.SharesholdingchangeinDirectors,Supervisors,SeniorManagement
Inapplicable
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearalReport II.ChangesofDirectors,SupervisorsandSeniorManagement
||||||
|-|-|-|-|-|
|Name|Position|Type|Date|Reason|
|LiShi|Director|resignment|2017.02.9|Workchange|
|SunMaolin|GM|resignment|2017.02.22|Workchange|
|WangLongjie|Vice-GM|resignment|2017.02.22|Workchange|
|ZhangLi|IndependentDirector|resignment|2017.03.14|death|
|WanShouyi|IndependentDirector|resignment|2017.07.14|Workchange|
|ZhaoYang|GM|engage|2017.02.24||
|ZhaoYang|Director|elected|2017.05.18||
|ZhangShiyin|Vice-GM|engage|2017.02.24||
|LiangShuang|IndependentDirector|elected|2017.05.18||

Chapter VIII. Financial Report
I.AuditReport
Thefinancialreportisunaudited
II.FinancialStatement
1.ConsolidatedBalanceSheet.
Unit:RMBYuan
||||
|-|-|-|
|Item|ClosingBalance|OpeningBalance|
|Currentassets ：|||
|Monetaryfund|111,589,576.25|184,416,042.97|
|Financialassetsheld-for-trading|||
|Billsreceivable|173,351,328.97|109,181,156.69|
|Accountreceivable|1,311,182,169.81|1,249,891,874.39|
|Accountpaidinadvance|14,425,787.01|16,084,843.68|
|Interestreceivable|||
|Dividendreciivable|||
|Otherreceivables|32,519,169.14|19,705,788.69|
|Inventory|767,894,842.95|842,429,282.92|
|Non-currentassetsduewithin1year|||
|Othercurrentassets|4,821,813.37|7,202,729.14|
|Totalcurrentassets|2,415,784,687.50|2,428,911,718.48|
|Non-currentassets|||
|Financialassetsavailable-for-sale|2,000,000.00|2,000,000.00|
|Investmentsheld-to-maturity|||
|Long-termreceivable|||
|Long-termequityinvestment|||
|Investmentproperty|||
|Fixedassets|740,842,980.06|785,568,617.02|
|Constructioninprogress|205,126,816.36|194,439,963.77|
|Constructionmaterials|||
|Fixedassetsdisposal|||
|Biologicalassets|||
|Gasandpetrolassets|||
|Intangibleassets|128,746,930.36|130,876,465.81|
|Developmentexpenditure|||
|Goodwill|||
|Long-termprepaidexpense|766,725.77|521,361.67|

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearalReport
||||
|-|-|-|
|Deferredtaxassets|11,629,100.34|11,629,100.34|
|Othernon-currentassets|||
|Totalnon-currentassets|1,089,112,552.89|1,125,035,508.61|
|Totalassets|3,504,897,240.39|3,553,947,227.09|
|Currentliabilities|||
|Short-termloan|654,900,000.00|549,900,000.00|
|Notepayable|308,199,565.90|425,514,610.26|
|Accountspayable|902,777,944.59|833,899,714.83|
|Accountsreceivedinadvance|28,535,884.77|26,959,477.14|
|Commissionchargepayable|||
|Accruedpayroll|17,028,885.61|17,256,851.42|
|Taxpayable|9,492,811.73|19,141,230.94|
|Interestpayable|420,000.00|927,000.00|
|Dividendspayable|||
|Otherpayables|104,627,629.71|111,790,682.03|
|Non-currentliabilitiesduewithinIyear|50,000,000.00|90,000,000.00|
|Othercurrentliabilities|4,335,522.50|4,704,022.50|
|Totalcurrentliabilities|2,080,318,244.81|2,080,093,589.12|
|Non-currentliabilities|||
|Long-termloan||50,000,000.00|
|Debenturepayable|||
|Long-termpayables|1,597,305.72|1,597,305.72|
|Specialpayables|296,698.98|296,698.98|
|Contingentliabilities|||
|Deferredincome|39,774,133.82|41,682,411.76|
|Deferredtaxliabilities|939,295.96|939,295.96|
|Othernon-currentliabilities|||
|Totalnon-currentliabilities|42,607,434.48|94,515,712.42|
|Totalliabilities|2,122,925,679.29|2,174,609,301.54|
|Owner’sequity(shareholders’equity)|||
|Capitalstock|402,600,000.00|402,600,000.00|
|Capitalpublicreserves|485,691,050.47|485,691,050.47|
|Less:treasuryshare|||
|Surplusreserve|131,442,909.11|131,442,909.11|
|Undistributedprofit|362,237,601.52|359,603,965.97|
|Differenceofforeigncurrencytranslation|||
|Equityattributabletoparentcompany|1,381,971,561.10|1,379,337,925.55|
|Minorityinterest|||
|Totalowner’sequity|1,381,971,561.10|1,379,337,925.55|
|Totalowner’sequityandliabilities|3,504,897,240.39|3,553,947,227.09|

 Chairman: MengWei GeneralAccountant:SunNajuan Accountingcharger:WangJiyuan
2. BalanceSheetofParentCompany
Unit:RMBYuan
||||
|-|-|-|
|Item|OpeningBalance|ClosingBalance|
|Currentassets ：|||
|Monetaryfund|101,873,721.71|160,858,258.16|
|Financialassetsheld-for-trading|||
|Billsreceivable|170,319,399.31|105,343,542.29|
|Accountreceivable|1,311,298,475.95|1,271,216,667.68|
|Accountpaidinadvance|10,553,901.13|14,150,176.66|
|Interestreceivable|||
|Dividendreceivable|||
|Otherreceivables|31,063,059.67|18,675,828.91|
|Inventory|700,975,783.64|781,029,612.11|

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearalReport
||||
|-|-|-|
|Non-currentassetsduewithin1year|||
|Othercurrentassets|2,979,790.39|4,853,373.30|
|Totalcurrentassets|2,329,064,131.80|2,356,127,459.11|
|Non-currentassets|||
|Financialassetsavailable-for-sale|2,000,000.00|2,000,000.00|
|Investmentsheld-to-maturity|||
|Long-termreceivable|||
|Long-termequityinvestment|211,583,897.67|211,583,897.67|
|Investmentproperty|||
|Fixedassets|505,015,437.79|540,414,895.87|
|Constructioninprogress|204,811,647.96|194,408,579.15|
|Constructionmaterials|||
|Fixedassetsdisposal|||
|Biologicalassets|||
|Gasandpetrolassets|||
|Intangibleassets|109,602,344.25|111,375,548.98|
|Developmentexpenditure|||
|Goodwill|||
|Long-termprepaidexpense|487,446.49|521,361.67|
|Deferredtaxassets|10,355,933.09|10,355,933.09|
|Othernon-currentassets|||
|Totalnon-currentassets|1,043,856,707.25|1,070,660,216.43|
|Totalassets|3,372,920,839.05|3,426,787,675.54|
|Currentliabilities|||
|Short-termloan|654,900,000.00|549,900,000.00|
|Notepayable|308,199,565.90|425,514,610.26|
|Accountspayable|813,126,054.34|754,015,698.35|
|Accountsreceivedinadvance|27,955,583.03|26,840,178.68|
|Commissionchargepayable|||
|Accruedpayroll|10,104,778.40|10,295,412.34|
|Taxpayable|6,301,600.02|15,496,981.29|
|Interestpayable|420,000.00|927,000.00|
|Dividendspayable|||
|Otherpayables|65,222,753.16|72,962,085.99|
|Non-currentliabilitiesduewithinIyear|50,000,000.00|90,000,000.00|
|Othercurrentliabilities|4,237,974.50|4,606,474.50|
|Totalcurrentliabilities|1,940,468,309.35|1,950,558,441.41|
|Non-currentliabilities|||
|Long-termloan||50,000,000.00|
|Debenturepayable|||
|Long-termpayables|||
|Specialpayables|296,698.98|296,698.98|
|Contingentliabilities|||
|Deferredincome|35,482,021.82|37,390,299.76|
|Deferredtaxliabilities|||
|Othernon-currentliabilities|||
|Totalnon-currentliabilities|35,778,720.80|87,686,998.74|
|Totalliabilities|1,976,247,030.15|2,038,245,440.15|
|Owner’sequity(shareholders’equity)|||
|Capitalstock|402,600,000.00|402,600,000.00|
|Capitalpublicreserves|485,678,443.26|485,678,443.26|
|Less:treasuryshare|||
|Surplusreserve|131,442,909.11|131,442,909.11|
|Undistributedprofit|376,952,456.53|368,820,883.02|
|Totalowner’sequity|1,396,673,808.90|1,388,542,235.39|
|Totalowner’sequityandliabilities|3,372,920,839.05|3,426,787,675.54|

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearalReport 3.ConsolidatedIncomeSheet.
Unit:RMBYuan
||||
|-|-|-|
|Item|Accountforthecurrentperiod|Accountforthepriorperiod|
|1.Totaloperatingincome|1,135,500,575.33|1,125,455,031.98|
|Including:Operatingrevenue|1,135,500,575.33|1,125,455,031.98|
|Interestincome|||
|Handlingchargeandcommissionincome|||
|2.Totaloperatingcost|1,137,410,071.24|1,182,078,050.33|
|Including:Operatingcost|1,004,195,641.99|1,043,602,026.69|
|Interestexpenses|||
|Handlingchargeandcommissionincome|||
|Tax&surchargesformainoperations|9,832,448.15|4,695,351.44|
|Sellingexpenses|76,020,179.92|84,742,685.88|
|Administrativeexpense|31,245,721.82|36,646,177.56|
|Financialexpense|16,016,268.75|12,390,741.72|
|Lossofimpairmentofassets|99,810.61|1,067.04|
|Add:Gainsofchangeoffairvalueofassets(losswith"-")|||
|Investmentincome(losswith"-")|||
|Including:Incomeforminvestmentonassociatedenterpriseandjointlyenterprise|||
|3.Operatingprofit(losswith"-")|-1,909,495.91|-56,623,018.35|
|Add:Non-operatingrevenue|4,772,523.99|14,004,273.12|
|Including:incomeondisposalofnon-currentassets|44,573.04|4,649,046.02|
|Less:Non-operatingcost|229,392.53|1,405,440.70|
|Including:lossondisposalofnon-currentassets|33,802.04|78,416.68|
|4.Totalprofit(losswith"-")|2,633,635.55|-44,024,185.93|
|Less:Incometaxexpenses|||
|5.Netprofit(Losswith"-")|2,633,635.55|-44,024,185.93|
|Netprofitattributabletoshareholdersofparentcompany|2,633,635.55|-44,024,185.93|
|Minorityinterests|||
|6.Othercomprehensivereturns|||
|7.Totalcomprehensivereturns|2,633,635.55|-44,024,185.93|
|Totalcomprehensivereturnsavailableforparentcompany|2,633,635.55|-44,024,185.93|
|Totalcomprehensivereturnsavailableforminorityshareholders|||
|6.Earningspershare|||
|(1)Basicearningspershare|0.007|-0.11|
|(2)Dilutedearningspershare|0.007|-0.11|

 Chairman: MengWei GeneralAccountant:SunNajuan Accountingcharger:WangJiyuan
4.IncomeSheetofParentCompany.
Unit:RMBYuan
||||
|-|-|-|
|Item|Accountforthecurrentperiod|Accountforthepriorperiod|
|1.Totaloperatingincome|1,121,747,641.74|1,139,151,566.77|
|Less:Operatingcost|999,817,155.16|1,066,012,164.06|
|Tax&surchargesformainoperations|8,636,001.96|4,099,633.44|
|Sellingexpenses|74,810,685.74|83,766,587.44|
|Administrativeexpense|18,388,929.30|23,712,562.59|
|Financialexpense|16,060,266.15|12,403,674.03|
|Lossofimpairmentofassets|99,810.61|1,067.04|
|Add:Gainsofchangeoffairvalueofassets(losswith"-")|||
|Investmentincome(losswith"-")|||
|Including:Incomeforminvestmentonassociatedenterpriseandjointlyenterprise|||
|2.Operatingprofit(losswith"-")|3,934,792.82|-50,844,121.83|

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearalReport
||||
|-|-|-|
|Add:Non-operatingrevenue|4,407,063.16|12,178,115.07|
|Less:Non-operatingcost|210,282.47|1,372,244.60|
|Including:lossondisposalofnon-currentassets|||
|3.Totalprofit(losswith"-")|8,131,573.51|-40,038,251.36|
|Less:Incometaxexpenses|||
|4.Netprofit(Losswith"-")|8,131,573.51|-40,038,251.36|
|Netprofitattributabletoshareholdersofparentcompany|8,131,573.51|-40,038,251.36|
|Minorityinterests|||
|5.Othercomprehensivereturns|||
|6.Totalcomprehensivereturns|8,131,573.51|-40,038,251.36|
|7.Earningspershare|||
|(1)Basicearningspershare|0.02|-0.10|
|(2)Dilutedearningspershare|0.02|-0.10|

