Wafangdian Bearing Co. LTD2025 Midyear Financial Report
Wafangdian Bearing Co. LTD
2025 Midyear Financial Report
I. Audit report
Whether the semiannual report is audited
□ Yes □ No
The company's semi-annual financial report is unaudited.II. Financial statements
The unit of the statement in the financial notes is yuan
1. Consolidated balance sheet
Establishment unit: Wafangdian Bearing Co. LTD
In RMB Yuan
Item 2025.6.30 2025.1.1
Current Assets:
Monetary funds 88049180.13 239398923.10
Settlement of provisions
Lend funds
Trading financial assets 217260.04 221882.59
Derivative financial assets
Notes receivable 520119998.16 597196581.19
Accounts receivable 1045550333.24 1026226986.45
Financing of receivables 42502064.44 48925906.07
prepayment 8716609.34 10948524.83
Premium receivable
Reinsurance accounts receivable
Reserves receivable for reinsurance contracts
Other receivables 10485149.04 7962213.75
Among them: interest receivable
Dividends receivable
Buy and sell financial assets
stock 651196466.79 688440738.43
Where: Data resources
Contract assets 10106014.60 11498470.21
Holding assets for sale
Non-current assets maturing within one year
Other current assets 39839368.87 53298611.95
Total current assets 2416782444.65 2684118838.57
Non-current assets:
Make loans and advances
1Wafangdian Bearing Co. LTD2025 Midyear Financial Report
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment
Investments in other equity instruments 11906928.35 11906928.35
Other non-current financial assets
Investment real estate 76189652.13 71679927.05
Fixed assets 424356561.00 437398315.29
Construction in progress 16691520.90 34740635.71
Productive biological assets
Oil and gas assets
Usufruct assets
Intangible assets 68119317.12 70121059.58
Where: Data resources
Development expenditure
Where: Data resources
goodwill
Long-term deferred expenses 5866676.59 6602412.97
Deferred tax assets
Other non-current assets
Total non-current assets 603130656.09 632449278.95
Total assets 3019913100.74 3316568117.52
Current liabilities:
Short-term loan 432000000.00 570000000.00
Borrow from the central bank
Borrowed funds
Transactional financial liabilities
Derivative financial liability
Notes payable 112973447.30 401129901.60
Accounts payable 1767186217.48 1663816039.46
Advances received
Contractual liability 32755051.06 34098145.99
Funds used to sell and repurchase financial
assets
Take deposits and deposit with other banks
To buy and sell securities
Underwrite securities
Payroll payable to employees 39108596.01 42089354.01
Taxes payable 8642452.27 12064219.60
Other payables 287629191.45 135258184.75
Among them: interest payable
Dividend payable
Fees and commissions payable
2Wafangdian Bearing Co. LTD2025 Midyear Financial Report
Reinsurance accounts payable
Holding liabilities held for sale
Non-current liabilities due within one year 98350000.00
Other current liabilities 4254711.05 4417479.62
Total current liabilities 2684549666.62 2961223325.03
Non-current liabilities:
Reserve for insurance contracts
Long-term loan
Bonds payable
Among them: Preferred stock
Perpetual bond
Lease liability
Long-term payables 344974.84 344974.84
Long-term employee compensation payable
Projected liabilities 56966352.57 55771671.86
Deferred income 36912180.58 37719857.35
Deferred income tax liabilities 524485.21 524485.21
Other non-current liabilities
Total non-current liabilities 94747993.20 94360989.26
Total liabilities 2779297659.82 3055584314.29
Owner's equity:
Capital stock 402600000.00 402600000.00
Other equity instruments
Among them: Preferred stock
Perpetual bond
Capital reserve 485691050.47 485691050.47
Less: Treasury shares
Other comprehensive income
Special reserve 2867643.47 2305094.24
Surplus reserve 136770391.01 136770391.01
General risk reserve
Undistributed profit -787313644.03 -766382732.49
Total owner's equity attributable to parent
240615440.92260983803.23
company
Minority interest
Total owners' equity 240615440.92 260983803.23
Total liabilities and owners' equity 3019913100.74 3316568117.52
Chairman: Wang Jiyuan General Accountant : Sun Najuan Accounting
charger: Xuan Songtao
2. Balance sheet of parent company
In RMB Yuan
3Wafangdian Bearing Co. LTD2025 Midyear Financial Report
Item 2025.6.30 2025.1.1
Current Assets:
Monetary funds 86103833.05 237603355.24
Trading financial assets 217260.04 221882.59
Derivative financial assets
Notes receivable 517173358.41 598162807.95
Accounts receivable 1004233892.89 990716081.66
Financing of receivables 41176762.40 44303611.96
prepayment 7639752.35 10125500.59
Other receivables 253637816.14 265704686.03
Among them: interest receivable
Dividends receivable
stock 486382572.96 437173417.69
Where: Data resources
Contract assets 10106014.60 11498470.21
Holding assets for sale
Non-current assets maturing within one year
Other current assets 39839368.87 53254761.44
Total current assets 2446510631.71 2648764575.36
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 226488897.67 226488897.67
Investments in other equity instruments 11906928.35 11906928.35
Other non-current financial assets
Investment real estate 71068077.96 66151054.38
Fixed assets 283299712.89 289356808.71
Construction in progress 15176031.43 31415493.14
Productive biological assets
Oil and gas assets
Usufruct assets
Intangible assets 54792659.81 56459406.17
Where: Data resources
Development expenditure
Where: Data resources
goodwill
Long-term deferred expenses 5866676.59 6602412.97
Deferred tax assets
Other non-current assets
Total non-current assets 668598984.70 688381001.39
Total assets 3115109616.41 3337145576.75
4Wafangdian Bearing Co. LTD2025 Midyear Financial Report
Current liabilities:
Short-term loan 432000000.00 570000000.00
Transactional financial liabilities
Derivative financial liability
Notes payable 112973447.30 401129901.60
Accounts payable 1637181362.15 1465053380.82
Advances received
Contractual liability 32727346.79 34060441.72
Payroll payable to employees 33098480.67 34267209.57
Taxes payable 6402903.47 10016846.15
Other payables 277301727.12 122802562.47
Among them: interest payable
Dividend payable
Holding liabilities held for sale
Non-current liabilities due within one year 0.00 98350000.00
Other current liabilities 4254555.08 4417323.65
Total current liabilities 2535939822.58 2740097665.98
Non-current liabilities:
Long-term loan
Bonds payable
Among them: Preferred stock
Perpetual bond
Lease liability
Long-term payables 244974.84 244974.84
Long-term employee compensation payable
Projected liabilities 56655815.81 55730460.81
Deferred income 9704980.48 11203199.32
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 66605771.13 67178634.97
Total liabilities 2602545593.71 2807276300.95
Owner's equity:
Capital stock 402600000.00 402600000.00
Other equity instruments
Among them: Preferred stock
Perpetual bond
Capital reserve 485678443.26 485678443.26
Less: Treasury shares
Other comprehensive income
Special reserve 534661.40 0.00
Surplus reserve 136770391.01 136770391.01
Undistributed profit -513019472.97 -495179558.47
5Wafangdian Bearing Co. LTD2025 Midyear Financial Report
Total owners' equity 512564022.70 529869275.80
Total liabilities and owners' equity 3115109616.41 3337145576.75
3. Consolidated income statement
In RMB Yuan
project Half year 2025 Half of 2024
I. Total operating income 1330615217.48 1122366451.83
Among them: operating income 1330615217.48 1122366451.83
Interest income
The premium has been made
Fee and commission income
2. Total operating cost 1367699027.34 1193873939.27
Among them: operating cost 1150818592.31 1000397426.48
The interest payments
Fees and commission expenses
Surrender gold
Net payout for claims
Draw the net insurance liability reserve
Policy bonus payout
Reinsurance expenses
Taxes and surcharges 9557828.62 6701288.19
Cost of sales 68478445.36 76075715.40
Management fees 66239142.71 59397610.59
Research and development costs 65781912.27 34845558.21
Finance charges 6823106.07 16456340.40
Among them: interest expense 7581344.95 12349659.00
Interest income 450534.54 1159618.61
Plus: other benefits 5966962.04 15162592.13
Investment income (loss marked with "-") 9664256.68 6737445.76
Among them: income from investment in joint ventures and joint
ventures
Financial assets measured at amortized cost terminate
recognition of earnings
Exchange gain (marked with "-" for loss)
Net exposure hedging gain (loss marked with "-")
Income from change in fair value (marked with "-" for loss) -4622.55 -58552.35
Credit impairment loss (marked with "-") 313552.31 9166.55
Asset impairment loss (marked with "-")
Gain on disposal of assets (loss marked with "-") 351928.90 69219.93
3. Operating profit (loss marked with "-") -20791732.48 -49587615.42
Plus: non-operating income 278299.73 4184321.12
Less: non-operating expenses 417478.79 629837.37
Iv. Total profit (total loss marked with "-") -20930911.54 -46033131.67
6Wafangdian Bearing Co. LTD2025 Midyear Financial Report
Less: Income tax expense
V. Net profit (Net loss marked with "-") -20930911.54 -46033131.67
(a) classification according to business continuity
1. Net profit from continuing operations (net loss marked with "-") -20930911.54 -46033131.67
2. Net profit from terminated operations (net loss marked with "-")
(2) Classification according to ownership
1. Net profit attributable to the owner of the parent company -20930911.54 -46033131.67
2. Profit and loss of minority shareholders
VI.Net after tax of other comprehensive income
Net after tax of other comprehensive income attributable to owner
of parent company
(1) Other comprehensive income that cannot be reclassified into
profit or loss
1. Re-measure the amount of change in 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 instrument investments
4. The fair value change of the enterprise's own credit risk
5. Other
(2) Other comprehensive income reclassified into profit and loss
1. Other comprehensive income that can be transferred to profit
or loss under the equity method
2. Changes in fair value of other debt investments
3. The amount of financial assets reclassified into other
comprehensive income
4. Provision for impairment of other creditor's rights investment
credit
5. Cash flow hedging reserve
6. Translation difference of foreign currency financial statements
7. Other
Net after tax of other comprehensive income attributable to
minority shareholders
7. Total comprehensive income -20930911.54 -46033131.67
Total comprehensive income attributable to owner of parent
-20930911.54-46033131.67
company
Total comprehensive income attributable to minority shareholders
8. Earnings per Share
(1) Basic earnings per share -0.0520 -0.1143
(2) Diluted earnings per share -0.0520 -0.1143
Chairman: Wang Jiyuan General Accountant : Sun Najuan Accounting charger:
Xuan Songtao
4. Profit statement of the parent company
In RMB Yuan
ITEM Half year 2025 Half of 2024
7Wafangdian Bearing Co. LTD2025 Midyear Financial Report
I. Operating income 1316908462.25 1139633696.97
Minus: Operating costs 1151863836.30 1015581974.84
Taxes and surcharges 6381819.99 5179429.65
Cost of sales 67756928.31 71183583.99
Management fees 55461499.94 49338808.66
Research and development costs 57708042.42 30857894.95
Finance charges 6713442.29 16493394.13
Including: interest expense 7581344.95 12349659.00
Interest income 448230.47 1114822.32
Plus: Other benefits 4917025.54 14132958.53
Investment income (Loss marked with "-") 5684796.90 5417269.14
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 "-") -4622.55 -58552.35
Credit impairment loss (marked with "-") 280891.43 9166.55
Asset impairment loss (marked with "-") 0.00 0.00
Income from asset disposal (marked with "-" for loss) 351928.90 48386.78
II. Operating profit (Loss marked with "-") -17747086.78 -29452160.60
Add: non-operating income 262711.31 4184321.08
Less: non-operating expenses 355539.03 600024.19
III. Total profit (Total loss marked with "-") -17839914.50 -25867863.71
Less: income tax expense
IV. Net Profit (Net loss marked with "-") -17839914.50 -25867863.71
(1) Net profit from continuing operations (net loss marked with "-") -17839914.50 -25867863.71
(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
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
8Wafangdian Bearing Co. LTD2025 Midyear Financial Report
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 -17839914.50 -25867863.71
VII. Earnings per Share:
(1) Basic earnings per share -0.0443 -0.0643
Diluted earnings per share -0.0443 -0.0643
5. Consolidated cash flow statement
In RMB Yuan
project Half year 2025 Half of 2024
I. Cash flow generated by operating activities:
Cash received from selling goods and providing services 595884749.15 603806987.56
Net increase in customer deposits and interbank deposits
Net increase in borrowing from central banks
Net increase in funds borrowed from other financial institutions
