Wafangdian Bearing Company Limited 2021 Midyear Financial report
2021 Midyear Financial report
（unaudited）
From Jan. 1, 2021 to Jun 30, 2021
Catalogue page
Midyear financial statement
Balance sheet 2-4
Income statement 4-6
Cash flow statement 7-9
The changes of owner’s equity 10-18
Annotations of the midyear incorporate financial statements 18-105
Other financial data 106
1 Wafangdian Bearing Company Limited 2021 Midyear Financial report
1. Consolidated balance sheet
Establishment unit: Wafangdian Bearing Co., LTD In RMB Yuan
ITEM 2021.6.30 2020.12.31
Current assets:
Monetary fund 213,848,619.85 194,152,280.08
Settlement provision
Lending money,
Trading financial assets 411,407.31 228,046.00
Derivative financial assets
Notes receivable 619,807,598.26 416,044,578.48
Accounts receivable 944,368,834.23 975,628,091.12
Receivables financing 129,580,519.36 130,600,545.59
prepayments 22,055,659.11 53,772,465.49
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves receivable
Other accounts receivable 11,290,749.69 14,204,144.25
Where: interest receivable
Dividends receivable
Purchase and resale of financial assets
inventory 761,125,814.98 615,656,946.30
Contract assets
Hold assets for sale
Non-current assets maturing within one year
Other current assets 10,712,609.56 24,610,448.93
Total current assets 2,713,201,812.35 2,424,897,546.24
Non-current assets:
Issue loans and advance payments
Creditor's rights investment
Other debt investment
Long-term receivables
Long-term equity investment
Investment in other equity instruments 11,926,856.64 11,926,856.64
Other non-current financial assets
2 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Investment real estate 115,459,279.72 117,516,482.39
Fixed assets 402,752,098.78 474,109,923.22
Projects under construction 24,348,551.06 24,254,985.16
Productive biological assets
Oil and gas assets
Right of use assets 1,009,841.91
Intangible assets 79,119,926.72 80,725,861.18
The development of spending
goodwill
Long-term deferred expenses 336,851.27 511,188.11
Deferred tax assets
Other non-current assets
Total non-current assets 634,953,406.10 709,045,296.70
Total assets 3,348,155,218.45 3,133,942,842.94
Current liabilities:
Short-term borrowing 698,000,000.00 670,000,000.00
Borrowing from the central bank
Funds borrowed from
Transactional financial liabilities
Derivative financial liabilities
Notes payable 226,793,257.05 274,654,535.65
Accounts payable 1,279,404,724.99 1,044,801,896.85
Advance payment
Contract liability 47,607,834.61 39,456,304.55
Sale of repurchase financial assets
Take deposits and inter-bank deposits
Acting to buy and sell securities
Acting as an underwriter of securities
payments
Employee compensation payable 21,852,557.25 52,677,141.09
Payable taxes 4,336,864.26 3,688,168.68
Other payable 146,468,203.79 129,476,061.47
Where: interest payable 1,680,000.00 1,041,600.00
Dividends payable
Fees and commissions due
3 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Reinsurance accounts payable
Holding liabilities for sale
Non-current liabilities due within one year
Other current liabilities 6,168,824.67 5,129,319.58
Total current liabilities 2,430,632,266.62 2,219,883,427.87
Non-current liabilities:
Reserve for insurance contract
Long-term borrowing
Bonds payable
Where: Preferred stock
Sustainable debt
Lease liability 1,281,492.96
Long-term payables 344,974.84 344,974.84
Long-term employee compensation payable
Estimated debts 39,427,812.54 39,032,270.91
Deferred revenue 57,537,112.01 59,942,753.08
Deferred tax liabilities 734,448.35 734,448.35
Other non-current liabilities
Total non-current liabilities 99,325,840.70 100,054,447.18
Total liabilities 2,529,958,107.32 2,319,937,875.05
Owner's equity:
equity 402,600,000.00 402,600,000.00
Other equity instruments
Where: Preferred stock
Sustainable debt
Capital reserves 485,691,050.47 485,691,050.47
Minus: Treasury stocks
Other comprehensive income
The special reserve
Surplus reserves 136,770,391.01 136,770,391.01
General risk provision
Undistributed profit -206,864,330.35 -211,056,473.59
Total owner's equity attributable to the parent 818,197,111.13 814,004,967.89 company
Minority equity
4 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Total owner's equity 818,197,111.13 814,004,967.89
Total liabilities and owners' equity 3,348,155,218.45 3,133,942,842.94
2. Balance sheet of parent company
In RMB Yuan
item 2021.6.30 2020.12.31
Current assets:
Monetary fund 186,426,311.94 173,606,464.84
Trading financial assets 411,407.31 228,046.00
Derivative financial assets
Notes receivable 284,995,696.34 325,928,761.07
Accounts receivable 1,056,049,412.72 1,051,197,353.63
Receivables financing 121,077,339.36 125,606,963.37
prepayments 19,589,717.59 52,961,548.88
Other accounts receivable 345,885,690.52 13,357,080.42
Where: interest receivable
Dividends receivable
inventory 467,971,154.61 472,723,348.67
Contract assets
Hold assets for sale
Non-current assets maturing within one year
Other current assets 5,508,126.26 17,971,682.31
Total current assets 2,487,914,856.65 2,233,581,249.19
Non-current assets:
Creditor's rights investment
Other debt investment
Long-term receivables
Long-term equity investment 211,583,897.67 211,583,897.67
Investment in other equity instruments 11,926,856.64 11,926,856.64
Other non-current financial assets
Investment real estate 101,884,681.94 103,505,103.77
Fixed assets 243,189,782.54 309,847,783.81
Projects under construction 21,931,620.12 21,933,710.72
Productive biological assets
Oil and gas assets
5 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Right of use assets 1,009,841.91
Intangible assets 62,921,438.85 64,192,377.21
The development of spending
goodwill
Long-term deferred expenses 285,650.84 432,059.78
Deferred tax assets
Other non-current assets
Total non-current assets 654,733,770.51 723,421,789.60
Total assets 3,142,648,627.16 2,957,003,038.79
Current liabilities:
Short-term borrowing 698,000,000.00 670,000,000.00
Transactional financial liabilities
Derivative financial liabilities
Notes payable 226,793,257.05 274,654,535.65
Accounts payable 1,047,520,093.85 845,753,616.99
Advance payment
Contract liability 47,452,497.50 40,196,130.87
Employee compensation payable 15,856,491.99 43,148,413.71
Payable taxes 2,881,606.34 3,395,991.46
Other payable 133,346,564.94 109,599,140.08
Where: interest payable 1,680,000.00 1,041,600.00
Dividends payable
Holding liabilities for sale
Non-current liabilities due within one year
Other current liabilities 6,168,824.67 5,225,497.00
Total current liabilities 2,178,019,336.34 1,991,973,325.76
Non-current liabilities:
Long-term borrowing
Bonds payable
Where: Preferred stock
Sustainable debt
Lease liability 1,281,492.96
Long-term payables 244,974.84 244,974.84
Long-term employee compensation payable
Estimated debts 39,427,812.54 39,032,270.91
6 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Deferred revenue 26,975,192.63 29,380,833.70
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 67,929,472.97 68,658,079.45
Total liabilities 2,245,948,809.31 2,060,631,405.21
Owner's equity:
equity 402,600,000.00 402,600,000.00
Other equity instruments
Where: Preferred stock
Sustainable debt
Capital reserves 485,678,443.26 485,678,443.26
Minus: Treasury stocks
Other comprehensive income
The special reserve
Surplus reserves 136,770,391.01 136,770,391.01
Undistributed profit -128,349,016.42 -128,677,200.69
Total owner's equity 896,699,817.85 896,371,633.58
Total liabilities and owners' equity 3,142,648,627.16 2,957,003,038.79
3. Consolidated income statement
In RMB Yuan
Item Half year 2021 Half year 2020
I. Total revenue 1,081,064,853.66 896,732,234.86
Wherein: operating income 1,081,064,853.66 896,732,234.86
Interest income
The premium has been made
Commission and commission income
II. Total operating costs 1,083,628,314.10 902,201,538.62
Where: operating costs 831,304,584.25 674,721,170.74
The interest payments
Commission and commission expenses
Surrender gold
Net compensation expenditures
Draw the net reserve for insurance liability
Policy bonus expense
7 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Reinsurance expenses
Taxes and surcharges 7,985,299.24 7,295,134.29
Cost of sales 78,899,762.56 75,613,172.33
Management fees 45,845,225.31 39,172,811.53
Research and development costs 98,277,786.26 88,374,018.61
Finance charges 21,315,656.48 17,025,231.12
Including: interest expense
Interest income
Plus: Other benefits 3,063,661.27 6,192,961.72
Investment income (Loss marked with "-") 870,263.42 664,574.71
Among them: income from investment in joint ventures and joint ventures
Financial assets measured by amortized cost cease to recognize income
Exchange gain (Loss marked with "-")
Net exposure hedging gain (loss marked with "-")
Gains from changes in fair value (loss marked with "-") 183,361.31 -55,470.65
Credit impairment loss (marked with "-") 30,000.00 7,311.38
Asset impairment loss (marked with "-")
Income from asset disposal (marked with "-" for loss) 2,727,585.57 276,663.74
III. Operating profit (Loss marked with "-") 4,311,411.13 1,616,737.14
Add: non-operating income 817,656.00 2,135,533.80
Less: non-operating expenses 936,923.89 105,188.75
IV. Total profit (Total loss marked with "-") 4,192,143.24 3,647,082.19
Less: income tax expense
V. Net profit (Net loss marked with "-") 4,192,143.24 3,647,082.19
(I) Classification by business continuity
1. Net profit from continuing operations (net loss marked 4,192,143.24 3,647,082.19 with "-")
2. Net profit from discontinued operations (Net loss marked with "-")
(2) classification by ownership
1. Net profit attributable to the owner of the parent 4,192,143.24 3,647,082.19 company
2. Minority shareholder profits and losses
VI.Other comprehensive income net after tax
8 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Net after tax of other comprehensive income attributable to the owner of the parent company
(1) other comprehensive income that cannot be reclassified into profit or loss
1. Remeasure the change amount of the set benefit plan
2. Other comprehensive income that cannot be transferred to profit or loss under the equity method
3. Changes in fair value of other equity instruments
4. Changes in fair value of the enterprise's own credit risk
5. Other
(2) other comprehensive income that is reclassified into profit and loss
1. Other comprehensive income that can be converted to profit or loss under the equity method
2. Changes in fair value of other creditor's rights investments
3. The amount of financial assets reclassified into other comprehensive income
4. Credit impairment provisions for other debt investments
5. Cash flow hedging reserves
6. Foreign currency financial statements translation difference
7. Other
Net after tax of other comprehensive income attributable to minority shareholders
VII. Total comprehensive income 4,192,143.24 3,647,082.19
Total comprehensive income attributable to the owners of 4,192,143.24 3,647,082.19 the parent company
Total comprehensive income attributable to minority shareholders
VII. Earnings per Share:
(1) Basic earnings per share 0.010 0.009
(2)Diluted earnings per share 0.010 0.009
Chairman: Liu Jun General Accountant : Sun Najuan Accounting charger: Zhang Yangjing
4. Profit statement of the parent company
In RMB Yuan
ITEM Half year 2021 Half year 2020
9 Wafangdian Bearing Company Limited 2021 Midyear Financial report
I. Operating income 1,208,722,319.78 906,073,566.08
Minus: Operating costs 1,006,724,605.05 689,325,459.39
Taxes and surcharges 7,111,149.37 5,964,290.11
Cost of sales 52,975,165.53 74,331,649.69
Management fees 29,681,629.16 29,227,235.02
Research and development costs 95,537,317.61 87,464,042.25
Finance charges 21,341,481.25 17,198,370.63
Including: interest expense 14,013,998.99 15,282,652.60
Interest income 201,513.60 223,957.21
Plus: Other benefits 2,957,430.25 5,920,067.26
Investment income (Loss marked with "-") 395,755.29 564,574.71
Among them: income from investment in joint ventures and joint ventures
Income from termination of recognition of financial assets measured at amortized cost (loss is marked with "-")
Net exposure hedging gain (loss marked with "-")
Gains from changes in fair value (loss marked with "-") 183,361.31 -55,470.65
Credit impairment loss (marked with "-") 30,000.00 -12,688.62
Asset impairment loss (marked with "-")
Income from asset disposal (marked with "-" for loss) 2,101,609.41 -51,078.19
II. Operating profit (Loss marked with "-") 1,019,128.07 8,927,923.50
Add: non-operating income 218,265.92 1,189,886.16
Less: non-operating expenses 909,209.72 82,988.75
III. Total profit (Total loss marked with "-") 328,184.27 10,034,820.91
Less: income tax expense
IV. Net Profit (Net loss marked with "-") 328,184.27 10,034,820.91
(1) Net profit from continuing operations (net loss marked 328,184.27 10,034,820.91 with "-")
(2) Net profit from discontinued operations (net loss marked with "-")
V.Net after-tax income of other comprehensive income
(1) other comprehensive income that cannot be reclassified into profit or loss
1. Remeasure the change amount of the set benefit plan
2. Other comprehensive income that cannot be transferred to profit or loss under the equity method
10 Wafangdian Bearing Company Limited 2021 Midyear Financial report
3. Changes in fair value of other equity instruments
4. Changes in fair value of the enterprise's own credit risk
5. Other
(2) other comprehensive income that is reclassified into profit
and loss
1. Other comprehensive income that can be converted to
profit or loss under the equity method
2. Changes in fair value of other creditor's rights investments
3. The amount of financial assets reclassified into other
comprehensive income
4. Credit impairment provisions for other debt investments
5. Cash flow hedging reserves
6. Foreign currency financial statements translation
difference
7. Other
VI Total comprehensive income 328,184.27 10,034,820.91
VII. Earnings per Share:
(1) Basic earnings per share 0.001 0.025
Diluted earnings per share 0.001 0.025
5. Consolidated cash flow statement
ITEM Half year 2021 Half year 2020
I. Cash flow generated from operating activities:
Cash received from sales of goods and services 651,887,024.41 582,774,122.01
Net increase in customer deposits and interbank deposits
Net increase in borrowing from the central bank
Net increase in borrowing from other financial institutions
Cash received from the premium of the original insurance contract
Net cash received from reinsurance operations
Net increase in insured savings and investment funds
Cash in which interest, commission and commission are charged
Net increase in borrowed funds
Net increase in funds from repurchase operations
Net cash received on behalf of securities
Tax refund received 9,745,355.53
11 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Receive other cash in connection with operating activities 57,242,048.48 10,270,237.51
Subtotal cash inflow from operating activities 718,874,428.42 593,044,359.52
Cash paid for goods and services 399,687,605.02 280,077,473.08
Net increase in customer loans and advances
Net increase in central bank and interbank deposits
Cash payment of the original insurance contract claims
Net increase in the amount of money taken out
Cash to pay interest, commissions and commissions
Cash to pay policy dividends
Cash paid to and for employees 180,018,756.84 143,554,226.02
Taxes and fees paid 31,277,371.86 25,632,251.85
Payment of other cash related to operating activities 76,488,351.21 71,258,981.52
Subtotal cash outflow from operating activities 687,472,084.93 520,522,932.47
Net cash flow from operating activities 31,402,343.49 72,521,427.05
Ii. Cash flow generated by investment activities:
Cash received from investment
Cash received in return for investment income 18,821.12
Net cash recovered from disposal of fixed assets, intangible assets 1,692,187.72 329,175.16 and other long-term assets
Net cash received from the disposal of subsidiaries and other operating units
Cash received in connection with other investment activities
Subtotal cash inflow from investing activities 1,711,008.84 329,175.16
Cash paid for the purchase and construction of fixed assets, intangible 587,971.14 1,205,036.75 assets and other long-term assets
Cash paid for investments
Net increase in pledged loans
Net cash paid by subsidiaries and other operating units
Other cash payments in connection with investment activities
Subtotal cash outflow from investing activities 587,971.14 1,205,036.75
Net cash flow generated from investing activities 1,123,037.70 -875,861.59
III. Cash flow generated by financing activities:
Cash received from investment
Wherein: the cash received by the subsidiary in absorbing the investment of minority shareholders
Cash received for borrowing 486,000,000.00 509,000,000.00
12 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Receive other cash in connection with financing activities 38,566,252.78 41,567,823.29
Subtotal cash inflow from financing activities 524,566,252.78 550,567,823.29
Cash paid to pay off debts 458,093,645.83 395,000,000.00
Cash used to distribute dividends, profits, or interest payments 14,830,117.21 48,107,688.22
Among them: dividends and profits paid by subsidiaries to minority shareholders
Payment of other cash in connection with financing activities 50,000,000.00 67,110,000.00
Subtotal cash outflow from financing activities 522,923,763.04 510,217,688.22
Net cash flow generated from financing activities 1,642,489.74 40,350,135.07
4. Impact of exchange rate changes on cash and cash equivalents -1,016,796.39 954,909.34
V.Net increase in cash and cash equivalents 33,151,074.54 112,950,609.87
Plus: opening cash and cash equivalents balance 127,620,944.91 137,324,488.53
VI.Ending balance of cash and cash equivalents 160,772,019.45 250,275,098.40
In RMB Yuan
6. Cash flow statement of parent company
In RMB Yuan
ITEM Half year 2021 Half year 2020
I. Cash flow generated from operating activities:
Cash received from sales of goods and services 686,999,795.18 868,958,768.09
Tax refund received
Receive other cash in connection with operating activities 57,135,498.00 9,779,044.10
Subtotal cash inflow from operating activities 744,135,293.18 878,737,812.19
Cash paid for goods and services 465,910,588.87 593,706,724.17
Cash paid to and for employees 154,155,107.30 124,085,830.07
Taxes and fees paid 30,454,451.51 20,543,127.41
Payment of other cash related to operating activities 68,913,107.16 67,388,001.75
Subtotal cash outflow from operating activities 719,433,254.84 805,723,683.40
Net cash flow from operating activities 24,702,038.34 73,014,128.79
Ii. Cash flow generated by investment activities:
Cash received from investment
Cash received in return for investment income 18,821.12
Net cash recovered from disposal of fixed assets, 829,187.72 4,175.16 intangible assets and other long-term assets
Net cash received from the disposal of subsidiaries and
other operating units
13 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Cash received in connection with other investment activities
Subtotal cash inflow from investing activities 848,008.84 4,175.16
Cash paid for the purchase and construction of fixed 250,672.14 524,567.59 assets, intangible assets and other long-term assets
Cash paid for investments
Net cash paid by subsidiaries and other operating units
Other cash payments in connection with investment activities
Subtotal cash outflow from investing activities 250,672.14 524,567.59
Net cash flow generated from investing activities 597,336.70 -520,392.43
III. Cash flow generated by financing activities:
Cash received from investment
Cash received for borrowing 486,000,000.00 509,000,000.00
Receive other cash in connection with financing activities 38,566,252.78 41,567,823.29
Subtotal cash inflow from financing activities 524,566,252.78 550,567,823.29
Cash paid to pay off debts 458,093,645.83 395,000,000.00
Cash used to distribute dividends, profits, or interest 14,830,117.21 48,107,688.22 payments
Payment of other cash in connection with financing 50,000,000.00 67,110,000.00 activities
Subtotal cash outflow from financing activities 522,923,763.04 510,217,688.22
Net cash flow generated from financing activities 1,642,489.74 40,350,135.07
IV. Impact of exchange rate changes on cash and cash -1,016,796.39 954,909.34 equivalents
V.Net increase in cash and cash equivalents 25,925,068.39 113,798,780.77
Plus: opening cash and cash equivalents balance 143,182,984.73 101,216,633.47
VI.Ending balance of cash and cash equivalents 169,108,053.12 215,015,414.24
14 Wafangdian Bearing Company Limited 2021 Midyear Financial report 7. Statement of Changes in consolidated owners' equity
In RMB Yuan Half year 2021 Owner's equity in the parent company Other equity instruments
ITEM Perpetu other Minority Prefe Capital less： appropria Surplus General Owner’s Capital al comprehen Undistributed sharehold rred Oth public treasure tive public provision for Others total equity stock Capital sive profits ers’ equity shar er reserves stock reserve reserves risk Securitie income es s I. Ending balance 402,600 485,691, 136,770,39 -211,056,473.5 814,004, 814,004,96 of the previous ,000.00 050.47 1.01 9 967.89 7.89 year Plus: Accounting policy change Early error correction Merger of businesses under the same control other II, the beginning 402,600 485,691, 136,770,39 -211,056,473.5 814,004, 814,004,96 balance of this year ,000.00 050.47 1.01 9 967.89 7.89 III. Amount of increase or decrease in the 4,192,14 4,192,143. 4,192,143.24 current period 3.24 24 (marked with "-" for decrease) (1) Total 4,192,14 4,192,143. comprehensive 4,192,143.24 3.24 24 income (2) Owner investment and capital reduction 1. Common stock invested by the 15 Wafangdian Bearing Company Limited 2021 Midyear Financial report owner 2. Other equity instrument holders invested capital (3) Profit distribution 1.Withdraw surplus reserves 2.Extract general risk provision 3.Distribution to owners (or shareholders) 4．Other (4) Internal carry-over of owners' equity 1.Capital reserves to increase capital (or equity) 2.Surplus reserves into increased capital (or equity) 3.Surplus reserves cover losses 4. Set the change of benefit plan to carry forward retained earnings 5. Other comprehensive income carried forward retained earnings 6. Other (5) Special reserves 1. Current withdrawal
16 Wafangdian Bearing Company Limited 2021 Midyear Financial report 2. Use this period (6) Others IV. Ending balance 402,600 485,691, 136,770,39 -206,864,330.3 818,197, 818,197,11 of the current ,000.00 050.47 1.01 5 111.13 1.13 period The amount of the previous period In RMB Yuan Half year 2021 Owner's equity in the parent company Other equity instruments
ITEM Perpetu other Minority Prefe Capital less： appropria Surplus General Owner’s Capital al comprehen Undistributed sharehold rred Oth public treasure tive public provision for Others total equity stock Capital sive profits ers’ equity shar er reserves stock reserve reserves risk Securitie income es s I. Ending balance 402,600 485,691, 136,770,39 1,226,44 1,226,441, of the previous 201,379,956.97 ,000.00 050.47 1.01 1,398.45 398.45 year Plus: Accounting policy change Early error correction Merger of businesses under the same control other II, the beginning 402,600 485,691, 136,770,39 1,226,44 1,226,441, 201,379,956.97 balance of this year ,000.00 050.47 1.01 1,398.45 398.45 III. Amount of increase or decrease in the -28,560, -28,560,89 17.93 -28,560,917.81 current period 899.88 9.88 (marked with "-" for decrease) (1) Total 3,647,08 3,647,082. comprehensive 3,647,082.19 2.19 19 income (2) Owner investment and 17 Wafangdian Bearing Company Limited 2021 Midyear Financial report capital reduction 1. Common stock invested by the owner 2. Other equity instrument holders invested capital (3) Profit -32,208, -32,208,00 -32,208,000.00 distribution 000.00 0.00 1.Withdraw surplus reserves 2.Extract general risk provision 3.Distribution to -32,208, -32,208,00 owners (or -32,208,000.00 000.00 0.00 shareholders) 4．Other (4) Internal carry-over of owners' equity 1.Capital reserves to increase capital (or equity) 2.Surplus reserves into increased capital (or equity) 3.Surplus reserves cover losses 4. Set the change of benefit plan to carry forward retained earnings 5. Other comprehensive income carried forward retained earnings 6. Other
18 Wafangdian Bearing Company Limited 2021 Midyear Financial report (5) Special 17.93 17.93 17.93 reserves 1. Current 17.93 17.93 17.93 withdrawal 2. Use this period (6) Others IV. Ending balance 402,600 485,691, 136,770,39 1,197,88 1,197,880, of the current 17.93 172,819,039.16 ,000.00 050.47 1.01 0,498.57 498.57 period 8. Statement of changes in owner's equity of the parent company
In RMB Yuan
Amount in previous period
Other equity instruments Other appropria Undistri Item Perpetual Capital public less：treasure General provision for Capital stock Preferre comprehensive tive Surplus public reserves buted Owner’s equity Capital Other reserves stock risk d stock income reserve profits Securities
I. Balance at the end of 402,600,000.00 485,678,443.26 136,770,391.01 -128,677,200.69 896,371,633.58 last year
Plus: Change in accounting policy
Previous error correction other
II.The beginning balance 402,600,000.00 485,678,443.26 136,770,391.01 -128,677,200.69 896,371,633.58 of the current year
III. Amount of increase or decrease in the current 328,184.27 328,184.27 period (marked with "-" for decrease)
19 Wafangdian Bearing Company Limited 2021 Midyear Financial report (1) Total comprehensive 328,184.27 328,184.27 income
(2) The owner invests and reduces the capital
1. Common stock invested by the owner
2. Other equity instrument holders invested capital
3. The amount of a share payment included in the owner's equity
4. other
(3) Profit distribution
1. Extract the surplus reserve
2. Distribution to owners
(or shareholders)
3. other
(4) Internal carry-over of owners' equity
1. Conversion of capital reserves into increased capital (or equity)
2. Surplus reserve into increased capital (or
20 Wafangdian Bearing Company Limited 2021 Midyear Financial report equity)
3. Surplus reserves cover losses
4. Set benefit plan changes carried forward to retained earnings
5. Other consolidated earnings carried forward to retained earnings
6. other
Special reserves
1. This extract
2. In current use
(6) Others
IV. Ending balance 402,600,000.00 485,678,443.26 136,770,391.01 -128,349,016.42 896,699,817.85
The amount of the previous period In RMB Yuan
Amount in previous period
Other equity instruments Other appropria Undistri Item Perpetual Capital public less：treasure General provision for Capital stock Preferre comprehensive tive Surplus public reserves buted Owner’s equity Capital Other reserves stock risk d stock income reserve profits Securities
I. Balance at the end of 402,600,000.00 485,678,443.26 136,770,391.01 272,858,542.42 1,297,907,376.69 last year
Plus: Change in accounting policy 21 Wafangdian Bearing Company Limited 2021 Midyear Financial report Previous error correction other
II.The beginning balance 402,600,000.00 485,678,443.26 136,770,391.01 272,858,542.42 1,297,907,376.69 of the current year
III. Amount of increase or decrease in the current -22,173,179.09 -22,173,179.09 period (marked with "-" for decrease)
(1) Total comprehensive 10,034,820.91 10,034,820.91 income
(2) The owner invests and reduces the capital
1. Common stock invested by the owner
2. Other equity instrument holders invested capital
3. The amount of a share payment included in the owner's equity
4. other
(3) Profit distribution -32,208,000.00 -32,208,000.00
1. Extract the surplus reserve
2. Distribution to owners -32,208,000.00 -32,208,000.00 (or shareholders)
22 Wafangdian Bearing Company Limited 2021 Midyear Financial report 3. other
(4) Internal carry-over of owners' equity
1. Conversion of capital reserves into increased capital (or equity)
2. Surplus reserve into increased capital (or equity)
3. Surplus reserves cover losses
4. Set benefit plan changes carried forward to retained earnings
5. Other consolidated earnings carried forward to retained earnings
6. other
Special reserves
1. This extract
2. In current use
(6) Others
IV. Ending balance 402,600,000.00 485,678,443.26 136,770,391.01 250,685,363.33 1,275,734,197.60
23 Wafangdian Bearing Company Limited 2021 Midyear Financial report
III.General Information
Wafangdian Bearing Company Limited (the “Company”, the “Group” is referred to “Company” together with its subsidiaries ) is a joint stock limited company established in the People’s Republic of China (the “PRC”) on 16 July, 1997. In the opinion of the directors, its parent and ultimate holding company is Wafangdian Bearing Group Company Limited (“Wazhou Group”).