 5.ConsolidatedCashFlowStatement.
Unit:RMByuan
||||
|-|-|-|
|Item|Accountforthecurrentperiod|Accountforthepriorperiod|
|1.Cashfromoperatingactivities|||
|CashreceivedfromsaleofgoodsorProvideingofservices|512,413,730.92|553,562,725.50|
|Refundoftaxesandfares|||
|Othercashreceivedrelatingtooperatingactivities|1,373,744.39|3,957,803.39|
|Sub-totalofcashinflows|513,787,475.31|557,520,528.89|
|Cashpaidforgoodsandservices|371,323,998.46|326,921,872.04|
|Cashpaidtooronbehalfoftheemployees|119,257,067.02|156,421,038.32|
|Taxpayments|47,104,172.58|26,059,090.72|
|Othercashpaidrelatingtooperatingactivities|52,708,495.81|56,508,192.96|
|Sub-totalofcashoutflows|590,393,733.87|565,910,194.04|
|Netcashflowsfromoperatingactivities|-76,606,258.56|-8,389,665.15|
|2.Cashflowsfrominvestingactivities|||
|Cashreceivedfromreturnofinvestment|||
|Cashreceivedfrominvestmentincomes||240,000.00|
|Net cash received from disposal of fixed assets, intangibleassetsandotherlong-termassets|4,885,900.00|10,000,000.00|
|Proceeds from sale of subsidiaries and other operatingunits|||
|Othercashreceivedrelatingtoinvestingactivities|||
|Sub-totalofcashinflows|4,885,900.00|10,240,000.00|
|Cash paid to acquire fixed assets, intangible assets andotherlong-termassets|6,335,477.77|35,882,335.69|
|Cashpaidtoacquireinvestment|||
|Netcashusedinacquiringsubsidiariesandotheroperatingunits|||
|Othercashpaidrelatingtoinvestingactivities|||
|Sub-totalofcashoutflows|6,335,477.77|35,882,335.69|
|Netcashflowsfrominvestmentactivities|-1,449,577.77|-25,642,335.69|
|3.Cashflowsfromfinancingactivities|||
|Cashreceivedfromabsorbinginvestment|||
|Including:Cashreceivedfromincreaseinminorityinterest|||
|Proceedsfromborrowings|223,000,000.00|375,000,000.00|
|Otherproceedsrelatingtofinancingactivities|321,721,729.99|147,525,694.44|
|Sub-totalofcashinflows|544,721,729.99|522,525,694.44|
|Repaymentofborrowings|208,000,000.00|287,000,000.00|
|Distributionof dividendsorprofits&interestexpenses|15,240,108.89|17,500,351.76|
|Including:dividendsorprofitpaidtominorityinterest|||
|Cashpaidforotherfinancingactivities|286,551,613.33|150,000,000.00|

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearalReport
||||
|-|-|-|
|Sub-totalofcashoutflows|509,791,722.22|454,500,351.76|
|Netcashflowsfromfinancingactivities|34,930,007.77|68,025,342.68|
|4.Effectsofforeignexchangeratechangesoncash|-491,746.17|1,392,127.34|
|5.Netincreasesincashandcashequivalents|-43,617,574.73|35,385,469.18|
|Add:cashandcashequivalent,atthebeginningofyear|142,233,376.52|78,556,030.56|
|6.Cashandcashequivalentattheendoftheyear|98,615,801.79|113,941,499.74|

 6.CashFlowStatementOfParentCompany.
Unit:RMByuan
||||
|-|-|-|
|Item|Accountforthecurrentperiod|Accountforthepriorperiod|
|1.Cashfromoperatingactivities|||
|CashreceivedfromsaleofgoodsorProvidingofservices|505,013,167.86|541,591,437.79|
|Refundoftaxesandfares|||
|Othercashreceivedrelatingtooperatingactivities|1,036,362.56|3,381,289.60|
|Sub-totalofcashinflows|506,049,530.42|544,972,727.39|
|Cashpaidforgoodsandservices|386,834,924.59|356,059,070.83|
|Cashpaidtooronbehalfoftheemployees|93,936,635.19|128,163,845.74|
|Taxpayments|39,398,824.49|20,179,431.19|
|Othercashpaidrelatingtooperatingactivities|48,664,314.64|52,713,413.47|
|Sub-totalofcashoutflows|568,834,698.91|557,115,761.23|
|Netcashflowsfromoperatingactivities|-62,785,168.49|-12,143,033.84|
|2.Cashflowsfrominvestingactivities|||
|Cashreceivedfromreturnofinvestment|||
|Cashreceivedfrominvestmentincomes||240,000.00|
|Net cash received from disposal of fixed assets, intangibleassetsandotherlong-termassets|4,876,900.00|10,000,000.00|
|Proceedsfromsaleofsubsidiariesandotheroperatingunits|||
|Othercashreceivedrelatingtoinvestingactivities|||
|Sub-totalofcashinflows|4,876,900.00|10,240,000.00|
|Cash paid to acquire fixed assets, intangible assets and otherlong-termassets|6,308,049.77|35,523,972.38|
|Cashpaidtoacquireinvestment|||
|Net cash used in acquiring subsidiaries and other operatingunits|||
|Othercashpaidrelatingtoinvestingactivities|||
|Sub-totalofcashoutflows|6,308,049.77|35,523,972.38|
|Netcashflowsfrominvestmentactivities|-1,431,149.77|-25,283,972.38|
|3.Cashflowsfromfinancingactivities|||
|Cashreceivedfromabsorbinginvestment|||
|Including:Cashreceivedfromincreaseinminorityinterest|||
|Proceedsfromborrowings|223,000,000.00|375,000,000.00|
|Otherproceedsrelatingtofinancingactivities|321,721,729.99|147,525,694.44|
|Sub-totalofcashinflows|544,721,729.99|522,525,694.44|
|Repaymentofborrowings|208,000,000.00|287,000,000.00|
|Distributionof dividendsorprofits&interestexpenses|15,237,696.69|17,499,132.16|
|Including:dividendsorprofitpaidtominorityinterest|||
|Cashpaidforotherfinancingactivities|286,551,613.33|150,000,000.00|
|Sub-totalofcashoutflows|509,789,310.02|454,499,132.16|
|Netcashflowsfromfinancingactivities|34,932,419.97|68,026,562.28|
|4.Effectsofforeignexchangeratechangesoncash|-491,746.17|1,392,127.34|
|5.Netincreasesincashandcashequivalents|-29,775,644.46|31,991,683.40|
|Add:cashandcashequivalent,atthebeginningofyear|118,675,591.71|70,822,241.27|
|6.Cashandcashequivalentattheendoftheyear|88,899,947.25|102,813,924.67|

WafangdianBearingCo.,Ltd（WazhouB） 2016Mid-yearReport7.ConsolidatedSheetOfChangesInShareholder’sEquity
Unit:RMBYuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item|Amountincurrentperiod|||||||||
||Owner’sequityattributabletoparentcompany|||||||Minorityshareholders’equity|Owner’sequity|
||Capitalstock|Capitalpublicreserves|less：treasurestock|Surpluspublicreserves|Generalprovisionforrisk|Undistributedprofits|Others|||
|1.Balanceattheendoflastyear|402,600,000.00|485,691,050.47||131,442,909.11||359,603,965.97|||1,379,337,925.55|
|Add: changes in accountingpolicies||||||||||
|Changesinpreviouserrors||||||||||
|Others||||||||||
|2.Balance at the beginning ofthisyear|402,600,000.00|485,691,050.47||131,442,909.11||359,603,965.97|||1,379,337,925.55|
|3.Thechangesinthisyear（decreasewith“-”）||||||2,633,635.55|||2,633,635.55|
|（1）Totalofcomprehensiveincome||||||2,633,635.55|||2,633,635.55|
|（2）Capitalcontributionandreduction||||||||||
|1）Ordinaryshare||||||||||
|2）Capitalcontributedbyotherequityinstrumentholders||||||||||
|3）Share-basedpaymentschargedtoequity||||||||||
|4）Others||||||||||
|(4）Profitsdistribution||||||||||
|1)Provision for surplus publicreserves||||||||||
|2)provisionforgeneralrisks||||||||||
|3)distribution forowner(shareholders)||||||||||
|4)others||||||||||
|(5 ） interior transference ofowner’sequity||||||||||
|1)capital (capital||||||||||

WafangdianBearingCo.,Ltd（WazhouB） 2016Mid-yearReport
|||||||
|-|-|-|-|-|-|
|stock)transferred by the capitalpublicreserves||||||
|2)capital (capitalstock)transferred by the surpluspublicreserves||||||
|3)loss offset by the surpluspublicreserves||||||
|4)others||||||
|4. Balance at the end of thecurrentperiod|402,600,000.00|485,691,050.47|131,442,909.11|362,237,601.52|1,381,971,561.10|

Unit:RMByuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item|Amountinpreviousperiod|||||||||
||Owner’sequityattributabletoparentcompany|||||||Minorityshareholders’equity|Owner’sequity|
||Capitalstock|Capitalpublicreserves|less：treasurestock|Surpluspublicreserves|Generalprovisionforrisk|Undistributedprofits|Others|||
|1.Balanceattheendoflastyear|402,600,000.00|485,691,050.47||131,442,909.11||328,731,015.75|||1,348,464,975.33|
|Add:changesinaccountingpolicies||||||||||
|Changesinpreviouserrors||||||||||
|Others||||||||||
|2.Balanceatthebeginningofthisyear|402,600,000.00|485,691,050.47||131,442,909.11||328,731,015.75|||1,348,464,975.33|
|3.Thechangesinthisyear（decreasewith“-”）||||||30,872,950.22|||30,872,950.22|
|（1）Totalofcomprehensiveincome||||||30,872,950.22|||30,872,950.22|
|（2）Capitalcontributionandreduction||||||||||
|1）Ordinaryshare||||||||||
|2）Capitalcontributedbyotherequityinstrumentholders||||||||||
|3）Share-basedpaymentschargedtoequity||||||||||
|4）Others||||||||||
|(4）Profitsdistribution||||||||||

WafangdianBearingCo.,Ltd（WazhouB） 2016Mid-yearReport
|||||||
|-|-|-|-|-|-|
|1)Provisionforsurpluspublicreserves||||||
|2)provisionforgeneralrisks||||||
|3)distributionforowner(shareholders)||||||
|4)others||||||
|(5）interiortransferenceofowner’sequity||||||
|1)capital(capitalstock)transferredbythecapitalpublicreserves||||||
|2)capital(capitalstock)transferredbythesurpluspublicreserves||||||
|3)lossoffsetbythesurpluspublicreserves||||||
|4)others||||||
|4.Balanceattheendofthecurrentperiod|402,600,000.00|485,691,050.47|131,442,909.11|359,603,965.97|1,379,337,925.55|

8.SheetOfChangesInShareholder’sEquityOfParentCompamy.
Unit:RMByuan
||||||||
|-|-|-|-|-|-|-|
|Item|Amountincurrentperiod||||||
||Capitalstock|Capitalpublicreserves|less：treasurestock|Surpluspublicreserves|Undistributedprofits|Owner’sequity|
|1.Balanceattheendoflastyear|402,600,000.00|485,678,443.26||131,442,909.11|368,820,883.02|1,388,542,235.39|
|Add: changes in accountingpolicies|||||||
|Changesinpreviouserrors|||||||
|Others|||||||
|2.Balance at the beginning ofthisyear|402,600,000.00|485,678,443.26||131,442,909.11|368,820,883.02|1,388,542,235.39|
|3.Thechangesinthisyear（decreasewith“-”）|||||8,131,573.51|8,131,573.51|
|（1）Totalofcomprehensiveincome|||||8,131,573.51|8,131,573.51|
|（2）Capitalcontributionandreduction|||||||

WafangdianBearingCo.,Ltd（WazhouB） 2016Mid-yearReport
|||||||
|-|-|-|-|-|-|
|1）Ordinaryshare||||||
|2）Capitalcontributedbyotherequityinstrumentholders||||||
|3）Share-basedpaymentschargedtoequity||||||
|4）Others||||||
|(4）Profitsdistribution||||||
|1)Provision for surplus publicreserves||||||
|2)provisionforgeneralrisks||||||
|3)distribution forowner(shareholders)||||||
|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|485,678,443.26|131,442,909.11|376,952,456.53|1,396,673,808.90|

Unit:RMByuan
||||||||
|-|-|-|-|-|-|-|
|Item|Amountinpreviousperiod||||||
||Capitalstock|Capitalpublicreserves|less：treasurestock|Surpluspublicreserves|Undistributedprofits|Owner’sequity|
|1.Balance at the end of lastyear|402,600,000.00|485,678,443.26||131,442,909.11|340,122,796.99|1,359,844,149.36|
|Add: changes in accountingpolicies|||||||
|Changesinpreviouserrors|||||||
|Others|||||||
|2.Balance at the beginning ofthisyear|402,600,000.00|485,678,443.26||131,442,909.11|340,122,796.99|1,359,844,149.36|

WafangdianBearingCo.,Ltd（WazhouB） 2016Mid-yearReport
|||||||
|-|-|-|-|-|-|
|3.Thechangesinthisyear（decreasewith“-”）||||28,698,086.03|28,698,086.03|
|（1）Totalofcomprehensiveincome||||28,698,086.03|28,698,086.03|
|（2）Capitalcontributionandreduction||||||
|1）Ordinaryshare||||||
|2）Capitalcontributedbyotherequityinstrumentholders||||||
|3）Share-basedpaymentschargedtoequity||||||
|4）Others||||||
|(4）Profitsdistribution||||||
|1)Provision for surplus publicreserves||||||
|2)provisionforgeneralrisks||||||
|3)distribution forowner(shareholders)||||||
|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|485,678,443.26|131,442,909.11|368,820,883.02|1,388,542,235.39|