Cash obtained by receipt of premiums from the original insurance
contract
Net cash received for reinsurance operations
Net increase in deposit and investment funds
Cash that receives interest charges and commissions
Net increase in borrowed funds
Net increase in funds for repurchase operations
Net cash received from agents buying and selling securities
Refund of taxes received 8110763.01 7684071.88
Other cash received in connection with operating activities 24266509.65 23577817.07
Subtotal of cash inflow from operating activities 628262021.81 635068876.51
Cash paid for goods and services 107379481.28 304211429.56
Net increase in customer loans and advances
Net increase in deposits with central banks and interbank funds
Cash for payment of claims under the original insurance contract
Net increase in divestment funds
Cash to pay interest fees and commissions
Cash to pay policy dividends
Cash paid to and for employees 189692671.34 208594526.17
All taxes and fees paid 47018926.61 20706382.82
Other cash payments related to operating activities 44514490.85 72091174.73
Subtotal of cash outflow from operating activities 388605570.08 605603513.28
Net cash flow from operating activities 239656451.73 29465363.23
II. Cash flow generated by investing activities:
Recoup cash received on investment
Cash received for investment income 1000000.00 1000000.00
9Wafangdian Bearing Co. LTD2025 Midyear Financial Report
Net cash recovered from the disposal of fixed assets intangible
1049200.0010657.35
assets and other long-term assets
Net cash received from disposal of subsidiaries and other
business units
Other cash received in connection with investing activities
Subtotal of cash inflow from investing activities 2049200.00 1010657.35
Cash paid for the purchase and construction of fixed assets
374172.332645556.46
intangible assets and other long-term assets
Cash paid for investment
Net increase in pledged loans
Obtain net cash paid by subsidiaries and other business units
Other cash payments related to investment activities
Subtotal of cash outflow from investing activities 374172.33 2645556.46
Net cash flow from investing activities 1675027.67 -1634899.11
III. Cash flow generated by financing activities:
Absorb cash received from investment
Among them: the subsidiary absorbs the cash received from the
investment of minority shareholders
Obtain the cash received from the loan 162000000.00 395000000.00
Other cash received in connection with financing activities 235913150.44 345088867.61
Subtotal of cash inflow from financing activities 397913150.44 740088867.61
Cash paid to repay debts 390350000.00 395550000.00
Cash used to distribute dividends profits or repay interest
7909812.2018756979.98
payments
Among them: dividends and profits paid by subsidiaries to
minority shareholders
Payment of other cash in connection with financing activities 330624299.91 325173962.82
Subtotal of cash outflows from financing activities 728884112.11 739480942.80
Net cash flow from financing activities -330970961.67 607924.81
IV. Effect of exchange rate changes on cash and cash
384579.651242958.11
equivalents
V.Net increase in cash and cash equivalents -89254902.62 29681347.04
Plus: Cash and cash equivalents balance at the beginning of the
160907298.24110664560.63
period
VI.Cash and cash equivalents balance at the end of the period 71652395.62 140345907.67
6. Cash flow statement of parent company
In RMB Yuan
Project Half year 2025 Half of 2024
I. Cash flow from operating activities:
Cash received from the sale of goods and services 584495164.23 588032973.54
The tax refund received 8108228.78 7684071.88
Received other cash related to operating activities 21408546.18 22120387.42
Total cash inflow from operating activities 614011939.19 617837432.84
Cash paid for goods and services 161531936.52 355036073.16
10Wafangdian Bearing Co. LTD2025 Midyear Financial Report
Cash paid to and on behalf of employees 153211544.87 172031012.54
All taxes and fees paid 26098493.06 13255483.04
Pay other cash related to operating activities 33660492.23 47982622.26
Total cash outflow from operating activities 374502466.68 588305191.00
Net cash flow from operating activities 239509472.51 29532241.84
Ii. Cash flow from investing activities:
Cash received from the recovery of investments
Cash received from investment income 1000000.00 1000000.00
Net cash received from the disposal of fixed assets intangible
1046400.0010657.35
assets and other long-term assets
Net cash received from disposal of subsidiaries and other
operating units
Received other cash related to investing activities
Total cash inflow from investing activities 2046400.00 1010657.35
Cash paid for the acquisition of fixed assets intangible assets
374172.33451582.36
and other long-term assets
Cash paid for investments
Net cash received from subsidiaries and other operating units
Pay other cash related to investing activities
Total cash outflow from investing activities 374172.33 451582.36
Net cash flow from investing activities 1672227.67 559074.99
Iii. Cash flow from financing activities:
Cash received from investment absorption
Cash received for the acquisition of loans 162000000.00 395000000.00
Other cash received in connection with financing activities 235913150.44 345088867.61
Total cash inflow from financing activities 397913150.44 740088867.61
Cash paid to repay debt 390350000.00 395550000.00
Cash paid out in dividends profits or interest payments 7909812.20 18756979.98
Pay other cash related to financing activities 330624299.91 325173962.82
Total small cash outflow from financing activities 728884112.11 739480942.80
Net cash flow from financing activities -330970961.67 607924.81
IV. Impact of exchange rate fluctuations on cash and cash
384579.651242958.11
equivalents
V. Net increase in cash and cash equivalents -89404681.84 31942199.75
Plus: the opening balance of cash and cash equivalents 159111730.38 102803929.87
Vi. Balance of cash and cash equivalents at the end of the
69707048.54134746129.62
period
11Wafangdian Bearing Co. LTD2025 Midyear Financial Report
7. Statement of Changes in consolidated owners' equity
This amount
In RMB Yuan
Half year 2025
Owner's equity in the parent company
Other equity
instruments Minority
ITEM Capital other
Pref Perpet less： appropr Surplus General sharehol Owner’sCapital public compreh Undistributed Other
stock erre ual Ot
treasur iative public provision total ders’ equity
reserve ensive profits s
d s Capital he e stock reserve reserves for risk equitys income
hare Securit r
s ies
I. Ending balance 40260 -
4856912305013677032609832609838
of the previous 0000.0 766382732.
050.4794.2491.01803.2303.23
year 0 49
Plus: Accounting
policy change
Early error
correction
other
II the beginning 40260 -
4856912305013677032609832609838
balance of this 0000.0 766382732.
050.4794.2491.01803.2303.23
year 0 49
III. Amount of
increase or
---
decrease in the 56254
20930911.5203682036836
current period 9.23
4362.312.31
(marked with "-"
for decrease)
(1) Total - - -
comprehensive 20930911.5 20930 2093091
income 4 911.54 1.54
(2) Owner
12Wafangdian Bearing Co. LTD2025 Midyear Financial Report
investment and
capital reduction
1.Common stock
invested by the
owner
2.Other equity
instrument
holders invested
capital
3 The amount of
share-based
payment included
in the owner's
equity
4 Others
(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
13Wafangdian Bearing Co. LTD2025 Midyear Financial Report
(or equity)
3.Surplus
reserves cover
losses
4 The change in
the defined
benefit plan is
transferred to
retained earnings
5. Other
comprehensive
income carried
forward retained
earnings
6. Other
(5) Special 56254 562549 562549.2
reserves 9.23 .23 3
1. This issue's 38313 38313 3831389
extraction 89.92 89.92 .92
2. Used in this 32688 32688 3268840
issue 40.69 40.69 .69
(6) Others
IV. Ending 40260 -
4856912867613677032406152406154
balance of the 0000.0 787313644.
050.4743.4791.01440.9240.92
current period 0 03
The amount of the previous period
In RMB Yuan
Half year 2024
Owner's equity in the parent company
Other equity Minority
ITEM instruments Capital
other
less： appropr Surplus General sharehol Owner’s
Capital public compreh Undistributed Other
Pref Perpet treasur iative public provision total ders’ equitystock Ot reserve ensive profits s
erre ual e stock reserve reserves for risk equity
he s income
d s Capital
14Wafangdian Bearing Co. LTD2025 Midyear Financial Report
hare Securit r
s ies
I. Ending balance 40260 -
4856912414813677033713063713060
of the previous 0000.0 656170250.
050.4777.6391.01068.1568.15
year 0 96
Plus: Accounting
policy change
Early error
correction
other
II the beginning 40260 -
0.4856912414813677033713063713060
balance of this 0000.0 0.00 0.00 656170250.
00050.4777.6391.01068.1568.15
year 0 96
III. Amount of
increase or
---
decrease in the 14104
46033131.6446224462270
current period 21.96
7709.719.71
(marked with "-"
for decrease)
(1) Total - - -
comprehensive 46033131.6 46033 4603313
income 7 131.67 1.67
(2) Owner
investment and
capital reduction
1.
Common stock
invested by the
owner
2.
Other equity
instrument
holders invested
capital
15Wafangdian Bearing Co. LTD2025 Midyear Financial Report
(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
16Wafangdian Bearing Co. LTD2025 Midyear Financial Report
(5) Special 14104 14104 1410421
reserves 21.96 21.96 .96
1. This issue's 56947 56947 5694779
extraction 79.47 79.47 .47
2. Used in this 42843 42843 4284357
issue 57.51 57.51 .51
(6) Others
IV. Ending 40260 -
0.4856913825213677033266833266833
balance of the 0000.0 0.00 0.00 0.00 702203382.
00050.4799.5991.01358.4458.44
current period 0 63
8. Statement of changes in owner's equity of the parent company
This amount
In RMB Yuan
Semiannual of 2025 period
Other equity
instruments
Undist
Item Perpetu less： Other approprCapital public Surplus public General provision ribute
Capital stock Prefer al treasure comprehensiv iative Owner’s equity
Oth reserves reserves for risk d
red Capital stock e income reserve
er profits
stock Securitie
s
I. Balance at the end of 402600000. 485678443.
136770391.01-495179558.47529869275.80
last year 00 26
Plus: Change in
accounting policy
Previous error correction
other
II.The beginning balance 402600000. 485678443.
136770391.01-495179558.47529869275.80
of the current year 00 26
III. Amount of increase or 534661
decrease in the current -17839914.50 -17305253.10.40
period (marked with "-"
17Wafangdian Bearing Co. LTD2025 Midyear Financial Report
for decrease)
(1) Total comprehensive
-17839914.50-17839914.50
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
equity)
3. Surplus reserves cover
losses
4. Set benefit plan
changes carried forward
to retained earnings
18Wafangdian Bearing Co. LTD2025 Midyear Financial Report
5. Other consolidated
earnings carried forward
to retained earnings
6. other
534661
(5)Special reserves 534661.40.40
16729
1. This issue's extraction 1672970.54
70.54
11383
2. Used in this issue 1138309.14
09.14
(6) Others
402600000.485678443.534661
IV. Ending balance 136770391.01 -513019472.97 512564022.70
0026.40
The amount of the previous period
In RMB Yuan
Semiannual of 2024 period
Other equity
instruments
Undist
Item Perpetu less： Other approprCapital public Surplus public General provision ribute
Capital stock Prefer al treasure comprehensiv iative Owner’s equity
Oth reserves reserves for risk d
red Capital stock e income reserve
er profits
stock Securitie
s
I. Balance at the end of 402600000. 485678443.
136770391.01-421976934.76603071899.51
last year 00 26
Plus: Change in
accounting policy
Previous error correction
other
II.The beginning balance 402600000. 485678443.
136770391.01-421976934.76603071899.51
of the current year 00 26
III. Amount of increase or 673375 -25867863.71 -25194488.65
decrease in the current .06
19Wafangdian Bearing Co. LTD2025 Midyear Financial Report
period (marked with "-"
for decrease)
(1) Total comprehensive
-25867863.71-25867863.71
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
equity)
3. Surplus reserves cover
losses
4. Set benefit plan
changes carried forward
20Wafangdian Bearing Co. LTD2025 Midyear Financial Report
to retained earnings
5. Other consolidated
earnings carried forward
to retained earnings
6. other
673375
(5)Special reserves 673375.06.06
25767
1. This extract 2576762.36
62.36
19033
2. In current use 1903387.30
87.30
(6) Others
402600000.485678443.673375
IV. Ending balance 136770391.01 -447844798.47 577877410.86
0026.06
21Wafangdian Bearing Co. LTD 2025 Midyear Report
III. Basic information of the company
Wafangdian bearing co. LTD. (hereinafter referred to as the company together with subsidiaries referred to as the
group) on July 16 1996 the dalian economic reform committee general reform commission approved hair [1996] no.