The Company’s B shares have been listed on the Shenzhen Stock Exchange since 19February, 1997.
The parent company is Wazhou Group. General shareholders meeting is the company’s authority and have the resolution power over company’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 the company’s decision making. Management is in charge of implementation of resolution made by general meeting and board meeting and is responsible for operation management. The company has the following functional departments including: procurement department, portfolio investment department, operating department, HR, marketing department, manufacturing and construction department, quality control department, financial department and logistic department. Wholly owned subsidiaries include Wazhou Liaoyang Bearing Manufacturing Co., Ltd(“Liaoyang Bearing”), Dalian Wazhou Precision Electric Motor Car Bearing ( “ DalianElectrical Motor ” ),and Wazhou Precision of Spherical Roller Bearings(Wafangdian)Co., Ltd(“Spherical Bearings”).
The addresses of the registered office and principal place of business of the Company are No.1, Phrase 1, Gongji Street, Wafangdian North, Liaoning Province, and the PRC.Legal representative is Liu Jun.
Business scope: Permitted items: inspection and testing services, import and export of goods, import and export of technology (the business activities can be carried out only after the approval of the relevant departments according to law, and the specific business items shall be subject to the approval results)Bearing manufacturing, bearings, gears and transmission components manufacturing, high speed precision heavy-duty bearing sales, sales bearings, gears and transmission parts, bearing sales, general equipment manufacturing (excluding special equipment manufacturing), high-speed rail equipment, parts manufacturing, machinery and equipment sales, rail transportation equipment, key system and parts sales, sales of lubricating oil, high-speed rail equipment and accessories sales,Wind generators and spare parts sales, machinery parts, spare parts sales, railway locomotive vehicle accessories manufacturing, railway locomotive vehicle accessories sales, auto parts and accessories manufacturing, auto parts wholesale and retail auto parts, metal products repair, sales metal materials, metal products sales, metal surface treatment and heat treatment processing, quenching process,Machinery parts and spare parts processing, land use right leasing, housing leasing, non-residential real estate leasing, machinery equipment leasing, computer and communication equipment leasing, transportation equipment leasing service, office equipment leasing service, storage equipment leasing service, special equipment leasing, labor service (excluding labor dispatch),Technical services, technology development, technology consultation, technology exchange, technology transfer, technology promotion
24 Wafangdian Bearing Company Limited 2021 Midyear Financial report
(except for projects that are subject to approval according to law, business activities shall be independently carried out according to law with business licenses)
Financial Statement Consolidation Scope
The Group’s financial statements consolidation includes Liaoyang Bearing, Dalian Wazhou Precision Motor Car Bearing Company and Spherical Bearing three companies. There is no change for consolidation scope by comparing to last year.
Please refer to “VII. Change of consolidation scope” and “VIII. Equity within other entity” in the Note to the financial statements.
IV.Financial Statements Preparation Basis
(1)Basis of preparation
The Company’s financial statements are prepared on the basis of going concern assumption, according to the actual occurred transactions and events and in accordance with ‘Accounting Standards for Business Enterprises’ and relevant regulations, and also based on the note IV “Significant Accounting Policies, Accounting Estimates”.
(2)Going concern
The group has evaluated the going-concern capability for the 12 months from the end of the reporting period, and has found no significant doubts about the going-concern capability. Therefore, the financial statements are prepared on the assumption of going concern.
V. Significant Accounting Policies and Accounting Estimates
Specific accounting policy and estimates reminder: the group established the accounting policy and estimate, such as operation cycle, bad debt recognition and measurement, dispatched inventory measurement and classification of fixed assets and FA’s depreciation, intangible asset’s amortization, revenue recognition and measurement based on the actual characters of business operation.
1. Declaration for compliance with accounting standards for business enterprises
The financial statements are prepared by the Group according to the requirements of Accounting Standard for Business Enterprise, and reflect the relative information for the financial position, operating performance, cash flow of the Group truly and fully.
2. Accounting period
The Group adopts the Gregorian calendar year as accounting period, i.e. from Jan 1 to Dec 31.
3.Operating cycle
Normal operating cycle refers to the duration starting from purchasing the assets for manufactuing up to cash or cash equivelant realisation. The group sets twelve months for one operating cycle and as the liquidity criterion for assets and liability.
4. Funcitonal currency
25 Wafangdian Bearing Company Limited 2021 Midyear Financial report
The Group adopts RMB as functional currency.
5. Accounting for business combination under same control and not under same control
As an acquirer, the assets and liabilities that The Group obtained in a business combination under the same control should be measured on the basis of their carrying amount in the consolidated financial statements on the combining date. As for the balance between the carrying amount of the net assets obtained by the combining party and the carrying amount of the consideration paid by it, the capital surplus shall be adjusted. If the capital surplus is not sufficient to be offset, the retained earnings shall be adjusted.
For a business combination not under same control, the asset, liability and contingent liability obtained from the acquirer shall be measured at the fair value on the acquisition date. The combination cost shall be the fair value, on the acquisition date, of the assets paid, the liabilities incurred or assumed and equity securities issued by the acquirer in exchange for the control of the acquire, and sum of all direct expenses(if the combination is achieved in stages, the combination cost shall be the sum of individual transaction). The difference when combination cost exceeds proportionate share of the fair value of identifiable net assets of acquiree should be recognized as goodwill. If the combination cost is less than proportionate share of the fair value of identifiable net assets of acquiree, firstly, fair value of identifiable asset, liability or contingent liability shall be reviewed, and so the fair value of non-monetary assets or equity instruments issued in the combination consideration , after review, still the combination cost is less than proportionate share of the fair value of identifiable net assets of acquire, the difference should be recognized as non-operating income.
6. Method of preparation of consolidated financial statements
All subsidiaries controlled by the Group and structured entities are within the consolidation scope.
If subsidiaries adopt different accounting policy or have different accounting period from the parent company, appropriated adjustments shall be made in accordance with the Group policy in preparation of the consolidated financial statements.
All significant intragroup transactions, outstanding balances and unrealized profit shall be eliminated in full when preparing the consolidated financial statements. Portion of the subsidiary’s equity not belonging to the parent, profit, loss for the current period, portion of other comprehensive income and total comprehensive belonging to minority interest, shall be presented separately in the consolidated financial statements under “minority interest of equity”,”minority interest of profit and loss”, “other comprehensive income attributed to minority interest” and “total comprehensive income attributed to minority interest” title.
If a subsidiary is acquired under common control, its operation results and cash flow shall be consolidated since the beginning of the consolidation period. When preparing the comparative consolidated financial statements, adjustments shall be made to relevant items of comparative figures as regarded that reporting entity established through consolidation has been always there since the point when the ultimate controlling party starts to have the control.
If a business consolidation under common control is finally achieved in stages, consolidation accounting method shall be disclosed additionally for the period in which the control is obtained. For example, if a business consolidation under common control is finally achieved in stages, when preparing the consolidated financial statements, adjustments shall be made for the current consolidation status as if consolidation has always been there since the point when the ultimate controlling party starts to control. 26 Wafangdian Bearing Company Limited 2021 Midyear Financial report
In preparation of comparative figures, asset and liability of the acquiree shall be consolidated into the Group’s comparative financial statements, but to the extent no earlier than the point when the Group and acquiree are both under ultimate control and relevant items under equity in comparative financial statements shall be adjusted for net asset increased in combination. To avoid the duplicated computation of net asset of acquiree, for long-term equity investment held by the Group before the consolidation, relevant profit and loss, other comprehensive income and movement in other net asset, recognized for the period between the combination date and later date when original shareholding is obtained and when the Group and the acquiree are under common control of same ultimate controlling party, shall be respectively used for writing down the opening balance of retained earnings of comparative financial statements and profit and loss for the current period.
If a subsidiary is acquired not under common control, its operation results and cash flow shall be consolidated since the beginning of the consolidation period. In preparation of the consolidated financial statements, adjustments shall be made to subsidiary’s financial statements based on the fair value of its all identifiable assets, liability or contingent liability on the acquisition date.
If a business consolidation under non-common control is finally achieved in stages, consolidation accounting method shall be disclosed additionally for the period in which the control is obtained. For example, if a business consolidation not under common control is finally achieved in stages, when preparing the consolidated financial statements, the acquirer shall remeasure its previously held equity interest in the acquiree at its acquisition-date fair value and recognize the resulting gain or loss as investment income for the current period. Other comprehensive income, under equity method accounting rising from the interest held in acquiree in relation to the period before the acquisition, and changes in the value of its other equity other than net profit or loss, other comprehensive income and profit appropriation shall be transferred to investment gain or loss for the period in which the acquisition incurs, excluding the other comprehensive income from the movement on the remeasurement of ne asset or liability of defined benefit plan.
When the Group partially disposes of the long –term equity investment in subsidiary without losing the control over it, in the consolidated financial statements, the difference, between disposals price and respective disposed value of share of net assets in the subsidiary since the acquisition date or combination date, shall be adjusted for capital surplus or share premium, no enough capital surplus, then adjusted for retained earnings.
When the Group partially disposes of the long –term equity investment in subsidiary and lose the control over it, in preparation of consolidated financial statements, remaining share of interest in the subsidiary shall be remeasured on the date of losing control. Sum of the share disposal consideration and fair value of remaining portion of shareholding minus the share of the net assets in the subsidiary held based on the previous shareholding percentage since the acquisition date or combination date, the balance of above is recognized as investment gain/loss for the period and goodwill shall be written off accordingly. Other comprehensive income relevant to share investment in subsidiary shall be transferred to investment gain /loss for the period on the date of losing control.
When the Group partially disposes of the long –term equity investment in subsidiary and lose the control over it by stages, if all disposing transactions are bundled, each individual transaction shall be seen as a transaction of disposal of a subsidiary by losing control. The difference between the disposal price and the share of the net assets in the subsidiary held before the date of losing control, shall be recognize as other comprehensive income until the date of losing control where it is transferred into investment gain/ loss for the current period.
27 Wafangdian Bearing Company Limited 2021 Midyear Financial report
7. Joint arrangement classification and joint operation accounting
8. Cash and cash equivalent
The cash listed on the cash flow statements of the Group refers to cash on hand and bank deposit. The cash equivalents refer to short-term (normally with original maturities of three months or less) and liquid investments which are readily convertible to known amounts of cash and subject to an insignificant risk of changes in value.
9. Translation of foreign currency
Foreign currency transaction
Foreign currency transactions are translated at the spot exchange rate issued by People’s Bank of China “( PBOC”) when the transaction incurs. Monetary assets and liabilities in foreign currencies are translated into RMB at the exchange rate prevailing at the balance sheet day. Exchange differences arising from the settlement of monetary items are charged as in profit or loss for the period. Exchange differences of specific borrowings related to the acquisition or construction of a fixed asset should be capitalized as occurred, before the relevant fixed asset being acquired or constructed is ready for its intended uses.
Translation of foreign currency financial statements
The asset and liability items in the foreign currency balance sheet should be translated at a spot exchange rate at the balance sheet date. Among the owner’s equity items except “undistributed profit”, others should be translated at the spot exchange rate when they are incurred. The income and expense should be translated at spot exchange rate when the transaction incurs. Translation difference of foreign currency financial statements should be presented separately under the other comprehensive income title. Foreign currency cash flows are translated at the spot exchange rate on the day when the cash flows incur. The amounts resulted from change of exchange rate are presented separately in the cash flow statement.
10.Financial instruments
A financial asset or financial liability is recognised when the Group becomes a party to a financial instrument contract. Financial assets Classification, recognition basis and measurement method of financial assets The Group classifies financial assets as financial assets measured at amortized cost, financial assets measured at fair value and their changes included in other comprehensive income, and financial assets measured at fair value and their changes included in current profit and loss according to the business model of financial assets management and the contractual cash flow characteristics of financial assets. The Group classifies the financial assets that meet the following conditions as financial assets measured by amortized cost: ① The business model for the management of the financial assets is to receive contract cash flow as the target.② The contractual terms of the financial asset stipulate that the cash flow generated on a specified date is only the payment of the principal and the interest based on the outstanding principal amount.Such financial assets are initially measured in accordance with their fair value, and relevant transaction costs are included in the initial recognition amount;Follow up measurement at amortized cost.Except for the hedged item, the difference between the initial amount and the amount due shall be amortized according to the effective interest rate method, and the amortization, impairment, exchange gain or loss and the gain or loss arising from the termination of recognition shall be recorded into the current profit or loss. The group classiifies the financial assets that meet the following conditions as financial assets measured at fair value and whose changes are included in other comprehensive income: ①The business model of managing the financial assets is aimed at both
28 Wafangdian Bearing Company Limited 2021 Midyear Financial report receiving the contract cash flow and selling the financial assets.② The contractual terms of the financial asset stipulate that the cash flow generated on a specified date is only the payment of the principal and the interest based on the outstanding principal amount.Such financial assets are initially measured in accordance with their fair value, and relevant transaction costs are included in the initial recognition amount.Except for those designated as hedged items, other gains or losses, other than credit impairment losses or gains, exchange gains and losses and interest on the financial assets calculated according to the effective interest rate method, arising from such financial assets shall be included in other comprehensive income;When the recognition of a financial asset is terminated, the accumulated gains or losses previously recorded in other comprehensive income shall be transferred out of other comprehensive income and recorded into the current profit and loss. The Group recognizes interest income in accordance with the effective interest rate method.The interest income shall be calculated and determined by multiplying the book balance of the financial asset by the actual interest rate, except in the following cases: (1) For the purchased or generated financial asset with credit impairment, the interest income shall be calculated and determined according to the amortized cost of the financial asset and the actual interest rate adjusted by credit since the initial recognition.(2) For the financial assets purchased or generated without credit impairment, but become credit impairment in the subsequent period, the interest income of the financial assets shall be calculated and determined according to the amortized cost and the actual interest rate of the financial assets. The Group designates non-traded equity instrument investments as financial assets that are measured at fair value and whose changes are recorded in other comprehensive income.Once made, such designation may not be revoked.Non-tradable equity instrument investment designated by the Group which is measured at fair value and its changes are included in other comprehensive income shall be initially measured in accordance with fair value and relevant transaction costs shall be included in the initial recognition amount;In addition to the dividends (excluding the investment cost recovery part) included in the current profit and loss, other related gains and losses (including exchange gains and losses) are included in other comprehensive income, and can not be transferred into the current profit and loss.When the recognition is terminated, the accumulated gains or losses previously included in other comprehensive income are transferred from other comprehensive income and included in retained earnings. Financial assets other than those classified above as financial assets measured at amortized cost and those classified as financial assets measured at fair value and whose changes are included in other comprehensive income.The group will classify it into two financial assets measured at fair value and its changes into current profit and loss.Such financial assets in accordance with the fair value of the initial measurement, the relevant transaction costs directly into the current profit and loss.Gains or losses on such financial assets shall be booked into current profits and losses. If the contingent consideration recognized by the Group in the business combination not under the same control constitutes a financial asset, the financial asset shall be classified as the financial asset measured at fair value and the change of the financial asset shall be recorded into the current profit and loss. Confirmation basis and measurement method of financial asset transfer The Group will terminate the recognition of the financial assets that meet one of the following conditions: (1) Termination of the contractual right to receive the cash flow of the financial assets;(2) When financial assets are transferred, the group has transferred almost all risks and rewards on the ownership of financial assets;(3) When the financial asset is transferred, the Group neither transfers nor retains almost all the risks and rewards of the ownership of the financial asset, and does not retain control over the financial asset. Transfer the entire financial asset meet the recognition criteria of termination, the book value of the transferred financial asset, and received by transfer of value and the fair value originally recorded in other comprehensive income amount corresponds to the portion whose recognition has been stopped in the accumulative amount of changes (provisions relating to transfer of financial assets of the terms of the contract, the cash flow at a specific date,Only the difference between the sum of the principal and the interest payments based on the outstanding principal amount is accounted for in the current profit or loss.If the partial transfer of financial assets meets the conditions for the termination of recognition, the overall carrying value of the transferred financial assets shall be apportion between the terminated recognition part and the unterminated recognition part according to their respective
29 Wafangdian Bearing Company Limited 2021 Midyear Financial report relative fair value.And will be received by transfer of value and share to terminate identified previously included in the other part of the changes in fair value of the accumulative amount of comprehensive income the amount of which corresponds to the portion whose recognition has been stopped (provisions relating to transfer of financial assets of the terms of the contract, the cash flow at a specific date, is only on the principal and on the basis of the outstanding principal amount of the interest payments), the sum of The difference between it and the apportioned overall book value of the aforementioned financial assets shall be recorded into the profit and loss of the current period. Financial liabilities Classification, recognition basis and measurement method of financial liabilities At the time of initial recognition, the financial liabilities of the Group are classified as financial liabilities and other financial liabilities which are measured at fair value and whose changes are included in the profit and loss of the current period. Financial liabilities measured at fair value and whose changes are included in the profit and loss of the current period, including trading financial liabilities and the financial liabilities initially recognized as measured at fair value and whose changes are included in the profit and loss of the current period, (the relevant classification is disclosed according to the financial asset classification basis).The subsequent measurement is carried out according to the fair value, and the gains or losses formed by the change of fair value and the dividends and interest expenses related to the financial liabilities are booked into the current profit and loss. For other financial liabilities, the effective interest rate method is adopted and the subsequent measurement is carried out according to the amortized cost.In addition to the following, the group will be financial liabilities classified as financial liabilities measured at the amortized cost: (1) measured at fair value and the changes are recorded into the profits and losses of the current financial liabilities, including transactional financial liabilities (including the derivatives for financial liabilities) and designated as at fair value and whose fluctuations are recorded into the profits and losses of the current financial liabilities.(2) Financial liabilities formed by the transfer of financial assets that do not meet the conditions for termination of recognition or continue to be involved in the transferred financial assets.(3) financial security contracts that do not fall under the circumstances ① or ② above, and loan commitments that do not fall under the circumstances ① above to borrow at below market rates. If the group forms financial liabilities from the contingent consideration recognized by the purchaser in the business combination not under the same control, it shall be measured at fair value and its changes shall be recorded into the current profit and loss for accounting treatment. Conditions for termination of recognition of financial liabilities When the current obligation of a financial liability has been discharged in whole or in part, the discharged part of the financial liability or obligation shall cease to be recognized.The group and the creditors sign an agreement to replace the existing financial liabilities by assuming new financial liabilities. If the contract terms of the new financial liabilities and the existing financial liabilities are substantially different, the existing financial liabilities shall be terminated and the new financial liabilities shall be recognized at the same time.If the Group materially amends all or part of the contract terms of the existing financial liability, it shall terminate the recognition of the existing financial liability or part of it, and at the same time recognize the financial liability after the modification as a new financial liability.The difference between the book value of the terminated recognition and the consideration paid shall be recorded into the profit and loss of the current period. 3. Fair value determination method of financial assets and financial liabilities The Group measures the fair value of financial assets and financial liabilities at the prices of major markets. If there is no major market, the group measures the fair value of financial assets and financial liabilities at the prices of the most favorable market, and adopts the valuation technology applicable at that time and supported by sufficient available data and other information.The input value used in fair value measurement is divided into three levels, that is, the input value of the first level is the unadjusted quotation of the same asset or liability in the active market that can be obtained on the measurement day;The input value of the second level is the directly or indirectly observable input value of the related asset or liability in addition to the input value of the
30 Wafangdian Bearing Company Limited 2021 Midyear Financial report first level;The third-level input values are the unobservable input values of the underlying asset or liability.The group uses the first level input value first and the third level input value last.The level to which the fair value measurement results belong is determined by the lowest level to which the input values that are of great significance to the fair value measurement as a whole belong. The Group's investment in equity instruments is measured at fair value.However, in limited cases, if the recent information used to determine the fair value is insufficient, or if the possible estimated amounts of the fair value are distributed over a wide range and the cost represents the best estimate of the fair value within that range, the cost may represent the appropriate estimate of the fair value within that range. 4. Offsetting of financial assets and financial liabilities The financial assets and financial liabilities of the Group are presented separately in the balance sheet and do not offset each other.However, if the following conditions are met at the same time, the net amount after mutual offset shall be shown in the balance sheet :(1) the group has the legal right to offset the recognized amount, and this legal right is currently enforceable;(2) The Group plans to net settle or realize the financial assets and liquidate the financial liabilities at the same time. 5. Distinction between financial liabilities and equity instruments and relevant treatment methods The group distinguishes financial liabilities from equity instruments in accordance with the following principles :(1) if the group cannot unconditionally avoid performing a contractual obligation by paying cash or other financial assets, the contractual obligation meets the definition of a financial liability.Although some financial instruments do not explicitly contain terms and conditions for the obligation to deliver cash or other financial assets, it is possible to indirectly form contractual obligations through other terms and conditions.(2) if a financial tools must be used or the group settlement's own equity instruments are available, and need to be considered for settlement of the tool of the group's own equity instruments, as a substitute for cash or other financial assets, or in order to make the tool holder enjoy after deducting all liabilities of the issuer of the residual interest in the assets.In the former case, the instrument is a financial liability of the issuer;In the latter case, the instrument is the equity instrument of the issuer. In some cases, this group is to be a financial instrument contract with their rights or available tools to settle the financial tools, including contractual rights or obligations under a contract amount equal to the available or have to pay when multiplied by the number of its own equity instruments and settlement of the fair value, no matter the amount of the contract rights or obligations are fixed,Or is it based in whole or in part on changes in variables other than the market price of the Group's own equity instrument (such as interest rates, the price of a commodity or the price of a financial instrument), the contract is classified as a financial liability. In classifying financial instruments (or their components) in the consolidated statements, the Group has taken into account all terms and conditions agreed between the members of the Group and the holders of the financial instruments.An instrument shall be classified as a financial liability if the Group as a whole has obligations as a result of the instrument to deliver cash, other financial assets or settle in any other manner that would cause the instrument to become a financial liability. If financial instruments or their components are financial liabilities, the relevant interest, dividends (or dividends), gains or losses, as well as the gains or losses generated by redemption or refinancing, the Group will record the profits and losses of the current period. If a financial instrument or any part thereof is an equity instrument, the Group shall treat the issue (including refinancing), repurchase, sale or write-off of the instrument as a change in the equity and shall not recognize the change in the fair value of the equity instrument. 6. Impairment of financial instruments On the basis of expected credit losses, the Group performs impairment treatment and recognizes loss provisions for financial assets measured at amortized cost and debt instrument investments measured at fair value and whose changes are included in other comprehensive income. Credit loss refers to the difference between all contractual cash flows receivable under the contract and all cash flows expected to be received by the Group, discounted at the original effective interest rate, i.e. the present value of all cash shortfalls.Among
31 Wafangdian Bearing Company Limited 2021 Midyear Financial report
them, the financial assets purchased or generated by the Group with credit impairment shall be discounted according to the credit adjusted effective interest rate of the financial assets. For receivables that do not contain a material financing component, the Group uses a simplified measurement method to measure the loss provision at an amount equivalent to the expected credit loss over the entire duration.The Group shall assess on each balance sheet date whether its credit risk has increased significantly since the initial recognition. If the credit risk has increased significantly since the initial recognition, the Group shall measure the loss provision according to the amount equivalent to the expected credit loss in the entire duration;If the credit risk does not increase significantly after the initial recognition, the Group shall measure the loss provision according to the amount equivalent to the expected credit loss in the next 12 months. The Group considers all reasonable and evidence-based information, including forward-looking information, in assessing anticipated credit losses. When the Group no longer reasonably expects to recover all or part of the contracted cash flow of the financial asset, the Group directly writes down the book balance of the financial asset. In addition to evaluating overdue credit losses of certain financial assets on a single-item basis, the Group also evaluates expected credit losses of financial assets measured at amortized cost on an aging portfolio basis. According to the credit risk characteristics, the Group divides notes receivable, accounts receivable and other receivables into several combinations. On the basis of the combinations, the expected credit losses are calculated and the combinations are determined on the following basis: combination On the basis of Notes receivable 1 Bank acceptance Notes receivable 2 A combination of commercial acceptance bills received from a related party Notes receivable 3 Combination of commercial acceptance bills received from non-associated parties Accounts receivable 1 Combination of related parties Accounts receivable 21 Aging combination
For the accounts receivable divided into combinations, the Group makes a comparison table between the age of accounts receivable and the expected credit loss rate of the entire duration by referring to the historical credit loss experience and combining the current situation and the forecast of future economic conditions to calculate the expected credit loss. The Group divides other receivables into several combinations according to credit risk characteristics, and calculates expected credit losses on the basis of the combinations. The combinations are determined on the following basis:
combination On the basis of Other accounts receivable 1 Combination of related parties Other receivables 2 Aging combination Other accounts receivable 3 Risk-free portfolio (classified according to the reputation of the transaction object, nature of funds, transaction safeguard measures, etc.)