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport III.Generalinformation
WafangdianBearingCompanyLimited(the“Company”)isajointstocklimitedcompanyestablishedinthePeople’sRepublic ofChina(the“PRC”)on16July,1997.Intheopinionofthedirectors,itsparentandultimateholdingcompanyisWafangdian BearingGroupCompanyLimited(“WazhouGroup”).
TheCompany’sBshareshavebeenlistedontheShenzhenStockExchangesince19February,1997.
The parent company is Wazhou Group. General shareholders meeting is thecompany’s authority and have the resolution power overcompany’s business policy, financing, investment and profit appropriation etc.significant events in accordance with relevant law. Board of directors is responsible for general meeting and has the power over thecompany’s decision making. Management is in charge of implementation of resolution made by general meeting and board meeting and is responsible for operation management. The company has the following functional departments including: procurement department, portfolio investment department, operating department, HR, marketing department, manufacturing and constructiondepartment,qualitycontroldepartment,financialdepartmentandlogisticdepartment.Wholly ownedsubsidiaries include Wazhou Liaoyang Bearing Manufacturing Co., Ltd(“Liaoyang Bearing”), Dalian Wazhou Precision Electric Motor Car Bearing (“DalianElectrical Motor”),and Wazhou Precision of Spherical Roller Bearings(Wafangdian)Co., Ltd(“Spherical Bearings”).
The addresses of the registered office and principal place of business of the Company are No.1, Phrase 1, Gongji Street, WafangdianNorth,LiaoningProvince,andthePRC.LegalrepresentativeisMengWei.
The Company is principally engaged in the manufacturing and sale of bearing, bearing spare parts, engineering equipment, automobile spare parts and relating products, bearing repair, maintenance and technology service etc and also in renting mechanicalequipmentandestate,inspectionofbearings,mechanicalequipment,measuringinstrumentsandmeters. IV.Basisforthepreparationoffinancialstatements
1Basisforthepreparationoffinancialstatements
The Group prepares the financial statements on the basis of going concern and actual transactions and events, and in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance of thePeople’s Republic of China, and based on the accounting policies and estimates in the note 4‘Significant accounting policies,accountingestimatesandmethodforpreparationofconsolidatedfinancialstatements’.
V. Significant accounting policies, accounting estimates and method for preparation of consolidated financial statements
1ComplyingwithAccountingStandardforBusinessEnterprise
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport The financial statements are prepared by the Group according to the requirements of Accounting Standard for Business Enterprise, and reflect the relative information for the financial position, operating performance, cash flow of the Group truly andfully.
2Accountingperiod
TheGroup adoptstheGregoriancalendaryearasaccountingperiod,i.e.fromJan1toDec31.
3.Operatingcycle
Normal operating cycle refers to the duration from purchasing the assets for manufactuing up to cash or cash equivelant realisation. The group sets twelve months for one operating cycle and as the liquidity criterion for assetsandliability.
4Funcitonalcurrency
TheGroup adoptsRMBasfunctionalcurrency.
5Recordingbasisandpricingprinciple
The accrual basis shall be adopted for accounting treatment to follow the historical cost method, except that the financial assetsheldfortradingandsalearemeasuredatfairvalue.
6Businesscombination
Business combination refers to transaction or event bringing together two or more separate enterprises into one reporting entity. The Group should recognize the acquired assets and liabilities at the combining date or acquisition date. The combiningdateoracquisitiondateisthedatewhentheGroupacquiredactuallyacquireeandcombinedparty.
The assets and liabilities that the combining party obtains in a business combination under the same control should be measuredonthebasisoftheircarryingamountinthecombinedpartyonthecombiningdate.Asforthebalancebetweenthe carryingamountofthenetassetsobtainedbythecombiningpartyandthecarryingamountoftheconsiderationpaidbyit,the capitalsurplusshallbeadjusted.Ifthecapitalsurplusisnotsufficienttobeoffset,theretainedearningsshallbeadjusted. For a business combination not under same control, the combination cost shall be the fair value, on the acquisition date, of the assetspaid, theliabilitiesincurredorassumed and equitysecuritiesissuedby theacquirerin exchangeforthe controlof the acquiree. The difference when combination cost exceeds the fair value of identifiable net assets of acquiree should be recognized as goodwill. If the combination cost is less than the he fair value of identifiable net assets of acquiree, the differenceshouldberecognizedascurrentprofitorloss.
7Methodofpreparationofconsolidatedfinancialstatements
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport (1)Recognitionprincipleofscopeofconsolidation
Scopeofconsolidatedfinancialstatementsshouldincludeallsubsidiariesoftheparentandthespecialpurposeentities. (2)Accountingmethodofconsolidatedfinancialstatements
TheGroup’s consolidated financial statements had been prepared in accordance with<Accounting Standard for Business Enterprise No.33– Consolidated FinancialStatements> and related regulations. All material intragroup transaction and balance had been eliminated in full. The parts ofsubsidiaries’ equity non-attributable to parent company shall be as minority interestpresentedintheintheconsolidatedbalancesheetwithinequity.
Where thereareinconsistentaccountingpoliciesoraccountingperiod,whenpreparingtheconsolidatedfinancialstatements, the Group shall adjust thesubsidiaries’ financial statements in accordance with theGroup’s accounting policies and accountingperiod.
For the subsidiary obtained under different control, when preparing the consolidated financial statements, the Group shall adjust the separate financial statements based on the fair value of identifiable net assets at the purchase date; for the subsidiaries combined by the Group under the same control, regard the subsidiaries that they have been existing since the beginning of the period, and the assets, liabilities, operation performance and cash flows shall be consolidated into the financialstatementsofthebeginningofthecombinationperiodaccordingtotheiroriginalbookvalue.
8Cashandcashequivalent
The cash listed on the cash flow statements of the Group refers to cash on hand and bank deposit. The cash equivalents refer to short-term (normally with original maturities of three months or less) and liquid investments which are readilyconvertibletoknownamountsofcashandsubjecttoaninsignificantriskofchangesinvalue.
9Translationofforeigncurrency
(1)Foreigncurrencytransaction
Foreign currency transactions are translated at the spot exchange rate issued byPeople’s Bank of China (“PBOC”) whenthetransactionincurs.MonetaryassetsandliabilitiesinforeigncurrenciesaretranslatedintoRMBattheexchangerate 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 assetshouldbecapitalizedasoccurred,beforetherelevantfixedassetbeingacquiredorconstructedisreadyforitsintended uses.The foreigncurrencynon-monetary items recordedatfairvalue aretranslatedatthe exchangerateissued onthe date of fair value recognized. Exchange differences are charged as profit and loss of change of fair value. The foreign currency non-monetary items recorded at historical cost are translated at the exchange rate issued on the date when the transactionincurs,anddon’tchangetheRMBamount.
(2)Translationofforeigncurrencyfinancialstatements
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport Theassetandliabilityitemsintheforeigncurrencybalancesheetshouldbetranslatedataspotexchangerateatthebalancesheetdate.Amongtheower’sequityitemsexcept“undistributedprofit”,othersshouldbetranslatedatthespotexchangerate when they are incurred. The income and expense should be translated at spot exchange rate when the transaction incurs. Translation difference of foreign currency financial statements should be presented separately under theower’s equity item. For the foreign currency monetary items that form substantially the oversea business net investment, their exchange difference of movement of exchange rate should be presented separately as translation difference of foreign currency financial statement under theower’s equity item when prepare the consolidated financial statements. When disposing an overseas business, the Group should shift the translation difference of foreign currency financial statement related to the overseas business into the disposal profits and losses of current period. Foreign currency cash flows are translated at the spotexchangerateonthedaywhenthecashflowsincur.Theamountsresultedfromchangeofexchangeratearepresented separatelyinthecashflowstatement.
10Financialassetsandfinancialliabilities
(1)Financialassets
1)Classification
TheGroupclassifiesitsfinancialassetsinthe followingcategories:atfairvaluethroughprofit orloss, loansand receivables, held-to-maturity financial assets and available-for-sale. The classification depends on the purpose for which the financial assetswereacquired.Managementdeterminestheclassificationofitsfinancialassetsatinitialrecognition.
a)Financialassetsatfairvaluethroughprofitorloss
Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term. Derivatives are also categorised as held for trading unless they are designated as hedges. Assets in this category are classified as current assets if expected to besettledwithin12months;otherwise,theyareclassifiedasnon-current.
b)Loansandreceivables
Loans and receivables are non-derivative financial assetswith fixed or determinable payments that are not quotedin an active market. They are included in current assets, except for maturities greater than 12 months after the reporting period,whichareclassifiedasnon-currentassets.
c)Held-to-maturityfinancialassets
Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable payments and fixedmaturitiesthattheGroup‟smanagementhasthepositiveintentionandabilitytoholdtomaturity.IftheGroupweretosell other than an insignificant amount of held-to-maturity financial assets, the whole category would be tainted and
reclassified as available for sale. Held-to-maturity financial assets are included in non-current assets, except for those
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport withmaturitieslessthan12monthsfromtheendofthereportingperiod,whichareclassifiedascurrentassets.
d)Available-for-salefinancialassets
Available-for-salefinancialassetsarenon-derivativesthatareeitherdesignatedinthiscategoryornotclassifiedinanyof the other categories. They are included in non-current assets unless the investment matures or management intends to disposeofitwithin12monthsoftheendofthereportingperiod.
2)Recognitionandmeasurement
Financial assets are recognized at fair value on the balance sheet when the Group becomes a party to the contractual provisionsof the financialinstrument. Transaction costs of financial assets carried at the fair value through profit or loss areexpensedintheincomestatement;Transactioncostsofotherfinancialassetsareincludedinfinancialassetsatinitial recognition.
Available-for-sale financial assets are subsequently measured at fair value. Investments inequity instruments are measured at cost when they do not have a quoted market price in an active market and whose fair value cannot be reliablymeasured.Loansandreceivablesaremeasuredatamortisedcostusingtheeffectiveinterestmethod.
A gain or loss arising from change in fair value of an available-for-sale financial asset is recognised directly in equity, except for impairment losses and foreign exchange gains and losses arising from the translation of monetary financial assets. When such financial asset is derecognised, the cumulative gain or loss previously recognised in equity is recognisedinincomestatement.Interestonavailableforsaledebtinstrument,calculatedusingeffectiveinterestmethod, and cash dividends declared by the investee on available-for-sale equity instruments are recognised as investment incomeinincomestatement.
3)Impairmentoffinancialassets
TheGroupassessesthecarryingamountoffinancialassetsotherthanfinancialassetsatfairvaluethroughprofitorloss at each balancesheet date. If there is objective evidence that the financialasset is impaired, the Group shall determine theamountofanyimpairmentlossaccounts.
Ifanimpairmentlossonafinancialassetcarriedatamortizedcosthasbeenincurred,theamountoflossismeasuredat the difference between theasset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred). If there is objective evidence that the value of the financial asset recovered and the recovery can be related objectively to an event occurring after the impairment was recognized, the previouslyrecognizedimpairmentlossisreversedandtheamountofreversalisrecognizedinincomestatement.
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
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport asset recovered and the recovery can be related objectively to an event occurring after the impairment was recognized, thepreviouslyrecognizedimpairmentlossisreversedandtheamountofreversalisrecognizedinincomestatement.For an available for sale equity instrument, if there is objective evidence that the value recovered and the recovery can be objectivelyrelatedtoaneventoccurringaftertheimpairmentlossrecognized,thepreviouslyrecognizedimpairmentloss isreversedanddirectlyrecognizedinequity.
4)Derecognizingoffinancialassets
Financialassetsarederecognizedwhen:i)thecontractualrightstoreceivethecashflowsfromthefinancialassetshave expired; or ii) all substantial risks and rewards of ownership of the financial assets have been transferred; or iii) the control over the financial asset has been waived even if the Group does not transferor retain nearly all of the risks and rewardsrelatingtotheownershipofafinancialasset.
On derecognition of a financial asset, the difference between the carrying amount and the aggregate of consideration receivedand the accumulativeamount of changes offair value originallyrecorded intheowner’s equity is recognisedin theincomestatement.
(2)Financialliabilities
The financial liabilities are classifiedinto the financial liability at fair valuethrough profit or loss and other financial liability for theinitialrecognition.
The financial liabilities at fair value through profit or loss include the financial liabilities held for trading and the designated financial liabilities at fair value through profit or loss when initial recognized. For this kind of financial liabilities should be measuredatfairvalue,variationoffairvalueshouldberecordedintothecurrentprofitorloss.
Otherfinancialliabilitiesshouldbesubsequentlymeasuredatamortizationcostbyadoptingactualinterestratemethod. (3)Fairvaluemeasurementoffinancialassetsandliabilities
a) If the market for a financial instrument is active, an entity establishes fair value by using the quoted price in the active market. In the active market, the Group measures the fair value of its holding financial assets and contingent financial liabilities by using the current quoted price; the Group measures the fair value of its contingent financial assets and holding financialliabilitiesbyusingthecurrentquotedprice.Iftherearenocurrentquotedpricesforthefinancialassetsandliabilties, andnosignificantchangeintheeconomicenvironmentafterthesettlementdate,thequotedpricesoftherecenttransactions shouldbeusedtomeasurethefairvalueofthefinancialassetsandliabilities.
b) If the market for a financial instrument is not active, an entity establishes fair value by using a valuation technique. Valuation techniques include using recentarm’s length market transactions between knowledgeable, willing parties, if available, reference to the current fair value of another instrument that is substantially the same, discounted cash flow analysisandoptionpricingmodels.
11Accordreceivables
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport (1)Individuallysignificantamountsofaccountsreceivableaccruedbaddebtprovisionasperportfolio
Judgmentbasisoramountstandardsof ThereceivableswithmorethanRMB3millionindividualamountshallbe individuallysignificantamounts recognizedasthesignificantreceivables;
Theaccruingmethodofthereceivableswith Thebaddebtprovisionsshallbeaccruedbasedonthedifference
individuallysignificantamounts betweencurrentvalueoffuturecashflowandthecarryingamounts. (2)Accountsreceivableaccruedbaddebtprovisionbyportfolio
Thebasisofportfolio
Usetheaccountingagingofthereceivablesasthecreditriskcharacteristics Accountingaging
toclassifytheportfolio
Usetheamountcharacteristicsofthereceivables,ifthetransactionparty Relatedparties
isrelatedpartiescharacteristicsneedtoclassifytheportfolio
Usetheamountcharacteristicsofthereceivables,thecreditoftransaction Risk-free party,thenatureoftheamounts and thesafeguardmechanismof transactionascharacteristicstoclassifytheportfolio
1)Thepercentageofprovisionforbaddebtsbasedontheageofreceivablesasfollowings:
Accountingaging Accrualpercentageofthe Accrualpercentageofotherreceivables(%)receivables(%)
Within1year 1 1
1-2years 5 5
2-3years 20 20
Over3years 50 50
Relatedparties Accruethebaddebtprovisionbyindividualidentification method
Risk-free Accruethebaddebtprovisionbyindividualidentification method
2)Theothermethodsisappliedtoactuatingofbaddebtsprovision
(3)Individuallyinsignificantamountaccountsreceivablebutaccruedbaddebtprovisionasperportfolio
The individual amount is not significant, but the accrued bad debt Accrualreason
provisiononthebasisofportfoliocannotreflectitsriskcharacteristic The bad debt provisions should be accrued based on the difference Accrualmethod
betweencurrentvalueoffuturecashflowandthecarryingamount. 12Inventories
Classification of inventory: Inventories are classified as raw material, wrappage, low-valuable consumable, working-in-progress,andfinishedgoodsetc.
Pricing of inventories received and sent out: The inventories are processed on perpetual inventory system, purchased and stored basedon theirstandardcost.The rawmaterials are priceddailyon theirstandardcosts.The differencesbetween the
standard and actual costs is recorded into the costs of materials and for sending out according to proportion of storage and
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport sending out of materials, and adjust the planned costs of raw material into actual costs. The working-in-progress finished goodsarepricedontheirstandardcosts;thedifferencesbetweenthestandardandactualcostsarerecordedintothecostsof working-in-progress and finished goods according to the receiving and sending out proportion, and finaly adjust the planned costsintoactualcosts.