64 by wafangdian bearing group co. LTD. (hereinafter referred to as wazhou group) as the sole sponsor of the
company The main production and operation assets (and their related liabilities) authorized by the state to be held at a
discounted price shall be invested in and established by means of social collection.On February 19 1997 the State Securities Commission issued Document No.9 [1997] and approved the company to
publicly issue domestic listed foreign capital shares (B shares) to the public and listed them for trading.On March 19 1997 the founding meeting of the Company and the first meeting of the Board of Directors decided that
the effective date of the reorganization of the company's accounting system (that is the date of the establishment of
the company's accounts) was determined as April 1 1997.On March 20 1997 THE COMPANY GOT THE BUSINESS LICENSE OF ENTERPRISE LEGAL PERSON THE
registration NUMBER IS 24239971-2. Business scope for bearings mechanical equipment auto parts and related
products manufacturing and sales.On March 25 1997 the Company's domestic listed foreign capital shares (B shares) were officially listed and traded in
Shenzhen Stock Exchange raising 406.58 million yuan and the company's registered capital was 330 million yuan
after the issue.According to the shenzhen stock exchange on August 30 2006 issued "on the shenzhen stock exchange stock listing
rules > supplementary notice on the problem of distribution of equity of listed companies (hereinafter referred to as
the" notice ") on September 30 the company in 2006 on the basis of the financial report audited implement turn add
equity capital accumulation fund With 2.2 shares for every 10 shares the total share capital increased from 333
million shares to 402.6 million shares among which the legal person shares owned by Waxhuan Group increased from
20 million shares to 244.0 million shares accounting for 60.6% of the total share capital; SKF of Sweden increased
from 65 million shares to 79.3 million shares accounting for 19.7% of the total capital; Public shares increased from 65
million to 79.3 million accounting for 19.7% of the total share capital. After the implementation of this plan the
company's equity structure will meet the provisions of the Supplementary Notice of the Shenzhen Stock Exchange.The parent company of the company is Wafangdian Bearing Group Co. LTD. The general meeting of shareholders is
the power organ of the Company exercising the power to make decisions on major matters such as the company's
business policy financing investment and profit distribution in accordance with law. The board of directors shall be
responsible to the general meeting of shareholders and exercise the decision-making power of the company according
to law; The management shall be responsible for organizing the implementation of the resolutions of the general
meeting of shareholders and the Board of directors and shall preside over the production and operation management
of the enterprise.The company belongs to the bearing manufacturing industry mainly engaged in all kinds of bearing production and
sales business. Registered place: No. 1 Section 1 Beigongji Street Wafangdian City Liaoning Province. Legal
representative: Wang Jiyuan.Business Scope: Permitted items: inspection and testing services import and export of
goods import and export of technologies (for items subject to approval according to law business activities can only
be carried out after approval by relevant departments and the specific business items shall be subject to the approval
22Wafangdian Bearing Co. LTD 2025 Midyear Report
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 parts processing Land use right leasing Housing leasing Non-residential real estate leasing
Machinery and equipment leasing Computer and communication equipment leasing Transportation equipment
leasing services Office Equipment leasing services Storage equipment leasing services Special equipment leasing
Labor Services (excluding labor dispatch) Technical services technology development technology consultation
technology exchange technology transfer and technology promotion (except for the projects subject to approval
according to law independently carry out business activities according to law with the business license).IV. Basis for the preparation of financial statements
1. Establishment basis
These financial statements are in accordance with the Accounting Standards for Business Enterprises - Basic
Standards and various specific accounting standards the Application Guide of Accounting Standards for Business
Enterprises the interpretation of Accounting Standards for Business Enterprises and other relevant provisions
promulgated by the Ministry of Finance (hereinafter collectively referred to as "Accounting Standards for Business
Enterprises"). And the relevant provisions of the China Securities Regulatory Commission "Information Disclosure and
Reporting Rules for Companies that Publicly Issue Securities No. 15 - General Provisions for Financial Reports".
2.Going concern
The financial statements have been prepared on the basis of the going concern assumption.V.Important Accounting policies and estimates
Specific accounting policies and accounting estimates tips:
Specific accounting policies and accounting estimates formulated by the Group based on actual production and
operation characteristics include the operating cycle the recognition and measurement of bad debt provisions for
receivables the measurement of issued inventories the classification and depreciation of fixed assets the
amortization of intangible assets the capitalization conditions for research and development expenses and the
recognition and measurement of revenue.
1 follow the accounting standards for business enterprises statement
These financial statements comply with the requirements of the Accounting Standards for Business Enterprises issued
by the Ministry of Finance and give a true and complete view of the Company's consolidated and parent company
financial position as of June 30 2025 and the consolidated and parent company's operating results and cash flows for
the half-year of 2025.
2. Accounting period
23Wafangdian Bearing Co. LTD 2025 Midyear Report
A fiscal year begins on January 1 and ends on December 31.
3. Business cycle
The business cycle of the company is 12 months.
4. Functional currency
The Group takes RMB as its functional currency.
5. importance criteria determination method and selection basis
□ Applicable □Not applicable
6. under the same control and not under the same control of the accounting treatment of enterprise merger
Business combination under the same control: the assets and liabilities acquired by the merging party in the business
combination (including the goodwill formed by the acquisition of the merged party by the ultimate controlling party) are
measured on the basis of the carrying value of the assets and liabilities of the merged party in the consolidated
financial statements of the ultimate controlling party at the merger date. The difference between the book value of the
net assets acquired in the merger and the book value of the merger consideration paid (or the total nominal value of
the issued shares) the capital premium in the capital reserve is adjusted and the retained earnings are adjusted if the
capital premium in the capital reserve is insufficient to be written off.Business combination under non-identical control: The cost of combination is the fair value of the assets paid by the
purchaser liabilities incurred or assumed and equity securities issued by the purchaser to acquire control of the
purchaser on the purchase date. The difference between the cost of the merger and the acquiree's share of the fair
value of identifiable net assets obtained in the merger is recognized as goodwill; The difference in the cost of the
merger that is less than the acquiree's share of the fair value of identifiable net assets acquired in the merger is
recognized in profit or loss for the period. The identifiable assets liabilities and contingent liabilities of the acquiree that
are eligible for recognition acquired in the merger are measured at fair value at the purchase date.The expenses directly related to the business combination are recognized in the current profit or loss when incurred;
Transaction costs incurred in the issuance of equity or debt securities for the purpose of a business combination are
included in the initial recognition amount of the equity or debt securities.
7. The judgment criteria of control and the preparation method of consolidated financial statements
1. Judgment criteria of control
The consolidated scope of the consolidated financial statements is determined on a control basis and includes the
Company and all subsidiaries. Control means that the company has power over the investee enjoys variable returns
by participating in related activities of the investee and has the ability to use its power over the investee to influence
the amount of returns.
2.Merge program
The Company regards the entire enterprise Group as one accounting entity and prepares consolidated financial
statements in accordance with unified accounting policies to reflect the overall financial position operating results and
cash flows of the enterprise Group. The effect of internal transactions between the Company and its subsidiaries or
subsidiaries shall be offset. If the internal transaction indicates that the relevant asset has an impairment loss the loss
shall be fully recognized. If the accounting policies and accounting periods adopted by the subsidiary are inconsistent
with those of the Company necessary adjustments shall be made in accordance with the accounting policies and
24Wafangdian Bearing Co. LTD 2025 Midyear Report
accounting periods of the Company when preparing the consolidated financial statements.Subsidiary owners' equity current period net profit and loss and the share of minority shareholders in the current
period comprehensive income are shown separately under owners' equity in the consolidated balance sheet under net
profit in the consolidated income statement and under total comprehensive income respectively. The loss shared by
the minority shareholders of the subsidiary in the current period exceeds the balance formed by the minority
shareholders' share in the initial owner's equity of the subsidiary and the shareholders' equity is reduced by several.
(1) Add subsidiaries or businesses
During the reporting period if a business combination under the same control increases a subsidiary or business the
operating results and cash flows of the subsidiary or business combination from the beginning of the current period to
the end of the reporting period are included in the consolidated financial statements while adjustments are made to
the opening number of the consolidated financial statements and the relevant items in the comparative statements
and the consolidated reporting entity is deemed to have existed since the point at which the ultimate controlling party
began to control.If the investee under the same control can be controlled due to additional investment or other reasons the equity
investment held before the acquisition of the control of the merged party the relevant profit and loss other
comprehensive income and other changes in net assets have been recognized between the date of the acquisition of
the original equity and the date on which the merging party and the merged party are under the same control and the
date of the merger Offset the opening retained earnings or current profit and loss of the comparative statement period
respectively.During the reporting period if a subsidiary or business is added as a result of a business combination not under the
same control it is included in the consolidated financial statements from the purchase date on the basis of the fair
value of each identifiable asset liability and contingent liability identified at the purchase date.If the investee that is not under the same control can be controlled due to additional investment or other reasons the
equity held by the purchaser before the purchase date shall be remeasured according to the fair value of the equity on
the purchase date and the difference between the fair value and the carrying value shall be included in the current
investment income. Other comprehensive income related to the equity held by the purchaser before the purchase date
which can be reclassified into profit or loss later and other changes in owners' equity under the equity method are
converted into investment income for the current period of the purchase date.
(2) Disposal of subsidiaries
* General treatment methods
When the control of the investee is lost due to the disposal of part of the equity investment or for other reasons the
remaining equity investment after disposal shall be remeasured according to its fair value on the date of the loss of
control. The sum of the consideration obtained from the disposal of the equity and the fair value of the remaining
equity minus the difference between the share of the original subsidiary's net assets and the sum of goodwill that
should have been continuously calculated from the purchase date or the merger date based on the original
shareholding ratio is included in the investment income during the period of loss of control. Other comprehensive
income related to the equity investment of the original subsidiary which can be reclassified into profit or loss later and
other changes in owner's equity under the equity method of accounting are converted to current investment income
25Wafangdian Bearing Co. LTD 2025 Midyear Report
when the right of control is lost.* Dispose of subsidiaries step by step
Where an equity investment in a subsidiary is disposed of progressively through multiple transactions until control is
lost the terms conditions and economic effects of each transaction in which the equity investment in the subsidiary is
disposed of meet one or more of the following circumstances which generally indicate that the multiple transaction is a
package transaction:
I. The transactions were entered into at the same time or with regard to their mutual effects;
ⅱ. These transactions as a whole can achieve a complete business outcome;
ⅲ. The occurrence of one transaction depends on the occurrence of at least one other transaction;
Iv.. A transaction is uneconomic in isolation but it is economic when taken together with other transactions.Where each transaction is a package transaction each transaction shall be accounted for as one transaction of
disposal of the subsidiary and loss of control; The difference between the disposal price and the share of the
subsidiary's net assets corresponding to the disposal investment prior to the loss of control is recognized as other
comprehensive income in the consolidated financial statements and transferred to profit or loss in the period when
control is lost.If each transaction is not a package transaction before the loss of the right of control the equity investment of the
subsidiary shall be disposed of in part according to the condition that the right of control is not lost. When the right of
control is lost the accounting treatment is carried out in accordance with the general treatment of the disposal of
subsidiaries.
(3) Purchase of minority shares in subsidiaries
The difference between the newly acquired long-term equity investment due to the purchase of minority shares and
the share of net assets of the subsidiary that should be continuously calculated from the purchase date or the merger
date based on the proportion of the newly acquired shares is adjusted for the equity premium in the capital reserve in
the consolidated balance sheet and if the equity premium in the capital reserve is insufficient to be offset the retained
earnings are adjusted.
(4) Partial disposal of the equity investment in the subsidiary without loss of control
The difference between the disposal price and the disposal of long-term equity investment and the share of net assets
continuously calculated by the subsidiary since the purchase date or the merger date shall be adjusted for the equity
premium in the capital reserve in the consolidated balance sheet and if the equity premium in the capital reserve is
insufficient to be offset the retained earnings shall be adjusted.