For the other receivables divided into the portfolio, the Group calculates the expected credit loss through default risk exposure and the expected credit loss rate of the entire duration by referring to the historical credit loss experience, combined with the current situation and the forecast of future economic conditions. 11. Notes receivable See Article 6 impairment of Financial Instruments 12.Accounts receivable See Article 6 impairment of Financial Instruments 13. Receivables financing
32 Wafangdian Bearing Company Limited 2021 Midyear Financial report
The mode of managing notes receivable of the Group is both to collect contract cash flow and to sell the financial asset, so it is classified as the financial asset measured at fair value and its changes are included in other comprehensive income, and it is listed in the receivables financing. 14. Other receivables Determination method and accounting treatment method of expected credit loss of other receivables See Article 6 impairment of Financial Instruments 15. inventory Classification of inventory: Inventories are classified as raw material, wrappage, low-valuable consumable, working-in-progress, and finished goods etc. The inventories are processed on perpetual inventory system, and are measured at their budgeted cost on acquistion. The raw materials are accounted daily on their bedgeted costs. The differences between the budget and actual costs is recorded into the costs of materials purchased and cost of materials dispatched according to proportion of raw materials in stock and dispatched, and adjust the budgeted costs of raw material into actual costs. The working-in-progress and finished goods are accounted on their budgeted costs; the differences between the budgeted costs and actual costs are recorded into the costs of working-in-progress and finished goods according to proportion of inventory in stock and dispatched, and finaly adjust the budgetedcosts into actual costs.Inventory usage and dispatch is measured at average cost as actual cost.Low value consumables and packaging materials is recognized in the income statement by one-off method. At the balance sheet date inventory should be measured at the lower of the cost and net realizable value. For the inventories which are damaged, fully or partly obsoleted and selling price below cost, the Group should calculate the provision for impairment of inventories according to the estimated nonrecoverable part of cost. Finished goods and a large amount raw materials should be calculated provision for impairment based on the difference of the cost exceed the realizable value of single item. For raw and accessorial materials with a large quantities and lower unit price should be calculated provison for impairment according to classification of inventory. For the finished goods, working in progress and raw material held for sale etc which shall be sold directly, the net realizable value should be confirmed at the estimated selling price less estimated selling expenses and related tax and expenses. The raw material held for production, its realizable value should be confirmed at the estimated selling price of finished goods less estimated cost of completion, estimated selling expenses and related tax. 16.Contract asset (1) Recognition and criterion Contract asset is an entity's right to consideration in exchange for goods or services that the entity has transferred to a customer when that right is conditioned on something other than the passage of time. Contract asset and contract liability originated from same contact shall be listed at net amount. (2) Expected credit loss recognition and accounting of contract asset Expected credit loss recognition of contract asset is referred to the Note IV.10 (6) . Provision for Impairment of Financial Insturment. On the balance sheet date, expected credit loss of contract asset shall be calculated and the difference shall be recognized as the impairment loss if the loss figure worked out is bigger than the carrying amount of the provision for impairment of contract asset, and debit "asset impairment loss”, credit "provision for impairment of contract asset”. On the contrary, the Company shall recognize the difference as impairment profit and keep the opposite accounting record. If the actual credit loss incurred and the contract asset is unable to be collected with confirmation, after the approval is given, the loss shall be written off based on the approved amount and debit "provision for impairment of contract asset”, credit "contract asset”. If the amount to be written is greater than the provision, the difference shall be debited to "asset impairment loss” 17.Contract cost (1) Assets recognition methods in relation to contract cost Assets relevant to contract cost in the company include cost to fulfill the contract and cost to obtain a contract. If the costs incurred in fulfilling a contract with a customer are not within the scope of another Standard, an entity shall recognize an asset from the costs incurred to fulfill a contract only if those costs meet all of the following criteria: the costs relate directly to a contract or to an anticipated contract, including direct labor, direct materials and overheads which is clearly stated to be borne by the client and any other cost in line with the contract; the costs enhance resources of the entity that will be used in performance obligations in the future; and the costs are expected to be recovered. An entity shall recognize an asset as the incremental costs of obtaining a contract with a customer if the entity expects to recover those costs. an entity may recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset t is one year or less. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, a sales commission). 33 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Costs to obtain a contract that would have been incurred rather than the incremental cost expected to be recovered shall be recognized as an expense when incurred, unless those costs are explicitly chargeable to the customer regardless of whether the contract is obtained (2) Amortization of asset relevant to contract cost An asset recognized in accordance with contract cost shall be amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. (3) Impairment of asset relevant to contract cost When determining the impairment loss of the assets related to the contract cost, the Company shall firstly determine the impairment loss of the assets related to the contract that are recognized in accordance with the other accounting standards. If the book value of the asset is higher than the remaining consideration expected to be obtained by the Company for the transfer of the goods related to the asset and the estimated cost to be incurred for the transfer of the goods related to the asset, the excess part shall be withdrawn as an impairment provision and recognized as an impairment loss of the asset. An entity shall recognize in profit or loss a reversal of some or all of an impairment loss previously recognized when the impairment conditions no longer exist or have improved. The increased carrying amount of the asset shall not exceed the amount that would have been determined (net of amortization) if no impairment loss had been recognized previously. 18.Hold assets for sale There is no 19. Debt investment There is no 20. Other debt investment There is no 21. Long-term receivables There is no 22. Long-term equity investment Long term equity investments are the investment in subsidiary, in associated company and in joint venture. Joint control is the contractual agreement sharing of control over an economic activity by all participants or participants' combination and decisions or policies relating to the operating activity of the entity require the unanimous consent of the parties sharing the control. Significant influence exists when the entity directly or indirectly owned 20% or more but less than 50% shares with voting rights in the investee company.If holding less than 20% voting rights, the entity shall also take other facts or circumstances into accounts when judging any significant influences. Factors and circumstances include: representation on the board of directors or equivalent governing body ofthe investee, participation in financial or operating activities policy-making processes,material transactions between the investor and the investee, interchange of managerial personnel or provision of essential technical information. When control exists over an investee, the investee is a subsidiary of an entity. The initial investment cost for long-term equity investment acquired through business combination under common control, is the carrying amount presented in the consolidated financial statements of the share of net assets at the combination date in the acquired company. If the carrying amount of net assets at the combination date in the acquired company is negative, investment shall be recognized at zero. If the equity of investee under common control is acquired by stages and business combination incursin the end, an entity shall disclose the accounting method for long-term equity investment in the parent financial statement as a supplemental. For example, if the equity of investee under common control is acquired by stages and business combination incursin the end, and it's a bundled transaction, the entity shall regard all transactions as a one for accounting. If it's not a bundled transaction, the carrying amount presented in the consolidated financial statements of the share of net assets at the combination date in the acquired company since acquisition is determined as for the initial cost of long-term equity investment. The difference between the cost initially recognized and carrying amount of long-term equity investment prior to the business combination plus the newly paid consideration for further share acquired, and capital reserve shall be adjusted accordingly. If no enough capital reserve is available for adjustment, retain earnings shall be adjusted. If long-term equity investment is acquired through business combination not under common control, initial investment cost shall be the combination cost. If the equity of investee not under common control is acquired by stages and business combination incursin the end, an entity shall disclose the accounting method for long-term equity investment in the parent financial statement as a supplemental. If the equity
34 Wafangdian Bearing Company Limited 2021 Midyear Financial report
investment of investee not under common control is acquired by stages and business combination incursin the end, and it's a bundled transaction, the entity shall regard all transactions as a one for accounting. If it's not a bundled transaction, the carrying amount of the equity investment held previously plus newly increased investment cost are taken as the initial investment cost under cost model. If equity investment is held under equity method before the acquisition date, other comprehensive income under equity method previously shall not be adjusted accordingly. When disposing of the investment, the entity shall adopt the same basis as the investee directly disposing of related assets or liability for accounting treatment. Equity held prior to acquisition date as available for sale financial assets under fair value model, accumulated change on fair value previously recorded in other comprehensive shall be transferred into investment gain/loss for the period. Apart from the long-term equity investments acquired through business combination mentioned above, the cost of investment for the long-term equity investments acquired by cash payment is the amount of cash paid. For long-term equity investment acquired by issuing equity instruments, the cost of investment is the fair value of the equity instrument issued. For long-term equity investment injected to the entity by the investor, the investment cost is the consideration as specified in the relevant contract or agreement. The Group adopts cost method to account for investment in subsidiary and equity method for investment in joint venture and affiliate. Long-term equity investment subsequently measured under cost model shall increase the carrying amount of investment by adjusting the fair value of additional investment and relevant transaction expenses. Cash dividend or profit declared by investee shall be recognized as investment gain/loss for the period based on the proportion share in the investee. Long-term equity investment subsequently measured under equity method shall be adjusted for its carrying amount according to the share of equity increase or decrease in the investee. The entity shall recognize its share of the investee's net profits or losses based on the fair value of the investee's individual identifiable assets at the acquisition date, after making appropriate adjustments thereto in conformity with the accounting policies and accounting period, and offsetting the unrealized profit or loss from internal transactions entered into between the entity and its associates and joint ventures according to the shareholding attributable to the entity and accounted for as investment income and loss based on such basis. On disposal of a long-term equity investment, the difference between the carrying value and the consideration actually received is recognised as investment income for the period. For long-term investments accounted for under equity method, the movements of shareholder's equity, other than the net profit or loss, of the investee company, previously recorded in the shareholder's equity of the Company are recycled to investment income for the period on disposal. Where the entity has no longer joint control or significant influence in the investee company as a result of partially disposal of the investment, the remaining investment will be changed to be accounted for as available for sale financial assets, and the difference between the fair value of remaining investment at the date of losing joint control or significant influence and its carrying amount shall be recognized in the profit or loss for the year. Other comprehensive income recognized from previous equity investment under equity model shall be accounted for on the same basis as the investee directly disposing of related assets or liability when stopping using under equity model. Where the entity has no longer control over the investee company as a result of partially disposal of the investment, the remaining investment will be changed to be accounted for using equity method providing remaining joint control or significant influence over the investee company. The difference between carrying amount of disposed investment and consideration received actually shall be recognised in the profit and loss for the period as investment gain or loss, and investment shall be adjusted accordingly as if it was accounted for under equity model since acquisition. Where the entity has on longer joint control or significant influence in the investee as a result of disposal, the investment shall be changed to be accounted for as available for sale financial assets, and difference between the carrying amount and disposal consideration shall be recognized in profit and loss for the period, and the difference between the fair value of remaining investment at the date of losing control and its carrying amount shall be recognized in the profit or loss for the year as investment gain or loss. If the entity loses its control through partially disposal of investment by stages and it's not a bundled transaction, the entity shall account for all transactions separately. If it's a bundled transaction, the entity shall regard all transactions as one disposal of subsidiary by losing control, but the difference between disposal consideration and carrying amount of the equity investment disposed prior to losing control, which arises from each individual transaction shall be recognized as other comprehensive income until being transferred into profit and loss for the period by the time of losing control. 23.Investment property Investment property of the Company includes land and property. Cost model is adpoted. Investment property is depreciated or amortized under straight line method. Estimated net residual value rate, useful life, depreciation rate as follows:
35 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Estimated net Useful life Annual Category residual value rate (years) depreciation rate (%) Use right of land 40 8.33% Property and buildings Including: Buildings 15 3 6.47% Housing for production 30 3 3.23% Housing for non-production 35 3 2.77%
24.Fixed assets (1) Confirm the conditions Recognition criteria of fixed assets: Fixed assets are defined as the tangible assets which are held for the purpose of producing goods, rendering services, leasing or for operation & management, and have more than one year of useful life, and whose unit price is over RMB2,000. Fixed assets shall be recognized when the economic benefit probably flows into the Group and its cost can be measured reliably. Fixed assets include: building, machinery, transportation equipment, electronic equipment and others.
(2) Depreciation method All fixed assets shall be depreciated unless the fixed assets had been fully depreciated and are still being used and land is separately measuered. Straight-line depreciation method is adopted by the Group. Estimated net residual value rate, useful life, depreciation rate as follows: Estimated net Useful life Annual depreciation No Category residual value (years) rate rate (%) 1 Housing and Buildings Including: Buildings 15 3 6.47% Housing for production 30 3 3.23% Housing for non-production 35 3 2.77% 2 Machinery equipment 10-15 3 6.47%～9.70% 3 Transportation equipment 6 3 16.17% 4 Electronic equipment Including: Computer 4 3 24.25% General testing instruments 7 3 13.86% Specialized electronic equipment 8 3 12.13% Automated controlling equipment 8 3 12.13% Automated controlling meters 8 3 12.13% 5 Others equipment Including: Industrial kiln 7 3 13.86% Tools & other production tools 9 3 10.78% Transmission equipment 15 3 6.47% Non-operational equipment and tools 18 3 5.39%
The company should review the estimated useful life, estimated net residual value and depreciation method at the end of each year. If any change has occurred, it shall be regarded as a change in the accounting estimates. (3) the identification basis, valuation and depreciation method of the fixed assets leased through financing No
36 Wafangdian Bearing Company Limited 2021 Midyear Financial report
25.Construction in progress The criteria and time spot of constructions in progress's being transferred to fixed assets: Constructions in progress are carried down to fixed assets on their actual costs when completing and achieving estimated usable status. The fixed assets that have been completed and reached estimated usable status but have not yet been through completion and settlement procedures are charged to an account according to their estimate values; adjustment will be conducted upon confirmation of their actual values. The Group should withdraw depreciation in the next month after completion. 26.Borrowing costs The borrowing cost includes the interest expenses of the borrowing, amortization of underflow or overflow from borrowings, additional expenses and the foreign exchange profit and loss because of foreign currency borrowings. The borrowing costs incurred which can be directly attribute to the fixed assets, investments properties, inventories requesting over 1 year purchasing or manufacturing so to come into the expected condition of use or available for sale shall start to be capitalized when expenditure for the assets is being occurred, borrowing cost has occurred, necessary construction for bringing the assets into expected condition for use is in progress. The borrowing costs shall stop to be capitalized when the assets come into the expected condition of use or available for sale. The borrowing costs subsequently incurred should be recorded into profit and loss when occurred. The borrowing costs should temporarily stop being capitalized when there is an unusual stoppage of over consecutive 3 months during the purchase or produce of the capitalized assets, until the purchase or produce of the asset restart. The borrowing costs of special borrowings, deducting the interest revenue of unused borrowings kept in the bank or the investment income from transient investment should be capitalized. The capitalized amount of common borrowings should be calculated as follows: average assets expenditure of the accumulated assets expenditure excess the special borrowing, multiplied by the capital rate. The capital rate is the weighted average rate of the common borrowings. 27. Biological assets There is no 28. Oil and gas assets There is no 29. Right to use assets The right to use assets refers to the right of the lessee to use the leased assets during the lease term, which shall be initially measured at the cost. In combination with the provisions of the new lease criteria, the new lease criteria will be implemented on January 1, 2021, and simplified treatment will be adopted in the transition policy of the criteria, that is: lease liabilities are equal to the present value of the remaining lease payments, and the use-right assets are equal to the lease liabilities and make necessary adjustments, and depreciation and interest expense are recognized respectively.This method will not affect the company's retained earnings at the beginning of 2021. (1) Valuation method, service life and impairment test Intangible assets of the Group include land use right, ERP software, other intangible assets, etc., which are measured according to the actual cost at the time of acquisition. Among them, intangible assets purchased are measured according to the actual price paid and other related expenses as the actual cost.The actual cost of intangible assets invested by investors shall be determined according to the value agreed in the investment contract or agreement, but if the value agreed in the contract or agreement is not fair, the actual cost shall be determined according to the fair value. The right to the use of the land shall be amortized on an average basis according to the number of years during which the land is granted from the date of grant;ERP software and other intangible assets will be amortized on the basis of the shortest expected service life, the benefit life stipulated in the contract and the effective life stipulated in the law.The amortization amount is booked into the relevant asset cost and current profit and loss according to the beneficiary.The expected service life and amortization method of intangible assets with limited service life shall be reviewed at the end of each year. If there is any change, it shall be treated as a change in accounting estimation. (2) Internal research and development expenditure accounting policy There is no 31.Impairment of long-term assets There is no
37 Wafangdian Bearing Company Limited 2021 Midyear Financial report
32. Long-term deferred expenses The long-term deferred expenses of the Group refer to the expenses that have been disbursed but should be borne by the current period and subsequent periods with an amortization period of more than 1 year (excluding 1 year).Such expenses will be amortized on average during the benefit period. If the long-term deferred expense item cannot benefit the subsequent accounting period, the amortized value of the item which has not been amortized will be transferred to the current profit and loss. 33.Contract liability An entity's obligation to transfer goods or services to a customer for which the entity has received consideration (or the amount is due) from the customer. Contract asset and contract liability originate from same contact shall be listed at net amount. 34..Employee compensation (1) Accounting treatment of short-term compensation Short-term compensation mainly include employee salaries, bonuses, allowances and subsidies, employee welfare, social insurance and housing accumulation fund, employee education funds and union funds, provide service in the worker of the accounting period, actual short-term compensation will be recognized as liabilities, and according to the benefit object recorded into the profits and losses of the current or the relevant asset costs. (2) Accounting treatment of post-employment benefits Post-employment benefits mainly include basic pension insurance, unemployment insurance, etc. According to the risks and obligations assumed by the company, they are classified into set contribution plan and set benefit plan. For the set escrow plan, the escrow paid to a separate entity on the balance sheet date in exchange for the services provided by the employee during the accounting period is recognized as a liability, and the profit and loss of the current period or the cost of related assets are recorded according to the beneficiary. (3) Accounting treatment of dismiss benefits (4) Other accounting methods for long-term employee benefits 35.Lease liabilities The lease liabilities shall be initially measured according to the present value of the outstanding lease payments on the commencement date of the lease term.The lessee shall calculate the depreciation of the use-right assets with reference to the relevant depreciation provisions of the Accounting Standards for Enterprises No. 4 - Fixed Assets, confirm whether the use-right assets have been impaired in accordance with the provisions of the Accounting Standards for Enterprises No. 8 - Asset impairment, and make accounting treatment for the identified impairment loss. 36. Estimated liabilities When the business related to external guarantee, discount of commercial acceptance bill, pending litigation or arbitration, product quality guarantee and other contingencies meet the following conditions at the same time, the Group recognizes it as a liability: The obligation is the current obligation undertaken by the Group;The fulfillment of this obligation is likely to lead to the outflow of economic benefits from the enterprise;The amount of this obligation can be measured reliably. The estimated liabilities are initially measured in accordance with the best estimate of the expenses required to fulfill the relevant current obligations, taking into account the risks, uncertainties and time value of money related to contingencies.If the time value of money has a significant impact, the best estimate is determined by discounting the relevant future cash outflows.The carrying value of the estimated liabilities is reviewed at each balance sheet date and, if changed, the carrying value is adjusted to reflect the current best estimate. 37. Share payment An equity-settled sharebased payment in exchange for services rendered by an employee, measured at the fair value of the employee equity instrument at the grant date.The amount of the fair value shall be calculated and included in relevant costs or expenses according to the straight line method on the basis of the best estimate of the number of feasible rights and equity instruments during the waiting period, and the capital reserve shall be increased accordingly, if the right is feasible only after the service is completed or the specified performance conditions are met.