Atthebalancesheetdateinventoryshouldbemeasuredatthelowerofthecostandnetrealizablevalue.Fortheinventories which are damaged, fully or partly obsoleted and selling price below cost, the Group should calculate the provision for impairment of inventories according to the estimated nonrecoverable part of cost. Finished goods and a large amount raw materials should be calculated provision for impairment based on the difference of the cost exceed the realizable value of single item. For raw and accessorial materials with a large quantities and lower unit price should be calculated provison for impairmentaccordingtoclassifyofinventory.
For the finished goods, working in progress and raw material held for sale etc which shall be sold directly, the net realizable value should be confirmed at the estimated selling price less estimated selling expenses and related tax and expenses. The rawmaterial heldforproduction,itsrealizablevalueshouldbeconfirmedat theestimated sellingpriceof finishedgoodsless estimated cost of completion, estimated selling expenses and related tax. The net realizable value of inventories held for executionofsalecontractsorlaborcontractsshallbecalculatedbasedonthecontractprice.Ifthequantitiesofinventoriesin the Group are more than quantities if inventories subscribed in the sales contracts, the net realizable value of the excessive partoftheinventoriesshouldbecalculatedbasedonthegeneralsellingprice.
13.Long-termequityinvestment
Long-term equity investments include the equity investments which the Group can control, joint control or have significant influence on the investee, or the Group can not control, joint control or significant influence on the investee and there is no offerintheactivemarket,fairvaluecannotbereliablymeasured.
Joint control refers to the control over an economic activity in accordance with contract. Any party of joint venture can not separately control the businessactivity of joint venture.The decision related to principal operating activitiesneed unanimous consentfromanyparty
Significantinfluencereferstothe power to participatein making decisionsonthe financialandoperatingpoliciesof investee, but not to control or do joint control together with other parties over the formulation of these policies. Significant influence confirm according to the Group holds the over20% (including20%) but lower than50% voteing shares. Unless there is evidencewhichindicatetheGroupcannotparticipateinthedecisionofproductionandoperatingundertheconditionsabove. Theinitialcostoflongtermequityinvestmentsformedinthemergerofenterpriseunderthesamecontrolshallberecognized at the carry amounts of equity of the merged enterprise. The initial cost of long term equity investments acquired in the mergerofenterpriseunderthedifferentcontrolshallberecognizedatfairvalueoftheassetspaid,liabilitiesrisenorcharged, andequitysecuritiesissued.
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport Besides the long-term equity investments acquired by the merger of enterprises, the initial cost of a long-term equity investmentobtainedbyothermeansshallbeascertainedinaccordancewiththeprovisionsasfollows:
(1) Theinitial costof a long-termequityinvestment obtainedby making payment in cashshall bethe purchasecost which is actually paid. The initial cost consists of the expenses directly relevant to the obtaining of the long-term equity investment, taxesandothernecessaryexpenses.
(2)Theinitialcostofalong-termequityinvestmentobtainedonthebasisofissuingequitysecuritiesshallbethefairvalueof theequitysecuritiesissued.
(3) The initial cost of a long-term equity investment of an investor shall be the value stated in the investment contract or agreementexcepttheunfairvaluestatedinthecontractoragreement.
(4) The initial cost of a long-term investment obtained by the exchange of non-monetary assets and the initial cost of a long-term equity investment obtained by debts restructuring shall be ascertained in accordance with related Accounting StandardsforEnterprises.
For thelong-termequityinvestment in subsidiaries ofthe Groupshallbe measured inaccordancewith the costmethod, and shall be adjusted when preparing consolidated financial statements in accordance with equity method. For the long-term equityinvestmentofjointventureshallbemeasuredinaccordancewithequitymethod.
For the long-term equity investment of the investing enterprise that does not do joint control or does not have significant influenceson the invested entity, and hasno offer in the activemarket and its fair valuecannot be reliablymeasured should bemeasuredinaccordancewithcostmethod.Forthelong-termequityinvestmentoftheinvestingenterprisethatdoesnotdo jointcontrolordoesnothavesignificantinfluencesontheinvestedentity,andhasofferintheactivemarketanditsfairvalue canbereliablymeasuredshouldbemeasuredastheassetsavailableforsale.
14Fixedasset
(1)Recognitioncriteria
Recognitioncriteriaoffixedassets:Fixedassetsaredefinedasthetangibleassetswhichareheldforthepurposeofproducinggoods,renderingservices,leasingorforoperation&management,andhavemorethanoneyearofuseful life,andwhoseunitpriceisoverRMB2,000.
Fixed assets shall be recognized when the economic benefit probably flows into the Group and its cost can be measured reliably. Fixed assets include: building, machinery, transportation equipment, electronic equipment and others.:
(2)Depreciationmethod
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport Estimatednet
Useful
Category residualvalue Annualdepreciationrate life(years)
rate(%)
HousingandBuildings
Including:Buildings
15 3 6.47
Housingforproductive
30 3 3.23
Housingfornon-productive
35 3 2.77
Machineryequipments
10-15 3 6.47～9.70
Transportationequipments
6 3 16.17
Electronicequipments
Including:Computer
4 3 24.25
Generaltestinginstruments
7 3 13.86
Specializedelectronicequipments
8 3 12.13
Automatedcontrollingequipments
8 3 12.13
Automatedcontrollingmeters
8 3 12.13
Othersequipments
Including:Industrialkiln
7 3 13.86
Tools&otherproductiontools
9 3 10.78
Transmissionequipments
15 3 6.47
Non-operationalequipmentsandtools
18 3 5.39
15Constructioninprogress
Measurement ofCIP:Construction-in-progressisrecognizedatactualcost.Self-constructionprojectisrecognizedatthecost of material, labour cost and construction expenses. Contractual construction is recognized at project price which should be paid. Installed construction is recognized at the value of equipment, installation and assembly cost. Besides above, the cost ofCIPcomprisesborrowingcostandprofitandlossresultingfromforeignexchange.
16Borrowingcosts
Recognition principles on capitalization of borrowing cost: The Group should capitalizes the borrowing cost directly attributable to the acquisition, construction or production of a qualifying asset and record borrowing cost into cost of related asset. The Group should recognize the other borrowing cost as the current expense and charged it as profit and loss of current period. A qualifying asset refers to fixed asset, investment property and inventory need be constructed for so long timetoitsintendeduseorsale.
Durationof capitalizationofborrowingcost:When expendituresandborrowingcostarebeingincurred,andactivitiesthat are necessarytoputtheassetavailableforuseorsaleareinprogress,thecapitalizationofborrowingcostsaspartofthecostof a qualifying asset should commence. Capitalization of borrowing costs should be suspended during extended periods in
which active development isinterruptedand interruption periodlastfor over 3month. Theborrowing cost incurred duringthe
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport periodshouldberecognizedasexpensesandrecordedintotheprofitandlossinthecurrentperiod.Whenalltheactivitiesfor bringing the asset to its intended use or sale are completed, the capitalization of borrowing costs ceases, and the borrowing costsshouldberecognizedasanexpenseintheperiodincurred.
17Intangibleassets
Measurement ofintangibleassets:TheintangibleassetsoftheGrouprefertolanduseright,ERPsystemsoftware.Thecost of outsourcing intangible assets shall include the purchase price, relevant taxes and other necessary expenditures directly attributable to intangible assets. The cost invested into intangible assets by investors shall be determined according to the statedvalueintheinvestmentcontractoragreement,exceptforthoseofunfairvalueinthecontractoragreement.
Amortization method and period: The Group shall amortize land use right on the basis of its useful life by adopting straight line method from the time of acquiring. ERP system software and other intangible assets shall be amortized on the basis of shorter of estimated useful life, stated beneficial year in the contract, and legal available year. The amortization amount shouldberecordedintothecostorexpenseofrelevantinthecurrentperiod.
TheGroupshallchecktheestimatedusefullifeandamortizationmethodofintangibleassetswithlimitedusefullifeattheend ofeachyear,ifanychangehasbeenmade,itshallbeadjusted.TheGroupshallchecktheestimatedusefullifeofintangible assetswith uncertainusefullifeduringtheeachaccountingperiod.Ifthereareevidencestoprovetheusefullifeofintangible assetsislimited,theGroupshallestimatetheusefullifeandamortizetheintangibleassetswithinestimatedusefullife. 18Impairmentofnon-financialasset
The Group checks the long-term equity investment for its subsidiaries, association and joint venture, fixed asset, construction-in-progress,intangibleassetandothersoneachbalancesheetdate.Theremaybeanimpairmentofassetwhen one of following indications occurs. The Group should test impairments. The Group tests the impairment of goodwill, intangible asset with uncertain useful life on the end of every year. When it is difficult to measure the recoverable amount of asset,itshouldmeasuretherecoverableamountofassetonthebasisofassetgroup.
Afterimpairmenttest,ifthebookvalueexceedstherecoverableamountoftheasset,thedifferenceshouldberecognizedas impairment loss. Once any loss of impairment is recognized, it shall not be reversed in the future accounting periods. The recoverableamountofassetreferstothehigheroneofthenetamountofthefairvalueofassetminusdisposalexpenseand thepresentvalueofestimatedfuturecashflowofasset.
19Long-termdeferredexpenses
Long-term deferred expenses of the Group refer to expenses which are paid and should be deferred over the future period. Theamortizationperiodshallbemorethanoneyear(noincluding1year).Theexpensesshouldbeamortizedaveragelyover thebeneficialperiod.Ifthedeferredexpensecannottakebenefitforthefutureaccountingperiod,theunamortizedbalanceof thedeferredexpensesshouldbetransferredintothecurrentprofitorloss.
20Employeebenefits
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport Employee compensation comprises short-term benefit, post-employment benefit, termination benefit and other long-termemployee’sbenefit.
Employee’s payables include salary, bonus,allowance, welfare, social insurance, housing funds,labour union expense,staff trainingexpense,duringtheperiodinwhichtheservicerenderedbytheemployees,theactuallyincurredshorttermemployee benefits shall be recognized as liability and shall be recognized inP&L or related cost of assets based on benefit objective allocatedfromtheservicerenderedbyemployees.
Post-employment benefits include the basic pension schemeand unemployment insurance etc. Based on the risk and obligation borne by the Group, post-employment benefits are classified into defined contribution plan and defined benefit plan.For defined contribution plan, liability shall be recognized based on the contributed amount made by the Group to separateentityatthebalancesheetdateinexchangeofemployeeservicefortheperiodanditshallberecordedintocurrent profitandlossaccountorrelevantcostofassetsinaccordancewithbeneficialobjective.
Termination benefits are employee benefits payable as a result of either anentity’s decision to terminate anemployee’s employment before the contract due date or anemployee’s decision to accept voluntary redundancy in exchange for those benefits. An entity shall recognize the termination benefits as a liability and an expense at the earlier date when the entity cannot unilateral withdraw the termination benefits due to employment termination plan or due to redundancy suggestion, or when the entity can recognize the restricting cost or expense arising from paying termination benefits. For the termination benefits that will not be expected to be fully paid within twelve months after the end of the reporting period, it shall be accounted as other long-term employee benefit. For employee internally retired informally, termination benefits accounting shallbeapplied.TheGroupshallrecognizedtheplannedwagesandsocialinsuranceofretiredemployeeinthecurrentprofit and loss account when provision conditions are met, for the period since the termination of employee service rendered until theformalretirementdate.(terminationbenefit).
Other long-term employee benefit provided by the Group, shall be accounted for as defined contribution plan if the defined contributionplanaremet,otherwiseshallbeaccountedforasdefinedbenefitplan.
21Contingentliabilities
Theobligationpertinenttoacontingencyshallberecognizedasanestimateddebtwhenthefollowingconditionsaresatisfied simultaneously:
(1)TheobligationisacurrentobligationoftheGroup;
(2)ItislikelytocauseanyeconomicbenefittoflowoutoftheGroupasaresultofperformanceoftheobligation;and
(3)Theamountoftheobligationcanbemeasuredreliably.
The estimated debts shall be initially measured in accordance with the best estimate of the necessary expenses for the
performance of the current obligation, and the Group shall take into full consideration of the risks, uncertainty, time value of
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport money, and otherfactors pertinentto thecontingencies. If thetime valueof money is of greatsignificance, the bestestimate amounts shall be determined after discounting the relevant future outflow of cash. The Group shall check the book value of the estimated debts on the balance sheet date. If there is any exact evidence indicating that the book value cannot really reflectthecurrentbestestimate amounts,theGroupshalladjustthebookvalueinaccordancewith thecurrentbestestimate amounts.
22Principleofrecognitionofrevenue
The revenue of the Group is mainly from selling goods, providing labour services and abalienating the right of use assets. Recognitionstandardsforrevenueareasbelow:
(1)Recognitionofrevenuefromsellinggood:
1)Thesignificantrisksandrewardsofownershipofthegoodshavebeentransferredtothebuyer;
2) The Group remains neither continuous management right that usually keeps relation with the ownership nor effective controloverthesoldgoods;
3)Theamountofrevenuescanbemeasuredreliably;
4)TherelevanteconomicbenefitsarelikelytoflowintotheGroup;and
5)Theincurredcostorintendedcostcanbemeasuredreliably.
(2)Recognitionofrevenuefromprovidinglabourservices:
1)Totalrevenueandtotalcostcanbemeasuredreliably;therelevanteconomicbenefitsarelikelytoflowintotheGroup;and thestageofcompletioncanbeconfirmedreliably;
2) If the Group can, on the date of the balance sheet day, reliably estimate the outcome of a transaction concerning the labourservicesitprovides, itshallrecognizetherevenuefromprovidingservicesemployingthestageofcompletion method. If the outcome can not be estimated reliably and incurred cost can be offset, the revenue should be recognised by the compensation.When thestandardscannotbesatisfied,therevenueshouldnotberecognised,andtheincurredcostshould berecordedintothecurrentprofitandloss.
(3)Revenuefromabalienatingtheuserightofuseassets
The revenue from abalienating of use right of assets shall be recognized, when the relevant economic benefits are likely to flowintotheGroup,andtheamountofrevenuescanbemeasuredreliably.
23Governmentgrants
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport AgovernmentsubsidyoftheGroupshallberecognizediftheGroupcanmeettheconditionsforthegovernmentsubsidyand alsocanobtainthegovernmentsubsidy.Ifagovernmentsubsidyisamonetaryasset,itshallbemeasuredinthelightofthe received or receivable amount. If a government subsidy is a non-monetary asset, it shall be measured at its fair value; if its fairvaluecannotbeobtainedinareliableway,itshallbemeasuredatitsnominalamount(RMB1).
The government subsidies pertinent to assets shall be recognized as deferred income, equally distributed within the useful lives of the relevant assets, and included in the current profits and losses. The government subsidies pertinent to incomes shall be treated respectively in accordance with the indications as follows: (1) those subsidies used for compensating the related future expenses or losses of the Group shall be recognized as deferred income and shall included in the current profits and losses during the period when the relevant expenses are recognized; or (2) those subsidies used for compensatingtherelatedexpensesorlossesincurredtotheGroupshallbedirectlyincludedinthecurrentprofitsandlosses. 24Deferredtaxassetsanddeferredtaxliabilities
Deferredtaxassetsanddeferredtaxliabilityshouldberecognizedatthedifferences(taxabletemporarydifferences)between thetaxbaseofanassetorliabilityanditscarryingamount.TheGroupshallrecognizethedeferredincometaxassetsarising froma deductibletemporarydifferencetothe extentofthe amount ofthe taxableincome which itis most likelytoobtainand which canbe deductedfrom the deductible temporary difference. Atthe balancesheet date,deferredtax asset anddeferred taxliabilityshouldbemeasuredatapplicabletaxrate.
TheGroupshallrecognizethedeferredtaxassetsarisingfromadeductibletemporarydifferencetothe extentofthe amount of thetaxableincomewhich ismost likelytoobtainwhich canbedeductedfromthedeductibletemporarydifference.Forthe deferred tax assets which already have been recognized, where there is any evidence showing that the Group is probably unable to acquire sufficient amount of taxable income tax in a future period to offset against the deductible temporary difference, the book value of the deferred tax assets shall be deducted. Where it is likely to acquire sufficient amount of taxableincometax,theamountdeductedshallbereversed.
25Lease
TheleasesoftheGrouprefertooperatinglease.
The rentsfrom operatingleasesshallbe recordedby the lesseeinto therelevantasset costsor the profitsandlosses of the currentperiodbyusingthestraight-linemethodovereachperiodoftheleaseterm.
VIAccountingtreatmentmethodofincometax
1.ThemainapplicabletaxandratetotheGroupasfollows:
||
|-|
|Taxbase|
|SalesrevenueorPurchase|