8. Classification of joint venture arrangement and accounting treatment of joint operation
9. Determination criteria for cash and cash equivalents
Cash means cash on hand of the Company and deposits that can be used for payment at any time. Cash equivalents
refer to investments held by the Company with a short term strong liquidity easy to convert into known amounts of
cash and little risk of changes in value.
10. Translation of foreign currency business and foreign currency statements
1. Foreign currency transactions
For foreign currency business the spot exchange rate on the date of occurrence of the transaction is used as the
26Wafangdian Bearing Co. LTD 2025 Midyear Report
conversion rate to convert the amount of foreign currency into RMB.The balance of foreign currency monetary items at the balance sheet date is translated at the spot rate at the balance
sheet date and the resulting exchange difference except for the exchange difference arising from special foreign
currency borrowings related to the acquisition and construction of assets eligible for capitalization in accordance with
the principle of capitalization of borrowing costs is recognized in the profit or loss of the current period.
2. Translation of foreign currency financial statements
The assets and liabilities in the balance sheet shall be translated at the spot exchange rate at the balance sheet date;
Owners' equity items are translated at the spot exchange rate at the time of occurrence except for "undistributed
profit" items. The income and expense items in the income statement are translated using the spot exchange rate on
the date of occurrence of the transaction.When disposing of an overseas operation the difference in the translation of foreign currency financial statements
related to the overseas operation is transferred from the owner's equity item to the profit or loss of the disposal period.
11.Financial instruments
The Company recognizes a financial asset financial liability or equity instrument when it becomes a party to a financial
instrument contract.
1. Classification of financial instruments
Based on the Company's business model of managing financial assets and the contractual cash flow characteristics of
financial assets financial assets are classified at initial recognition into: financial assets measured at amortized cost
financial assets measured at fair value and whose changes are included in other comprehensive income and financial
assets measured at fair value and whose changes are included in current profit or loss.The Company classifies financial assets measured at amortized cost that are not designated at fair value and whose
changes are recognized in profit or loss for the current period and meet both of the following conditions:
- The business model aims to collect contract cash flow;
Contract cash flow is only the payment of the principal and interest based on the outstanding principal amount.The Company classifies financial assets (debt instruments) measured at fair value and recorded in other
comprehensive income as financial assets (debt instruments) measured at fair value that meet the following conditions
and are not designated as fair value and whose changes are recorded in profit or loss for the current period:
- A business model aimed at both collecting contract cash flows and selling the financial asset;
Contract cash flow is only the payment of the principal and interest based on the outstanding principal amount.For investments in non-trading equity instruments the Company may upon initial recognition irrevocably designate
them as financial assets (equity instruments) that are measured at fair value and whose changes are included in other
comprehensive income. The designation is made on the basis of a single investment and the underlying investment
meets the definition of an equity instrument from the point of view of the issuer.In addition to the above financial assets measured at amortized cost and at fair value and whose changes are included
in other comprehensive income the Company classifies all remaining financial assets as financial assets measured at
fair value and whose changes are included in current profit or loss. At initial recognition if accounting misalignments
can be eliminated or significantly reduced the Company may irrevocably designate financial assets that should be
classified as measured at amortized cost or at fair value and whose changes are recorded in other comprehensive
27Wafangdian Bearing Co. LTD 2025 Midyear Report
income as financial assets that are measured at fair value and whose changes are recorded in profit or loss for the
current period.Financial liabilities are classified at initial recognition into financial liabilities measured at fair value and whose changes
are recognised in profit or loss for the period and financial liabilities measured at amortised cost.A financial liability that meets one of the following criteria may be designated as a financial liability measured at fair
value at initial measurement and whose changes are recognised in profit or loss for the current period:
1) This designation can eliminate or significantly reduce accounting mismatches.
2) Manage and evaluate the performance of a portfolio of financial liabilities or a portfolio of financial assets and
financial liabilities on a fair value basis in accordance with the enterprise risk management or investment strategy as
set out in the formal written documents and report internally to key management on this basis.
3) The financial liability contains embedded derivatives that need to be spun off separately.
2. Basis for recognition and measurement of financial instruments
(1) Financial assets measured at amortized cost
Financial assets measured at amortized cost include notes receivable accounts receivable other receivables long-
term receivables debt investments etc. which are initially measured at fair value and related transaction costs are
included in the initial recognized amount; Receivables that do not contain a significant financing component and
receivables that the Company decides not to take into account a financing component that is less than one year old
are initially measured at the contract transaction price.Interest calculated using the effective interest method during the holding period is included in current profit or loss.At the time of recovery or disposal the difference between the price obtained and the carrying value of the financial
asset is included in the current profit or loss.
(2) Financial assets (debt instruments) measured at fair value and whose changes are included in other
comprehensive income
Financial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive
income including receivables financing other debt investments etc. are initially measured at fair value and related
transaction costs are included in the initial recognition amount. The financial asset is subsequently measured at fair
value and changes in fair value are included in other comprehensive income except for interest impairment losses or
gains and exchange gains and losses calculated using the effective interest method.Upon termination of recognition the accumulated gains or losses previously recognized in other comprehensive
income are transferred out of other comprehensive income and recognized in current profit or loss.
(3) Financial assets measured at fair value and whose changes are included in other comprehensive income (equity
instruments)
Financial assets (equity instruments) measured at fair value and whose changes are included in other comprehensive
income including investments in other equity instruments are initially measured at fair value and related transaction
costs are included in the initial recognition amount. The financial asset is subsequently measured at fair value and
changes in fair value are included in other comprehensive income. Dividends earned are included in current profit or
loss.Upon termination of recognition accumulated gains or losses previously recognized in other comprehensive income
28Wafangdian Bearing Co. LTD 2025 Midyear Report
are transferred from other comprehensive income and recognized in retained earnings.
(4) Financial assets measured at fair value and whose changes are recognized in profit or loss for the current period
Financial assets that are measured at fair value and whose changes are included in current profit or loss include
transactional financial assets derivative financial assets other non-current financial assets etc. which are initially
measured at fair value and related transaction costs are included in current profit or loss. The financial asset is
subsequently measured at fair value and changes in fair value are recognised in profit or loss for the period.
(5) Financial liabilities measured at fair value and whose changes are recognized in profit or loss for the current period
Financial liabilities that are measured at fair value and whose changes are included in current profit or loss include
transactional financial liabilities derivative financial liabilities etc. which are initially measured at fair value and related
transaction costs are included in current profit or loss. This financial liability is subsequently measured at fair value and
changes in fair value are recognised in profit or loss for the period.Upon termination of recognition the difference between the carrying value and the consideration paid is included in the
current profit or loss.
(6) Financial liabilities measured at amortized cost
Financial liabilities measured at amortized cost including short-term borrowings notes payable accounts payable
other payables long-term borrowings bonds payable long-term payables are initially measured at fair value and
related transaction expenses are included in the initial recognition amount.1
Interest calculated using the effective interest method during the holding period is included in current profit or loss.Upon termination of recognition the difference between the consideration paid and the carrying value of the financial
liability is included in the current profit or loss.
3. Termination of recognition and transfer of financial assets
The Company terminates the recognition of financial assets when one of the following conditions is met:
- Termination of contractual rights to receive cash flows from financial assets;
- The financial assets have been transferred and virtually all the risks and rewards of ownership of the financial assets
have been transferred to the transferring party;
- The financial assets have been transferred although the Company neither transfers nor retains virtually all of the
risks and rewards in the ownership of the financial assets but does not retain control of the financial assets.If the Company and the counterparty modify or renegotiate the contract and it constitutes a substantial amendment
the original financial asset shall be terminated and a new financial asset shall be recognized in accordance with the
revised terms.When a financial asset is transferred if almost all the risks and rewards in the ownership of the financial asset are
retained the recognition of the financial asset is not terminated.When judging whether the transfer of financial assets meets the above conditions for termination of recognition of
financial assets the principle of substance over form is adopted.The company divides the transfer of financial assets into whole transfer and partial transfer of financial assets. If the
overall transfer of financial assets meets the conditions for termination of recognition the difference between the
following two amounts shall be included in the current profit or loss:
(1) the book value of the transferred financial assets;
29Wafangdian Bearing Co. LTD 2025 Midyear Report
(2) The sum of the consideration received as a result of the transfer and the accrued amount of the change in fair
value originally credited directly to owners' equity (where the financial asset involved in the transfer is a financial asset
(debt instrument) measured at fair value and whose change is credited to other comprehensive income).If the partial transfer of financial assets meets the conditions for termination of recognition the overall carrying value of
the transferred financial assets shall be apportioned between the terminated part and the unterminated part according
to their relative fair value and the difference between the following two amounts shall be included in the current profit
or loss:
(1) Terminate the book value of the part recognized;
(2) The sum of the consideration for the portion of the termination of recognition and the amount corresponding to the
portion of the termination of recognition in the cumulative amount of the change in fair value that was originally directly
included in the owner's equity (where the financial asset involved in the transfer is a financial asset (debt instrument)
that is measured at fair value and whose change is included in other comprehensive income).If the transfer of financial assets does not meet the conditions for termination of recognition the financial assets
continue to be recognized and the consideration received is recognized as a financial liability.
4. Termination of recognition of financial liabilities
If the present obligation of a financial liability has been discharged in whole or in part the recognition of the financial
liability or part thereof shall be terminated; If the Company signs an agreement with creditors to assume a new
financial liability to replace the existing financial liability and the contractual terms of the new financial liability are
materially different from those of the existing financial liability the existing financial liability shall be terminated and the
new financial liability shall be recognized at the same time.If all or part of the contract terms of the existing financial liability are materially modified the recognition of the existing
financial liability or part of the existing financial liability is terminated and the financial liability after the modification is
recognized as a new financial liability.When a financial liability is fully or partially terminated for recognition the difference between the carrying value of the
financial liability terminated for recognition and the consideration paid (including non-cash assets transferred out or
new financial liabilities assumed) is recognized in profit or loss for the current period.If the Company repurchases part of the financial liability the carrying value of the whole financial liability shall be
allocated on the repurchase date according to the relative fair value of the continuing recognition part and the
terminated recognition part. The difference between the carrying value assigned to the discontinued recognition
portion and the consideration paid (including non-cash assets transferred out or new financial liabilities assumed) is
recognised in profit or loss for the period.
5.Methods for determining the fair value of financial assets and financial liabilities
A financial instrument in which there is an active market and its fair value is determined by the quotation in the active
market. Financial instruments for which there is no active market are determined at fair value using valuation
techniques. In valuation the Company uses valuation techniques that are applicable in the current circumstances and
supported by sufficient available data and other information selects input values that are consistent with the
characteristics of the asset or liability considered by market participants in the transaction of the underlying asset or
liability and gives preference to the relevant observable input values. Unobservable input values are used only if the
30Wafangdian Bearing Co. LTD 2025 Midyear Report
relevant observable input values are unavailable or impractical to obtain.
6. Test methods and accounting treatment for impairment of financial assets
The Company estimates individually or in combination expected credit losses on financial assets measured at
amortized cost financial assets (debt instruments) measured at fair value and whose changes are included in other
comprehensive income and financial guarantee contracts.The Company recognizes expected credit losses by calculating the present value of the difference between the cash
flows receivable from the contract and the cash flows expected to be received weighted by the risk of default taking
into account reasonable and evidence-based information about past events current conditions and projections of
future economic conditions.For receivables and contractual assets arising from transactions regulated by IAS 14 - Revenue whether or not they
contain a significant financing component the Company always measures its loss provision at an amount equal to
expected credit losses over the entire duration.For lease receivables resulting from transactions regulated by IAS 21 - Leases the Company chooses to always
measure its loss provision at an amount equal to expected credit losses over the entire duration.For other financial instruments the Company assesses at each balance sheet date the changes in the credit risk of the
relevant financial instruments since their initial recognition.The Company compares the risk of default of the financial instruments at the balance sheet date with the risk of default
at the initial recognition date to determine the relative change in the risk of default over the expected life of the financial
instruments to assess whether the credit risk of the financial instruments has increased significantly since the initial
recognition. Generally the Company considers that the credit risk of the financial instrument has increased
significantly if the maturity exceeds 30 days unless there is conclusive evidence that the credit risk of the financial
instrument has not increased significantly since the initial recognition.If the credit risk of a financial instrument is low at the balance sheet date the Company considers that the credit risk of
the financial instrument has not increased significantly since its initial recognition.If the credit risk of the financial instrument has increased significantly since the initial recognition the Company
measures its loss reserve at an amount equivalent to the expected credit loss over the entire life of the financial
instrument; If the credit risk of the financial instrument has not increased significantly since the initial recognition the
Company measures its loss reserve at an amount equivalent to the expected credit loss of the financial instrument
over the next 12 months. The resulting increase or reversal of the loss provision is recognised in the current profit or
loss as impairment loss or gain. For financial assets (debt instruments) that are measured at fair value and whose
changes are recognized in other comprehensive income the loss provision is recognized in other comprehensive
income and the impairment loss or gain is recognized in profit or loss for the current period without reducing the
carrying value of the financial asset as shown in the balance sheet.If there is objective evidence that a financial asset has suffered credit impairment the Company shall make an
impairment provision for the financial asset on an individual basis.For receivables and contractual assets formed from transactions regulated by Accounting Standard for Enterprises 14
- Revenue (2017) whether or not they contain a significant financing component the Company always measures its
loss provision at an amount equal to expected credit losses over the entire duration.