38 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Cash-settled sharebased payments are measured at the fair value of the liabilities assumed by the Group on the basis of shares or other equity instruments.If the right is available immediately after the grant, the fair value of the liabilities to be assumed shall be included in the relevant costs or expenses on the grant date, and the liabilities shall be increased accordingly;If it is necessary to complete the services in the waiting period or meet the specified performance conditions before the right is feasible, on each balance sheet date of the waiting period, based on the best estimate of the right situation and according to the fair value amount of the liabilities assumed by the Group, the services obtained in the current period shall be included in the cost or expense and the liabilities shall be adjusted accordingly. On each balance sheet date and the settlement date before the settlement of the relevant liabilities, the fair value of the liabilities shall be re-measured, and its change shall be recorded into the profit and loss of the current period. 38.Preferred shares, perpetual bonds and other financial instruments 39.income Accounting policies used in revenue recognition and measurement The Group recognizes revenue when it performs its performance obligations under the contract, that is, when the customer obtains control of the relevant goods or services.The specific criteria for the recognition of revenue from sales of goods: the company will deliver the goods to the customer and confirm the realization of revenue from sales of goods. If the contract contains two or more performance obligations, the Group shall, at the beginning of the contract, apportion the transaction price to each individual performance obligation according to the relative proportion of the individual selling price of the goods or services promised in each individual performance obligation, and measure the income according to the transaction price apportioned to each individual performance obligation. The transaction price is the amount of consideration the Group expects to be entitled to receive in connection with the transfer of goods or services to customers, excluding payments received on behalf of third parties.The group recognizes transaction prices that do not exceed the amount by which the cumulative recognized revenue is most likely not to be materially reversed when the relevant uncertainty is removed.Amounts expected to be refunded to customers are not included in the transaction price as liabilities.Where there is a significant financing component to the contract, the Group determines the transaction price on the basis of the amount payable in cash that is assumed to be paid by the customer upon acquisition of control of the goods or services.The difference between the transaction price and the contract consideration is amortized over the contract term using the effective interest rate method.On the commencement date of the contract, the Group expects the customer to acquire control of the goods or services within a period of one year from the time the customer pays the price, irrespective of the significant financing component of the contract. If one of the following conditions is met, the Group shall fulfill its performance obligations within a certain period of time;Otherwise, the performance obligation shall be fulfilled at a certain point: 1. The customer obtains and consumes the economic benefits brought by the Group's performance of the contract at the same time. 2. The customer can control the goods under construction in the process of the Group's performance. 3. The commodities produced during the performance of the Group have irreplaceable uses, and the Group has the right to collect the payment for the cumulative part of the performance completed so far during the entire contract period. For performance obligations performed within a certain period of time, the Group recognizes revenue in accordance with the performance progress during that period.When the performance schedule cannot be reasonably determined, if the group's costs already incurred are expected to be compensated, revenue shall be recognized in accordance with the amount of costs already incurred until the performance schedule can be reasonably determined. For performance obligations performed at a certain point, the Group recognizes revenue at the point when the customer takes control of the relevant goods or services.In determining whether a customer has acquired control of the goods or services, the Group considers the following indications: 1. The Group has the current right to receive payment in respect of the goods or services. 2. The Group has transferred the legal ownership of the goods to the customer. 3. The Group has transferred the goods in kind to the customer.
39 Wafangdian Bearing Company Limited 2021 Midyear Financial report
4. The Group has transferred the principal risks and rewards of ownership of the goods to the customer. 5. The customer has accepted the goods or services, etc. The Group's right to receive consideration for goods or services that have been transferred to customers is listed as contract assets, which are set down for impairment on the basis of expected credit losses. The group's unconditional right to receive consideration from customers is shown as an receivables. The Group's obligation to transfer goods or services to customers for which it has received their consideration is presented as a contractual liability. Different business models of the same kind lead to differences in revenue recognition accounting policies There is no 40.Government grants A government grant is a monetary asset or non-monetary asset granted by government without consideration. It shall be recognized when the company complies with the conditions attaching to the grant and when the company is able to receive the grant. Assets-related government grant is the government fund obtained by the company for the purpose of long-term assets purchase and construction or establishment in the other forms. Income-related grants are the grant given by the government apart from the assets-related grants. If no grant objective indicated clearly in the government documents, the company shall judge it according to the principle mentioned above. Where a government grant is in the form of a transfer of monetary asset, it is measured at the amount received. Where a government grant is made on the basis of fixed amount or conclusive evidence indicates relevant conditions for financial support are met and expect to probably receive the fund, it is measured at the amount receivable. Where a government grant is in the form of a transfer of non-monetary asset, it is measured at fair value. If fair value cannot be determined reliably, it is measured at a nominal amount of RMB1 Yuan. Government grant are classified as assets-related government grants and income-related grants. Assets-related government grants are recognized as deferred income and assets are evenly amortized to profit or loss over the useful life of the related asset. Any assets are sold, transferred, disposed off or impaired earlier than their useful life expired date, the remaining balance of deferred income which hasn't been allocated shall be carried forward to the income statement when the assets are disposed off. Income-related government grants that is a compensation for related expenses or losses to be incurred in subsequent periods are recognized as deferred income and credited to the relevant period when the related expense are incurred. Government grants relating to compensation for related expenses or losses already incurred are charged directly to the profit or loss for the period. Government grants related to daily business, shall be recognized as other income in accordance with business nature, otherwise, shall be recognized as non-operating expenses. If the group obtains the discount interest of policy preferential loans, it shall follow the accounting standards according to the following principles, in the case of either the financial allocation of discount interest funds to the lending bank or the financial allocation of discount interest funds directly to the group. (1) If interest discount funds is given to the lending bank, and bank provides loans at a preferential interest rate to the group, the group's borrowing cost is measured at the actual amount received, according to the loan principal and the preferential interest rate, work out borrowing expense (or the fair value of the loan is taken as borrowing costs and work out he borrowing expense at effective interest rate. Any difference between the amount received and FV is recognized as deferred income. Deferred income is amortised by using effective interest rate method within the loan term period and offset borrowing expense). (2) If interest discount funds are given to the group directly, the preferential interest shall be offset the borrowing expense. If any government grant already recognized needs to be returned to the government, the accounting shall be differed according to the following circumstances: 1) originally recognized as offsetting of related assets' book value, assets book value shall be adjusted, 2) if any deferred income, book value of deferred income shall be offset, excessive portion shall be accounted into income statement, 3) Other situation, it shall be accounted into income statement directly. 41.Deferred tax assets and deferred tax liabilities The deferred income tax assets or the deferred income tax liabilities should be recognized according to the differences (temporary difference) between the carrying amount of the assets or liabilities and its tax base. Deferred tax assets shall be respectively recognised for deductible tax losses that can be carried forward in accordance with tax law requirements for deduction of taxable income in subsequent years. No deferred tax liabilities shall be recognized for any temporary difference arising from goodwill initially recognition. No deferred tax assets or liabilities shall be recognized for any difference arising from assets or liabilities 40 Wafangdian Bearing Company Limited 2021 Midyear Financial report initial recognition on non-business combination with no effect on either accounting profit or taxable profit (or deductible tax loss). At the balance sheet date, deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available to offset the deductible temporary difference, deductible loss and tax reduction 42. Lease (1) Accounting treatment of operating leases Since January 1, 2021, the company in accordance with the Ministry of Finance issued "accounting standards for enterprises no. 21 - leasing" (finance and accounting) [2018] no. 35 to the relevant provisions of, increase the "right to use assets", "lease liability subjects," on the lease beginning date, as the lessee, the company to the lease confirmation "right to use assets", "lease liability,Finance lease and operating lease are no longer distinguished. All leases are recognized as entitled assets and lease liabilities, and depreciation and interest expense are recognized respectively (the interest expense of lease liabilities in each period of the lease term is calculated according to the fixed cyclical interest rate and recorded into the current profit and loss). The company's implementation of the new leasing Standards this time for the adoption of transitional policy, the new leasing standards allow the adoption of two methods: Method 1 is to allow enterprises to adopt retroactive adjustment;Method 2 is to adjust the amount of retained earnings and other relevant items in the financial statements at the beginning of the year of the first implementation of this Standard according to the cumulative impact of the first implementation of this Standard, without adjusting the information of comparable periods.Meanwhile, method 2 provides a number of simplified processing arrangements. The company adopts the above method 2 in the transitional policy of the criteria and adopts simplified treatment, that is: lease liabilities are equal to the present value of the remaining lease payments, and the right to use assets are equal to the amount of lease liabilities and make necessary adjustments.This method will not affect the company's retained earnings at the beginning of 2021. (1) The right to use the assets refers to the lessee's right to use the leased assets during the lease term, which shall be initially measured at the cost. (2) Lease liabilities shall be initially measured at the present value of the outstanding lease payments on the commencement date of the lease term. The lessee shall calculate the depreciation of the use-right assets with reference to the relevant depreciation provisions of the Accounting Standards for Enterprises No. 4 - Fixed Assets, confirm whether the use-right assets have been impaired in accordance with the provisions of the Accounting Standards for Enterprises No. 8 - Asset impairment, and make accounting treatment for the identified impairment loss. (2) Accounting treatment of finance lease 43.Other important accounting policies and accounting estimates 44.Major changes in accounting policies and accounting estimates (1) Significant accounting policy changes Applicable Inapplicable
The examination and The content and reason of accounting policy change note approval procedures
On December 13, 2018, the Ministry of Finance (MOF) issued the revised Accounting Standards for Business Enterprises No. 21 - Leasing (Accounting Approved by the board of [2018] No. 35), which requires both domestic and directors overseas listed enterprises and overseas listed enterprises that use IFRS or ACCOUNTING Standards for Business Enterprises to prepare financial
41 Wafangdian Bearing Company Limited 2021 Midyear Financial report
statements,As of January 1, 2019;Other enterprises implementing the accounting standards for Business Enterprises shall come into force on January 1, 2021.In accordance with the above notice and the provisions and requirements of the accounting standards for Enterprises, the company shall make corresponding changes to the accounting policy of the original lease.
The items of "right to use assets" and "lease liabilities" will be added.In accordance with the transition policy, the Company has chosen to simplify its treatment in implementing the new leasing guidelines, without adjusting early 2021 retained earnings and without adjusting comparable period information. (2) Significant changes in accounting estimates Applicable Inapplicable (3) The first implementation of the new lease standards from 2021 to adjust the first implementation of the financial statements at the beginning of the year related items Applicable Inapplicable Whether it is necessary to adjust the balance sheet at the beginning of the year Yes No Consolidated balance sheet In RMB Yuan
item 2020.12.31 2021.01.01 The adjusted number
Current assets:
Monetary fund 194,152,280.08 194,152,280.08
Settlement provision
Lending money,
Trading financial assets 228,046.00 228,046.00
Derivative financial assets
Notes receivable 416,044,578.48 416,044,578.48
Accounts receivable 975,628,091.12 975,628,091.12
Receivables financing 130,600,545.59 130,600,545.59
prepayments 53,772,465.49 53,772,465.49
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves
receivable
Other accounts receivable 14,204,144.25 14,204,144.25
Where: interest receivable
Dividends receivable
Purchase and resale of financial
42 Wafangdian Bearing Company Limited 2021 Midyear Financial report
assets
inventory 615,656,946.30 615,656,946.30
Contract assets
Hold assets for sale
Non-current assets maturing
within one year
Other current assets 24,610,448.93 24,610,448.93
Total current assets 2,424,897,546.24 2,424,897,546.24
Non-current assets:
Issue loans and advance
payments
Creditor's rights investment
Other debt investment
Long-term receivables
Long-term equity investment
Investment in other equity 11,926,856.64 11,926,856.64 instruments
Other non-current financial assets
Investment real estate 117,516,482.39 117,516,482.39
Fixed assets 474,109,923.22 474,109,923.22
Projects under construction 24,254,985.16 24,254,985.16
Productive biological assets
Oil and gas assets
Right of use assets 1,256,680.47 1,256,680.47
Intangible assets 80,725,861.18 80,725,861.18
The development of spending
goodwill
Long-term deferred expenses 511,188.11 511,188.11
Deferred tax assets
Other non-current assets
Total non-current assets 709,045,296.70 710,301,977.17
Total assets 3,133,942,842.94 3,135,199,523.41
Current liabilities:
Short-term borrowing 670,000,000.00 670,000,000.00
Borrowing from the central bank
43 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Funds borrowed from
Transactional financial liabilities
Derivative financial liabilities
Notes payable 274,654,535.65 274,654,535.65
Accounts payable 1,044,801,896.85 1,044,801,896.85
Advance payment
Contract liability 39,456,304.55 39,456,304.55
Sale of repurchase financial
assets
Take deposits and inter-bank
deposits
Acting to buy and sell securities
Acting as an underwriter of
securities payments
Employee compensation payable 52,677,141.09 52,677,141.09
Payable taxes 3,688,168.68 3,688,168.68
Other payable 129,476,061.47 129,476,061.47
Where: interest payable 1,041,600.00 1,041,600.00
Dividends payable
Fees and commissions due
Reinsurance accounts payable
Holding liabilities for sale
Non-current liabilities due within
one year
Other current liabilities 5,129,319.58 5,129,319.58
Total current liabilities 2,219,883,427.87 2,219,883,427.87
Non-current liabilities:
Reserve for insurance contract
Long-term borrowing
Bonds payable
Where: Preferred stock
Sustainable debt
Lease liability 1,256,680.47 1,256,680.47
Long-term payables 344,974.84 344,974.84
Long-term employee
compensation payable
44 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Estimated debts 39,032,270.91 39,032,270.91
Deferred revenue 59,942,753.08 59,942,753.08
Deferred tax liabilities 734,448.35 734,448.35
Other non-current liabilities
Total non-current liabilities 100,054,447.18 101,311,127.65
Total liabilities 2,319,937,875.05 2,321,194,555.52
Owner's equity:
equity 402,600,000.00 402,600,000.00
Other equity instruments
Where: Preferred stock
Sustainable debt
Capital reserves 485,691,050.47 485,691,050.47
Minus: Treasury stocks
Other comprehensive income
The special reserve
Surplus reserves 136,770,391.01 136,770,391.01
General risk provision
Undistributed profit -211,056,473.59 -211,056,473.59
Total owner's equity attributable 814,004,967.89 814,004,967.89 to the parent company
Minority equity
Total owner's equity 814,004,967.89 814,004,967.89
Total liabilities and owners' 3,133,942,842.94 3,135,199,523.41 equity
Adjustment fact Sheet The company's implementation of the new leasing Standards this time for the adoption of transitional policy, the new leasing standards allow the adoption of two methods: Method 1 is to allow enterprises to adopt retroactive adjustment;Method 2 is to adjust the amount of retained earnings and other relevant items in the financial statements at the beginning of the year of the first implementation of this Standard according to the cumulative impact of the first implementation of this Standard, without adjusting the information of comparable periods.Meanwhile, method 2 provides a number of simplified processing arrangements. In conjunction with the provisions of the new Lease Criteria, the Board of Directors agreed to implement the new Lease criteria on January 1, 2021, using the above method 2 as regards the transition policy of the Criteria, with a simplified treatment that the lease liability is equal to the present value of the remaining lease payments and the use-right asset is equal to the amount of the lease liability, subject to necessary adjustments.This method will not affect the company's retained earnings at the beginning of 2021. In accordance with the above provisions, the Company recognizes use-right assets and lease liabilities and recognizes depreciation and interest expense, respectively, for all leases (except short-term leases and low-value asset leases where the simplified treatment is chosen) on January 1, 2021. In accordance with the transition policy, the Company has chosen to simplify its treatment in implementing the new leasing 45 Wafangdian Bearing Company Limited 2021 Midyear Financial report
guidelines, without adjusting early 2021 retained earnings and without adjusting comparable period information. Parent company balance sheet In RMB Yuan
Item 2020.12.31 2021.01.01 Adjusted number
Current assets:
Monetary fund 173,606,464.84 173,606,464.84
Trading financial assets 228,046.00 228,046.00
Derivative financial assets
Notes receivable 325,928,761.07 325,928,761.07
Accounts receivable 1,051,197,353.63 1,051,197,353.63
Receivables financing 125,606,963.37 125,606,963.37 prepayments 52,961,548.88 52,961,548.88
Other accounts receivable 13,357,080.42 13,357,080.42
Where: interest receivable
Dividends receivable inventory 472,723,348.67 472,723,348.67
Contract assets
Hold assets for sale
Non-current assets maturing within one year
Other current assets 17,971,682.31 17,971,682.31
Total current assets 2,233,581,249.19 2,233,581,249.19
Non-current assets:
Creditor's rights investment
Other debt investment
Long-term receivables
Long-term equity investment 211,583,897.67 211,583,897.67
Investment in other equity 11,926,856.64 11,926,856.64 instruments
Other non-current financial assets
Investment real estate 103,505,103.77 103,505,103.77
Fixed assets 309,847,783.81 309,847,783.81
Projects under construction 21,933,710.72 21,933,710.72
Productive biological assets
Oil and gas assets
46 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Right of use assets 1,256,680.47 1,256,680.47
Intangible assets 64,192,377.21 64,192,377.21
The development of spending goodwill
Long-term deferred expenses 432,059.78 432,059.78
Deferred tax assets
Other non-current assets
Total non-current assets 723,421,789.60 724,678,470.07
Total assets 2,957,003,038.79 2,958,259,719.26
Current liabilities:
Short-term borrowing 670,000,000.00 670,000,000.00
Transactional financial liabilities
Derivative financial liabilities
Notes payable 274,654,535.65 274,654,535.65
Accounts payable 845,753,616.99 845,753,616.99
Advance payment
Contract liability 40,196,130.87 40,196,130.87
Employee compensation payable 43,148,413.71 43,148,413.71
Payable taxes 3,395,991.46 3,395,991.46
Other payable 109,599,140.08 109,599,140.08
Where: interest payable 1,041,600.00
Dividends payable
Holding liabilities for sale
Non-current liabilities due within one year
Other current liabilities 5,225,497.00 5,225,497.00
Total current liabilities 1,991,973,325.76 1,991,973,325.76
Non-current liabilities:
Long-term borrowing
Bonds payable
Where: Preferred stock
Sustainable debt
Lease liability 1,256,680.47 1,256,680.47
Long-term payables 244,974.84 244,974.84
Long-term employee compensation
47 Wafangdian Bearing Company Limited 2021 Midyear Financial report payable
Estimated debts 39,032,270.91 39,032,270.91
Deferred revenue 29,380,833.70 29,380,833.70
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 68,658,079.45 69,914,759.92
Total liabilities 2,060,631,405.21 2,061,888,085.68
Owner's equity: equity 402,600,000.00 402,600,000.00
Other equity instruments
Where: Preferred stock
Sustainable debt
Capital reserves 485,678,443.26 485,678,443.26
Minus: Treasury stocks
Other comprehensive income
The special reserve
Surplus reserves 136,770,391.01 136,770,391.01
Undistributed profit -128,677,200.69 -128,677,200.69
Total owner's equity 896,371,633.58 896,371,633.58
Total liabilities and owners' equity 2,957,003,038.79 2,958,259,719.26
Adjustment fact Sheet The company's implementation of the new leasing Standards this time for the adoption of transitional policy, the new leasing standards allow the adoption of two methods: Method 1 is to allow enterprises to adopt retroactive adjustment;Method 2 is to adjust the amount of retained earnings and other relevant items in the financial statements at the beginning of the year of the first implementation of this Standard according to the cumulative impact of the first implementation of this Standard, without adjusting the information of comparable periods.Meanwhile, method 2 provides a number of simplified processing arrangements. In conjunction with the provisions of the new Lease Criteria, the Board of Directors agreed to implement the new Lease criteria on January 1, 2021, using the above method 2 as regards the transition policy of the Criteria, with a simplified treatment that the lease liability is equal to the present value of the remaining lease payments and the use-right asset is equal to the amount of the lease liability, subject to necessary adjustments.This method will not affect the company's retained earnings at the beginning of 2021. In accordance with the above provisions, the Company recognizes use-right assets and lease liabilities and recognizes depreciation and interest expense, respectively, for all leases (except short-term leases and low-value asset leases where the simplified treatment is chosen) on January 1, 2021. In accordance with the transition policy, the Company has chosen to simplify its treatment in implementing the new leasing guidelines, without adjusting early 2021 retained earnings and without adjusting comparable period information. (4) Retrospective adjustment of previous comparative data for the first implementation of the new lease criteria from 2021 Applicable Inapplicable 45.other
48 Wafangdian Bearing Company Limited 2021 Midyear Financial report
VI.Taxation
1. The main applicable tax and rate to the Group as follows:
Tax Tax base Tax rate
Value-added tax (VAT) Sales revenue or Purchase 13%,9%,6%,5%
City construction tax Value-added tax payables 7%
Education surcharge Value-added tax payables 3%
Local education surcharge Value-added tax payables 2%
Enterprise income tax(EIT) Current period taxable profit 15% or 25%
Real estate tax 70% of cost of own property or revenue from leasing property 1.2% or 12%
Land use tax Land using right area RMB 6 per square meter
Notes: EIT rate for different tax payer
Tax principles EIT rate
Wazhou Liaoyang Bearing construction Co.,Ltd 15%
Dalian Wazhou Precision Motor Car Bearing Company Limited 25%
Wazhou Precision of Spherical Roller Bearings(Wafangdian)Co., Ltd 25%
2. Tax preference
The company obtained the qualification of high and new technology enterprises at 3 December, 2020.The Certificate No is GR202021200656, and the validity duration is three years. The subsidiary of the Company, Wazhou Liaoyang Bearing construction Co.,Ltd obtained the qualification of high and new technology enterprises at 15 September, 2020. The Certificate No is GR202021000550 and the validity duration is three years. According to the tax law, the company can be granted for the preferential tax policy of enterprise income tax rate of 15% in three years.