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport
||
|-|
|Revenuefrompropertylease,examinationfee,surcharge|
|Value-addedtaxpayables,businesstax|
|Value-addedtaxpayables,businesstax|
|Value-addedtaxpayables,businesstax|
|Currentperiodtaxableprofit|
|70%ofcostofownpropertyorrevenuefromleasingproperty|
|Landusingrightarea|

 NotesfortaxprincipleswithdifferentEITrate
Taxprinciples EITrate
WazhouLiaoyangBearingconstructionCo.,Ltd 25%
DalianWazhouPrecisionMotorCarBearingCompanyLimited 25%
WazhouPrecisionofSphericalRollerBearings(Wafangdian)Co.,Ltd 25%
2.Taxpreference
The company obtainedthe qualificationof high and newtechnology enterprises at 29September, 2014.The Certificate No is GF201421200004, and the validity duration is three years. According to the tax law, the company can be granted forthepreferentialtaxpolicyofenterpriseincometaxrateof15%inthreeyears.
VI.Taxation
1.ThemainapplicabletaxandratetotheGroupasfollows:
Tax Taxbase Taxrate
Value-addedtax(VAT) SalesrevenueorPurchase
17%，13%，11%，6%，3% Businesstax Revenuefrompropertylease 5%
Cityconstructiontax Value-addedtaxpayables,businesstax 7%
Enterpriseincometax(EIT) Currentperiodtaxableprofit 15%
Educationsurcharge Value-addedtaxpayables,businesstax 3%
Localeducationsurcharge Value-addedtaxpayables,businesstax 2%
70%ofcostofownpropertyorrevenuefrom
Realestatetax 1.2%or12%
leasingproperty
Landusetax Landusingrightarea RMB6persquaremeter
NotesfortaxprincipleswithdifferentEITrate
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport Taxprinciples EITrate
WazhouLiaoyangBearingconstructionCo.,Ltd 25%
DalianWazhouPrecisionMotorCarBearingCompanyLimited 25%
WazhouPrecisionofSphericalRollerBearings(Wafangdian)Co.,Ltd 25%
2.Taxpreferenceandapproval
Thecompanyobtainedthequalificationofhighandnewtechnologyenterprisesat29Sep2014.TheCertificatenumberis GF201421200004,andtheperiodofvalidityisthreeyears.Accordingtotheprovisionsofthetaxlawthecompanycanbegrantedthepreferentialtaxpolicyofenterpriseincometaxrateof15%inthreeyears.
VII.Notestoconsolidatedfinancialstatements
1.Cashandcashinbank
||
|-|
|ClosingBalance|
|408,173.22|
|98,207,628.57|
|12,973,774.46|
|111,589,576.25|

 2Notesreceivable
(1)Categoryofnotesreceivable
2016.07.30 2016.12.31 Items
Bank acceptance notes
108,321,667.51 51,320,019.73 Commercial acceptance notes
65,029,661.46 57,861,136.96 Total
173,351,328.97 109,181,156.69 (1) (2)PledgednotesreceivableuptoJune30,2017.
Items PledgednotesreceivableuptoJune30,2017.
Commercialacceptance notes 34,989,611.73 Total 34,989,611.73 3Accountsreceivable
(1)Categoryofaccountsreceivable
ClosingBalance
|||||
|-|-|-|-|
|Bookingbalance||Provision||
|Amount|%|Amount|%|
|12,810,943.69|0.91%|12,810,943.69|100.00%|
|1,356,808,101.11|0.96%|45,625,931.30|5.20%|
|42,059,327.99|2.98%|42,059,327.99|100.00%|

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport
||||
|-|-|-|
|1,411,678,372.79|100.00%|100,496,202.98|

 (Continued)
Openingbalance
|||||
|-|-|-|-|
|Bookingbalance||Provision||
|Amount|%|Amount|%|
|12,810,943.69|0.95%|12,810,943.69|100.00%|
|1,295,567,461.89|95.94%|45,675,587.50|5.50%|
|42,059,327.99|3.11%|42,059,327.99|100.00%|
|1,350,437,733.57|100.00%|100,545,859.18||

 1) Accounts receivable with individual significant amount and identification separately bad debt provision at the end of June 30,2017
Booking Provisionfor Provisionrate
Companyname Reasonsforprovision balance baddebts (%)
A 5,092,669.00 5,092,669.00 100.00% Bankrupt
A/Rwithover5yearsaging, B 3,910,007.43 3,910,007.43 100.00%
unlikelytobecollected A/Rwithover5yearsaging, C 3,808,267.26 3,808,267.26 100.00%
unlikelytobecollected Total 12,810,943.69 12,810,943.69
2)Accountsreceivableaccruedthebaddebtprovisionsunderaccountingaginganalysismethod
ClosingBalance
|||
|-|-|
|Accountsreceivable|Provisionforbaddebts|
|748,726,319.93|7,487,263.20|
|162,447,753.52|8,122,387.68|
|38,989,958.79|7,797,991.76|
|37,647,187.41|18,823,593.70|
|987,811,219.65|42,231,236.34|

(2)Baddebtprovisionaccruedandwritten-off(withdraw)
(3)Accountsreceivablewrittenoffincurrentperiod
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport Item Written-offAmount
Accountsreceivablewrittenoff 149,466.81 4Advancestosuppliers
(1)Agingofadvancestosuppliers
Items 2017.06.30 2016.12.31
Amount Percentage(%) Amount Percentage(%)
Within1year
12,979,406.82 89.97% 14,763,851.69 91.79% 1to2years
456,802.20 3.17% 481,467.40 2.99% 2to3years
75,843.19 0.53% 270,039.04 1.68% Over3years
913,734.80 6.33% 569,485.55 3.54% Total
14,425,787.01 -- 16,084,843.68 --
5.Dividendsreceivable
6Otherreceivables
(1)Thecategoriesofotherreceivable
ClosingBalance
|||||
|-|-|-|-|
|Bookingbalance||Provision||
|Amount|%|Amount|%|
|33,539,509.54|0.87%|1,020,340.40|0.05%|
|5,020,918.92|13.02%|5,020,918.92||
|38,560,428.46|100.00%|6,041,259.32|15.67%|

 (Continued)
OpeningBalance
|||||
|-|-|-|-|
|Bookingbalance||Provision||
|Amount|%|Amount|%|
|20,726,129.09|80.50%|1,020,340.40|7.18%|
|5,020,918.92|19.50%|5,020,918.92|100.00%|
|25,747,048.01|100.00%|6,041,259.32||

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport (2)Otherreceivablesaccruedthebaddebtprovisionsunderaccountingaginganalysismethod
ClosingBalance
|||
|-|-|
|Otherreceivables|Provisionforbaddebts|
|16,178,036.41|161,780.36|
|487,038.17|24,351.91|
|1,162,693.60|232,538.72|
|1,203,338.82|601,669.41|
|19,031,107.00|1,020,340.40|

(3)Otherreceivablescategorizedbynature
||
|-|
|ClosingBalance|
|38,560,428.46|
|38,560,428.46|

 7Inventories
(1)Categoriesofinventories
||||||
|-|-|-|-|-|
|2017.06.30|||||
|Cost|Provisionfordecline|Netbookvalue|Cost|Provisionfordeclines|
|70,848,571.23|974,208.73|69,874,362.50|68,526,562.28|974,208.73|
|619,093,321.92|65,411,512.25|553,681,809.67|687,573,834.73|65,411,512.25|
|144,567,789.72|602,496.86|143,965,292.86|148,032,177.74|602,496.86|
|373,377.92||373,377.92|5,284,926.01||
|834,883,060.79|66,988,217.84|767,894,842.95|909,417,500.76|66,988,217.84|

 (2)Provisionfordeclineinthevalueofinventories
||||||
|-|-|-|-|-|
|OpeningBalance|Increase||Decrease||
||Accrual|Other|Reverse/Written-off|Otherstransferred|
|974,208.73|||||
|65,411,512.25|||||
|602,496.86|||||
|66,988,217.84|||||

8Othercurrentassets
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport Item 2017.06.30 2016.12.31
VATtobededucted 2,966,475.81 5,347,391.58 Prepaidincometax 1,855,337.56 1,855,337.56 Total
4,821,813.37 7,202,729.14 9.Available-for-salefinancialassets
(1)Available-for-salefinancialassets
||||||
|-|-|-|-|-|
|ClosingBalance|||||
|Bookingbalance|Provision|Bookvalue|Bookingbalance|Provision|
|2,000,000.00||2,000,000.00|2,000,000.00||
|2,000,000.00||2,000,000.00|2,000,000.00||
|2,000,000.00|-|2,000,000.00|2,000,000.00|-|

 (2)Available-for-salefinancialassetsmeasuredatcostmethod
||||||||||
|-|-|-|-|-|-|-|-|-|
|BookingBalance||||Provision||||Proportion(%)|
|OpeningBalance|Increase|Decrease|ClosingBalance|OpeningBalance|Increase|Decrease|ClosingBalance||
|2,000,000.00||-|2,000,000.00|-|-|-|-|4.76|
|2,000,000.00||-|2,000,000.00|-|-|-|-|4.76|

 10Fixedassets
(1)Fixedassetsbycategories
||||||
|-|-|-|-|-|
|Building|MachineryEquipment|Transportation|ElectronicDevice|OtherEquipment|
|424,373,681.31|1,076,289,314.43|17,262,573.06|64,993,231.80|186,259,094.77|
|1,343,482.24|2,042,919.14|7,205.12|206,097.82|501,126.92|
|671,171.17|1,171,407.13|7,205.12|193,016.06|445,011.25|
|672,311.07|871,512.01||13,081.76|56,115.67|
||729,809.65|510,069.77|142,050.88|164,500.00|
||729,809.65|510,069.77|142,050.88|164,500.00|
|425,717,163.55|1,077,602,423.92|16,759,708.41|65,057,278.74|186,595,721.69|