31Wafangdian Bearing Co. LTD 2025 Midyear Report
For lease receivables the Company chooses to always measure its loss provision at an amount equal to expected
credit losses over the entire duration.In addition to assessing overdue credit losses on an individual basis for certain financial assets the Group also
assesses expected credit losses on financial assets measured at amortised cost on an aging portfolio basis.In addition to the above receivables for which the provision for bad debts is made individually the Company divides
the remaining financial instruments into several combinations according to the credit risk characteristics on the basis
of which the expected credit losses are determined. The Company's combination of expected credit losses for notes
receivable accounts receivable receivables financing other receivables etc. and the basis for determination are as
follows:
item Combination class Determination basis
With reference to the historical credit loss experience combined with
the current situation and the forecast of the future economic
Accounts
Aging portfolio situation the comparison table of the expected credit loss rate of the
receivable 1
accounts receivable aging and the whole life is prepared to calculate
the expected credit loss.In principle no provision is made for doubtful accounts unless there
Accounts Combination of related
is clear evidence that it is indeed impossible to recover all or part of
receivable 2 parties
the money
Notes
Banker's acceptance
receivable 1
Notes
Commercial acceptance
receivable 2
Notes Finance company
receivable 3 acceptance bill
Financing of
Banker's acceptance
receivables
In principle no provision is made for doubtful accounts unless there
Other Combination of related
is clear evidence that it is indeed impossible to recover all or part of
receivables 1 parties
the money
Other
Aging portfolio
receivables 2
Risk-free portfolio With reference to the historical credit loss experience combined with
(classified by the the current situation and the forecast of the future economic
reputation of the situation the expected credit loss is calculated through the default
Other
transaction object the risk exposure and the expected credit loss rate of the whole
receivable 3
nature of the payment duration.transaction safeguards
etc.)
If the Company no longer reasonably expects that the cash flow of the financial asset contract can be recovered in
whole or in part it shall directly write down the book balance of the financial asset.
18. Holding assets for sale
19. Debt investment
20. Other debt investment
21. Long-term receivables
22. Long-term equity investment
1.Common control significant influence criteria
32Wafangdian Bearing Co. LTD 2025 Midyear Report
Joint control refers to the common control of an arrangement in accordance with the relevant agreement and the
relevant activities of the arrangement must be agreed upon by the participants who share control. Where the Company
together with other joint ventures exercises joint control over the investee and enjoys rights over the net assets of the
investee the investee shall be a joint venture of the Company.Significant influence refers to having the power to participate in the decision-making of the financial and operational
decisions of the investee but not being able to control or jointly control the formulation of these policies with other
parties. Where the Company is able to exert significant influence on the investee the investee is an associate
enterprise of the Company.
2.Determination of initial investment costs
(1) Long-term equity investment formed by business merger
For a long-term equity investment in a subsidiary formed by a combination of enterprises under the same control the
initial investment cost of the long-term equity investment is based on the share of the acquired owner's equity in the
book value of the consolidated financial statements of the ultimate controlling party on the merger date. The difference
between the initial investment cost of long-term equity investment and the book value of the consideration paid and
the equity premium in the capital reserve; The retained earnings are adjusted when the equity premium in the capital
reserve is insufficient to write off. If the investore under the same control can be controlled due to additional investment
or other reasons the difference between the initial investment cost of long-term equity investment recognized in
accordance with the above principles and the sum of the book value of long-term equity investment before the merger
plus the book value of the new consideration for further shares acquired on the merger date shall be adjusted for the
equity premium and the retained earnings shall be deducted if the equity premium is insufficient.For a long-term equity investment in a subsidiary formed by a merger of enterprises not under the same control the
merger cost determined on the purchase date shall be regarded as the initial investment cost of the long-term equity
investment. If the investee under different control can be controlled due to additional investment or other reasons the
initial investment cost shall be the sum of the book value of the equity investment originally held plus the cost of the
new investment.
(2) Long-term equity investments made through means other than business consolidation
For long-term equity investment obtained by cash payment the initial investment cost shall be based on the purchase
price actually paid.For long-term equity investments obtained by issuing equity securities the initial investment cost shall be based on the
fair value of the equity securities issued.
3.Subsequent measurement and profit and loss recognition methods
(1) Long-term equity investments accounted for by the cost method
The Company's long-term equity investments in subsidiaries are accounted for using the cost method unless the
investment is held for sale. In addition to the cash dividends or profits declared but not yet paid in the price or
consideration actually paid at the time of investment acquisition the Company recognizes the current investment
income according to the cash dividends or profits declared and paid by the investee.
(2) Long-term equity investments accounted for by the equity method
Long-term equity investments in associates and joint ventures shall be accounted for using the equity method. If the
initial investment cost is greater than the investment it shall enjoy the difference in the share of the fair value of the
identifiable net assets of the investee without adjusting the initial investment cost of long-term equity investment;
When the initial investment cost is less than the investment the difference in the share of the fair value of the
33Wafangdian Bearing Co. LTD 2025 Midyear Report
identifiable net assets of the investee shall be included in the current profit or loss and the cost of long-term equity
investment shall be adjusted.The Company recognizes investment income and other comprehensive income respectively according to the share of
net profit and loss and other comprehensive income realized by the investee and adjusts the book value of long-term
equity investment; The book value of long-term equity investment shall be reduced accordingly in accordance with the
profit or cash dividend declared by the investee; For changes in owner's equity other than net profit and loss other
comprehensive income and profit distribution of the investee (" Other owner's equity changes ") the carrying value of
long-term equity investments is adjusted and included in owner's equity.When recognizing the share of the investee's net profit and loss other comprehensive income and other changes in
owner's equity it is recognized on the basis of the fair value of the investee's identifiable net assets at the time of
acquisition of the investment and after adjusting the net profit and other comprehensive income of the investee in
accordance with the company's accounting policies and accounting periods.The profit or loss of unrealized internal transactions between the company and its associate or joint venture shall be
offset by the part attributable to the company calculated in proportion to its share and the investment income shall be
recognized on this basis except where the assets invested or sold constitute business. If the unrealized internal
transaction loss occurred with the investee is an asset impairment loss it shall be fully recognized.The net loss incurred by the Company to the joint venture or associated enterprise except for the obligation to bear
additional losses shall be limited to the carrying value of the long-term equity investment and other long-term interests
that substantially constitute the net investment in the joint venture or associated enterprise. If a joint venture or
associate enterprise later realizes net profit the company shall resume the recognition of the income sharing amount
after the income sharing amount has made up the unrecognized loss sharing amount.
(3) Disposal of long-term equity investments
If a long-term equity investment is disposed of the difference between the carrying value and the actual purchase
price shall be included in the current profit or loss.If part of the long-term equity investment accounted for by the equity method is disposed of and the remaining equity
is still accounted for by the equity method the other comprehensive income recognized by the original equity method
is carried forward on the same basis as the relevant assets or liabilities directly disposed of by the invee and the
changes in other owners' equity are transferred to the current profit or loss in proportion.Where the common control or significant influence on the investee is lost due to the disposal of equity investment or
other reasons other comprehensive income recognized by the original equity investment as a result of the equity
method accounting shall be accounted for on the same basis as the direct disposal of the relevant assets or liabilities
by the investee when the equity method accounting is terminated. All other changes in owners' equity are transferred
to current profit or loss upon termination of the equity method.If the company loses the control over the investee due to the disposal of part of the equity investment or other reasons
and the remaining equity can jointly control or significantly affect the investee when preparing individual financial
statements it shall be calculated according to the equity method and when the remaining equity is regarded as self-
acquired it shall be adjusted by the equity method. Other comprehensive income recognized before the acquisition of
the control of the investee is carried forward on the same basis as the direct disposal of related assets or liabilities by
the investee and the changes in other owner's equity recognized by the equity method are transferred to the current
profit or loss on a proportional basis; If the remaining equity cannot jointly control or exert significant influence on the
investee it is recognized as a financial asset and the difference between the fair value and the carrying value on the
date of loss of control is included in the current profit or loss and all other comprehensive income and other changes
in owners' equity recognized before the acquisition of the control of the investee are carried forward.
34Wafangdian Bearing Co. LTD 2025 Midyear Report
If the equity investment of the subsidiary is disposed of step by step through multiple transactions until the control is
lost and it is a package transaction each transaction shall be accounted for as a transaction that disposed of the
equity investment of the subsidiary and lost the control. The difference between the disposal price of each disposal
and the book value of the disposed equity against the entitled long-term equity investment before the loss of control is
first recognized as other comprehensive income in individual financial statements and then transferred to the loss and
profit of the current period when the control is lost. If it is not a package transaction each transaction shall be
accounted for separately.
23. Investment real estate
Investment real estate measurement model
Cost measurement
Depreciation or amortization method
Investment real estate refers to real estate held for the purpose of earning rent or capital appreciation or both
including land use rights that have been leased land use rights that have been held and are to be transferred after
appreciation and buildings that have been leased (including buildings that have been leased after completion of self-
construction or development activities and buildings that are under construction or development and will be leased in
the future).Subsequent expenditures related to investment real estate are included in the cost of investment real estate when the
related economic benefits are likely to flow in and their costs can be reliably measured; Otherwise it is charged to
current profit or loss when incurred.The Company adopts a cost model for the measurement of existing investment real estate. The depreciation policy for
investment real estate - leased buildings measured according to the cost model is the same as that for the Company's
fixed assets and the amortization policy for leased land use rights is the same as that for intangible assets.
24. Fixed assets
(1) Confirm the conditions
Fixed assets refer to tangible assets with a unit value of more than 2000 yuan that are held for the purpose of
producing commodities providing services renting or operating management and have a service life exceeding one
fiscal year. Fixed assets are recognized when both of the following conditions are met:
(1) The economic benefits related to the fixed assets are likely to flow into the enterprise;
(2) The cost of the fixed asset can be measured reliably.
Fixed assets are initially measured at cost (taking into account the impact of anticipated disposal cost factors).Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the economic benefits
related to them are likely to flow in and their costs can be reliably measured; To terminate the recognition of the book
value of the replaced portion; All other subsequent expenses are recognised in profit or loss as incurred.
（2） Depreciation method
35Wafangdian Bearing Co. LTD 2025 Midyear Report
Depreciation Ratio of salvage Annual depreciation
category Depreciation method
life value rate
Houses and buildings
Among them: houses factories
Life averaging
three-dimensional warehouses 30 3 3.23
method
pipe networks roads
Life averaging
Waste storage 20 3 4.85
method
Life averaging
Machinery and equipment 10 3 9.70
method
Life averaging
Transport equipment 5 3 19.40
method
Life averaging
Electronic equipment
method
Life averaging
Among them: electronic devices 5 3 19.40
method
Life averaging
Instrument and meter 10 3 9.70
method
Life averaging
Other equipment
method
Life averaging
Among them: conduction equipment 10 3 9.70
method
Life averaging
Special equipment 10 3 9.70
method
Life averaging
Office equipment 5 3 19.40
method
Life averaging
Other fixed assets 5 3 19.40
method
25. Construction in progress
Construction in progress is measured at actual cost incurred. Actual costs include construction costs installation costs
capitalized borrowing costs and other expenditures necessary to bring the construction in progress to its intended
serviceability. When the construction under construction reaches the intended serviceable state it shall be transferred
to fixed assets and depreciation shall be calculated from the following month.