3.other
VI. Notes to Consolidated Financial Statements
1. Cash and cash in bank
In RMB Yuan
Item Closing Balance Opening Balance
Cash on hand 25,913.68 33,102.75
Bank deposits 194,772,300.48 163,695,697.22
49 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Other monetary funds 19,050,405.69 30,423,480.11
A combined 213,848,619.85 194,152,280.08
2. Tradable financial asset
In RMB Yuan
Item Closing Balance Opening Balance
Financial assets measured at fair value and whose changes are included in 411,407.31 228,046.00 current profit and loss
Among them:
Among them:
A combined 411,407.31 228,046.00
3. Derivative financial assets 4. Notes receivable (1) Classifying and listing of notes receivable. In RMB Yuan
Item Closing Balance Opening Balance
Bank acceptance 552,785,383.26 284,965,612.20
Commercial acceptance bill 67,022,215.00 131,078,966.28
A combined 619,807,598.26 416,044,578.48
In RMB Yuan
Closing Balance Opening Balance
Provision for bad Book balance Book balance Provision for bad debt debt category book book Provisi proport value proporti Provision value amount amount on amount amount ion on ratio ratio
Among them:
Notes receivable for which bad 619,80 422,39 626,159,1 100.00 6,351,5 6,351,58 416,044, debt provision is 1.01% 7,598.2 6,159.0 1.50% 78.85 % 80.59 0.59 578.48 drawn by 6 7 combination
Among them:
619,80 422,39 626,159,1 100.00 6,351,5 6,351,58 416,044, A combined 1.01% 7,598.2 6,159.0 1.50% 78.85 % 80.59 0.59 578.48 6 7
If the bad debt provision of notes receivable is drawn according to the general model of expected credit loss, please refer to
50 Wafangdian Bearing Company Limited 2021 Midyear Financial report other receivables disclosure methods to disclose the relevant information of bad debt provision: Applicable Inapplicable 5. Accounts receivable (1) Classified disclosure of accounts receivable In RMB Yuan
Closing Balance Opening Balance
Provision for bad Book balance Book balance Provision for bad debt debt category book book Provisi propo value propor Provision value amount amount on amount amount rtion tion ratio ratio
Accounts receivable with 73,132,7 73,132, 100.00 73,132,75 6.79 73,132, 100.00 bad debt 6.90% 54.28 754.28 % 4.28 % 754.28 % provision drawn on a single item
Among them:
Accounts receivable with a 944,36 973,076, 93.01 28,707, 1,004,373 93.21 28,745, 975,628, combination of 2.95% 8,834. 2.86% 032.60 % 198.37 ,533.99 % 442.87 091.12 bad debt 23 provisions
Among them:
709,76 -- Aging 738,468, 70.59 28,707, 723,934,3 67.19 28,745, 695,188, 3.89% 1,044. 3.97% combination 242.98 % 198.37 04.67 % 442.87 861.80 61
234,60 -- Combination of 234,607, 22.42 280,439,2 26.03 280,439, 7,789. related parties 789.62 % 29.32 % 229.32 62
101,83 944,36 101,87 1,046,20 100.00 1,077,506 100.0 975,628, total 9,952.6 8,834. 8,197.1 8,786.88 % ,288.27 0% 091.12 5 23 5
Withdrawal of bad debt provision by single item: In RMB Yuan
Closing balance
Name Provision for Provision Book balance Provision for bad debt ratio
Wafangdian Bearing Group Special Steel Not expected to 5,092,669.00 5,092,669.00 100.00% Co. LTD recover
Liaoning Yinheng Galvanized Color 3,213,308.67 3,213,308.67 100.00% Not expected to
51 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Coated Steel Plate Co. LTD recover
Not expected to Shandong Hengji New Material Co., LTD 2,284,666.96 2,284,666.96 100.00% recover
Shandong Yuanda Board Industry Not expected to 1,804,722.77 1,804,722.77 100.00% Technology Co., LTD recover
Not expected to Hesteel Company Limited Handan branch 1,608,611.42 1,608,611.42 100.00% recover
Not expected to Angang Steel Company Limited 1,595,050.69 1,595,050.69 100.00% recover
Not expected to Liaoning Wa shaft Bearing Sales Co., LTD 1,500,000.00 1,500,000.00 100.00% recover
Not expected to Bazhou Tianli Pipe Co., LTD 1,325,600.76 1,325,600.76 100.00% recover
Not expected to Zhejiang Yesheng New material Co., LTD 1,301,760.00 1,301,760.00 100.00% recover
Not expected to Yingkou Iron & Steel Co. LTD 1,256,973.91 1,256,973.91 100.00% recover
Not expected to Sichuan Southwest Stainless Steel Co. LTD 1,241,333.17 1,241,333.17 100.00% recover
Not expected to Citic Heavy Industrial Machinery Co. LTD 1,137,600.00 1,137,600.00 100.00% recover
Henan Taihang Vibration Machinery Co., Not expected to 989,207.41 989,207.41 100.00% LTD recover
Not expected to Donghai New Material Co., LTD 942,558.20 942,558.20 100.00% recover
Shanghai Jieru Heavy Machinery Not expected to 923,603.80 923,603.80 100.00% equipment Co., LTD recover
Not expected to Tangshan Guofeng Iron & Steel Co. LTD 883,297.41 883,297.41 100.00% recover
China second heavy machinery Group Not expected to (Deyang) Wanxin Engineering Equipment 795,887.92 795,887.92 100.00% recover Co., LTD
Benxi Beiying Iron & Steel (Group) Co. Not expected to 775,804.98 775,804.98 100.00% LTD recover
Not expected to Bengang Steel Plates Co., Ltd 770,000.00 770,000.00 100.00% recover
Materials Branch of North Heavy Industry Not expected to 739,585.80 739,585.80 100.00% Group Co. LTD recover
Shandong Yuntong New Material Not expected to 711,438.94 711,438.94 100.00% Technology Co., LTD recover
52 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Not expected to Dongfeng Motor Transmission Co. LTD 704,098.23 704,098.23 100.00% recover
Not expected to Heilongjiang Longmei Logistics Co. LTD 692,070.49 692,070.49 100.00% recover
Shanghai Weiqiang Heavy Machinery Co., Not expected to 673,595.42 673,595.42 100.00% LTD recover
Not expected to Dalian Tianyuan Motor Co., LTD 666,383.31 666,383.31 100.00% recover
Wolong Electric Huaian Qingjiang Motor Not expected to 598,873.78 598,873.78 100.00% Co., LTD recover
Qiqihar No.2 Machine Tool (Group) Co. Not expected to 551,450.03 551,450.03 100.00% LTD recover
Xi 'an Jossbo Hydraulic Engineering Co. Not expected to 514,938.87 514,938.87 100.00% LTD recover
Gaotang Lvyin Environmental Protection Not expected to 477,691.81 477,691.81 100.00% Technology Co., LTD recover
Not expected to Mudanjiang city speed reducer Factory 467,905.65 467,905.65 100.00% recover
Hunan Chaoyang Electromechanical Co., Not expected to 446,627.60 446,627.60 100.00% LTD recover
Not expected to Liaoyang Sudong Trading Company 444,946.96 444,946.96 100.00% recover
Not expected to Xiangtan Motor Co., LTD 416,549.65 416,549.65 100.00% recover
Not expected to Baoji Faithful Industry and Trade Co., LTD 374,594.68 374,594.68 100.00% recover
Not expected to Boshan Motor Factory Group Co., LTD 373,700.65 373,700.65 100.00% recover
Not expected to Xuzhou XCMG Material Supply Co., LTD 373,237.55 373,237.55 100.00% recover
Qingdao Double star Tyre Industry Co., Not expected to 371,251.58 371,251.58 100.00% LTD recover
Not expected to Shandong Quanlin Group Co. LTD 370,734.92 370,734.92 100.00% recover
Not expected to Minmetals Yingkou Plate Co. LTD 365,064.61 365,064.61 100.00% recover
Not expected to Tai 'an Tianhua trade Co., LTD 364,189.79 364,189.79 100.00% recover
Tangshan Huahang Electromechanical Not expected to 362,498.40 362,498.40 100.00% chuangxian Equipment Co., LTD recover
53 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Not expected to Liaohe Machinery Factory 362,280.30 362,280.30 100.00% recover
Not expected to Shandong Kerui Steel Plate Co. LTD 357,290.00 357,290.00 100.00% recover
Guangzhou Supplies section of China Not expected to Railway Guangzhou Bureau Group Co., 340,000.00 340,000.00 100.00% recover LTD
Not expected to Yichang Guocheng Coating plate Co., LTD 339,600.00 339,600.00 100.00% recover
Not expected to Shantui Construction Machinery Co., Ltd. 325,867.86 325,867.86 100.00% recover
Shandong tancheng new Asia light industry Not expected to 318,488.87 318,488.87 100.00% machinery limited company recover
Beiman Special Steel Co. LTD of Northeast Not expected to 315,004.72 315,004.72 100.00% Special Steel Group recover
Taicang Hutai Chang 'e Papermaking Not expected to 310,361.32 310,361.32 100.00% Equipment Co. LTD recover
Shandong Quelin Straw Comprehensive Not expected to 307,409.46 307,409.46 100.00% Utilization Co., LTD recover
Panzhihua Group Chengdu Iron & Steel Not expected to 303,305.45 303,305.45 100.00% Co. LTD recover
Harbin Haoke Electric Power Technology Not expected to 303,005.32 303,005.32 100.00% Co. LTD recover
Not expected to Hebei Jinxi Iron & Steel Group Co. LTD 298,307.04 298,307.04 100.00% recover
Wazhuan Group Liaoyang bearing Not expected to Manufacturing Co., LTD bearing sales 294,203.05 294,203.05 100.00% recover Branch
Not expected to Sinoma Zibo Heavy Machinery Co., LTD 293,817.58 293,817.58 100.00% recover
Not expected to Jiangsu Xinrui Gear System Co., LTD 286,949.88 286,949.88 100.00% recover
Erzhong Group (Deyang) Jingheng Not expected to 286,935.03 286,935.03 100.00% Transmission Equipment Co., LTD recover
Not expected to Xingtai Iron & Steel Co. LTD 285,834.67 285,834.67 100.00% recover
Hegang Star Mechanical and electrical Not expected to 285,313.50 285,313.50 100.00% Equipment Manufacturing Co. LTD recover
Not expected to Shanxi Taigang Stainless Steel Co.,Ltd 283,936.85 283,936.85 100.00% recover
54 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Not expected to Shandong Guanpeng Metal Sheet Co., LTD 273,748.84 273,748.84 100.00% recover
Baotou Tianli Huanfa Mechanical and Not expected to 273,597.67 273,597.67 100.00% Electrical Co., LTD recover
Not expected to Baoji Loyalty Machine Tool Co., LTD 269,908.74 269,908.74 100.00% recover
Not expected to Jiangsu Dazhong Electric Co., LTD 257,662.90 257,662.90 100.00% recover
Not expected to Korla railway supplies section 256,044.10 256,044.10 100.00% recover
Not expected to Zhuzhou Gear Co., LTD 254,604.07 254,604.07 100.00% recover
Not expected to Jiamusi Electric Motor Co., LTD 245,000.00 245,000.00 100.00% recover
Zibo Boshan Qianjin reducer Factory Co., Not expected to 244,579.32 244,579.32 100.00% LTD recover
Not expected to Indonesia CV.SIDO Company 243,676.52 243,676.52 100.00% recover
Not expected to Tonghua Iron & Steel Co. LTD 240,568.39 240,568.39 100.00% recover
Shijiazhuang Qiangda slurry pump Co. Not expected to 238,749.98 238,749.98 100.00% LTD recover
Not expected to Ningbo Fan Co., LTD 238,487.84 238,487.84 100.00% recover
Shenyang Jingxin Remanufacturing Co., Not expected to 236,705.64 236,705.64 100.00% LTD recover
Not expected to Siemens Motors (China) Co., LTD 228,831.20 228,831.20 100.00% recover
Not expected to Yichang Jiandao Trading Co., LTD 226,995.16 226,995.16 100.00% recover
Anshan Heavy Duty Mining Machinery Not expected to 216,819.90 216,819.90 100.00% Co., Ltd. recover
Not expected to Heavy coal Machine Co. LTD 215,142.12 215,142.12 100.00% recover
Qinhuangdao Shouqin Metal Material Co., Not expected to 213,911.48 213,911.48 100.00% LTD recover
Liaoning Renda Equipment Technology Not expected to 211,464.69 211,464.69 100.00% Co., LTD recover
CRRC Shenyang Locomotive & Rolling Not expected to 205,145.45 205,145.45 100.00% stock Co. LTD recover
55 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Not expected to Panzhihua Vanadium Steel Co., LTD 203,004.70 203,004.70 100.00% recover
Taizhou Luqiao Meitian Motorcycle Co., Not expected to 200,562.00 200,562.00 100.00% LTD recover
Tianjin Rongtai New composite Material Not expected to 200,000.00 200,000.00 100.00% Co., LTD recover
Hangzhou Qianjin Gear Box Group Co., Not expected to 199,832.70 199,832.70 100.00% LTD recover
Not expected to Hebei Wenfeng Iron & Steel Co. LTD 197,979.65 197,979.65 100.00% recover
Suzhou Prospect Mechanical and Electrical Not expected to 192,173.26 192,173.26 100.00% Equipment Co. LTD recover
Not expected to Guangzhou Motor Factory 189,128.68 189,128.68 100.00% recover
Hubei Wa Axis Xin Sheng Technology Co., Not expected to 188,136.00 188,136.00 100.00% LTD recover
Not expected to Handan Sida Motor Co., LTD 186,191.80 186,191.80 100.00% recover
Not expected to Nanjing Light Industrial Machinery Factory 185,079.54 185,079.54 100.00% recover
Jiangsu Suye Heavy Industry Machinery Not expected to 184,530.46 184,530.46 100.00% Manufacturing Co. LTD recover
Shanxi Sente coal coking Engineering Not expected to 182,700.00 182,700.00 100.00% Group Co., LTD. Wenxi Branch recover
Not expected to Huichang Red Lion Cement Co. LTD 181,644.58 181,644.58 100.00% recover
Not expected to Gulf World Trading Corporation of India 179,376.85 179,376.85 100.00% recover
Huaibei Mining (group) coal industry Not expected to 178,580.44 178,580.44 100.00% Limited liability company materials branch recover
Not expected to Shanghai Sule Textile Machinery Co., LTD 176,984.10 176,984.10 100.00% recover
Not expected to Shijiazhuang Electric Machinery Co., LTD 172,543.31 172,543.31 100.00% recover
Not expected to Jiamusi Coal Mine Machinery Co. LTD 171,288.78 171,288.78 100.00% recover
Xuzhou Sinoma Equipment Heavy Not expected to 170,930.05 170,930.05 100.00% Machinery Co. LTD recover
Not expected to Changsha Motor Factory Co. LTD 170,295.76 170,295.76 100.00% recover
56 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Austria Andritz Technology Co., LTD. Not expected to 166,787.14 166,787.14 100.00% (Foshan) recover
Not expected to Xuzhou Meici Bridge Co., LTD 163,037.45 163,037.45 100.00% recover
Shanghai Zhongli Machinery Not expected to 161,388.95 161,388.95 100.00% Manufacturing Co., LTD recover
Not expected to Foshan Ketai Electromechanical Co., LTD 160,772.79 160,772.79 100.00% recover
Not expected to Siping blower Co., LTD 160,053.21 160,053.21 100.00% recover
Not expected to Anyang Coal mine Motor Factory 159,537.60 159,537.60 100.00% recover
Dalian Hongyun Transmission Technology Not expected to 158,972.00 158,972.00 100.00% Development Co., LTD recover
Not expected to Shanxi Motor Factory 158,021.97 158,021.97 100.00% recover
Not expected to Shenhua Materials Group Co. LTD 155,115.29 155,115.29 100.00% recover
Not expected to Hubei All-out Machinery Group Co. LTD 152,489.82 152,489.82 100.00% recover
Guangdong Zhaoqing Jialong Packaging Not expected to 150,313.94 150,313.94 100.00% Machinery Group Co. LTD recover
Not expected to Wuxi Yutong Bearing Co., LTD 149,427.42 149,427.42 100.00% recover
Yixing Chaoqun Machinery equipment Co., Not expected to 138,484.00 138,484.00 100.00% LTD recover
Zhejiang Tongli Heavy Machinery Not expected to 133,670.00 133,670.00 100.00% Manufacturing Co., LTD recover
Not expected to China First Heavy Industry Group Co. LTD 132,135.01 132,135.01 100.00% recover
Kunming Electric Machinery Factory Co. Not expected to 131,455.02 131,455.02 100.00% LTD recover
Not expected to Jiangsu Gangyi Heavy Industry Co., LTD 129,036.10 129,036.10 100.00% recover
Guilin Hongcheng Mining equipment Not expected to 127,032.49 127,032.49 100.00% Manufacturing Co. LTD recover
Not expected to Shanghai Sule Textile Machinery Co., LTD 126,752.70 126,752.70 100.00% recover
Guangxi Beibu Gulf New Material Co., Not expected to 126,353.69 126,353.69 100.00% LTD recover
57 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Shenyang Qunding Machinery Equipment Not expected to 126,286.35 126,286.35 100.00% Co., LTD recover
Tangshan Dunshi Machinery Not expected to 124,474.60 124,474.60 100.00% Manufacturing Co. LTD recover
Shenyang Machine Tool (Group) Co., LTD. Not expected to 124,002.02 124,002.02 100.00% Precision CNC Machine Tool Branch recover
Nantong Hengrong machine pump Factory Not expected to 123,407.18 123,407.18 100.00% Co., LTD recover
Guangxi Tianyang Huami Paper Industry Not expected to 122,629.00 122,629.00 100.00% Co., LTD recover
Not expected to Taiyuan Heavy Industry Co. LTD 121,560.19 121,560.19 100.00% recover
Zhejiang RIFA Precision Machinery Not expected to 120,214.46 120,214.46 100.00% Co.,Ltd. recover
China Railway Materials Shenyang Not expected to 115,750.43 115,750.43 100.00% Company recover
Not expected to Wuhan Aotebi Motor Co., LTD 115,009.60 115,009.60 100.00% recover
Wuxi Computer Numerical Control Co., Not expected to 114,412.20 114,412.20 100.00% LTD recover
John Deere Jia Lian harvesting Machinery Not expected to 114,127.98 114,127.98 100.00% Co. LTD recover
Not expected to Nantong Motor Factory 113,634.74 113,634.74 100.00% recover
Not expected to Qinhuangdao Huayye Motor Co., LTD 111,564.44 111,564.44 100.00% recover
Shandong Baoding Coal and Coking Co. Not expected to 110,528.29 110,528.29 100.00% LTD recover
Shenyang SAIC Jinbei Automobile Not expected to 109,908.15 109,908.15 100.00% Transmission Co., LTD recover
Not expected to Dalian Dalma Motor Co., LTD 109,553.86 109,553.86 100.00% recover
Not expected to Orient Iron & Steel Co. LTD 108,997.44 108,997.44 100.00% recover
Yingkou Jia Chen Burning chemical Co., Not expected to 108,451.55 108,451.55 100.00% LTD recover
Not expected to Tongchuan explosion-proof motor Factory 105,476.07 105,476.07 100.00% recover
China Pingcoal what energy chemical Not expected to 104,296.17 104,296.17 100.00% group Limited liability company recover
58 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Jilin Jiaohe coal machine Manufacturing Not expected to 102,965.96 102,965.96 100.00% Co. LTD recover
Not expected to DBI Corporation of America 102,568.64 102,568.64 100.00% recover
Changchun Power Generation Equipment Not expected to 100,536.11 100,536.11 100.00% Co. LTD recover
Not expected to The total of other individual items 12,676,958.90 12,676,958.90 100.00% recover
Total 73,132,754.28 73,132,754.28 -- --
If the accounts receivable bad debt provision is drawn according to the general model of expected credit loss, please refer to other receivables disclosure methods to disclose the relevant information of bad debt provision: Applicable Inapplicable Disclosure by age In RMB Yuan
age Closing balance
Within 1 year (including 1 year) 882,813,012.05
1 to 2 years 63,214,142.86
2 to 3 years 17,777,160.64
More than 3 years 82,404,471.33
3 to 4 years 29,454,636.22
4 to 5 years 15,247,533.02
More than 5 years 37,702,302.09
A combined 1,046,208,786.88
(2) Bad debt provisions drawn, collected or transferred back in the current period Provision for bad debts in the current period: In RMB Yuan
Current change amount Opening Closing category To withdraw or Cancel after balance provision other balance reverse verification
Provision for 101,878,197.15 30,000.00 8,244.50 101,839,952.65 bad debt
A combined 101,878,197.15 30,000.00 8,244.50 101,839,952.65
(3) accounts receivable actually written off in the current period (4) The top five accounts receivable according to the ending balance collected by the debtor In RMB Yuan
59 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Ending balance of accounts The proportion of total ending Ending balance of allowance Name receivable balance of accounts receivable for bad debts
Customer 1 104,686,090.70 10.01%
Customer 2 32,769,278.70 3.13% 289,421.32
Customer 3 21,503,960.05 2.06% 217,113.29
Customer 4 15,438,858.26 1.48% 143,494.39
Customer 5 15,348,753.77 1.47% 105,384.95
combined 189,746,941.48 18.15%
6. Receivables financing In RMB Yuan
project Closing balance Opening balance
Bank acceptance 71,227,468.25 72,593,534.75
Commercial acceptance bill 58,353,051.11 58,007,010.84
total 129,580,519.36 130,600,545.59
Changes in the amount of receivables financing in the current period and changes in fair value Applicable Inapplicable If the impairment provision of receivables financing is drawn in accordance with the general model of expected credit loss, please refer to other receivables disclosure methods to disclose the relevant information of impairment provision: Applicable Inapplicable Other notes: 7. Payment in advance (1) Payment in advance shall be shown according to the age of the account In RMB Yuan
Closing balance Opening balance aging account ratio account ratio
Within 1 year 19,201,686.83 87.06% 52,189,932.41 97.06%
1 to 2 years 1,291,112.30 5.85% 1,297,764.53 2.41%
2 to 3 years 1,464,721.71 6.64% 284,768.55 0.53%
More than 3 years 98,138.27 0.44%
A combined 22,055,659.11 -- 53,772,465.49 --
(2) The advance payments of the top five in the closing balance collected by the prepaid object name Closing balance age Proportion to total balance of prepayments at year-end (%)
60 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Wafangdian Bearing Precision Forging co. 9,800,439.22 Within a year 44.44 LTD
Fushun Special Steel Co. LTD 6,035,186.31 Within a year 27.36
Wafangdian Far East Bearing Co., LTD 1,500,000.00 Within a year 6.80
Dalian Xiangrui Railway Equipment Co. LTD 1,500,000.00 Within a year 6.80
Zhejiang RIFA Precision Machinery Co.,Ltd. 1,164,000.00 Within a year 5.28
A combined 18,835,625.53 —— 85.40
8. Other receivables In RMB Yuan
item Closing balance Opening balance
Other receivables 11,290,749.69 14,204,144.25
total 11,290,749.69 14,204,144.25
(1) Interest receivable (2) Dividends receivable (3) Other accounts receivable 2) Provision for bad debts In RMB Yuan
The first stage The second stage The third stage
Provision for bad debt Expected credit Expected credit loss for Expected credit loss for Total losses over the next the entire duration (no the entire duration (credit 12 months credit impairment occurs) impairment incurred)
Balance as of January 7,169,695.56 7,169,695.56 1, 2021
January 1, 2021 balance in current —— —— —— —— period
Balance on June 30, 7,169,695.56 7,169,695.56 2021
Loss provision Changes in current period significant changes in book balance Applicable Inapplicable Disclosure by age In RMB Yuan
age Closing balance
Within 1 year (including 1 year) 10,005,901.50
1 to 2 years 799,115.02
2 to 3 years 269,000.84
More than 3 years 7,386,427.89
61 Wafangdian Bearing Company Limited 2021 Midyear Financial report
3 to 4 years 325,917.88
4 to 5 years 1,487,646.00
More than 5 years 5,572,864.01
A combined 18,460,445.25
3) Bad debt provisions drawn, collected or transferred back in the current period Provision for bad debts in the current period: In RMB Yuan
Current change amount Closing Closing category To withdraw or Cancel after balance provision other balance reverse verification
Other accounts receivable bad 7,169,695.56 7,169,695.56 debt provision
total 7,169,695.56 7,169,695.56
9. inventory Whether companies are required to comply with disclosure requirements in the real estate industry no (1) Inventory classification In RMB Yuan
Closing balance Opening balance
Provision for Provision for inventory inventory project decline or decline or Book balance impairment of The book value Book balance impairment of The book value contract contract performance performance cost cost
The raw 83,181,077.78 5,904,690.57 77,276,387.21 78,227,553.26 9,089,557.91 69,137,995.35 materials
In the product 32,840,859.15 377,941.98 32,462,917.18 27,387,906.76 421,834.87 26,966,071.89
Inventory 718,309,340.62 203,236,563.05 515,072,777.57 648,144,216.90 263,961,842.93 384,182,373.97 goods
Send goods 62,336,535.71 62,336,535.71 73,801,865.07 73,801,865.07
Homemade semi-finished 101,140,235.07 27,286,413.30 73,853,821.76 91,906,231.80 30,455,364.33 61,450,867.47 product
Low value consumables 123,375.55 123,375.55 117,772.55 117,772.55 and packaging
62 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Total 997,931,423.88 236,805,608.90 761,125,814.98 919,585,546.34 303,928,600.04 615,656,946.30
(2) Reserve for inventory decline and reserve for impairment of contract performance cost In RMB Yuan
Current increase Current reduction Opening Closing project turn back or balance provision other other balance sell
The raw 9,089,557.91 3,184,867.34 5,904,690.57 materials
In the product 421,834.87 43,892.89 377,941.98
Inventory 263,961,842.93 60,725,279.88 203,236,563.05 goods
Homemade semi-finished 30,455,364.33 3,168,951.03 27,286,413.30 product
A combined 303,928,600.04 67,122,991.14 236,805,608.90
10. Contract assets 11. Hold assets for sale 12. Non-current assets due within one year 13. Other current assets In RMB Yuan
project Closing balance Opening balance
VAT to be deducted 10,712,609.56 24,517,849.43
VAT to be certified 92,599.50
A combined 10,712,609.56 24,610,448.93
14. Debt investment 15. Other debt investment 16. Long-term receivables 17. Long-term equity investment 18. Investment in other equity instruments In RMB Yuan
project Closing balance Opening balance
Shanghai Amyi Electromechanical 2,000,000.00 2,000,000.00 Equipment Chain Co., LTD
Qian 'an Zhanyi Iron and Steel Group 2,503,766.95 2,503,766.95 Co. LTD
Dalian Longhui Industry and Trade Co., 7,423,089.69 7,423,089.69 LTD
A combined 11,926,856.64 11,926,856.64
63 Wafangdian Bearing Company Limited 2021 Midyear Financial report
19. Other non-current financial assets 20.Investment real estate (1) Investment real estate using the cost measurement model Applicable Inapplicable In RMB Yuan
Projects under project House, building Land use right total construction
I. the original book value
1. Opening balance 171,156,035.71 49,954,300.64 221,110,336.35
2. Increase in the current 11,222,201.84 0.00 11,222,201.84 period
(1) Outsourcing 11,222,201.84 0.00 11,222,201.84
(2) Inventory/fixed assets/construction in 0.00 0.00 progress transfer
(3) Increased business 0.00 0.00 mergers
3. Reduced amount in the 30,263,620.49 0.00 30,263,620.49 current period
(1) Disposal 30,263,620.49 0.00 30,263,620.49
(2) Other roll out 0.00 0.00 0.00
4. Ending balance 152,114,617.06 49,954,300.64 202,068,917.70
II.Accumulated depreciation and accumulated amortization
1. Opening balance 86,016,869.91 17,576,984.05 103,593,853.96
2. Increase in the current 1,864,052.43 624,421.15 2,488,473.58 period
(1) Provision or 1,864,052.43 624,421.15 2,488,473.58 amortization
3. Reduced amount in the 19,472,689.56 19,472,689.56 current period
(1) Disposal 19,472,689.56 0.00 19,472,689.56
(2) Other roll out 0.00 0.00
4. Ending balance 68,408,232.78 18,201,405.20 86,609,637.98
III.Provision for
impairment
1. Opening balance
64 Wafangdian Bearing Company Limited 2021 Midyear Financial report
2. Increase in the current
period
(1) Withdrawal
3. Reduced amount for the
current period
(1) Disposal
(2) Other roll out
4. Ending balance
Iv. Book value
1. Closing book value 83,706,384.28 31,752,895.44 115,459,279.72
2. Starting book value 85,139,165.80 32,377,316.59 117,516,482.39
21. Fixed assets In RMB Yuan
project Closing balance Opening balance
Fixed assets 402,752,098.78 474,109,923.22
A combined 402,752,098.78 474,109,923.22
(1) Fixed assets In RMB Yuan
Machine Transport Electronic Other item House building Total equipment equipment equipment equipment
I.the original book value:
1. Opening 1,049,807,784. 1,602,127,782. 264,336,605.71 14,509,177.09 62,291,443.33 211,182,772.67 balance 12 92
2. Increase in the 1,400,044.53 5,339,468.57 869,179.30 59,929.73 7,668,622.13 current period
(1) Purchase 1,400,044.53 1,772,054.13 807,431.83 10,424.78 3,989,955.27
(2) Transfer of construction 3,567,414.44 61,747.47 49,504.95 3,678,666.86 under construction
(3) Increased business mergers
3. Reduced amount in the 3,509,725.64 86,804,654.10 807,877.78 2,201,604.08 512,259.91 93,836,121.51 current period
(1) Disposal or 3,509,725.64 86,804,654.10 807,877.78 2,201,604.08 512,259.91 93,836,121.51 scrapping
65 Wafangdian Bearing Company Limited 2021 Midyear Financial report
1,515,960,283. 4. Ending balance 262,226,924.60 968,342,598.59 13,701,299.31 60,959,018.55 210,730,442.49 54
II.Accumulated depreciation
1. Opening 1,099,685,693. 179,069,027.56 688,715,910.19 12,767,249.79 50,886,574.18 168,246,931.93 balance 65