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport
||||||
|-|-|-|-|-|
|213,793,597.48|579,901,988.33|12,980,199.26|49,676,534.36|127,230,685.59|
|6,771,855.28|35,522,816.34|516,885.17|1,918,507.12|3,874,291.51|
|6,771,855.28|35,372,791.90|516,885.17|1,918,507.12|3,717,358.18|
||150,024.44|||156,933.33|
||616,695.32|455,459.31|92,597.89|159,565.00|
||616,695.32|455,459.31|92,597.89|159,565.00|
|220,565,452.76|614,808,109.35|13,041,625.12|51,502,443.59|130,945,412.10|
||26,273.33||||
||26,273.33||||
|205,151,710.79|462,768,041.24|3,718,083.29|13,554,835.15|55,650,309.59|
|210,580,083.83|496,361,052.77|4,282,373.80|15,316,697.44|59,028,409.18|

 11Constructioninprogress
(1)DetailsofConstruction-in-progress
||||||||
|-|-|-|-|-|-|-|
|Item|ClosingBalance|||OpeningBalance|||
||BookBalance|Provision||BookBalance|Provision||
|Improvementofseven-finishedproducts|88,025,523.34||88,025,523.34|83,614,247.81||83,614,247.81|
|Improvementofone-finishedproducts|26,087,483.71||26,087,483.71|26,147,833.86||26,147,833.86|
|Dalianindustryparkproject|16,060,671.00||16,060,671.00|16,060,671.00||16,060,671.00|
|Improvementofprecisionrollerbranch|13,501,710.76||13,501,710.76|14,497,884.54||14,497,884.54|
|Improvementof grindingmachine|5,282,092.57||5,282,092.57|5,282,416.43||5,282,416.43|
|Improvementofplant|3,720,604.95||3,720,604.95|3,720,604.95||3,720,604.95|
|ImprovementofAmerauto|3,262,933.24||3,262,933.24|3,568,672.18||3,568,672.18|
|Improvementofrailway|8,179,465.15||8,179,465.15|3,481,684.10||3,481,684.10|
|Improvementof grindingmachine|3,323,118.91||3,323,118.91|3,323,612.16||3,323,612.16|
|Improvementof|3,073,673.39||3,073,673.39|2,979,656.30||2,979,656.30|

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport
||||||
|-|-|-|-|-|
|second-finishedproducts|||||
|CraneProject|2,862,369.52|2,862,369.52|2,862,369.51|2,862,369.51|
|Improvementofspeciallargebranch|2,317,196.02|2,317,196.02|2,410,593.11|2,410,593.11|
|Improvementofliaoyangbearing|2,396,947.08|2,396,947.08|2,396,988.69|2,396,988.69|
|ComputerProject|2,081,977.04|2,081,977.04|2,094,565.47|2,094,565.47|
|Overhaulfactoryreconstruction|544,769.58|544,769.58|419,948.26|419,948.26|
|Heattreatmentproductline|438,464.50|438,464.50|337,933.74|337,933.74|
|Others|23,967,815.60|23,967,815.60|21,240,281.66|21,240,281.66|
|Total|205,126,816.36|205,126,816.36|194,439,963.77|194,439,963.77|

 12Intangibleassets
|||
|-|-|
|Landuseright|software|
|176,189,727.74|6,135,356.44|
||137,329.45|
||137,329.45|
|176,189,727.74|6,272,685.89|
|45,474,697.69|5,973,920.68|
|2,194,753.82|72,111.08|
|2,194,753.82|72,111.08|
|47,669,451.51|6,046,031.76|
|128,520,276.23|226,654.13|

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport
|||
|-|-|
|130,715,030.05|161,435.76|

 13Long-termdeferredandprepaidexpenses
Other
Item 2016.12.31 Increase Amortization 2017.06.30 decrease
Righttousepremiseof
521,361.67 33,915.18 487,446.49 Shanghaisalesoffice
Decorationfees
279,279.28 279,279.28 521,361.67 279,279.28 33,915.18 766,725.77 Total
14Deferredtaxassetsanddeferredtaxliabilities
(1)Deferredtaxassetswithoutdeduction
||||
|-|-|-|
|ClosingBalance|||
|Deductibletemporarydifference|Deferredtaxassets|Deductibletemporarydifference|
|62,191,502.88|9,837,992.33|62,191,502.88|
|11,940,720.08|1,791,108.01|11,940,720.08|
|74,132,222.96|11,629,100.34|74,132,222.96|

 (2)Deferredtaxliabilitieswithoutdeduction
||||
|-|-|-|
|ClosingBalance|||
|Taxabletemporarydifference|Deferredtaxliabilities|Taxabletemporarydifference|
|6,261,973.05|939,295.96|6,261,973.05|
|6,261,973.05|939,295.96|6,261,973.05|

 (3)Thenetvalueofdeferredtaxassetsanddeferredtaxliabilitieswithdeduction
||||
|-|-|-|
|ClosingBalanceofdeferredtaxassetsandliabilitieswithdeduction|ClosingBalanceofdeferredtaxassets/deferredtaxliabilities|OpeningBalanceofdeferredtaxassetsandliabilitieswithdeduction|
|939,295.96|11,629,100.34|939,295.96|
||939,295.96||

15Short-termloan
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport (1)Categoryofshort-termloan
Loancategory 2017.06.30 2016.12.31
Creditloan
654,900,000.00 549,900,000.00 Total
654,900,000.00 549,900,000.00 16Notespayable
Items 2017.06.30 2016.12.31
Commercialacceptance notes
19,372,939.43 43,413,268.05 Bank acceptancenotes
288,826,626.47 382,101,342.21 Total
308,199,565.90 425,514,610.26 17Accountspayable
(1)Accountspayable
||
|-|
|ClosingBalance|
|712,706,449.25|
|72,828,526.55|
|117,242,968.79|
|902,777,944.59|

 18Advancesfromcustomers
(1) Receivedinadvance
||
|-|
|ClosingBalance|
|28,535,884.77|
|28,535,884.77|

 19Employeebenefitspayable
(1)Categoryofemployee’spayables
||||
|-|-|-|
|OpeningBalance|Increase|Decrease|
|7,914,043.53|90,646,047.56|90,869,121.68|
|9,342,807.89|17,882,261.52|17,887,153.21|
|17,256,851.42|108,528,309.08|108,756,274.89|

(2)Short-termemployee’spayables
||||
|-|-|-|
|Opening|Increase|Decrease|

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport
||||
|-|-|-|
|Balance|||
|261,033.34|63,335,902.46|63,353,361.21|
|31,194.00|6,939,647.64|6,970,841.64|
|581,422.78|10,287,810.13|10,283,799.88|
|292,917.57|7,996,814.42|7,993,566.42|
|217,718.51|1,215,757.08|1,215,314.65|
|70,786.70|1,075,238.63|1,074,918.81|
|2,342,939.01|9,162,358.76|9,242,846.52|
|4,697,454.40|920,328.57|1,018,272.43|
|7,914,043.53|90,646,047.56|90,869,121.68|

 (3)Welfarewithdepositandwithdrawalplan
||||
|-|-|-|
|OpeningBalance|Increase|Decrease|
|9,007,073.27|17,366,607.48|17,371,778.23|
|335,734.62|515,654.04|515,374.98|
|9,342,807.89|17,882,261.52|17,887,153.21|

 6.20Taxespayable
||
|-|
|ClosingBalance|
|6,792,987.60|
|806,593.03|
|549,126.61|
|294,515.16|
|204,044.64|
|92,270.38|
|371,882.38|
|381,391.93|
|9,492,811.73|

21Interestpayable
Item ClosingBalance OpeningBalance
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport
||
|-|
|420,000.00|
|420,000.00|

 22Otherpayables
Otherpayablescategorizedbypaymentsnature
||
|-|
|ClosingBalance|
|1,675,699.00|
|17,082,958.00|
|4,127,316.50|
|81,741,656.21|
|104,627,629.71|

 23 Non-currentliabilitiesduewithinoneyear
(1)Non-currentliabilitiesduewithinoneyear
Item ClosingBalance OpeningBalance
Long-termloanduewithinoneyear
50,000,000.00 90,000,000.00 Total
50,000,000.00 90,000,000.00 24 Othercurrentliabilities
Item ClosingBalance OpeningBalance
Governmentsubsidywithin1year
4,335,522.50 4,704,022.50 Total
4,335,522.50 4,704,022.50 Government subsidy
||||||
|-|-|-|-|-|
|OpeningBalance|Increase|Recordedinto non-operationincome|OtherChange|ClosingBalance|
|736,999.97|-|368,500.00||368,499.97|
|2,704,235.83|-|1,352,117.94|1,352,117.94|2,704,235.83|
|400,000.00|-|200,000.00|200,000.00|400,000.00|
|472,320.00|-|236,160.00|236,160.00|472,320.00|
|97,548.00|-|||97,548.00|
|240,000.00||120,000.00|120,000.00|240,000.00|
|52,918.70|-|||52,918.70|

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport
||||||
|-|-|-|-|-|
|OpeningBalance|Increase|Recordedinto non-operationincome|OtherChange|ClosingBalance|
|4,704,022.50||2,276,777.94|1,908,277.94|4,335,522.50|

“Other Change”: the expected amortization occurred during the next year will be re-categorized from deferredincometoothercurrentliabilities.
25 Long-termloan
(1)Categoryoflong-termloan
Category 2017.06.30 2016.12.31
50,000,000.00 Assuranceloan
Creditloan
Total
50,000,000.00 26Long-termpayables
(1) Long-termpayablescategorizedbypaymentsnature
||
|-|
|ClosingBalance|
|100,000.00|
|1,497,305.72|

 27 Specialpayables
|||||
|-|-|-|-|
|OpeningBalance|Increase|Decrease|ClosingBalance|
|221,698.98|||221,698.98|
|75,000.00|||75,000.00|
|296,698.98|||296,698.98|

28Othernon-currentliabilities
(1) Categoryofdeferredincome
|||||
|-|-|-|-|
|OpeningBalance|Increase|Decrease|ClosingBalance|

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport
||||
|-|-|-|
|41,682,411.76|1,908,277.94|39,774,133.82|
|41,682,411.76|1,908,277.94|39,774,133.82|

(2)Governmentsubsidy
|||||||
|-|-|-|-|-|-|
|OpeningBalance|Increase|Recordedinto non-operationincome|OtherChange|ClosingBalance|Relatedwithasset/equity|
|4,292,112.00|||0.00|4,292,112.00|4,292,112.00|
|29,746,594.01|||1,352,117.94|28,394,476.07|29,746,594.01|
|2,800,000.00|||200,000.00|2,600,000.00|2,800,000.00|
|2,361,600.00|||236,160.00|2,125,440.00|2,361,600.00|
|1,900,000.00|||120,000.00|1,780,000.00|1,900,000.00|
|582,105.75||||582,105.75|582,105.75|
|41,682,411.76|||1,908,277.94|39,774,133.82|41,682,411.76|

 “Other change”: carried forward the non-operation income occurred in 2016 from the subsidy and re-categorized to othercurrentliabilities.
(1) A: Deferred income: the RMB 4,877,400.00 of “Industry development subsidies” is distributed by the Liaoyang EconomicandDevelopmentdistrictBureauofFinancein2013.Thegrantisrelatedtolandandamortizedover 50yearsinaccordancewithlandamortizationcriteria.
(2) B: Deferred income: the improvement subsidy is the railway transportation bearing technologic improvement subsidy with total amount of RMB 7,370,000.00 granted by Bureau of Finance Liaoning province in 2008. The subsidyrelatedtoassetshouldbedeferredovertheusefullifeof10years.
(3) C: Deferred income: the compensation for plants moving is RMB 59,820,000.00 granted from Dalian government-owned assets investment and operating Co., Ltd in 2011. 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 are recognized as the removal compensation related with assets, which is amortized 18 years, according to the new fixed assets
formedaftertheDalianbranchremoval.
(4) D: Deferred income: the RMB 4,000,000.00 of development of intelligent manufacturing equipment subsidy is
distributed by Dalian City Finance Bureau in 2012.The subsidies are used in the project “Grinding vehicle
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport integrationandprocessingdigitalization”.Currently,theequipmenthasbeenusedforproductionmanufacturing andgrantisamortizedover10years.
(5) E: Deferred income: the RMB 4,723,200 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 speciallyusedtoimprovetheprojectofimprovementofbearingbaseinhigh-endequipmentsector.Theitemis amortizedwithin10years.
(6) F: Deferred income: the RMB 2,400,000.00 interest subsidy of “Axle box and bearing technology improvement of grandaxle loadrailwaycarriages”isgrantedbyWafangdian FinanceBureau in2014.The subsidyisnowin processing the project “Axle box and bearing technology improvement of grand axle load railway carriages”. Thisprojectisstillintheprogressandisexpectedtobecompletedforinspectionin2016.
(7) G: Deferred income: the 700,000.00 RMB of the construction of workshop for technology masters subsidy is granted by Dalian Finance Bureau in 2014 according to “Da Cai She (Zhuan) No.[2013]26”, “Da Cai She (Zhuan) No.[2013]37”, “Da Cai She (Zhuan) No.[2013]45”, “Da Cai She (Zhuan) No.[2014]27”, and “Da CaiShe(Zhuan)No.[2014]32”.Noassetsareestablishedyetsofar,thegranthasbeenbookedintonon-operating income.
29Sharecapital
2016.12.31 Changeforcurrentperiod 2017.06.30 Issui Transferrin
Shareholders ng Distributi gcapital
name/category Amounts % new ng reserves Others Subtotal Amounts % share shares toshare
s capital
402,600,00 100.0
Totalshares — — — — — 402,600,000.00 100.00 0.00 0
30Capitalreserves
Items 2016.12.31 Increase Decrease 2017.06.30 201,956,446.52 201,956,446.52 Sharepremium
283,734,603.95 283,734,603.95 Othercapitalreserves
485,691,050.47 485,691,050.47 Total
31Surplusreserves
Items 2016.12.31 Increase Decrease 2017.06.30
110,852,290.20 110,852,290.20 Statutorysurplusreserve
20,590,618.91 20,590,618.91 Discretionarysurplusreserve
131,442,909.11 131,442,909.11 Total
32Undistributedprofit
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport
||
|-|
|Thisperiod|
|359,603,965.97|
|359,603,965.97|
|2,633,635.55|
|362,237,601.52|