26. Borrowing costs
27. Biological assets
28. Oil and gas assets
29. Intangible assets
(1) Service life and the basis for its determination estimate amortization method or review procedure
Intangible assets with limited service life shall be amortized within the time limit during which they bring economic
benefits to the enterprise; Intangible assets that cannot be foreseen to bring economic benefits to the enterprise shall
be regarded as intangible assets with uncertain service life and shall not be amortized.The right to the use of the land shall be amortized on an average basis according to the period of grant from the date
of grant; ERP software and other intangible assets shall be amortized in equal stages according to the shortest among
the expected service life the benefit life stipulated in the contract and the effective life stipulated by law. Amortization
amounts are included in the cost of the relevant assets and current profit or loss according to the beneficiaries. The
36Wafangdian Bearing Co. LTD 2025 Midyear Report
estimated useful life and amortization method of intangible assets with limited useful life are reviewed at the end of
each year and are treated as accounting estimate changes if they occur.
(2) The scope of research and development expenditures and related accounting treatment.
The Company's expenses incurred in the process of conducting research and development include related staff
salaries materials consumed related depreciation and amortization expenses and other related expenses of the
personnel engaged in research and development activities and are summarized as follows:
The relevant employee compensation of the personnel engaged in R&D activities mainly refers to the relevant
employee compensation of the personnel directly engaged in R&D activities the management personnel closely
related to R&D activities and the direct service personnel.Depreciation expense refers to the expense of depreciation of instruments equipment and buildings in use for
research and development activities. Long-term deferred expenses refer to long-term deferred expenses incurred in
the course of alteration modification renovation and repair of research and development facilities.Direct input expense refers to the related expenditure actually incurred by enterprises for the implementation of
research and development activities. Including direct consumption of materials fuel and power costs; Expenses for the
operation maintenance adjustment inspection inspection and repair of instruments and equipment used in research
and development activities as well as lease fees for fixed assets rented through business leasing for research and
development activities.
30. Impairment of long-term assets
37Wafangdian Bearing Co. LTD 2025 Midyear Report
Long-term equity investments investment real estate measured by the cost model fixed assets construction in
progress use rights assets intangible assets with limited useful life oil and gas assets and other long-term assets
where there are signs of impairment at the balance sheet date impairment tests shall be conducted. If the impairment
test results show that the recoverable amount of the asset is lower than its carrying value an impairment provision
shall be made according to the difference and included in the impairment loss. The recoverable amount is the higher of
the fair value of the asset net of disposal costs and the present value of the asset's expected future cash flows. The
asset impairment reserve is calculated and recognized on the basis of individual assets and if it is difficult to estimate
the recoverable amount of an individual asset the recoverable amount of the asset group is determined on the basis
of the asset group to which the asset belongs. An asset group is the smallest portfolio of assets that can independently
generate cash inflows.For goodwill formed as a result of business merger intangible assets with uncertain service life intangible assets that
have not yet reached the usable state regardless of whether there are signs of impairment at least at the end of each
year impairment tests.The Company conducts goodwill impairment tests and the carrying value of goodwill formed as a result of the
business combination is apportioned to the relevant asset group in a reasonable way from the date of purchase; If it is
difficult to apportion to the relevant asset group it is apportioned to the relevant asset group combination. An
associated asset group or combination of asset groups is an asset group or combination that can benefit from the
synergies of a business combination.When conducting an impairment test on the related asset group or asset group combination containing goodwill if
there are signs of impairment in the asset group or asset group combination related to goodwill the impairment test is
first conducted on the asset group or asset group combination excluding goodwill and the recoverable amount is
calculated and compared with the relevant carrying value to recognize the corresponding impairment loss. Then an
impairment test is conducted on the asset group or asset group combination containing goodwill to compare its
carrying value with the recoverable amount. If the recoverable amount is lower than the carrying value the impairment
loss amount is first offset against the carrying value of the goodwill in the asset group or asset group combination. The
book value of the other assets is then reduced proportionally according to the proportion of the book value of the asset
group or the asset group combination of other assets other than goodwill. Once the above-mentioned asset
impairment loss is recognized it will not be reversed in the subsequent accounting period.
31. Long-term deferred expenses
Long-term deferred expenses are expenses that have already been incurred but are liable for the current and
subsequent periods for an apportionment period of more than one year. Such expenses are amortized evenly over the
benefit period and if the long-term unamortized expense item does not benefit subsequent accounting periods the full
amortized value of the item that has not been amortized is carried to profit or loss for the current period.
32. Contractual liabilities
The Company shows contractual assets or contractual liabilities in the balance sheet according to the relationship
between the performance obligations and the customer's payments. Obligations of the Company to transfer goods or
provide services to customers for which consideration has been received or received from customers are shown as
contractual liabilities. Contract assets and contract liabilities under the same contract are shown in net terms.
33. Employee compensation
(1) Accounting treatment of short-term compensation
During the accounting period in which employees provide services to the Company the Company recognizes the
short-term compensation actually incurred as a liability and includes it in the profit or loss of the current period or the
cost of related assets.The Company shall during the accounting period in which the employees provide services to the Company calculate
and determine the corresponding amount of salary for the employees according to the prescribed basis and proportion
38Wafangdian Bearing Co. LTD 2025 Midyear Report
of the provision of social insurance premiums and housing provident funds as well as the funds for the trade union
and the education of the employees as prescribed.The employee welfare expenses incurred by the Company are included in the current profit or loss or related asset
costs according to the actual amount incurred when actually incurred among which non-monetary benefits are
measured at fair value.
(2) Accounting treatment of post-resignation benefits
(1) Set a drawdown plan
The Company shall pay basic pension insurance and unemployment insurance for its employees in accordance with
the relevant regulations of the local government. During the accounting period when the employees provide services to
the Company the amount payable shall be calculated according to the payment base and proportion prescribed by the
local regulations recognized as liabilities and included in the profit or loss of the current period or the cost of related
assets. In addition the Company participates in the Enterprise annuity plan/Supplementary pension insurance fund
approved by the relevant state authorities. The Company pays contributions to the annuity plan/local social insurance
institution according to a certain proportion of the total salary of the employees and the corresponding expenditure is
included in the profit and loss of the current period or the cost of related assets.
(2) Set a benefit plan
According to the formula determined by the expected cumulative benefit unit method the Company will attribute the
benefit obligation arising from the defined benefit plan to the period during which the employee provides the service
and record it in the current profit or loss or related asset cost.A deficit or surplus resulting from the present value of defined benefit plan obligations less the fair value of defined
benefit plan assets is recognized as a defined benefit plan net liability or net asset. If there is surplus in the defined
benefit plan the Company shall measure the net assets of the defined benefit plan by whichever is lower than the
surplus of the defined benefit plan or the upper limit of assets.All defined benefit plan obligations including those expected to be paid within twelve months after the end of the
annual reporting period in which the employee rendered services are discounted at the balance sheet date based on
the market yield of Treasury bonds or high-quality corporate bonds in an active market that match the maturity and
currency of defined benefit plan obligations.The cost of services incurred by the defined benefit Plan and the net interest on the net liabilities or net assets of the
defined benefit plan are recognised in profit or loss or the cost of the related assets for the period; Changes resulting
from the remeasurement of net liabilities or net assets of defined benefit plans are recognized in other comprehensive
income and are not carried back to profit or loss in subsequent accounting periods and the portion originally
recognized in other comprehensive income is fully carried forward to undistributed profit within equity at the termination
of the original defined benefit plan.At the time of settlement of defined benefit plans settlement gains or losses are recognized based on the difference
between the present value of defined benefit plan obligations and the settlement price determined on the settlement
date.
(3) The accounting treatment method of dismissal welfare
If the Company provides termination benefits to employees the employee compensation liability arising from the
termination benefits shall be recognized at an early date and recorded in the current profit or loss of either of the
following: If the Company cannot unilaterally withdraw the termination benefits provided by the termination of labor
relations plan or reduction proposal; When the Company recognizes costs or expenses associated with restructuring
involving the payment of termination benefits.
39Wafangdian Bearing Co. LTD 2025 Midyear Report
(4) Accounting treatment methods for other long-term employee benefits
34. Expected liabilities
Obligations relating to contingencies are recognised by the Company as projected liabilities when the following
conditions are met:
(1) The obligation is a current obligation of the Company;
(2) the performance of the obligation is likely to result in the outflow of economic benefits from the Company;
(3) The amount of the obligation can be measured reliably.
Projected liabilities are initially measured at the best estimate of the expenditure required to meet the relevant current
obligations.In determining the best estimate factors such as risks uncertainties and the time value of money associated with
contingencies are taken into account. Where the time value of money is significant the best estimate is determined by
discounting the relevant future cash outflows.Where there is a continuous range of required expenditures within which outcomes are equally likely to occur the best
estimate is determined at the midpoint of the range; In other cases the best estimates are treated as follows:
* Contingencies involving a single item are determined according to the amount most likely to occur.Contingencies involving multiple items shall be determined according to the calculation of various possible outcomes
and relevant probabilities.Where all or part of the expenditure required to satisfy the projected liability is expected to be compensated by a third
party the amount of compensation is recognized separately as an asset when it is basically certain that it will be
received and the amount of compensation recognized does not exceed the carrying value of the projected liability.The Company reviews the carrying value of the projected liabilities at the balance sheet date and adjusts the carrying
value according to the current best estimate if there is solid evidence that the carrying value does not reflect the
current best estimate.
35. Payment in shares
36. Preferred stock perpetual bond and other financial instruments
37. income
Disclose accounting policies used to recognize and measure revenue by business type
Merchandise sales revenue: When the Group has transferred the principal risks and rewards of ownership of the
goods to the purchaser the Group has not retained the continuing management rights normally associated with
ownership nor has it exercised effective control over the goods sold the amount of revenue can be measured reliably
the related economic benefits are likely to flow to the business and the related costs incurred or to be incurred can be
measured reliably Recognize the realization of sales revenue.Income from transferred assets: The realization of income from the right to use transferred assets is recognized when
the economic benefits associated with the transaction are likely to flow to the Group and the amount of revenue can be
measured reliably.The use of different business models involving different revenue recognition methods and measurement methods of
similar businesses
38. Contract cost
Contract cost includes contract performance cost and contract acquisition cost.
40Wafangdian Bearing Co. LTD 2025 Midyear Report
The cost incurred by the Company for the performance of the contract which does not fall within the scope of relevant
standards such as inventory fixed assets or intangible assets shall be recognized as an asset as the performance
cost of the contract when the following conditions are met:
* The cost is directly related to a current or expected contract.* This cost increases the Company's resources to meet performance obligations in the future.* This cost is expected to be recovered.The incremental cost incurred by the Company to obtain a contract is recognized as an asset if it is expected to be
recovered as a contract acquisition cost.Assets related to contract costs are amortized on the same basis as the recognition of revenue of goods or services
related to that asset; However if the amortization period of contract acquisition costs does not exceed one year the
Company will recognize it in the profit and loss of the current period when it occurs.If the carrying value of an asset related to the contract cost is higher than the difference between the following two
items the Company shall make an impairment provision for the excess and recognize it as an asset impairment loss:
(a) the remaining consideration expected to be obtained as a result of the transfer of goods or services related to the
asset;
2. Estimate the costs to be incurred for the transfer of the relevant goods or services.
If the factors of impairment in previous periods change later making the aforementioned difference higher than the
carrying value of the asset the Company shall revert to the original provision for impairment and record it in the profit
or loss of the current period provided that the carrying value of the asset after the reversal shall not exceed the
carrying value of the asset on the date of reversal if no provision for impairment is assumed.
39. Government subsidies
1.type
Government subsidies refer to monetary assets or non-monetary assets obtained free of charge by the Company from
the government which are divided into government subsidies related to assets and government subsidies related to
income.Government subsidies related to assets refer to government subsidies obtained by the Company for the purchase and
construction or other forms of long-term assets. Revenue-related government subsidies refer to government subsidies
other than those related to assets.The Company's specific criteria for classifying government grants as asset-related are government grants obtained by
the Group for the acquisition construction or otherwise formation of long-term assets
The Company's specific criteria for classifying government grants as income-related are: government grants other than
government grants related to assets
If the government documents do not clearly specify the object of the subsidy the Company will classify the
government subsidy as asset-related or revenue-related based on the following judgment: The Group will make a
judgment according to the above distinction principle and if it is difficult to distinguish the whole government subsidy
is classified as revenue-related.