2. Increase in the 7,335,848.37 25,740,377.47 225,605.31 1,449,538.65 2,879,045.97 37,630,415.77 current period
(1) Withdrawal 7,335,848.37 25,705,228.55 225,605.31 1,449,538.65 2,879,045.97 37,595,266.85
(2) Other 35,148.92 35,148.92 transfers
3. Reduced amount in the 3,508,921.12 38,529,748.41 786,797.03 2,128,006.10 460,079.10 45,413,551.76 current period
(1) Disposal or 3,508,921.12 38,529,748.41 786,797.03 2,128,006.10 460,079.10 45,413,551.76 scrapping
1,091,902,557. 4. Ending balance 182,895,954.81 675,926,539.25 12,206,058.07 50,208,106.73 170,665,898.80 66
III.Provision for impairment
1. Opening 19,879,546.61 1,648.28 621,345.40 7,829,625.76 28,332,166.05 balance
2. Increase in the current period
(1) Withdrawal
3. Reduced amount in the 7,000,183.37 1,648.28 24,707.30 7,026,538.95 current period
(1) Disposal or 7,000,183.37 1,648.28 24,707.30 7,026,538.95 scrapping
4. Ending balance 12,879,363.24 596,638.10 7,829,625.76 21,305,627.10
Iv. Book value
1. Closing book 79,330,969.79 279,536,696.10 1,495,241.24 10,154,273.72 32,234,917.93 402,752,098.78 value
2. Starting book 85,267,578.15 341,212,327.32 1,740,279.02 10,783,523.75 35,106,214.98 474,109,923.22 value
(2) Temporary idle fixed assets In RMB Yuan
66 Wafangdian Bearing Company Limited 2021 Midyear Financial report
The original value Accumulated project Impairment loss The book value note of the book depreciation
Machinery and 48,248,051.62 26,970,764.43 13,668,599.30 7,608,687.89 equipment
Transportation
equipment
Electronic 855,496.06 587,414.96 243,291.78 24,789.32 equipment
Other equipment 600,378.22 434,984.85 152,525.41 12,867.96
A combined 49,703,925.90 27,993,164.24 14,064,416.49 7,646,345.17
(3) Fixed assets leased through operating leases In RMB Yuan
project Closing book value
House building 28,887,099.75
Machinery and equipment 79,721,126.69
The means of transport 130,766.74
Electronic equipment 2,175,815.79
Other equipment 614,515.86
A combined 111,529,324.83
(4) The fixed assets without the title certificate In RMB Yuan
project The book value The reason why the title certificate is not completed Dalian tile shaft precision motor Property ownership certificate procedures complete, in the 32,237,075.69 automobile bearing workshop process Main plant of Liao Axle Company 6,446,920.14 Comprehensive acceptance is being handled for the record Liao Axis Company office 2,620,732.34 Comprehensive acceptance is being handled for the record building Liao axle driver processing 1,166,835.07 Comprehensive acceptance is being handled for the record workshop Liao Axis company staff canteen 805,672.21 Comprehensive acceptance is being handled for the record
22.Construction in progress In RMB Yuan
project The ending balance Beginning balance
Projects under construction 24,348,551.06 24,254,985.16
A combined 24,348,551.06 24,254,985.16
(1) Construction in progress In RMB Yuan
The ending balance Beginning balance Item Book balance Impairmen The book value Book balance Impairment The book value 67 Wafangdian Bearing Company Limited 2021 Midyear Financial report
t loss loss Qi finished products 3,468,712. 4,434,526.90 965,814.11 5,294,384.87 3,468,712.79 1,825,672.08 transform 79 Precision bearing 3,741,698.76 3,741,698.76 4,221,142.02 4,221,142.02 factory transformation Factory renovation 826,926.61 826,926.61 1,659,638.56 1,659,638.56 Project Railway 489,555.58 489,555.58 1,758,204.72 1,758,204.72 reconstruction Precision rolling body 0.00 0.00 1,189,745.29 1,189,745.29 transformation Dalian Industrial Park 5,590.46 5,590.46 1,822,184.00 1,822,184.00 Project Grinding production 38,957.26 38,957.26 1,774,704.65 1,774,704.65 line Super precision machine installation 297,546.02 297,546.02 540,528.68 540,528.68 project Large scale 7,597,921.08 7,597,921.08 1,635,330.51 1,635,330.51 renovation project Grinding machine 169.19 169.19 376,403.13 376,403.13 modification The crane project 255,382.52 255,382.52 255,382.52 255,382.52 Computer engineering 184,075.24 184,075.24 184,075.24 184,075.24 Secondary finished 265,486.74 265,486.74 product modification Overhaul branch 141,423.05 141,423.05 176,772.70 176,772.70 factory transformation Channel 2 259,161.89 259,161.89 construction project other 9,538,004.44 9,538,004.44 6,576,039.17 6,576,039.17 27,817,263.8 3,468,712. A combined 24,348,551.06 27,723,697.95 3,468,712.79 24,254,985.16 5 79 (2) Changes of important construction projects under construction in this period In RMB Yuan
68 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Amount of Other Proportion of Among them: Capitalizati fixed assets reduced cumulative Progress Accumulated Sources Beginning Current The ending the amount of on rate of The project name Budget number transferred in amounts in project of the capitalization of balance increase balance capitalization of current the current the current investment in project of interest funding current interest interest period period budget
Railway 14,472,691.67 1,758,204.72 247,787.60 828,162.03 23,076.92 1,154,753.37 97.75% 97.75 90,837.36 other reconstruction
Qi finished products 107,106,101.50 5,294,384.87 859,857.97 4,434,526.90 53.92% 53.92 656,478.24 other transform
Precision rolling 27,209,771.00 1,189,745.29 831,809.07 357,936.22 51.21% 51.21 1,203,099.87 other body transformation
Precision bearing factory 5,500,815.00 4,221,142.02 498,230.08 243,870.45 4,475,501.65 91.43% 91.43 other transformation
Dalian Industrial 39,164,803.61 1,822,184.00 1,816,593.54 5,590.46 21.04% 21.04 35,839.06 other Park Project
Car modification 2,302,350.00 77.91% 77.91 435.23 other
Overhaul branch factory 2,513,380.00 176,772.70 102,477.88 23,076.92 51,217.90 18.80% 18.8 204.04 other transformation
Large scale 6,852,230. 8,493,800.00 1,635,330.51 653,275.87 7,834,284.72 92.23% 92.23 33,034.11 other renovation project 08
16,097,764.1 7,598,247. total 206,763,712.78 5,336,046.81 46,153.84 18,313,811.22 -- -- 2,019,927.91 -- 1 76
69 Wafangdian Bearing Company Limited 2021 Midyear Financial report
23. Productive biological assets 24. Oil and gas assets Applicable Inapplicable 25. Right to use assets In RMB Yuan
project House lease total
1. Opening balance 1,256,680.47 1,256,680.47
4. Ending balance 1,256,680.47 1,256,680.47
2. Increase in the current period 246,838.56 246,838.56
(1) Withdrawal 246,838.56 246,838.56
1. Closing book value 1,009,841.91 1,009,841.91
2. Starting book value 1,256,680.47 1,256,680.47
26. Intangible assets (1) Intangible assets
Item Land use right patent right Non-patented technology total
I.the original book value
1. Opening balance 126,235,427.10 6,553,383.89 132,788,810.99
2. Increase in the current
period
(1) Purchase
(2) Internal research and
development
(3) Increased business
mergers
3. Reduced amount in the
current period
(1) Disposal
4. Ending balance 126,235,427.10 6,553,383.89 132,788,810.99
II. cumulative amortization
1. Opening balance 45,647,605.97 6,415,343.84 52,062,949.81
2. Increase in the current 1,570,332.68 35,601.78 1,605,934.46 period
(1) Withdrawal 1,570,332.68 35,601.78 1,605,934.46
3. Reduced amount in the
current period
(1) Disposal
4. Ending balance 47,217,938.65 6,450,945.62 53,668,884.27
70 Wafangdian Bearing Company Limited 2021 Midyear Financial report
III.Provision for impairment
1. Opening balance
2. Increase in the current
period
(1) Withdrawal
3. Reduced amount in the
current period
(1) Disposal
4. Ending balance
Iv. Book value 79,017,488.45 102,438.27 79,119,926.72
1. Closing book value 79,017,488.45 102,438.27 79,119,926.72
2. Starting book value 80,587,821.13 138,040.05 80,725,861.18
27. Development expenditure 28, goodwill 29. Long-term deferred expenses In RMB Yuan
Amortized amount Beginning Current Other reduced The ending project of the current balance increase amount balance period
Shanghai agency housing 237,346.08 33,915.18 203,430.90 ownership
Amortization of floor coating and maintenance for the first and second 152,329.88 76,164.96 76,164.92 joint factory building in new Industrial District of Wa Axis Group
Amortization of heating 79,128.33 27,927.90 51,200.43 overhaul costs
Amortization of housing 42,383.82 36,328.80 6,055.02 decoration expenses
A combined 511,188.11 174,336.84 336,851.27
30.Deferred income tax assets/deferred income tax liabilities (1) Non-offset deferred tax assets (2) non-offset deferred income tax liabilities In RMB Yuan
Closing balance Opening balance project Taxable temporary Deferred tax liabilities Taxable temporary Deferred tax liabilities
71 Wafangdian Bearing Company Limited 2021 Midyear Financial report
differences differences
Non - identical control enterprise assets 4,896,322.33 734,448.35 4,896,322.33 734,448.35 valuation value
A combined 4,896,322.33 734,448.35 4,896,322.33 734,448.35
(3) Deferred income tax assets or liabilities shown on a net basis after offset In RMB Yuan
The amount of Deferred tax assets and The ending balance of The beginning balance deferred tax assets and project liabilities at the end of a deferred tax asset or of a deferred tax asset liabilities offset at the the balance liability after offset or liability after offset beginning of the period
Deferred tax liabilities 734,448.35 734,448.35
(4) Deferred income tax asset details are not recognized In RMB Yuan
project Closing balance Opening balance
Temporary differences can be deducted 54,337,700.26 54,337,700.26
Deductible losses 567,068,741.45 567,068,741.45
A combined 621,406,441.71 621,406,441.71
(5) Deductible losses on unrecognized deferred tax assets are due in the following years In RMB Yuan
year Closing balance Opening balance note
2021 36,394,255.27 36,394,255.27
2022 77,265,795.85 77,265,795.85
2023 106,335,303.14 106,335,303.14
2024 100,239,007.68 100,239,007.68
2025 246,834,379.51
total 567,068,741.45 320,234,361.94 --
31. Other non-current assets 32.Short-term borrowing (1) Classification of short-term loans In RMB Yuan
project Closing balance Opening balance
Credit borrowing 698,000,000.00 670,000,000.00
A combined 698,000,000.00 670,000,000.00
33.Transactional financial liabilities 34. Derivative financial liabilities In RMB Yuan
72 Wafangdian Bearing Company Limited 2021 Midyear Financial report
species Closing balance Opening balance
Commercial acceptance bill 159,508,457.05 123,567,800.00
Bank acceptance 67,284,800.00 151,086,735.65
A combined 226,793,257.05 274,654,535.65
Accounts payable (1) List of accounts payable In RMB Yuan
project Closing balance Opening balance
Payment for goods 1,242,788,565.21 982,917,948.65
The payment 26,097,105.76 24,620,842.88
other 10,519,054.02 37,263,105.32
A combined 1,279,404,724.99 1,044,801,896.85
(2) Significant accounts payable that are more than one year old In RMB Yuan
project Closing balance Cause of outstanding or carry-over
project Cause of outstanding or carry-over
Liaocheng Dongchangfu Yuanrun 6,682,770.67 Outstanding settlement Bearing Accessories Co., LTD
Liaocheng Hengfeng Rolling bearing 2,348,706.85 Outstanding settlement Co., LTD
Liaocheng Dongheng Bearing parts 1,295,289.30 Outstanding settlement Factory
Taiwan Oil machine Industry Co., LTD 1,188,227.37 Outstanding settlement
A combined 11,514,994.19 --
37.Advance payment 38. Contractual liabilities In RMB Yuan
project Closing balance Opening balance
Contractual obligations pending 47,607,834.61 39,456,304.55 performance
total 47,607,834.61 39,456,304.55
39.Pay staff salaries (1) List of employee remuneration payable In RMB Yuan
73 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Reduce in the current project Beginning balance Increase in current Closing balance period
1. Short-term 45,346,253.91 144,966,721.56 174,421,510.53 15,891,464.94 compensation
2. Post-employment benefits - Set up an 5,973,433.18 23,185,870.38 23,198,211.25 5,961,092.31 escrow plan
Three, dismiss welfare 1,357,454.00 1,357,454.00
A combined 52,677,141.09 168,152,591.94 198,977,175.78 21,852,557.25
(2) Short-term compensation list
In RMB Yuan
Reduce in the current project Beginning balance Increase in current Closing balance period
1. Salary, bonus, allowance 41,202,601.27 107,873,690.86 137,282,280.74 11,794,011.39 and subsidy
2. Employee welfare funds 55,153.00 10,471,538.52 10,457,278.02 69,413.50
3. Social insurance premiums 42,646.65 13,662,621.04 13,682,188.40 23,079.29
Among them: medical 45,888.12 10,276,615.00 10,310,784.51 11,718.61 insurance premium
Injury insurance premium -1,109.31 2,110,986.99 2,109,581.65 296.03
Maternity insurance -2,132.16 1,275,019.05 1,261,822.24 11,064.65
4. Housing accumulation fund 2,487,488.49 11,854,750.94 11,864,579.94 2,477,659.49
5. Trade union funds and staff 1,558,364.50 1,104,120.20 1,135,183.43 1,527,301.27 education funds
A combined 45,346,253.91 144,966,721.56 174,421,510.53 15,891,464.94
(3) Set up the listing of the escrow plan In RMB Yuan
Reduce in the current project Beginning balance Increase in current Closing balance period
1. Basic endowment 5,892,803.76 22,481,830.97 22,475,884.34 5,898,750.39 insurance
2. Unemployment 80,629.42 704,039.41 722,326.91 62,341.92 insurance premium
A combined 5,973,433.18 23,185,870.38 23,198,211.25 5,961,092.31
40.Taxes payable In RMB Yuan
74 Wafangdian Bearing Company Limited 2021 Midyear Financial report
project Closing balance Beginning balance
The VAT 2,183,316.03 1,576,813.19
Personal income tax 167,553.93 148,082.29
City maintenance and construction tax 212,728.27 208,938.78
The property tax 732,129.76 911,163.89
Land use tax 536,377.57 536,377.57
Stamp duty 419,685.91 160,352.41
Education surcharge 85,072.79 145,800.58
other 0.00 639.97
A combined 4,336,864.26 3,688,168.68
41. Other payable In RMB Yuan
project Closing balance Beginning balance
Interest payable 1,680,000.00 1,041,600.00
Other payable 144,788,203.79 128,434,461.47
total 146,468,203.79 129,476,061.47
(1) Interest payable In RMB Yuan
project Closing balance Beginning balance
Interest payable on short-term 1,680,000.00 1,041,600.00 borrowings
total 1,680,000.00 1,041,600.00
(2) Dividends payable (3) Other payables 1) List other payables according to their nature In RMB Yuan
project Closing balance Beginning balance
Bid bond 1,548,890.00 1,165,890.00
Group payables 40,182,304.11 41,606,986.87
Authorized Dealer security deposit 55,828,065.36 25,526,424.69
other 47,228,944.32 60,135,159.91
total 144,788,203.79 128,434,461.47
42.Hold liabilities for sale 43.Non-current liabilities due within one year 44. Other current liabilities In RMB Yuan
75 Wafangdian Bearing Company Limited 2021 Midyear Financial report
project Closing balance Beginning balance
To transfer tax 6,168,824.67 5,129,319.58
total 6,168,824.67 5,129,319.58
45. Long-term borrowing 46.Bonds payable 47.Lease liabilities In RMB Yuan
project Closing balance Beginning balance
Operating lease 1,281,492.96 1,256,680.47
total 1,281,492.96 1,256,680.47
48.Long-term payable In RMB Yuan
project Closing balance Beginning balance
Long-term payables 100,000.00 100,000.00
Special payables 244,974.84 244,974.84
A combined 344,974.84 344,974.84
(1) List the long-term payable by the nature of the amount In RMB Yuan
project Closing balance Beginning balance
equipments 100,000.00 100,000.00
A combined 100,000.00 100,000.00
In RMB Yuan
Beginning Increase The ending project The reduced Reasons for the formation balance in current balance
Wafangdian Finance Bureau and Wafangdian Special Environmental Protection Bureau jointly pollution 169,974.84 169,974.84 approved the allocation in the document control "Wacai Enterprises [2004] No. 217"
Dalian Municipal Finance Bureau and Dalian Municipal Economic and Information Information Commission approved the appropriation with 75,000.00 75,000.00 construction the documents of "Dacai Refers to Enterprises [2012]917" and "Dacai Letter Fa [2012]199"
A combined 244,974.84 244,974.84 --
49.Long-term employee compensation payable 50.Estimated liabilities In RMB Yuan 76 Wafangdian Bearing Company Limited 2021 Midyear Financial report
project Closing balance Opening balance Reasons for the formation
Withholding compensation for product Product quality assurance 5,167,386.63 4,771,845.00 quality
Wind power product quality Product quality problems, the customer 34,260,425.91 34,260,425.91 claim claims compensation
A combined 39,427,812.54 39,032,270.91 --
51.Deferred revenue In RMB Yuan
The ending Reasons for the project Beginning balance Increase in current The reduced balance formation
Government 33,380,301.70 2,405,641.07 30,974,660.63 subsidies
Old factory relocation 26,562,451.38 26,562,451.38 compensation
A combined 59,942,753.08 2,405,641.07 57,537,112.01 --
Projects involving government subsidies: In RMB Yuan
The This period The amount The amount is included of other amount of of Other Related to Beginning in the income is cost The ending liabilities subsidy chang assets/related balance amount of included in write-dow balance added in es to earnings non-operati the current n in this this ng income period period period
Dalian branch factory 21,633,886.42 1,352,117.94 20,281,768.48 Asset related demolition compensation
Bearing base transformation project of high-end 944,640.00 236,160.00 708,480.00 Asset related equipment manufacturing industry
Special subsidies for 5,155,555.56 644,444.42 4,511,111.14 Asset related intelligent manufacturing
77 Wafangdian Bearing Company Limited 2021 Midyear Financial report equipment development
Large axle load project discount 1,180,000.00 120,000.00 1,060,000.00 Asset related subsidy
Industrial development 3,999,468.00 3,999,468.00 Asset related fund
Skill master studio 423,349.65 52,918.71 370,430.94 Asset related construction subsidy
Master Liu 43,402.07 43,402.07 Asset related Changfu grants total 33,380,301.70 2,405,641.07 30,974,660.63
52.Other non-current liabilities 53.equity In RMB Yuan
This change increases or decreases (+, -)
Beginning Issuing Reserve fund Closing balance balance new Send shares other total conversion shares
The total number of 402,600,000.00 402,600,000.00 shares
54. Other equity instruments 55.Capital reserves In RMB Yuan
project Beginning balance Increase in current The reduced Closing balance
Capital premium 201,956,446.52 201,956,446.52 (equity premium)
Other capital reserves 283,734,603.95 283,734,603.95
A combined 485,691,050.47 485,691,050.47
56.Treasury stocks 57.Other comprehensive income 58.Special reserves 59.Surplus reserve In RMB Yuan
78 Wafangdian Bearing Company Limited 2021 Midyear Financial report
project Beginning balance Increase in current The reduced Closing balance
Legal surplus reserve 116,179,772.10 116,179,772.10
Arbitrary surplus 20,590,618.91 20,590,618.91 reserves
total 136,770,391.01 136,770,391.01
60.Undistributed profit In RMB Yuan
project Current period Last period
Undistributed profit at the end of last period -211,056,473.59 201,379,956.97 before adjustment
Adjust the undistributed profit at the beginning -211,056,473.59 201,379,956.97 of the later period
Plus: net profit attributable to the owner of the 4,192,143.24 -380,228,430.56 parent company for the period
Dividends payable on common Stock 32,208,000.00
Undistributed profit at the end of the period -206,864,330.35 -211,056,473.59
61.Operating revenue and operating costs In RMB Yuan
Current amount Amount of previous period project income cost income cost
Main business 979,323,679.11 743,092,451.14 766,441,287.81 558,705,095.63
Other business 101,741,174.55 88,212,133.11 130,290,947.05 116,016,075.11
A combined 1,081,064,853.66 831,304,584.25 896,732,234.86 674,721,170.74
62.Taxes and surcharges In RMB Yuan
project Current amount Amount of previous period
City maintenance and construction tax 2,353,667.48 2,107,839.21
Education surcharge 1,659,561.44 1,356,766.05
The property tax 1,317,733.83 1,911,888.83
Land use tax 1,229,139.16 1,170,320.16
Stamp duty 1,088,562.42 567,850.42
other 336,634.91 180,469.62
A combined 7,985,299.24 7,295,134.29
63.Selling expenses In RMB Yuan
79 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Item Current amount Amount of previous period
Domestic freight 12,349,704.71 11,375,376.65
Employee compensation 35,548,237.74 31,436,120.32
Business trip expenses 10,785,468.83 7,694,358.65
conference expense 211,566.96 64,503.82
Trademark royalty 6,109,435.99 13,202,226.80
The international freight 1,647,229.97 507,211.83
Other fees 12,248,118.36 11,333,374.26
total 78,899,762.56 75,613,172.33
64.Administrative costs In RMB Yuan
Item Current amount Amount of previous period
Employee compensation 23,431,418.03 13,332,765.29
Amortization of intangible assets 2,230,355.60 2,199,753.74
Guard fee 1,058,384.10 2,870,491.92
Depreciation cost 932,823.09 729,725.04
Business entertainment 129,074.38 137,412.70
Business trip expenses 838,458.84 107,876.35
Other fees 17,224,711.27 19,794,786.49
total 45,845,225.31 39,172,811.53
65.Research and development costs In RMB Yuan
Amount of previous Item Current amount period
Artificial cost 3,438,538.95 3,866,670.00
Material input 69,160,362.26 74,265,649.79
Amortize depreciation expense against long-term expense 8,570,897.54 1,371,885.31
Technical service fee, design fee, new process procedure formulation fee 14,932,890.82 3,991,033.25 (equipment debugging fee - tooling for new products)
Other fees 2,175,096.69 4,878,780.26
Total 98,277,786.26 88,374,018.61
66.Financial expenses In RMB Yuan
Item Current amount Amount of previous period
Interest charges 14,013,998.99 15,282,652.60
80 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Less: interest income 240,304.64 404,634.33
Add: exchange loss 1,842,959.48 -983,568.16
Other spending 5,699,002.65 3,130,781.01
total 21,315,656.48 17,025,231.12
67. Other benefits In RMB Yuan
Other sources of revenue Current amount Amount of previous period
Dalian branch factory demolition 1,352,117.94 1,352,117.94 subsidy
Stable post subsidy - Dalian 17,811.01 1,223,302.21 Employment Management Center
Bearing base transformation project of high-end equipment manufacturing 236,160.00 236,160.00 industry
Special subsidies for intelligent 644,444.42 3,200,000.00 manufacturing equipment development
Large axle load project discount subsidy 120,000.00 120,000.00
Return of individual tax handling fee 32,813.61 11,381.57
Collect tile axis group union pioneer unit 7,000.00 bonus
6296845157Electron withdrawing 2,316.58
Skill master studio construction subsidy 52,918.71
Dalian city group map organization comprehensive service center awarded 5,000.00 Wu Qiong thesis award
First set (set) government subsidy 46,000.00
Subsidies for work in place of training 83,020.00
Open special funds 464,059.00
Municipal "double hundred plan" talent 50,000.00 research funds
Total 3,063,661.27 6,192,961.72
68.Investment income In RMB Yuan
Item Current amount Amount of previous period
Proceeds from debt restructuring 870,263.42 664,574.71
Total 870,263.42 664,574.71
69. Net exposure hedging gain
81 Wafangdian Bearing Company Limited 2021 Midyear Financial report
70.Fair value change earnings In RMB Yuan
The source of fair value change income Current amount Amount of previous period
Trading financial assets 183,361.31 -55,470.65
Total 183,361.31 -55,470.65
71.Credit impairment losses In RMB Yuan
item Current amount Amount of previous period
Loss on accounts receivable 30,000.00 7,311.38
Total 30,000.00 7,311.38
72.Asset impairment loss 73.Income from asset disposal In RMB Yuan
Source of income from asset disposal Current amount Amount of previous period
Income from disposal of fixed assets 2,727,585.57 276,663.74
74.Non-operating income In RMB Yuan
The amount booked into the Amount of previous Item Current amount current non-recurring profit and period loss
Debt restructuring gains 0.00
Fine income 217,753.00 1,066,061.88 217,753.00
other 599,903.00 1,069,471.92 599,903.00
Total 817,656.00 2,135,533.80
75.Non-operating expenses In RMB Yuan
The amount booked into the Amount of previous Item Current amount current non-recurring profit and period loss
donating 80,000.00 0.00
Debt restructuring losses 0.00
Loss of non-current assets 879,472.48 102.41 879,472.48
A fine spending 52,330.77 22,250.00 52,330.77
Late payment fee 14.17 2,523.76 14.17
other 5,106.47 312.58 5,106.47
Total 936,923.89 105,188.75
82 Wafangdian Bearing Company Limited 2021 Midyear Financial report
76.Income tax expenses (1) Income tax expense schedule (2) Accounting profit and income tax expense adjustment process In RMB Yuan
Item Current amount
Profit total 4,192,143.24
77. Other comprehensive income See the notes for details. 78. Cash Flow Statement items (1) Other cash received in connection with operating activities In RMB Yuan
item Current amount Amount of previous period
Interest income 76,788.52 40,898.52
Government subsidies 46,000.00 46,000.00
Come-and-go money 56,518,795.54 9,998,779.57
Return the deposit and petty cash 139,620.00 82,729.00
other 460,844.42 101,830.42
total 57,242,048.48 10,270,237.51
(2) Other cash paid in connection with operating activities In RMB Yuan
item Current amount Amount of previous period
Cost of sales 222,383.56 172,349.56
Management fees 54,265,462.19 52,648,257.50
Finance charges 135,210.90 133,224.90
other 21,865,294.56 18,305,149.56
total 76,488,351.21 71,258,981.52
(3) Other cash received in connection with investment activities (4) Other cash paid in connection with investment activities (5) Other cash received in connection with financing activities In RMB Yuan
item Current amount Amount of previous period
Bill discount 38,566,252.78 41,567,823.29
total 38,566,252.78 41,567,823.29
(6) Other cash disbursements in connection with financing activities
item Current amount Amount of previous period
83 Wafangdian Bearing Company Limited 2021 Midyear Financial report
The bill is payable at maturity 50,000,000.00 67,110,000.00
total 50,000,000.00 67,110,000.00
In RMB Yuan 79. Supplementary information on cash flow Statement (1) Supplementary information of cash flow statement In RMB Yuan
Additional information Current amount Amount of previous period
1. -- --
Adjusting net profit to cash flow from operating activities: 4,192,143.24 3,647,082.19
Net profit
Add: asset impairment provision 28,818,633.76 28,697,977.45
Depreciation of fixed assets, depreciation of oil and gas assets,
depreciation of productive biological assets
Depreciation of usufruct 2,230,355.60 2,199,753.74
Amortization of intangible assets 174,336.84 163,415.20
Amortization of long-term deferred expenses -2,727,585.57 -276,663.74
Loss on disposal of fixed assets, intangible assets and other long-term 820,370.34 102.41 assets (marked with "-" for income)
Loss on scrap of fixed assets (marked with "-" for income) 183,361.31 55,470.65
Loss on change in fair value (marked with "-" for earnings) 21,315,656.48 17,025,231.12
Financial expenses (marked with "-" for income) -870,263.42 -664,574.71
Investment loss (marked with "-" for profit)
Reduction in deferred income tax assets (marked with "-" for increase)
Increase in deferred income tax liability (marked with "-" for decrease) -145,468,868.68 29,745,513.29
Decrease in inventory (increase marked with "-") -137,873,561.95 -117,979,875.19
Reduction of operating receivables (marked with "-" for increase) 260,607,765.54 109,907,994.64
Increase of operational payable items (marked with "-" for reduction)
other 31,402,343.49 72,521,427.05
Net cash flow from operating activities -- --
2.