33Operatingrevenue&cost
||||
|-|-|-|
|Thisperiod|||
|Salesrevenue|Costofsales|Salesrevenue|
|986,168,093.43|862,562,230.54|1,022,552,099.60|
|149,332,481.90|141,633,411.45|102,902,932.38|
|1,135,500,575.33|1,004,195,641.99|1,125,455,031.98|

 34Operatingtaxesandsurcharges
Items Thisperiod Lastperiod
Businesstax
Cityconstructiontax
3,428,881.69 2,620,938.60 Educationsurcharge
2,425,208.91 1,844,718.24 3,978,357.55 11,784.65 Other
9,832,448.15 4,695,351.44 Total
35Sellingexpenses
Items Thisperiod Lastperiod
Transportationexpense 31,546,578.17 30,956,962.62 Employeebenefit 13,476,776.84 17,531,901.82 Travelexpense 9,656,691.45 7,641,428.07 Conferenceexpense 2,465,600.45 4,375,408.70 Trademarkusefee 927,157.82 2,000,000.00 Otherexpense 17,947,375.19 22,236,984.67 Total
76,020,179.92 84,742,685.88 36Administrativeexpenses
Items Thisperiod Lastperiod
Employeebenefit 17,708,196.38 16,327,231.64
Taxexpense 511,493.60 4,217,328.76
Technologydevelopmentexpense 1,318,389.62 2,713,800.00
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport Intangibleassetsamortization 2,266,864.90 2,221,088.40 Guideandfirefightingexpense 1,647,500.00 Depreciationexpense 998,045.03 1,199,666.57 Businessentertainingexpense 403,673.93 305,960.70 Travelexpense 397,589.98 440,495.52 Otherexpense 7,641,468.38 7,573,105.97 31,245,721.82 36,646,177.56 Total
37Financialexpenses
Items Thisperiod Lastperiod Interestexpenses
16,282,310.02 17,700,659.58 384,832.07 131,402.31 Less:interestincome
Add:Exchangelosses
-1,336,112.98 -5,015,729.40 Add:Othersexpenditure
1,454,903.78 -162,786.15 Total
16,016,268.75 12,390,741.72 38Assetsimpairmentlosses
Items Thisperiod Lastperiod
Lossofbaddebts
99,810.61 1,067.04 Total
99,810.61 1,067.04 39Non-operatingincome
(1)Non-operatingincomelist
|||
|-|-|
|Thisperiod|Lastperiod|
|44,573.04|4,649,046.02|
|44,573.04|4,649,046.02|
|1,356,259.02|2,695,634.43|
|2,423,777.94|5,575,349.68|
|832,777.00|1,057,551.00|
|115,136.99|26,691.99|
|4,772,523.99|14,004,273.12|

 (2) Governmentgrantslist
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport
(3)
||||||||
|-|-|-|-|-|-|-|
|Resource|reason|type|affecttheprofitandlossoftheyearornot|Specialallowanceornot|currentyear|prioryear|
|BureauofFinanceLiaoningProvinceNo.57[2007]|subsidy|Subsidiesforresearchanddevelopment,technicalrenovationandtransformation|Y|N|368,500.00|368,500.00|
|Compensation deal ofDalian state-ownedproperty investment andoperating groupCo.,LTD|subsidy|Subsidiesforlocalgovernmentinvestmentpoliciesandotherlocalsupportpolicies|Y|N|1,352,117.94|1,352,117.94|
|Wacaijian[119] ( noticeabout distributing 6thinterestsubsidyfundfortheyear of 2011 to thecompany)|subsidy|Subsidiesforresearchanddevelopment,technicalrenovationandtransformation|Y|N|236,160.00|236,160.00|
|Dalian Municipal FinanceBureau[2012]1163|subsidy|Subsidiesgrantedtothestatefortheencouragementandsupportofspecificindustriesandindustries(obtainedinaccordancewithnationalpoliciesandregulations)|Y|N|200,000.00|200,000.00|
|WacaijianNo.179[2014]|subsidy|Subsidiesgrantedtothestatefortheencouragementandsupportofspecificindustriesandindustries(obtainedinaccordancewithnationalpoliciesandregulations)|Y|N|120,000.00|1,125,308.18|
|DaCaiZhi Qi No. [2016]66,677|subsidy|Subsidiesgrantedtothestatefortheencouragementandsupportofspecificindustriesand|Y|N||1,580,000.00|

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport
||||||||
|-|-|-|-|-|-|-|
|Resource|reason|type|affecttheprofitandlossoftheyearornot|Specialallowanceornot|currentyear|prioryear|
|||industries(obtainedinaccordancewithnationalpoliciesandregulations)|||||
|[2015]995号|subsidy|Subsidiesforresearchanddevelopment,technicalrenovationandtransformation|Y|N||250,000.00|
|Dalian Municipal FinanceBureau|Award|Subsidiesgrantedtothestatefortheencouragementandsupportofspecificindustriesandindustries(obtainedinaccordancewithnationalpoliciesandregulations)|Y|N|147,000.00||
|Dalian Municipal FinanceBureau[2013]26|subsidy|Subsidiesgrantedtothestatefortheencouragementandsupportofspecificindustriesandindustries(obtainedinaccordancewithnationalpoliciesandregulations)|Y|N||3,762.56|
|Dalian Municipal FinanceBureau|subsidy|Subsidiesforlocalgovernmentinvestmentpoliciesandotherlocalsupportpolicies|Y|N||459,501.00|
||||||2,423,777.94|5,575,349.68|

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport 40Non-operatingexpenses
|||
|-|-|
|Thisperiod|Lastperiod|
|33,802.04|78,416.68|
|33,802.04|78,416.68|
||723,115.84|
|15,648.86|650.00|
|179,941.63|603,258.18|
|229,392.53|1,405,440.70|

 41Incometaxexpenses
（1）Adjustmentforprofitandincometasexpenss
|||
|-|-|
|item|amoutn|
|Totalprofit|2,633,635.55|

 42Notestocashflowstatement
(1)Cashreceipt/paymentofotheroperating/investing/financingactivities
1)Othercashreceivedrelatingtooperatingactivities
Items Thisperiod Lastperiod
Othercashreceivedrelatingtooperatingactivities
1,373,744.39 3,957,803.39 1,373,744.39 3,957,803.39 Total
2)Othercashpaidrelatingtooperatingactivities
Items
Thisperiod Lastperiod
Othercashpaidrelatingtooperating
52,708,495.81 56,508,192.96 activities
Total 52,708,495.81 56,508,192.96 3)Othercashreceivedrelatingtofinancialactivities
Items
Thisperiod Lastperiod
Othercashpaidrelatingtofinancial
321,721,729.99 147,525,694.44 activities
Total 321,721,729.99 147,525,694.44
4)Othercashpaidrelatingtofinancialactivities
Items
Thisperiod Lastperiod
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport Othercashpaidrelatingtofinancial
286,551,613.33 150,000,000.00 activities
Total 286,551,613.33 150,000,000.00 43Supplementaryinformationofconsolidatedcashflowstatement
Items Thisperiod Lastperiod
1.Adjustingnetprofitintocashflowsofoperatingactivities:
Netprofit
2,633,635.55 -44,024,185.93 99,810.61 1,067.04 Add:Provisionforimpairmentofassets
Depreciationoffixedassets
48,297,397.65 64,861,194.84 Amortizationofintangibleassets
2,266,864.90 2,221,088.40 Amortizationoflong-termdeferredexpenses
33,915.18 56,079.18 Lossesondisposaloffixedassets,intangibleassets,and
-10,771.00 -4,570,629.34 long-termassets(incomelistedwith”-”)
Financialexpense(incomelistedwith”-”)
16,016,268.75 12,390,741.72 Investmentloss(incomelistedwith”-”)
74,534,439.97 -52,021,892.08 Decreaseofinventory(increaselistedwith”-”)
-138,273,848.15 -95,261,292.96 -82,203,972.02 107,958,163.98 Decreaseofoperatingreceivables(increaselistedwith”-”)
Increaseofoperatingpayables(decreaselistedwith”-”)
other
Netcashflowsarisingfromoperatingactivities
-76,606,258.56 -8,389,665.15 2.Significantinvestmentandfinancingactivitiesunrelatedto
cashincomeandexpenses
3.Netincrease(decrease)ofcashandcashequivalent
Endingbalanceofcash
98,615,801.79 113,941,499.74 Less:Openingbalanceofcash
142,233,376.52 78,556,030.56 -43,617,574.73 35,385,469.18 Netincreaseofcashandcashequivalent
(3)Cashandcashequivalents
Items Thisperiod Lastperiod
Cash
98,615,801.79 142,233,376.52 98,615,801.79 142,233,376.52 Closingbalanceofcashandcashequivalents
VIII.EquityofOtherEntities
1. Equityofsubsidiaries
(1) Organizationstructureofgroupcompany
||||||
|-|-|-|-|-|
|Location|RegisteredLocation|Natureofoperation|Share（%）||
||||Direct|Indirect|
|Wafangdian|LiaoyangBaitaDistrict|Manufacturingand|100||

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport
|||||
|-|-|-|-|
||WeiguoRdNo.61|sellingbearingandmachines||
|Wafangdian|DalianFreeTradeZoneSanshiliYongshengRdNo.12|Manufacturingandsellingbearingandmachines|100|
|Wafangdian|WafangdianBeigongjiStNo.1|Manufacturingandsellingbearingandmachines|100|

IXRiskRelatedtoFinancialInstrument
The main financial instruments held by the group company are including investment in share equity, borrowing, accounts receivable, and accounts payable. The details introduction about each financial instrument is referred to this notes No.VI above. The related risks of these financial instruments and the risk management policy conducted to reduce these risks by the group company are introduced as below.The Group management conducts to manage and monitortheserisksexposureandcontroltheserisksundercertainrisklevel.
1. Objectivesandpoliciesofeachriskmanagement
The objectives of risk management conducted by the group company are to reach the balance between risk and profit return by reducing the negative influence to operating performance to the minimum level as well as maximising theshareholders’and otherinvestors’profits. Based on these objectives, the basic risk management policy is to recognize and analyse all sorts of risk that the group company faced with, to set up the proper risk tolerancebottomlineconductingriskmanagement,aswellastomonitortheserisksinatimelyandeffectivemanner, andtoensuretheserisksunderthelimitlevel.
(1) Marketrisk
1) Currencyrisk
The currencyriskis referred asthe riskcaused bythe fluctuation of exchange rate.The maincurrencyriskthat the companyfacedwithisrelatedtotheUSDsincethemainexportbusinessissettledbyUSD.Otherthanthebalance of foreign currency presented in Note VI. 44, all assets and liabilities of company are presented in RMB On December31, 2015.The balance in foreign currency of assets and liabilities may cause currency riskwith influence tooperatingperformance.
2) Interestrisk
Themainpotentialinterestriskwhichiscaused bythefluctuation ofthecashflowoffinancialinstrumentsisrelated tothefloatingrateofbankloan(NoteVI.15).ThepolicythatadoptedbytheGroupistomaintainthefloatingrateof loan.
(2) Creditrisk
On31December,2015,theGroup’smostprobablecreditriskexposureisfromthefinanciallossprimarilyduetothe failure of fulfilling the obligation by one party of the contract. The impairment losses ofcompany’s financial assets areincluding:
Among the book value of recognized financial assets in the consolidated statement of financial position, for the financialinstrumentsmeasuredat fairvalue,theirbookvaluesreflecttheriskexposure,however,notmaximumrisk level;thelevelischangingalongwiththefairvalue.
As the aim to reduce the credit risk, the Group sets up the credit department to ensure the credit limit, to examine and approve the credit application, and to carry out monitorprocedures to claim expiredcreditor’s right. In addition, at each of balance sheet date, the Group checks with every single process of receipt of receivable to ensure the
sufficiency of provision of bad debt. Therefore, the management of the Group believed the credit risk had been
minimizedsignificantly.
Theworkingcapitalhaslowlevelofcreditrisksincethecashisdepositedinthebankswithhighcreditreputation.
(3) Liquidityrisk
As the management of liquidity risk, theGroup’s policy is to regularly monitor the sufficiency of cash and cash
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport equivalent, the liquidity requirements to ensure the normal operations, and the fluctuation of cash flow. The bank loanactivitiesareundermonitoringbymanagementtomakesuretocomplywiththeloanagreement.
TheliquidityriskisreferredastheGroupfailedtofulfilitsfinancialobligationsbytheduedate.TheGroupmanages the liquidity risk by the maintain sufficiency of working capital to cover the expired debt to avoid the unacceptable losses or the damage ofGroup’s reputation. The Group analyses the debt structure and due time periodically to ensurethesufficiencyofavailablecashflow.Thebankloanactivitiesareundermonitoringbymanagementtomake sureto complywith theloan agreement.At the same, theGrouphas consultation with financialorganizationsabout thefinancingactivitiestomaintainthecreditlevelandtoreducethecreditrisk.
X.DisclosureofFairValue
XIRelatedPartiesRelationshipandTransactions
1Parentcompanyandultimatecontroller
|||||
|-|-|-|-|
|Registeredaddress|Businessnature|Registeredcapital|Shareholdingpercentage(%)|
|No.1NorthGongjiStreet,WafangdianCity,Dalian|Manufactureandsalesofbearingandotherequipments|413,793,100.00|60.61|