2.Confirmation time
Government grants are recognized when the Company is able to meet the conditions attached to them and can
receive them.
3.Accounting treatment
41Wafangdian Bearing Co. LTD 2025 Midyear Report
Government subsidies related to assets write-down of the book value of related assets or recognized as deferred
income. If it is recognized as deferred income it shall be included in the profit or loss of the current period in a
reasonable and systematic way during the service life of the relevant assets (if it is related to the daily activities of the
Company it shall be included in other income; If it is not related to the daily activities of the Company it is included in
non-operating income);
Government grants related to revenue that are used to compensate the Company for related costs or losses in
subsequent periods are recognized as deferred revenue and are recognized in current profit or loss during the period
in which the related costs or losses are recognized (other income if related to the Company's daily activities; If it is not
related to the daily activities of the Company it is included in non-operating income) or written off the related costs or
losses; If it is used to compensate the relevant costs or losses incurred by the Company it is directly included in the
current profit and loss (if it is related to the daily activities of the Company it is included in other income; If it is not
related to the daily activities of the Company it is included in non-operating income) or written off related costs or
losses.
40. Deferred tax assets/deferred tax liabilities
Income tax includes current income tax and deferred income tax. In addition to income tax arising from business
mergers and transactions or events that are directly included in owners' equity (including other comprehensive income)
the Company recognizes current income tax and deferred income tax in current profit or loss.Deferred income tax assets and deferred income tax liabilities are calculated and recognized based on the difference
(temporary difference) between the tax basis of assets and liabilities and their carrying value.Deferred income tax assets are recognized for deductible temporary differences to the extent that taxable income is
likely to be obtained in future periods to offset deductible temporary differences. For deductible losses and tax credits
that can be carried forward to subsequent years the corresponding deferred tax assets are recognized to the extent
that future taxable income is likely to be obtained to offset the deductible losses and tax credits.For taxable temporary differences deferred income tax liabilities are recognized except in exceptional circumstances.Exceptional circumstances in which deferred tax assets or deferred tax liabilities are not recognized include:
* Initial recognition of goodwill;
* Transactions or events that are neither a business combination nor affect accounting profit and taxable income (or
deductible losses) at the time of occurrence and where the assets and liabilities initially recognized do not result in an
equal amount of taxable temporary differences and deductible temporary differences.Deferred tax liabilities are recognized for taxable temporary differences related to investments in subsidiaries
associates and joint ventures unless the Company is able to control the timing of the reversal of the temporary
difference and it is likely that the temporary difference will not be reversed in the foreseeable future. Deferred tax
assets are recognized for deductible temporary differences related to investments in subsidiaries associates and joint
ventures when the temporary difference is likely to be reversed in the foreseeable future and taxable income to offset
the deductible temporary differences is likely to be obtained in the future.At the balance sheet date deferred income tax assets and deferred income tax liabilities are measured at the tax rates
applicable to the period during which the underlying asset is expected to be recovered or the underlying liability is
settled in accordance with the tax laws.On the balance sheet date the Company reviews the carrying value of the deferred tax assets. If it is likely that it will
not be possible to obtain sufficient taxable income to offset the benefit of the deferred tax asset in future periods write
down the carrying value of the deferred tax asset. When sufficient taxable income is likely to be obtained the amount
reduced is reversed.
42Wafangdian Bearing Co. LTD 2025 Midyear Report
Current income tax assets and current income tax liabilities are presented as the net offset when there is a statutory
right to net settlement and the intention is to net settlement or to acquire assets and settle liabilities simultaneously.At the balance sheet date deferred income tax assets and deferred income tax liabilities are shown as net offsets
when both of the following conditions are met:
* The taxpayer has the legal right to net settlement of current income tax assets and current income tax liabilities;
* Deferred income tax assets and deferred income tax liabilities are related to income tax levied by the same tax
administration on the same taxpayer or to different tax entities but within the period in which each future material
deferred income tax asset and liability is repatriated The taxpayer involved intends to net the current income tax
assets and liabilities or to acquire assets and pay off liabilities at the same time.
41. lease
(1) Accounting for the lease as a lessee
Lease refers to a contract in which the lessor transfers the right to use the asset to the lessee for consideration within
a certain period of time. On the commencement date of the contract the Company assesses whether the contract is a
lease or includes a lease. A contract is a lease or includes a lease if one party cedes the right to control the use of one
or more identified assets for a certain period of time in exchange for consideration.If the contract contains multiple separate leases at the same time the Company will split the contract and conduct
accounting treatment for each separate lease. If the contract contains both lease and non-lease parts the lessee and
lessor shall split the lease and non-lease parts.
1. The Company as lessee
(1) Right to use assets
On the commencement date of the lease term the Company recognizes the right of use assets for leases other than
short-term leases and low value asset leases. Use rights assets are initially measured at cost. This cost includes:
The initial measurement of the lease liability;
The lease payment amount paid on or before the commencement date of the lease term if there is a lease
incentive less the amount related to the lease incentive already enjoyed;
initial direct expenses incurred by the Company;
costs expected to be incurred by the Company for the demolition and removal of the leased asset the restoration of
the premises where the leased asset is located or the restoration of the leased asset to its condition as agreed in the
lease terms excluding costs incurred for the production of inventory.The Company subsequently adopts the straight-line method to depreciate the right of use assets. If the ownership of
the leased asset can be reasonably determined at the end of the lease term the Company shall calculate depreciation
during the remaining service life of the leased asset; Otherwise the leased asset shall be depreciated during the
shorter of the lease term and the remaining useful life of the leased asset.The Company shall in accordance with the principles set out in "3 (17) Impairment of Long-term Assets" of this note
determine whether the assets with the right of use have been impaired and accounting for the identified impairment
losses.
(2) Lease liabilities
At the commencement date of the lease term the Company recognizes lease liabilities for leases other than short-
term leases and leases of low-value assets. Lease liabilities are initially measured at the present value of outstanding
lease payments. Lease payments include:
43Wafangdian Bearing Co. LTD 2025 Midyear Report
fixed payment amount (including actual fixed payment amount) if there is lease incentive less the amount related
to lease incentive;
Variable lease payments depending on the index or ratio;
the amount expected to be paid based on the remaining value of the guarantee provided by the Company;
The exercise price of the purchase option if the Company is reasonably certain that it will exercise the option;
The amount payable to exercise the option to terminate the lease provided that the lease term reflects that the
Company will exercise the option to terminate the lease.The Company uses the inherent lease rate as the discount rate but if the inherent lease rate cannot be reasonably
determined the Company's incremental borrowing rate will be used as the discount rate.The Company calculates the interest expense of the lease liability during each period of the lease term at a fixed
cyclical interest rate and includes it in the profit or loss of the current period or the related asset cost.Variable lease payments that are not included in the measurement of lease liabilities are recognised in profit or loss or
related asset costs when actually incurred.After the commencement of the lease term if the following circumstances occur the Company will re-measure the
lease liability and adjust the corresponding right of use assets. If the book value of the right of use assets has been
reduced to zero but the lease liability still needs to be further reduced the difference will be recorded in the current
profit or loss:
When the evaluation results of the purchase option renewal option or termination option change or the actual
exercise of the said option is inconsistent with the original evaluation results the Company remeasures the lease
liability at the present value of the changed lease payment and the revised discount rate;
When there is a change in the actual fixed payment amount a change in the estimated amount payable on the
guarantee balance or a change in the index or ratio used to determine the lease payment amount the Company
remeasures the lease liability at the present value calculated at the changed lease payment amount and the original
discount rate. However where changes in lease payments result from changes in floating interest rates the present
value is calculated using the revised discount rate.
(3) Short-term leases and leases of low-value assets
If the Company chooses not to recognize the right of use assets and lease liabilities for short-term leases and low-
value asset leases the relevant lease payments are included in the current profit or loss or the cost of the related
assets on a straight-line basis during each period of the lease term. Short-term lease means a lease for a period not
exceeding 12 months on the commencement date of the lease term and does not include a purchase option. Low-
value asset lease refers to the lease with a lower value when the single leased asset is a brand-new asset. Where the
company subleases or intends to sublease leased assets the original lease is not a low-value asset lease.
(4) Lease change
If the lease changes and the following conditions are met the Company will account for the lease change as a
separate lease:
The lease variation expands the scope of the lease by adding the right to use one or more of the leased assets;
The increased consideration is equivalent to the separate price for the extension of the lease adjusted for the
circumstances of the contract.If the lease change is not accounted for as a separate lease on the effective date of the lease change the Company
reappoints the consideration of the changed contract redetermines the lease term and remeasures the lease liability
according to the present value calculated by the changed lease payment amount and the revised discount rate.
44Wafangdian Bearing Co. LTD 2025 Midyear Report
If the lease change causes the lease scope to be reduced or the lease term to be shortened the Company shall adjust
the book value of the right of use assets accordingly and record the gains or losses related to the partial or complete
termination of the lease into the current profit or loss. If other lease changes result in the remeasurement of lease
liabilities the Company shall adjust the book value of the right to use assets accordingly.
(2) Accounting treatment of the lease as a lessor
On the commencement date of the lease the Company divides the lease into finance lease and operating lease. A
financial lease is a lease that essentially transfers almost all of the risks and rewards associated with the ownership of
the leased asset regardless of whether ownership is ultimately transferred. Operating leases refer to leases other than
financial leases. When the Company acts as a sublease subleases are classified based on the right of use assets
generated by the original lease.
(1) Accounting for operating leases
Lease receipts from operating leases are recognised as rental income on a straight-line basis during each period of
the lease term. The Company capitalises the initial direct expenses incurred in relation to the operating lease and
apportionments them to profit or loss during the lease period on the same basis as rental income is recognised.Variable lease payments that are not included in lease collections are recognised in current profit or loss when actually
incurred. If an operating lease is changed the Company will account for it as a new lease from the effective date of the
change and the amount received in advance or receivable from the lease before the change will be regarded as the
amount received from the new lease.
(2) Accounting treatment of finance lease
On the commencement date of the lease the Company recognizes the financial lease receivable for the financial
lease and terminates the recognition of the financial lease assets. When the Company makes the initial measurement
of the financial lease receivable the net lease investment is taken as the recorded value of the financial lease
receivable. The net lease investment is the sum of the unsecured balance and the present value of the lease proceeds
not yet received at the commencement date of the lease term discounted at the intrinsic interest rate of the lease.The Company calculates and recognises interest income for each period of the lease term at a fixed cyclical rate. The
termination recognition and impairment of financial lease receivables are accounted for in accordance with "III. (IX)
Financial Instruments" of this note.Variable lease payments that are not included in the net lease investment measurement are recognised in current
profit or loss when actually incurred.If a financial lease changes and the following conditions are met the Company will account for the change as a
separate lease:
The change expands the scope of the lease by adding the right to use one or more of the leased assets;
The increased consideration is equivalent to the separate price for the extension of the lease adjusted for the
circumstances of the contract.If the change of the finance lease is not accounted for as a separate lease the Company shall deal with the changed
lease under the following circumstances:
If the change takes effect on the commencement date of the lease the lease will be classified as an operating lease
and the Company will account for it as a new lease from the effective date of the lease change and the net lease
investment before the effective date of the lease change will be used as the carrying value of the lease asset;
45Wafangdian Bearing Co. LTD 2025 Midyear Report
If the change takes effect on the commencement date of the lease the lease will be classified as a finance lease
and the Company will account for it in accordance with the Company's policy on modification or renegotiation of the
contract under "III (IX) Financial Instruments" in this note.43. Other important accounting policies and estimates
42. Other important accounting policies and accounting estimates
43. Significant changes in accounting policies and estimates
(1) Changes in important accounting policies
□ Applicable □ Not applicable
(2) Changes in important accounting estimates
□ Applicable □ Not applicable
(3) The first implementation of the new accounting standards from 2025 to adjust the financial statements related to
the first implementation of the year
□ Applicable □ Not applicable
44.other
VI.Taxation
1. The main applicable tax and rate to the Group as follows:
tax Plan tax basis Tax rate
Output tax shall be calculated on the basis of the income from the
sale of goods and taxable services calculated in accordance with the
13%、9%、6%、The VAT provisions of the Tax Law. After deducting the input tax allowable for
5%
deduction in the current period the difference shall be the VAT
payable
Urban maintenance and The tax shall be calculated according to the actual VAT and
7%
construction tax consumption tax paid
Corporate income tax The tax shall be paid on the basis of taxable income 15%、25%
The tax shall be calculated according to the actual VAT and
Education fee surcharge 3%
consumption tax paid
Local education The tax shall be calculated according to the actual VAT and
2%
surcharge consumption tax paid
70% of the original value of the property for self-use or rental income
The property tax 1.2%or12%
from the rented property
6yuan/Square
Land use tax Area of land use right
meter
If there are different subjects of enterprise income tax rates the disclosure shall be explained
Name of taxpayer rate
Wafangdian Bearing Co. LTD 15%
Wazhou Liaoyang Bearing Manufacturing Co. LTD 15%
Dalian Wazhou Precision Motor Automotive Bearing Co.LTD 25%
Wazhou precision ball bearing (Wafangdian) Co. LTD 25%
2. Tax incentives
The Company obtained the qualification of high-tech enterprise identification on December 12 2023 and the
certificate number of high-tech enterprise identification is GR202321200183 which is valid for 3 years. According to
the tax law the company can enjoy the preferential tax policy of levying enterprise income tax at the rate of 15% within
3 years.