Significant investment and financing activities that do not involve cash
receipts and expenditures:
Debt to capital
A convertible corporate bond that matures within one year -- --
Financial leasing of fixed assets 160,772,019.45 250,275,098.40
3. 127,620,944.91 137,324,488.53
84 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Net change in cash and cash equivalents:
Ending balance of cash
Minus: opening balance of cash 33,151,074.54 112,950,609.87
(2) The net cash of the subsidiary paid in the current period (3) Net cash received at the disposal of subsidiaries during the current period (4) The composition of cash and cash equivalents In RMB Yuan
Item Closing balance Opening balance
I. cash 160,772,019.45 127,620,944.91
Wherein: cash on hand 25,913.68 33,102.75
A bank deposit available for payment at 160,746,105.77 127,587,842.16 any time
III.Ending balance of cash and cash 160,772,019.45 127,620,944.91 equivalents
80.Comments on items of the statement of Changes in owners' equity Description of the "other" items and the amount of adjustment to the balance at the end of the previous year: 81.An asset whose ownership or use is restricted 82.Foreign currency monetary items (1) Foreign currency monetary items In RMB Yuan
Ending foreign currency The balance converted into project Discount rate balance RMB at the end of the period
Monetary fund -- -- 75,392,452.33
Including: US dollars 11,121,250.17 6.37 70,822,345.33
The euro 588,809.91 7.76 4,570,107.00
Hong Kong dollars
Accounts receivable -- -- 26,504,894.73
Including: US dollars 3,396,902.34 6.37 21,632,153.48
The euro 627,801.13 7.76 4,872,741.25
Hong Kong dollars
Long-term borrowing -- --
Including: US dollars
The euro
Hong Kong dollars
Other accounts receivable
Among them: Euro 642,830.99 7.76 4,989,397.01
85 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Accounts payable —— 242,995.51
Including: US dollars 21,136.91 6.37 134,604.07
The euro 13,965.09 7.76 108,391.44
Other payable —— 649,220.16
Including: US dollars 101,947.20 6.37 649,220.16
Other notes: (2) Description of overseas business entities, including important overseas business entities, shall disclose their main overseas business locations, functional currency and selection basis, and shall also disclose reasons for changes in functional currency. Applicable Inapplicable 83.hedging The qualitative and quantitative information of the hedging item, relevant hedging instruments and hedged risks shall be disclosed according to the hedging category: 84.Government subsidies (1) Basic information on government subsidies In RMB Yuan
The amount included in species Account Presentation project current profit and loss
Return of individual tax handling fee 32,813.61 Other income 32,813.61
Steady post subsidies 17,811.01 Other income 17,811.01
Dalian branch factory demolition 48,676,244.95 Deferred revenue 1,352,117.94 subsidy
Special subsidies for intelligent manufacturing equipment 8,000,000.00 Deferred revenue 644,444.42 development
Open special funds 464,059.00 Other income 464,059.00
Bearing base transformation project of high-end equipment manufacturing 4,723,200.00 Deferred revenue 236,160.00 industry
Collect tile axis group union pioneer 7,000.00 Other income 7,000.00 unit bonus
Large axle load project discount 2,400,000.00 Deferred revenue 120,000.00 subsidy
6296845157 Electronic revocation 2,316.58 2,316.58
First set (set) government subsidy 46,000.00 Other income 46,000.00
Skill master studio construction 700,000.00 Deferred revenue 52,918.71 subsidy
Dalian city group map organization 5,000.00 Other income 5,000.00 comprehensive service center
86 Wafangdian Bearing Company Limited 2021 Midyear Financial report
awarded wu Qiong thesis award
Receive the subsidy for labor and 83,020.00 Other income 83,020.00 training from January to March 2021
Industrial development fund 4,877,400.00 Deferred revenue
A combined 70,034,865.15 —— 3,063,661.27
(2) The return of government subsidies Applicable Inapplicable Other notes: 85.other VIII. Change of merger scope IX.Rights and interests in other subjects 1. Interests in subsidiaries (1) Composition of enterprise groups
The name of Main business Nature of the stake registered Make way the subsidiary area business direct indirect Wazhou Production and 61 Weiguo liaoyang sales of Liao Yang Road, Baita Enterprise bearing bearings and 100.00% province District, merger manufacturing machinery Liaoyang City co., LTD manufacturing Production and Dalian wazhou 12 Yongsheng sales of precision motor Dalian Street, 13 Li, bearings and 100.00% Set up car bearing co., province Dalian Free machinery LTD Trade Zone manufacturing Wazhou Production and precision No.1, Section sales of spherical roller 1, North Gongji Enterprise Wafangdian bearings and 100.00% bearings Street, merger machinery (wafangdian) Wafangdian manufacturing co., LTD
X.Risks associated with financial instruments XI.Disclosure of fair value XII. Related Parties and related Party transactions
The parent The proportion of Name of parent The registered company's registered Nature of the business voting rights of the company capital shareholding ratio in parent company the company
Bearing and all kinds of No.1, Section 1, Beijiaxia equipment Wazhou group Street, Wafangdian city, 519,869,400.00 60.61% 60.61% manufacturing, Dalian marketing
87 Wafangdian Bearing Company Limited 2021 Midyear Financial report
A description of the parent company of the enterprise
The final control party of the enterprise is the State-owned Assets Supervision and Administration Commission of Dalian Municipal People's Government.
2. The company's subsidiaries Please refer to Note IX. 1.(1) for details of the subsidiaries of the enterprise. 3. The situation of joint venture and joint venture 4. Other related Parties
Names of other affiliates Relationship between other related parties and the enterprise
Dalian Wafangdian Bearing Group Equipment Manufacturing Other enterprises controlled by the same controlling Co., Ltd. shareholder and ultimate controlling party
Other enterprises controlled by the same controlling Wafangdian Bearing Precision Ball Manufacturing Co., Ltd. shareholder and ultimate controlling party
Other enterprises controlled by the same controlling Wafangdian Bearing Precision Forging Co., Ltd shareholder and ultimate controlling party
Other enterprises controlled by the same controlling Wafangdian Bearing Group Wind Power BearingCo., Ltd. shareholder and ultimate controlling party
Other enterprises controlled by the same controlling Wafangdian Bearing GroupPrecision Drive Bearing Co., LTD shareholder and ultimate controlling party
Wafangdian bearing group equipment technology engineering Other enterprises controlled by the same controlling co., LTD shareholder and ultimate controlling party
Other enterprises controlled by the same controlling Wafangdian Bearing Special Precision Bearing Co., Ltd. shareholder and ultimate controlling party
Other enterprises controlled by the same controlling Liaoning northern metal supply chain co., LTD shareholder and ultimate controlling party
Other enterprises controlled by the same controlling Wafangdian Bearing Group (U.S.A.) Co., Ltd. shareholder and ultimate controlling party
Other enterprises controlled by the same controlling Wafangdian bearing Group High-end Auto Bearing Co., Ltd. shareholder and ultimate controlling party
Other enterprises controlled by the same controlling Wafangdian bearing group precision roller co., LTD shareholder and ultimate controlling party
Other enterprises controlled by the same controlling Wafangdian Bearing Group Precision Retainer Co., Ltd. shareholder and ultimate controlling party
Other enterprises controlled by the same controlling Germany Leipzig Roller and Ball Bearing Co., Ltd. shareholder and ultimate controlling party
Other enterprises controlled by the same controlling Wafangdian Bearing Power Co., Ltd. shareholder and ultimate controlling party
Wafangdian Bearing Group Engineering Technology Research Other enterprises controlled by the same controlling Center shareholder and ultimate controlling party
88 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Wafangdian Bearing Power Co., Ltd. Other associated parties
Dalian Wazhou Jinzhou Machinery Co., Ltd. Other associated parties
Wafangdian Tongda Bearing Manufacturing Co., Ltd. Other associated parties
Dalian Wazhou Fengyuan Machinery Co., Ltd. Other associated parties
ZWZ Bearing Europe GmbH Other associated parties
5. Related Transactions (1) Related party transactions of purchasing and selling goods, providing and accepting services List of goods purchased/services received In RMB Yuan
Whether it exceeds Content of Related Approved Amount of The affiliated party Current amount the Transactions trading quotas previous period trading limit
Wafangdian Bearing Precision Buy spare parts 110,950,488.47 450,000,000.00 no 91,230,285.11 Forging Co., Ltd
Wafangdian bearing group precision Buy spare parts 16,802,062.64 60,000,000.00 no 12,953,553.77 roller co., LTD
Wazhou Group Precision Drive Buy no 1,985,986.05 Bearing Co., Ltd. goods/services
Wafangdian Tongda Bearing Buy 1,988.00 6,000,000.00 no 1,233,348.00 Manufacturing Co., Ltd. goods/services
Dalian Wazhou Fengyuan Machinery Buy parts/services 4,231,302.26 20,000,000.00 no 1,375,930.38 Co., Ltd.
Wafangdian bearing Group High-end The purchase of 63,713,344.65 170,000,000.00 no 37,322,321.95 Auto Bearing Co., Ltd. goods
Wafangdian Bearing Group Precision Buy spare parts 66,106,128.36 150,000,000.00 no 30,752,307.46 Retainer Co., Ltd.
Dalian Wazhou Jinzhou Machinery Buy spare parts 5,445,226.09 25,000,000.00 no 3,820,940.51 Co., Ltd.
Purchase parts, Dalian Wafangdian Bearing Group products and 8,660,940.09 70,000,000.00 no 10,812,886.06 Equipment Manufacturing Co., Ltd. equipment
Wafangdian Bearing Group Wind The purchase of 2,318,842.65 20,000,000.00 no Power BearingCo., Ltd. goods
Purchase commodity fuel Wafangdian Bearing Power Co., Ltd. 18,358,528.43 54,700,000.00 no 9,520,730.75 power, receive service
89 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Wafangdian Bearing Group Accepting labor Engineering Technology Research 8,201,980.00 22,000,000.00 no 3,256,398.61 services, Center
Buy goods, spare 1,074,800,000. Wafangdian Bearing Group Co., Ltd. parts/receive 373,036,349.16 no 197,715,938.60 00 services
Germany Leipzig Roller and Ball Accepting labor 1,000,000.00 no 648,292.34 Bearing Co., Ltd. services,
Total 677,827,180.81 402,628,919.59
Table of goods/services offered for sale In RMB Yuan
Content of Related Amount of previous Related party Current amount Transactions period
Wafangdian Bearing Precision Forging Co., Ltd Sales of goods 43,265,124.64 36,492,655.84
Wafangdian Bearing Group Co., Ltd. Sales of goods 33,537,357.81 45,861,559.58
Wafangdian Bearing Group (U.S.A.) Co., Ltd. Sales of goods 33,296,028.83 32,507,453.55
Wazhou Group Precision Drive Bearing Co., Ltd. Sales of goods 131,524.04 1,004,977.15
Dalian Wafangdian Bearing Group Equipment Sales of goods 72,236.78 33,777.71 Manufacturing Co., Ltd.
Wafangdian Bearing Group Wind Power BearingCo., Sales of goods 11,228,246.56 76,473,270.03 Ltd.
Wafangdian Bearing Special Precision Bearing Co., Sales of goods 76,033.09 296,826.65 Ltd.
Dalian Wazhou Jinzhou Machinery Co., Ltd. Sales of goods 1,836.00
Wafangdian Tongda Bearing Manufacturing Co., Ltd. Sales of goods 382,488.01
Wafangdian bearing group precision roller co., LTD Sales of goods 7,466,886.26 5,173,400.70
Wafangdian Bearing Group Precision Retainer Co., Sales of goods 18,588.59 20,842.17 Ltd.
Wafangdian bearing Group High-end Auto Bearing Sales of goods 2,186,163.12 5,565,981.26 Co., Ltd.
Germany Leipzig Roller and Ball Bearing Co., Ltd. Sales of goods 4,032,732.79 2,874,449.64
Provide labor Wazhou Group Precision Drive Bearing Co., Ltd. 20,252,715.83 709,423.96 services
Wafangdian Bearing Special Precision Bearing Co., Provide labor 490,622.69 337,459.98 Ltd. services
Provide labor Dalian Wazhou Jinzhou Machinery Co., Ltd. 149,419.98 52,160.67 services
Dalian Wafangdian Bearing Group Equipment Provide labor 147,589.92
90 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Manufacturing Co., Ltd. services
Provide labor Wafangdian Bearing Group Co., Ltd. 9,302,159.07 7,384,140.07 services
Provide labor Wafangdian Bearing Precision Forging Co., Ltd 484,596.79 181,495.35 services
Provide labor Wafangdian bearing group precision roller co., LTD 1,424,404.62 2,056,798.51 services
Wafangdian Bearing Group Precision Retainer Co., Provide labor 73,816.39 Ltd. services
Wafangdian bearing Group High-end Auto Bearing Provide labor 2,410,301.24 Co., Ltd. services
Provide labor Wafangdian Tongda Bearing Manufacturing Co., Ltd. 3,057,843.11 services
Content of Related total 173,104,392.16 217,410,996.83 Transactions
(2) Associated with entrusted management/contracting and entrusted management/outsourcing (3) Associated lease As the lessor, the Company: In RMB Yuan
Types of leased Name of the lessee 本期确认的租赁收入 上期确认的租赁收入 assets
Wafangdian Bearing Precision Forging land 275,414.51 379,436.00 Co., Ltd
Wafangdian Bearing Group Precision land 131,574.00 131,574.00 Retainer Co., Ltd.
Wafangdian Bearing Group Co., Ltd. land 151,127.63 201,626.16
Wafangdian bearing Group High-end Auto housing 1,668,492.60 3,089,922.60 Bearing Co., Ltd.
Wafangdian Bearing Precision Forging housing 677,018.72 517,810.00 Co., Ltd
Dalian Wazhou Jinzhou Machinery Co., housing 401,580.00 401,580.00 Ltd.
Wafangdian Bearing Group Precision housing 382,011.48 382,011.48 Retainer Co., Ltd.
Wafangdian Bearing Group Co., Ltd. housing 548,064.60 244,909.80
Dalian Wazhou Fengyuan Machinery Co., housing 53,730.00 53,730.00 Ltd.
Wafangdian bearing Group High-end Auto equipment 3,942,532.14 5,883,114.30 Bearing Co., Ltd.
91 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Wafangdian bearing group precision roller equipment 219,857.98 1,055,386.86 co., LTD
Wafangdian Bearing Group Precision equipment 419,215.42 1,106,691.67 Retainer Co., Ltd.
Wafangdian Bearing Group Co., Ltd. equipment 3,662,482.91 4,635,982.78
Total 12,533,101.99 18,083,775.65
The Company as the lessee: In RMB Yuan
Types of leased Rental fees confirmed for this The rental fee confirmed in Name of the lessor assets period the previous term
Wafangdian Bearing Group Co., Ltd. housing 105,844.50 105,844.50
Wafangdian Bearing Group Co., Ltd. housing 1,400,277.61 1,330,299.06
Wafangdian Bearing Group Co., Ltd. housing 1,169,652.00 584,826.00
Wafangdian Bearing Group Co., Ltd. housing 1,285,835.52 1,285,835.51
Wafangdian Bearing Group Co., Ltd. housing 391,860.00 391,860.00
Wafangdian Bearing Group Co., Ltd. housing 1,129,680.00 1,354,155.00
Wafangdian Bearing Group Co., Ltd. housing 345,541.00 430,657.76
Wafangdian Bearing Group Co., Ltd. housing 34,401.00 56,367.50
Wafangdian Bearing Group Co., Ltd. housing 584,826.00
Wafangdian Bearing Group Co., Ltd. land 559,011.00 559,011.00
Wafangdian Bearing Group Co., Ltd. land 250,180.75 237,657.00
Wafangdian Bearing Group Co., Ltd. land 227,850.00 113,925.00
Wafangdian Bearing Group Co., Ltd. land 263,025.00 263,025.00
Wafangdian Bearing Group Co., Ltd. land 84,675.00 84,675.00
Wafangdian Bearing Group Co., Ltd. land 224,475.00 473,776.01
Wafangdian Bearing Group Co., Ltd. land 190,417.50 222,153.75
Wafangdian Bearing Group Co., Ltd. land 113,925.00
Wafangdian Bearing Group Co., Ltd. equipment 104,091.54 124,693.67
Wafangdian Bearing Group Co., Ltd. equipment 179,660.54 168,695.33
Wafangdian Bearing Group Co., Ltd. equipment 11,606.84 5,803.42
Wafangdian Bearing Group Co., Ltd. equipment 484,361.04 483,945.55
Wafangdian Bearing Group Co., Ltd. equipment 66,126.48 66,126.49
total 8,508,572.32 9,042,083.55
(4) Related guarantee (5) Related party lending (6) Assets transfer and debt restructuring of related parties
92 Wafangdian Bearing Company Limited 2021 Midyear Financial report
In RMB Yuan
Content of Related Related party Current amount Last period amount Transactions
Dalian Wafangdian Bearing Group Proceeds from debt 18,030.00 Equipment Manufacturing Co., Ltd. restructuring
Wafangdian bearing group equipment Proceeds from debt 3,885.00 22,650.00 technology engineering co., LTD restructuring
Wafangdian Bearing Precision Forging Proceeds from debt 500,000.00 Co., Ltd restructuring
(7) Compensation of key management personnel In RMB Yuan
item Current amount Last period amount
Pay in total 466,564.80 381,462.00
(8) Other related party transactions 6. Accounts receivable and payable by related Parties (1) Receivable items In RMB Yuan
Ending balance Opening balance The project Provisio Provision name Related party Book balance n for bad Book balance for bad
debt debt
Accounts Wafangdian bearing Group High-end Auto 52,276,288.20 68,678,602.65 receivable Bearing Co., Ltd.
Accounts Wafangdian Bearing Precision Forging Co., Ltd 219,872.47 16,662,178.60 receivable
Accounts Wafangdian Bearing Group Wind Power 25,507,541.54 57,817,522.14 receivable BearingCo., Ltd.
Accounts Wafangdian bearing group precision roller co., 92,214,064.30 58,389,070.16 receivable LTD
Accounts Wafangdian Bearing Group (U.S.A.) Co., Ltd. 12,671,710.42 12,724,312.13 receivable
Accounts Wafangdian Bearing Group Precision Retainer 7,604,387.25 4,695,277.43 receivable Co., Ltd.
Accounts Wafangdian Bearing Group Co., Ltd. 124,093,657.21 45,948,737.23 receivable
Accounts Wazhou Group Precision Drive Bearing Co., Ltd. 35,886,333.50 13,380,098.00 receivable
Accounts Wafangdian Bearing Special Precision Bearing 313,460.12 96,675.89
93 Wafangdian Bearing Company Limited 2021 Midyear Financial report
receivable Co., Ltd.