(2).Subsidiaries
ReferringtothecontentinNoteVIII.1.(1)Organizationstructureofgroupcompany
2Otherrelatedparties
Nameofrelatedparty Relatedpartyrelationship
Dalian Wazhou Bearing Manufacturing Equipment Other entity controlled by the same parent
Co.,Ltd companyandultimatecontrollingparty
Other entity controlled by the same parent
WazhouPrecisionSteelBallCompany
companyandultimatecontrollingparty
Other entity controlled by the same parent
WazhouExactForgeLtd.,
companyandultimatecontrollingparty
Other entity controlled by the same parent
WazhouGroupWindpowerBearingLtd
companyandultimatecontrollingparty
Other entity controlled by the same parent
WazhouGroupExactTransmissionBearingCo.,Ltd
companyandultimatecontrollingparty
Wazhou Group Equipment Technology Project Co., Other entity controlled by the same parent
Ltd. companyandultimatecontrollingparty
Other entity controlled by the same parent
WazhouGroupSpecialPrecisionBearingCo.,Ltd.
companyandultimatecontrollingparty
Other entity controlled by the same parent
LiaoNingNorthMetalMaterialssupplyCo.,Ltd
companyandultimatecontrollingparty
Other entity controlled by the same parent
WazhouGroup(USA)BearingCO.,Ltd.
companyandultimatecontrollingparty
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport Nameofrelatedparty Relatedpartyrelationship
Wazhou Group high-end auto bearing limited Other entity controlled by the same parent
company
companyandultimatecontrollingparty
Other entity controlled by the same parent
WazhouGroupPrecisionRollerlimitedcompanu
companyandultimatecontrollingparty
Other entity controlled by the same parent
WazhouGroupPrecisionRetainerLimitedCompany
companyandultimatecontrollingparty
Other entity controlled by the same parent
Kugel-undRollenlagerwerkLeipzigGmbH
companyandultimatecontrollingparty
Other entity controlled by the same parent
WafangdianbearingPowerLimitedCompany
companyandultimatecontrollingparty
Wazhou Group Bearing Engineering technology Other entity controlled by the same parent
researchcenter
companyandultimatecontrollingparty
DalianGONAWazhouAutoBearingsCo.,Ltd Otherrelatedparty
DalianWazhouJinzhouMachineryCo.,Ltd Otherrelatedparty
Wafangdian Tongda Bearing Manufacturing Co., Otherrelatedparty
Ltd
DalianWazhouFengyuanMachineryCo.,Ltd Otherrelatedparty
3Relatedpartytransactions
(1) Purchaseofgoods
|||||
|-|-|-|-|
|Content|currentyear|Authorizedamount|Overornot|
|Purchaseofgoods|0|0|No|
|Purchaseofgoods|77,936,367.41|150,000,000.00|No|
|Purchaseofgoods|32,874,239.72|0.00|Yes|
|Purchaseofgoods|40,745,644.79|110,000,000.00|No|
|Purchaseofgoods|35,651,638.02|90,000,000.00|No|
|Purchaseofgoods|6,546,307.65|5,000,000.00|No|
|Purchaseofgoods|35,967,883.00|70,000,000.00|No|
|Purchaseofgoods|67,903,907.05|150,000,000.00|No|
|Purchaseofgoods/equipments|10,239,204.30|19,720,000.00|No|
|Purchaseofgoods|2,249,100.62|3,000,000.00|No|
|Purchaseofgoods|0.00|0.00|No|
|Purchaseofgoods|47,821,095.07|95,000,000.00|No|
|Purchaseofgoods|27,936,491.52|50,000,000.00|No|
|Purchaseofgoods|64,029,180.29|200,000,000.00|No|
|Purchaseofgoods|10,391,594.66|14,730,000.00|No|

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport
|||||
|-|-|-|-|
|Purchaseofreserve|1,518,389.62|0.00|Yes|

(2)Salesofgoods
|||
|-|-|
|Content|currentyear|
|Salesofgoods|88,377,746.34|
|Salesofgoods|111,453.04|
|Salesofgoods|33,462,342.95|
|Salesofgoods|17,128,024.78|
|Salesofgoods|137,745.81|
|Salesofgoods|15,125,611.60|
|Salesofgoods|255,794.10|
|Salesofgoods|999,505.14|
|Salesofgoods|29,615.00|
|Salesofgoods|213,232.25|
|Salesofgoods|24,734,923.69|
|Salesofgoods|1,810,068.24|
|Salesofgoods|129,506,733.45|
|Salesofgoods|1,549,815.31|
|providelabourservices|8,585,573.54|
|providelabourservices|295,246.43|
|providelabourservices|57,455.85|
|providelabourservices|762,464.12|
|providelabourservices|29,875.05|
|providelabourservices|281,992.44|
|providelabourservices|162,116.67|

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport
|||
|-|-|
|providelabourservices|16,456.70|

4Assetsrentout
Detials can be found in the part VII “the important rlated party transactions” 1 “The relate transactions related to the day-to-dayoperations.”
5Relatedpartyassetstransferanddebtstructurereconstruction
6.Balanceswithrelatedparties
(1)Accountsreceivableduefromrelatedparties
|||||
|-|-|-|-|
|Relatedparty|ClosingBalance|||
||BookBalance|Provision|BookBalance|
|Wazhou Exact ForgeLtd.,|86,948,569.30||72,591,219.00|
|Wazhou GroupPrecision RollerLimitedCompany|81,463,810.50||58,601,148.69|
|Wazhou Group (USA)BearingCO.,Ltd.|20,881,871.65||34,524,492.48|
|Wazhou GroupPrecision RetainerLimitedCompany|26,846,163.67||18,984,808.97|
|Wazhou Group SpecialPrecision Bearing Co.,Ltd.|7,300,325.91||7,469,459.12|
|Wazhou GroupLimitedCompany|5,650,623.27||5,803,622.51|
|Wazhou Group ExactTransmission BearingCo.,Ltd|8,161,894.07||5,416,555.04|
|Wazhou Grouphigh-end auto bearinglimitedcompany|128,287,182.55||3,363,108.99|
|Wazhou Special SteelBallCompany|2,472,047.85||1,879,073.48|
|Kugel- undRollenlagerwerkLeipzigGmbH|952,567.08||1,267,310.71|
|Wafangdian TongdaBearingManufacturing Co.,Ltd.|31,825.61||1,143,547.03|
|Dalian WazhouJinzhou MachineryCo.,Ltd|||283,037.97|
|Dalian WazhouBearingManufacturingEquipmentCo.,Ltd|||229,145.54|

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport
|||||
|-|-|-|-|
|Relatedparty|ClosingBalance|||
||BookBalance|Provision|BookBalance|
|Kugel- undRollenlagerwerkLeipzigGmbH|5,418,484.83||3,793,488.27|
|WazhoubearingPowerlimitedCompany|||2,478,663.40|
|LiaoNing North MetalsupplychainCo.,Ltd|264,405.44||264,405.44|
|Wazhou Group SpecialPrecision Bearing Co.,Ltd.|||10,097.75|
|Wazhou GroupLimitedCompany|9,007,028.83||724,150.65|
|Wazhou Grouphigh-end auto bearinglimitedcompany|||148,634.68|

(2) Accountspayableduefromrelatedparties
|||
|-|-|
|Relatedparty|ClosingBalance|
|Wazhou Group Wind PowerBearingLtd|79,420,317.80|
|WazhouGroupLimitedCompany|5,090,982.76|
|Wazhou Group EquipmentTechnologyProjectCo.,Ltd.|24,254,120.38|
|Wafangdian Tongda BearingManufacturingCo.,Ltd.|38,076,842.42|
|Dalian Wazhou JinzhouMachineryCo.,Ltd|5,756,087.80|
|Dalian Wazhou BearingManufacturing Equipment Co.,Ltd|15,687,532.20|
|WazhouExactForgeLtd.,|18,985,396.43|
|Dalian Wazhou FengyuanMachineryCo.,Ltd|19,413,382.80|
|Dalian GONA Wazhou AutoBearingsCo.,Ltd||
|Wazhou Group Precision RetainerLimitedCompany|10,138,236.57|
|Wazhou Precision Steel BallCompany|3,742,520.45|
|Wazhou Group Precision RollerLimitedCompany|4,755,543.08|

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport
|||
|-|-|
|Relatedparty|ClosingBalance|
|Wazhou Group ExactTransmissionBearingCo.,Ltd|15,603,554.03|
|Wazhou Group (USA) BearingCO.,Ltd.||
|Wazhou Group Special PrecisionBearingCo.,Ltd.||
|Wazhou Group high-end autobearinglimitedcompany||
|Wazhou bearing power limitedcompany|1,232,028.97|
|Wazhou Group Bearing Engineeringtechnologyresearchcenter|1,112,430.38|
|WazhouGrouplimitedcompany|3,267,645.80|
|Dalian Wazhou BearingManufacturing Equipment Co.,Ltd|431,088.45|
|Wazhou Group EquipmentTechnologyProjectCo.,Ltd.|952,000.00|

7.Contingency
AsatJune30,2017,theGroupdoesnothaveanyothercontingencies.
XIII.Share-BasedPayment
XIV.CommitmentandContingency
AsatJune30,2016,theGroupdoesnothaveanyothersignificantcommitments.
XV.EventsaftertheBalanceSheetDate
TheGroupdoesnothaveanyothersignificanteventsaftertheBalanceSheetDate.
XVI.OtherSignificantEvents
WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport XVII.NotestotheMainItemsoftheFinancialStatementsofParentCompany
1Accountsreceivable
(1)Accountsreceivablecategory
ClosingBalance
|||||
|-|-|-|-|
|Bookingbalance||Provision||
|Amount|%|Amount|%|
|7,718,274.69|0.55%|7,718,274.69|100.00%|
|1,356,773,444.45|97.00%|45,474,968.50|5.21%|
|33,489,185.84|2.40%|33,489,185.84|100.00%|
|1,397,980,904.98|100.00%|86,682,429.03|6.20%|

(Continued)
OpeningBalance
|||||
|-|-|-|-|
|Bookingbalance||Provision||
|Amount|%|Amount|%|
|7,718,274.69|0.57%|7,718,274.69|100.00%|
|1,316,741,292.38|96.97%|45,524,624.70|5.34%|
|33,489,185.84|2.47%|33,489,185.84|100.00%|
|1,357,948,752.91|100.00%|86,732,085.23||

 1) Individually significant amounts of accounts receivable accrued the bad debt provision separately at the end of June 30,2017
ClosingBalance
||||
|-|-|-|
|Accountsreceivable|Provisionforbaddebts|Proportion(%)|
|3,910,007.43|3,910,007.43|100.00%|
|3,808,267.26|3,808,267.26|100.00%|
|7,718,274.69|7,718,274.69||

2)Accountsreceivableaccruedthebaddebtprovisionsintheportfolioasaccountingaginganalysismethod
ClosingBalance
Aging
|||
|-|-|
|Accountsreceivable|Provisionforbad|

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport
|||
|-|-|
||debts|
|719,742,776.83|7,197,427.77|
|169,257,705.09|8,462,885.25|
|52,263,895.31|10,452,779.06|
|31,934,362.91|15,967,181.46|
|973,198,740.14|42,080,273.54|

(2)Baddebtprovisionaccruedandwrite-off(withdraw)
(3)Accountsreceivablewrittenoffincurrentperiod
2Otherreceivables
2.Otherreceivables
(1)Thecategoryofotherreceivables
|||||
|-|-|-|-|
|ClosingBalance||||
|Bookingbalance||Provision||
|Amount|%|Amount|%|
|31,891,519.38|87.5%|828,459.71|4.63%|
|4,556,358.92|12.50%|4,556,358.92|100.00%|
|36,447,878.30|100.00%|5,384,818.63||

(Continued)
|||||
|-|-|-|-|
|OpeningBalance||||
|Bookingbalance||Provision||
|Amount|%|Amount|%|
|-|-|-|-|
|19,504,288.62|81.06%|828,459.71|6.18%|
|4,556,358.92|18.94%|4,556,358.92|100.00%|

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport
|||||
|-|-|-|-|
|OpeningBalance||||
|Bookingbalance||Provision||
|Amount|%|Amount|%|
|24,060,647.54|100.00%|5,384,818.63||

1) Otherreceivablesaccruedthebaddebtprovisionsintheportfolioasaccountingaginganalysismethod ClosingBalance
|||
|-|-|
|Otherreceivables|Provisionforbaddebts|
|15,896,594.17|158,965.94|
|380,160.00|19,008.00|
|535,416.66|107,083.33|
|1,086,804.87|543,402.44|
|17,898,975.70|828,459.71|

(2)Otherreceivablescategorizedbynature
||
|-|
|ClosingBalance|
|36,447,878.30|
|36,447,878.30|

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

 (2)Investmentsintosubsidiaries
||||||
|-|-|-|-|-|
|OpeningBalance|Increase|Decrease|ClosingBalance|Provisioncarriedcurrentperiod|
|17,337,259.95|||17,337,259.95||
|45,478,956.37|||45,478,956.37||
|148,767,681.35|||148,767,681.35||

WafangdianBearingCo.,Ltd（WazhouB） 2017Mid-yearReport
|||
|-|-|
|211,583,897.67|211,583,897.67|

4Operatingrevenueandcost
||||
|-|-|-|
|Thisperiod|||
|Revenue|Cost|Revenue|
|972,513,250.78|857,675,134.61|1,045,680,912.95|
|149,234,390.96|142,142,020.55|93,470,653.82|
|1,121,747,641.74|999,817,155.16|1,139,151,566.77|

 XVIISupplementaryInformationtotheFinancialStatements
1.Non-operatingprofitorloss
||
|-|
|Amount|
|10,771.00|
|2,423,777.94|
|1,356,259.02|
|752,323.50|
|347,241.60|
|4,195,889.86|

2.Returnonequityandearningspershare
||||
|-|-|-|
||Weightedaveragereturnonnetassets(%)||
|||BasicEPS|
|0.19%||0.007|
|-0.11%||-0.0039|

3.DifferencesinaccountinginformationunderIASanddomesticaccountingstandard
Chapter X. List of reference documents
1.The2017mid-yareAccountingstatementswhichiswiththesignaturesandsealsofthelegalrepresentative,finance controllerandthedirectorofaccountingdepartmentoftheCompany.
2.OriginaldocumentsandnoticesoftheCompanydisclosedinnewspapersdesignatedbytheSecuritySupervisory
CommitteeofChinainreportperiod.