Accounts Germany Leipzig Roller and Ball Bearing Co., 2,093,164.98 951,712.17 receivable Ltd.
Accounts Wafangdian Tongda Bearing Manufacturing Co., 2,776,919.75 246,225.41 receivable Ltd.
Accounts ZWZBearingEuropeGmbH 165,782.22 receivable
Accounts Dalian Wazhou Jinzhou Machinery Co., Ltd. 1,769,628.29 534,568.97 receivable
Accounts Wafangdian Bearing Group Engineering
receivable Technology Research Center
Accounts Wafangdian HongdaConstant velocity universal 148,466.32 148,466.32 receivable jointManufacturing Company Limited
Advance Wafangdian Bearing Power Co., Ltd. 180,000.00 payment
Advance Dalian Wafangdian Bearing Group Equipment 12,670.00 payment Manufacturing Co., Ltd.
Advance Wafangdian bearing group precision roller co., 239,733.27 3,157,266.38 payment LTD
Advance Wafangdian Bearing Group Co., Ltd. 674,220.86 payment
Advance Wafangdian bearing Group High-end Auto 8,019,600.29 payment Bearing Co., Ltd.
Advance Wafangdian Bearing Precision Forging Co., Ltd 36,765,177.51 payment
Other Wafangdian Bearing Group Co., Ltd.Lanzhou accounts 778,950.65 778,950.65 Sales Branch receivable
Other accounts Lanzhou Sales Branch 20,254.45 20,254.45 receivable
(2) Items payable In RMB Yuan
The project Related party Closing book balance Starting book balance name
Accounts Wafangdian Bearing Precision Forging Co., Ltd 28,439,720.54 11,011,062.39 payable
Accounts 瓦轴集团 228,159,410.99 115,348,014.25 payable
94 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Accounts Dalian Wafangdian Bearing Group Equipment 4,001,795.63 2,664,211.48 payable Manufacturing Co., Ltd.
Accounts Wafangdian bearing Group High-end Auto Bearing Co., 24,746,134.91 17,774,754.01 payable Ltd.
Accounts Wafangdian Tongda Bearing Manufacturing Co., Ltd. 3,077,828.88 846,928.89 payable
Accounts Wafangdian bearing group equipment technology 29,700.00 29,700.00 payable engineering co., LTD
Accounts Dalian Wazhou Jinzhou Machinery Co., Ltd. 3,908,628.15 2,388,530.75 payable
Accounts Dalian Wazhou Fengyuan Machinery Co., Ltd. 4,582,504.87 1,247,725.38 payable
Accounts Wafangdian Bearing Group Engineering Technology 8,040,683.38 4,453,686.53 payable Research Center
Accounts Wafangdian bearing group precision roller co., LTD 6,099,542.54 2,391,436.65 payable
Accounts Wafangdian Bearing Group Precision Retainer Co., Ltd. 19,381,041.28 6,147,681.16 payable
Accounts Wafangdian Bearing Power Co., Ltd. 1,823,009.04 1,012,371.15 payable
Accounts Wazhou Group Precision Drive Bearing Co., Ltd. 1,367,702.05 682,054.80 payable
Accounts Wafangdian Bearing Special Precision Bearing Co., Ltd. 965,878.64 payable
Other payable Wafangdian Bearing Group Co., Ltd. 40,182,304.11 38,476,586.58
Wafangdian bearing group equipment technology Other payable 5,662,503.19 952,000.00 engineering co., LTD
Dalian Wafangdian Bearing Group Equipment Other payable 211,088.45 Manufacturing Co., Ltd.
7. Commitment of related Party 8.other XIII. Share payment 1. The general situation of share payment Applicable Inapplicable 2. Share payments settled with equity □ Applicable √ Not applicable 3. Share payments settled in cash Applicable Inapplicable 4. Modification and termination of share payment
95 Wafangdian Bearing Company Limited 2021 Midyear Financial report
5.other XIV.Commitments and contingencies 1. Important commitments Significant commitments existing at balance sheet date 2. Contingencies XV.Events after the balance sheet date XVI.Other important matters XVII.Annotation of major items in the parent company's financial statements 1. Accounts receivable (1) Classified disclosure of accounts receivable In RMB Yuan
ending balance Beginning balance
category Provision for bad Provision for bad Book balance The Book balance debt debt The book book Provisio Provisi value account ratio account value account ratio account n ratio on ratio
Accounts receivable with 63,407,86 5.52 63,407, 100.00 63,437, 63,437, 100.00 bad debt provision 6.00% 5.85 % 865.85 % 865.85 865.85 % drawn on a single item
Among them:
Accounts receivable with a 1,056,0 1,079,5 1,084,436, 94.48 28,386, 28,394, 1,051,19 combination of 2.62% 49,412. 92,293. 94.00% 3.00% 108.35 % 695.63 940.13 7,353.63 bad debt 72 76 provisions
Among them:
759,50 722,78 Wherein: aging 787,893,0 68.64 28,386, 28,394, 694,390, 3.60% 6,328.0 5,069.5 63.00% 4.00% combination 23.63 % 695.63 940.13 129.43 0 6
Where: 296,54 356,80 296,543,0 25.83 356,807, combination of 0.00% 3,084.7 7,224.2 31.00% 0.00% 84.72 % 224.20 related parties 2 0
1,056,0 1,143,0 1,147,843, 100.0 91,794, 100.00 91,832, 1,051,19 A combined 8.00% 49,412. 30,159. 8.00% 974.20 0% 561.48 % 805.98 7,353.63 72 61
Provision for bad debt by single item: 63,407,865.85 In RMB Yuan
名称 Closing balance
96 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Provision for Book balance Provision ratio Provision for bad debt Liaoning Yinheng Galvanized Color Coated Not expected to 3,213,308.67 3,213,308.67 100.00% Steel Plate Co. LTD recover Not expected to Shandong Hengji New Material Co., LTD 2,284,666.96 2,284,666.96 100.00% recover Shandong Yuanda Board Industry Not expected to 1,804,722.77 1,804,722.77 100.00% Technology Co., LTD recover Not expected to Hesteel Company Limited Handan branch 1,608,611.42 1,608,611.42 100.00% recover Not expected to Angang Steel Company Limited 1,595,050.69 1,595,050.69 100.00% recover Not expected to Liaoning Wa shaft Bearing Sales Co., LTD 1,500,000.00 1,500,000.00 100.00% recover Not expected to Bazhou Tianli Pipe Co., LTD 1,325,600.76 1,325,600.76 100.00% recover Not expected to Yingkou Iron & Steel Co. LTD 1,256,973.91 1,256,973.91 100.00% recover Not expected to Sichuan Southwest Stainless Steel Co. LTD 1,241,333.17 1,241,333.17 100.00% recover Not expected to Citic Heavy Industrial Machinery Co. LTD 1,137,600.00 1,137,600.00 100.00% recover Henan Taihang Vibration Machinery Co., Not expected to 989,207.41 989,207.41 100.00% LTD recover China second heavy machinery Group Not expected to 795,887.92 795,887.92 100.00% (Deyang) Wanxin engineering equipment recover Benxi Beiying Iron & Steel (Group) Co. Not expected to 775,804.98 775,804.98 100.00% LTD recover Not expected to Bengang Steel Plates Co., Ltd 770,000.00 770,000.00 100.00% recover Materials Branch of North Heavy Industry Not expected to 739,585.80 739,585.80 100.00% Group Co. LTD recover Shandong Yuntong New Material Not expected to 711,438.94 711,438.94 100.00% Technology Co., LTD recover Not expected to Dongfeng Motor Transmission Co. LTD 704,098.23 704,098.23 100.00% recover Not expected to Dalian Tianyuan Motor Co., LTD 666,383.31 666,383.31 100.00% recover Wolong Electric Huaian Qingjiang Motor Not expected to 598,873.78 598,873.78 100.00% Co., LTD recover Qiqihar No.2 Machine Tool (Group) Co. Not expected to 551,450.03 551,450.03 100.00% LTD recover Xi 'an Jossbo Hydraulic Engineering Co. Not expected to 514,938.87 514,938.87 100.00% LTD recover Not expected to Mudanjiang city speed reducer Factory 467,905.65 467,905.65 100.00% recover Hunan Chaoyang Electromechanical Co., Not expected to 446,627.60 446,627.60 100.00% LTD recover Xiangtan Motor Co., LTD 416,549.65 416,549.65 100.00% Not expected to
97 Wafangdian Bearing Company Limited 2021 Midyear Financial report
recover Not expected to Xuzhou XCMG Material Supply Co., LTD 373,237.55 373,237.55 100.00% recover Not expected to Qingdao Double star Tyre Industry Co., LTD 371,251.58 371,251.58 100.00% recover Not expected to Minmetals Yingkou Plate Co. LTD 365,064.61 365,064.61 100.00% recover Not expected to Shandong Kerui Steel Plate Co. LTD 357,290.00 357,290.00 100.00% recover Guangzhou Supplies section of China Not expected to 340,000.00 340,000.00 100.00% Railway Guangzhou Bureau Group Co., LTD recover Not expected to Shantui Construction Machinery Co., Ltd. 325,867.86 325,867.86 100.00% recover Shandong tancheng new Asia light industry Not expected to 318,488.87 318,488.87 100.00% machinery limited company recover Beiman Special Steel Co. LTD of Northeast Not expected to 315,004.72 315,004.72 100.00% Special Steel Group recover Taicang Hutai Chang 'e Papermaking Not expected to 310,361.32 310,361.32 100.00% Equipment Co. LTD recover Panzhihua Group Chengdu Iron & Steel Co. Not expected to 303,305.45 303,305.45 100.00% LTD recover Harbin Haoke Electric Power Technology Not expected to 303,005.32 303,005.32 100.00% Co. LTD recover Not expected to Jiangsu Xinrui Gear System Co., LTD 286,949.88 286,949.88 100.00% recover Erzhong Group (Deyang) Jingheng Not expected to 286,935.03 286,935.03 100.00% Transmission Equipment Co., LTD recover Not expected to Xingtai Iron & Steel Co. LTD 285,834.67 285,834.67 100.00% recover Not expected to Shandong Guanpeng Metal Sheet Co., LTD 273,748.84 273,748.84 100.00% recover Not expected to Baoji Loyalty Machine Tool Co., LTD 269,908.74 269,908.74 100.00% recover Not expected to Jiangsu Dazhong Electric Co., LTD 257,662.90 257,662.90 100.00% recover Not expected to Korla railway supplies section 256,044.10 256,044.10 100.00% recover Not expected to Zhuzhou Gear Co., LTD 254,604.07 254,604.07 100.00% recover Not expected to Jiamusi Electric Motor Co., LTD 245,000.00 245,000.00 100.00% recover Zibo Boshan Qianjin reducer Factory Co., Not expected to 244,579.32 244,579.32 100.00% LTD recover Not expected to Indonesia CV.SIDO Company 243,676.52 243,676.52 100.00% recover Not expected to Tonghua Iron & Steel Co. LTD 240,568.39 240,568.39 100.00% recover Not expected to Shijiazhuang Qiangda slurry pump Co. LTD 238,749.98 238,749.98 100.00% recover
98 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Not expected to Ningbo Fan Co., LTD 238,487.84 238,487.84 100.00% recover Shenyang Jingxin Remanufacturing Co., Not expected to 236,705.64 236,705.64 100.00% LTD recover Not expected to Siemens Motors (China) Co., LTD 228,831.20 228,831.20 100.00% recover Anshan Heavy Duty Mining Machinery Co., Not expected to 216,819.90 216,819.90 100.00% Ltd. recover Not expected to Heavy coal Machine Co. LTD 215,142.12 215,142.12 100.00% recover Qinhuangdao Shouqin Metal Material Co., Not expected to 213,911.48 213,911.48 100.00% LTD recover Liaoning Renda Equipment Technology Co., Not expected to 211,464.69 211,464.69 100.00% LTD recover CRRC Shenyang Locomotive & Rolling Not expected to 205,145.45 205,145.45 100.00% stock Co. LTD recover Chengdu sales center (Panzhihua steel group Not expected to 203,004.70 203,004.70 100.00% Panzhihua vanadium recover Tianjin Rongtai New composite Material Not expected to 200,000.00 200,000.00 100.00% Co., LTD recover Hangzhou Qianjin Gear Box Group Co., Not expected to 199,832.70 199,832.70 100.00% LTD recover Not expected to Hebei Wenfeng Iron & Steel Co. LTD 197,979.65 197,979.65 100.00% recover Hubei Wa Axis Xin Sheng Technology Co., Not expected to 188,136.00 188,136.00 100.00% LTD recover Not expected to Nanjing Light Industrial Machinery Factory 185,079.54 185,079.54 100.00% recover Not expected to Gulf World Trading Corporation of India 179,376.85 179,376.85 100.00% recover Huaibei Mining (group) coal industry Not expected to 178,580.44 178,580.44 100.00% Limited liability company materials branch recover Not expected to Jiamusi Coal Mine Machinery Co. LTD 171,288.78 171,288.78 100.00% recover Xuzhou Sinoma Equipment Heavy Not expected to 170,930.05 170,930.05 100.00% Machinery Co. LTD recover Not expected to Changsha Motor Factory Co. LTD 170,295.76 170,295.76 100.00% recover Austria Andritz Technology Co., LTD. Not expected to 166,787.14 166,787.14 100.00% (Foshan) recover Not expected to Xuzhou Meici Bridge Co., LTD 163,037.45 163,037.45 100.00% recover Not expected to Foshan Ketai Electromechanical Co., LTD 160,772.79 160,772.79 100.00% recover Not expected to Siping blower Co., LTD 160,053.21 160,053.21 100.00% recover Not expected to Shenhua Materials Group Co. LTD 155,115.29 155,115.29 100.00% recover Hubei All-out Machinery Group Co. LTD 152,489.82 152,489.82 100.00% Not expected to
99 Wafangdian Bearing Company Limited 2021 Midyear Financial report
recover Guangdong Zhaoqing Jialong Packaging Not expected to 150,313.94 150,313.94 100.00% Machinery Group Co. LTD recover Not expected to Wuxi Yutong Bearing Co., LTD 149,427.42 149,427.42 100.00% recover Zhejiang Tongli Heavy Machinery Not expected to 133,670.00 133,670.00 100.00% Manufacturing Co., LTD recover Not expected to China First Heavy Industry Group Co. LTD 132,135.01 132,135.01 100.00% recover Kunming Electric Machinery Factory Co. Not expected to 131,455.02 131,455.02 100.00% LTD recover Guilin Hongcheng Mining equipment Not expected to 127,032.49 127,032.49 100.00% Manufacturing Co. LTD recover Not expected to Guangxi Beibu Gulf New Material Co., LTD 126,353.69 126,353.69 100.00% recover Shenyang Qunding Machinery Equipment Not expected to 126,286.35 126,286.35 100.00% Co., LTD recover Shenyang Machine Tool (Group) Co., LTD. Not expected to 124,002.02 124,002.02 100.00% Precision CNC Machine Tool Branch recover Not expected to Taiyuan Heavy Industry Co. LTD 121,560.19 121,560.19 100.00% recover Not expected to Zhejiang RIFA Precision Machinery Co.,Ltd. 120,214.46 120,214.46 100.00% recover China Railway Materials Shenyang Not expected to 115,750.43 115,750.43 100.00% Company recover Wuxi Computer Numerical Control Co., Not expected to 114,412.20 114,412.20 100.00% LTD recover John Deere Jia Lian harvesting Machinery Not expected to 114,127.98 114,127.98 100.00% Co. LTD recover Not expected to Orient Iron & Steel Co. LTD 108,997.44 108,997.44 100.00% recover Yingkou Jia Chen Burning chemical Co., Not expected to 108,451.55 108,451.55 100.00% LTD recover China Pingcoal what energy chemical group Not expected to 104,296.17 104,296.17 100.00% Limited liability company recover Not expected to DBI Corporation of America 102,568.64 102,568.64 100.00% recover Changchun Power Generation Equipment Not expected to 100,536.11 100,536.11 100.00% Co. LTD recover Not expected to Other individual provisions 23,143,246.01 23,143,246.01 100.00% recover Total 63,407,865.85 63,407,865.85 -- -- Withdrawal of bad debt provision by single item: In RMB Yuan
Closing balance name Book balance Provision for bad debt Provision ratio Provision for
Bad debt provision by combination: 28,386,695.63
100 Wafangdian Bearing Company Limited 2021 Midyear Financial report
In RMB Yuan
Closing balance name Book balance Provision for bad debt Provision ratio
Aging combination 787,893,023.63 28,386,695.63 3.60%
Total 787,893,023.63 28,386,695.63 --
In RMB Yuan
Closing balance name Book balance Provision for bad debt Provision ratio
Combination of related 215,054,691.15 parties
Total 215,054,691.15 --
Instructions for determining the basis of the combination: Instructions for determining the basis of the combination: If the accounts receivable bad debt provision is drawn according to the general model of expected credit loss, please refer to other receivables disclosure methods to disclose the relevant information of bad debt provision: Applicable Inapplicable Accounts receivable with bad debt provisions drawn according to the combination of credit risk characteristics shall be disclosed according to the aging method In RMB Yuan
aging Closing balance
Within 1 year (including 1 year) 980,887,877.30
1 to 2 years 55,372,323.03
2 to 3 years 21,376,208.30
More than 3 years 90,207,565.57
3 to 4 years 15,866,683.20
4 to 5 years 25,358,615.62
More than 5 years 48,982,266.75
Total 1,147,843,974.20
(2) Bad debt provisions drawn, collected or transferred back in the current period Provision for bad debts in the current period: In RMB Yuan
Current change amount Beginning The ending category withdraw or Cancel after balance provision other balance reverse verification
Single 30,000.00 30,000.00 provision
Total 30,000.00 30,000.00
101 Wafangdian Bearing Company Limited 2021 Midyear Financial report
(3) accounts receivable actually written off in the current period (4) The top five accounts receivable according to the ending balance collected by the debtor In RMB Yuan
The proportion of Ending balance of total ending balance Ending balance of allowance Name accounts receivable of accounts for bad debts receivable
Wafangdian bearing group precision roller co., 62,089,346.19 5.41% LTD
Wafangdian bearing Group High-end Auto 42,596,744.51 3.71% Bearing Co., Ltd.
Taiyuan Material Supply Section of Daqin 32,769,278.70 2.85% 308,227.58 Railway Co., LTD
Dalian wazhou precision motor car bearing co., 49,150,353.29 4.28% LTD
Hebei Donghai Special Steel Group Co. LTD 21,503,960.05 1.87% 118,539.60
total 208,109,682.74 18.12%
2. Other receivables In RMB Yuan
item Closing balance Opening balance
Other accounts receivable 345,885,690.52 13,357,080.42
total 345,885,690.52 13,357,080.42
(1) Interest receivable (2) Dividends receivable (3) Other accounts receivable 1) Classification of other receivables by nature In RMB Yuan
Nature of money Closing book balance Starting book balance
margin 4,579,516.02 6,913,207.78
The deposit 73,869.00 381,780.42
Personal cash 15,721.00 120,512.99
electricity 4,249,167.35 4,895,063.88
Other payments 336,967,417.15 7,024,289.13
total 345,885,690.52 19,334,854.20
2) Provision for bad debts In RMB Yuan
Provision for bad debt The first stage The second stage The third stage Total
102 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Expected credit Expected credit loss for Expected credit loss for losses over the next the entire duration (no the entire duration (credit 12 months credit impairment occurs) impairment incurred)
Balance as of January 5,977,773.78 5,977,773.78 1, 2021
January 1, 2021 balance in current —— —— —— —— period
Balance on June 30, 5,977,773.78 5,977,773.78 2021
Loss provision Changes in current period significant changes in book balance Applicable Inapplicable Disclosure by age In RMB Yuan
aging Closing balance
Within 1 year (including 1 year) 344,855,005.27
1 to 2 years 515,227.91
2 to 3 years 545,368.17
More than 3 years 5,947,862.95
3 to 4 years 226,230.23
4 to 5 years 151,112.17
More than 5 years 5,570,520.55
Total 351,863,464.30
3) Bad debt provisions drawn, collected or transferred back in the current period Provision for bad debts in the current period: In RMB Yuan
Current change amount category Opening Closing withdraw or Cancel after balance provision other balance reverse verification
Other accounts receivable bad 5,977,773.78 5,977,773.78 debt provision
Total 5,977,773.78 5,977,773.78
4) Other receivables in the top five of the closing balance collected by the debtor In RMB Yuan
The proportion of the Ending Nature of Closing Name of the entity aging total closing balance balance of payment balance of other receivables allowance for
103 Wafangdian Bearing Company Limited 2021 Midyear Financial report
bad debts
Prepaid Within 1 Liaoning Electric Power Bureau 4,249,167.35 1.23% electricity year
Luoyang Zhongzhong casting Prepayment More than 5 723,598.86 0.21% 723,598.86 and forging Factory for materials years
Wafangdian Bearing Group Co., Come-and-go Four to five 768,264.15 0.22% 768,264.15 LTD. Lanzhou Sales branch money years
Handan Iron and Steel Group Co. Come-and-go Within 1 314,947.00 0.09% 314,947.00 LTD money year
Yingkou General Bearing Material More than 5 490,288.89 0.14% 490,288.89 Manufacturing Co., LTD money years
total -- 6,546,266.25 -- 1.89% 2,297,098.90
3. Long-term equity investment In RMB Yuan
Closing balance Opening balance
item Impairment Impairment Book balance The book value Book balance The book value loss loss
Invest in 211,583,897.67 211,583,897.67 211,583,897.67 211,583,897.67 subsidiaries
total 211,583,897.67 211,583,897.67 211,583,897.67 211,583,897.67
(1) Investment in subsidiaries In RMB Yuan
Increase or decrease in this period Ending Opening Closing Add Provision balance of Investee balance(The Reduce balance(The invest for other impairment book value) investment book value) ment impairment provision
Wazhou liaoyang bearing 17,337,259.95 17,337,259.95 manufacturing co., LTD
Dalian wazhou precision motor 45,478,956.37 45,478,956.37 car bearing co., LTD
Wazhou precision spherical roller 148,767,681.35 148,767,681.35 bearings (wafangdian) co.,
104 Wafangdian Bearing Company Limited 2021 Midyear Financial report
LTD
Total 211,583,897.67 211,583,897.67
4. Operating revenue and operating costs In RMB Yuan
Current account Last period account item income cost income cost
Main business 1,109,372,674.86 920,204,788.55 776,299,724.04 573,014,937.70
other business 99,349,644.92 86,519,816.50 129,773,842.04 116,310,521.69
total 1,208,722,319.78 1,006,724,605.05 906,073,566.08 689,325,459.39
5. Investment income In RMB Yuan
item Current account Last period account
Dividend income derived from other equity 18,821.12 instrument investments during the holding period
Proceeds from debt restructuring 376,934.17
total 395,755.29
6.other XVIII. Supplementary information 1. Current non-recurring profit and loss statement Applicable Inapplicable In RMB Yuan
item account descriptions
Non-current asset disposal gains and losses -820,370.34
Government subsidies included in the current profits and losses (closely related to the business of the enterprise, except the 3,063,661.27 government subsidies enjoyed in accordance with the national unified standard quota or quantitative)
Debt restructuring gains and losses 312,267.65
In addition to the normal business of the company effective hedging related business, tradable financial assets, derivative financial assets, tradable financial liabilities, changes in the fair value of the derivative financial liabilities to generate profits 183,361.31 and losses, as well as the disposal of tradable financial assets, derivative financial assets, tradable financial liabilities, derivative financial liabilities and other creditor's rights investment returns
Non-operating income and expenses other than those 701,102.45 mentioned above
105 Wafangdian Bearing Company Limited 2021 Midyear Financial report
Less: income tax impact 496,348.77
total 2,943,673.57 --
For the company according to the company information disclosure of securities for public issuance explanatory announcement no. 1 - non-recurring profit and loss "define non-recurring gains and losses as defined in the project, and put the company information disclosure of securities for public issuance explanatory announcement no. 1 - non-recurring profit and loss of non-recurring profit and loss items defined as listed in the current profits and losses of the project, should be the reasons why. Applicable Inapplicable 2. return on equity and earnings per share
Earnings per share Weighted average return on Profit for reporting period Basic Earnings per Diluted Earnings per equity share (YUAN/share) Share (YUAN/share)
Net income attributable to the 0.51% 0.010 0.010 company's common shareholders
Net income attributable to the common shareholders of a company after 0.15% 0.003 0.003 deducting non-recurring gains and losses
106