The subsidiary Waxiang Liaoyang Bearing Manufacturing Co. Ltd. obtained the qualification of high-tech enterprise
identification on December 20 2023 and the high-tech enterprise identification certificate number is
GR202321002020 valid for 3 years and can enjoy the preferential tax policy of levying enterprise income tax at a tax
46Wafangdian Bearing Co. LTD 2025 Midyear Report
rate of 15% within 3 years according to the tax law.
3.other
VII. Notes to consolidated financial statements
1. Monetary fund
In RMB Yuan
project The ending balance Beginning balance
Bank deposits 71654748.26 160907298.24
Other monetary funds 16394431.87 78491624.86
A combined 88049180.13 239398923.10
2.Trading financial assets
In RMB Yuan
project The ending balance Beginning balance
Financial assets measured at fair value and
whose changes are recorded in current profit 217260.04 221882.59
or loss
A combined 217260.04 221882.59
3. Derivative financial assets
4.Notes receivable
（1）Category of notes receivable
In RMB Yuan
Items Closing Balance Opening Balance
Banker's acceptance 304736222.33 402220507.99
Commercial acceptance 222910495.31 196993155.22
Finance company acceptance bill 2413831.61 7832575.73
Bad debt reserve -9940551.09 -9849657.75
total 520119998.16 597196581.19
(2) Disclosure by classification according to bad debt provision method
In RMB Yuan
Ending balance Opening balance
Book Bad debt
category balance reserve
Book balance Bad debt reserve
am Provisi Book value Bookamo scal
unt e oun on amount scale amount
Provisio value
t ratio n ratio
Among them:
Notes
receivable for
provision for 530 99
doubtful 060 100. 40549. 00% 551 0.70% 520119998.16
6070462100.009849651.62%5971965
accounts on a 38.94 % 7.75 81.19
combined 25 .09
basis
Among them:
304
Banker's 736 57.4 4022205 4022205
acceptance 222. 9% 236462078.36 07.99 66.26% 07.99
33
47Wafangdian Bearing Co. LTD 2025 Midyear Report
Finance
company 241383 0.46 2413831.61 7832575.acceptance % 73 1.29%
bill 1.61
22299
Commercial 910 42.0 40
acceptance 495. 5% 551 4.46% 281244088.19
1969931984965
55.2232.45%7.755.00%
1871434
97.47
31.09
53099
total 060 100. 40 520119998.16 6070462 100.00 984965 5971965549. 00% 551 38.94 % 7.75 81.19
25.09
Category name of combined bad debt provision: credit risk characteristic combination
In RMB Yuan
name ending balance
bank acceptance book balance bad debt provision Provision ratio
Financial company acceptance bill 304736222.33
trade acceptance draft 2413831.61
amount to 222910495.31 9940551.09 4.46%
name 530060549.25 9940551.09
Explanation of the basis for determining this combination:
Provision is made based on a combination of credit risk characteristics
If the bad debt provision for notes receivable is made in accordance with the general model of expected credit losses:
□ Applicable □Not applicable
(3) Bad debt provision of notes receivable accrued collected and reversed
Bad debt provision of notes receivable：
In RMB Yuan
Opening Change during the year Closing
Category
balance Accrued Collected/reversed Written-off others Balance
Bad debt 300000.0
9849657.75209106.669940551.09
provision 0
300000.0
Total 9849657.75 209106.66 9940551.09
0
Among them the amount of the recovery or reversal of the current bad debt reserve is important:
□ Applicable □Not applicable
(4) Pledged notes receivable up to the end of year.
item The amount pledged at the end of the period
bank acceptance
a trade acceptance 4545045.09
total 4545045.09
(5)Notes receivable endorsed or discounted but not mature at the end of year
In RMB Yuan
Item Closing amount no more recognized Closing amount still recognized
Bank acceptance notes 236462078.36
Trade acceptance notes 174720337.82
Financial company acceptance bill 2413831.61
Total 413596247.79
(6) The actual write-off of notes receivable in the current period
48Wafangdian Bearing Co. LTD 2025 Midyear Report
5.Accounts receivable
(1) Age disclosure
In RMB Yuan
aging Ending book balance Opening book balance
Within 1 year (inclusive) 963579705.81 957607035.33
1 to 2 years 116402680.23 110054134.18
2 to 3 years 30370017.89 28806314.47
More than 3 years 79675427.26 74909200.31
3 to 4 years 18995307.73 17819751.52
Four to five years 22479322.19 20453597.77
More than 5 years 38200797.34 36635851.02
total 1190027831.19 1171376684.29
(2) Disclosure by classification according to bad debt provision method
In RMB Yuan
Ending balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
category Provis Book Book
amoun value Provisioscale amount ion amount scale amount value
t n ratio
ratio
Accounts
receivable that
are set aside 74898
74898100.07497574975100.00
for bad debts 300.3 6.29% 6.40%
300.340%375.60375.60%
on an 4
individual
basis
Among them:
Accounts
receivable that
1045
are provided 1115 10964 10262
93.716957955070174
for bad debts 12953 6.24% 01308. 93.60% 6.40% 26986.%197.61333.2322.24
on a 0.85 69 45
4
combined
basis
Among them:
986449193
82.896705689428164984829297
Aging portfolio 0929. 6.80% 8468 76.34% 7.27%
%240.64761.39479.65281.74
769.12
Combination 12868 1261
10.812522920211951898196929
of related 8601. 1.96% 6564 17.25% 2.57%
%56.97547.3042.59704.71
parties 09 4.12
1045
11901171310262
100.00144477550100.00145149
total 02783 76684. 26986.%497.95333.2%697.84
1.192945
4
Category Name of provision for Bad Debts by individual item:
In RMB Yuan
Opening Balance Ending balance
name
Bad debt Bad debt Reason for
Book balance Book balance Provision ratio
reserve reserve provision
Individual non-
74975375.6074975375.6074898300.3474898300.34100.00%
accruals recoverable
total 74975375.60 74975375.60 74898300.34 74898300.34
Category Name of Bad debt provision by portfolio:Combination of credit risk characteristics
In RMB Yuan
name Ending balance
49Wafangdian Bearing Co. LTD 2025 Midyear Report
Book balance Bad debt reserve Provision ratio
Within 1 year 862670489.17 43133524.46 5.00%
1 to 2 years 86500532.13 8650053.21 10.00%
2 to 3 years 20617608.31 4123521.66 20.00%
3 to 4 years 8962494.54 4481247.27 50.00%
Four to five years 5109557.84 4087646.27 80.00%
More than 5 years 2580247.77 2580247.77 100.00%
Combination of related
128688601.092522956.97
parties
total 1115129530.85 69579197.61
Statement on the basis for determining the combination:
Provision for bad debts shall be made according to the combination of credit risk characteristics.If the bad debt provision for accounts receivable is calculated according to the general model of expected credit loss:
□ Applicable □ Not applicable
(3) the provision for bad debts accrued recovered or rolled back during the period
Provision for bad debts in the current period:
In RMB Yuan
Change during the year
category
Opening balance Other Collected/revers Ending balance
Accrued Written-off
increase ed
Bad debt
145149697.84404445.65267754.24144477497.95
reserve
total 145149697.84 404445.65 267754.24 144477497.95
(4) Accounts receivable actually written off during the current period
In RMB Yuan
item Amount written off
Accounts receivable actually written off 267754.24
(5) The receivables and contractual assets of the top five closing balances collected by the defaulting party.
In RMB Yuan
Ending balance
Percentage of
of allowance for
the total balance
Ending Ending balance doubtful
Ending balance of accounts
balance of of accounts accounts
Unit name of accounts receivable and
contract receivable and receivable and
receivable contract assets
assets contract assets allowance for
at the end of the
impairment of
period
contract assets
China State Railway
3852475.
Group Co. Ltd. and its 216048811.82 219901287.62 18.31% 10995064.38
80
subsidiaries
Wafangdian Bearing
Group Co. LTD and its 126372986.13 126372986.13 10.52%
subsidiaries
China CRRC Group Co.
31830198.4431830198.442.65%1591509.92
Ltd. and its subsidiaries
Anben Group and its
26125515.9126125515.912.18%1306275.80
subsidiaries
Baowu Group and its
25735985.4125735985.412.14%1286799.27
subsidiaries
3852475.
Total 426113497.71 429965973.51 35.80% 15179649.37
80
6. Contractual assets
50Wafangdian Bearing Co. LTD 2025 Midyear Report
(1) Contract assets
Closing Balance Beginning balance
project
Provision for Net book Provision for Net book
Book value Book value
decline value decline value
Payment for
10711197.2
performance 605182.64 10106014.60 12103652.85 605182.64 11498470.21
4
of the contract
10711197.2
A combined 605182.64 10106014.60 12103652.85 605182.64 11498470.21
4
(2) The amount and reasons for significant changes in book value during the reporting period
(3) Disclosure by classification according to bad debt provision method
Closing Balance Opening Balance
Booking
Items Provision Bookin Booking balance Provision
balance Booking
g value
Amount % Amount % value Amount % Amount %
Among them:
Provision for
bad debts 100 10106
107116051825.6512103652100.00605182.11498
on a .00 014.6 5.00%
197.24.64%.85%64470.21
portfolio % 0
basis
Among them:
Performanc 100 10106
107116051825.6512103652100.00605182.11498
e contract .00 014.6 5.00%
197.24.64%.85%64470.21
money % 0
10010106
1071160518212103652100.00605182.11498
total .00 014.6 5.00%
197.24.64.85%64470.21
%0
Category name of bad debt provision for combined collection: contract performance payment
In RMB Yuan
name ending balance
Performance contract
payments book balance bad debt provision Provision ratio
amount to 10711197.24 605182.64 5.65%
name 10711197.24 605182.64
Statement on the basis for determining the combination:
Provision for bad debts is made according to the general model of expected credit losses
□ Applicable□ Not applicable
(4) Provision for bad debts accrued recovered or rolled back in the current period
(5) The actual write-off of contract assets in the current period
7. Receivables financing
(1) Classification and listing of receivables financing
In RMB Yuan
item Ending balance Opening balance
Banker's acceptance 42502064.44 48925906.07
total 42502064.44 48925906.07
8. Other receivables
51Wafangdian Bearing Co. LTD 2025 Midyear Report
In RMB Yuan
item Ending balance Opening balance
Other receivables 10485149.04 7962213.75
total 10485149.04 7962213.75
(1) Interest receivable
(2) Dividends receivable
(3) Other receivables
1) Classification of other receivables by nature of amounts
In RMB Yuan
Nature of money Ending book balance Opening book balance
Security deposits and pledges 7658436.20 6973511.88
Personal cash reserves 2099974.16 1365292.16
Other amounts 9176298.53 8072969.56
total 18934708.89 16411773.60
2) Aging disclosure
In RMB Yuan
aging Ending book balance Opening book balance
Within 1 year (inclusive) 9128337.42 6359374.16
1 to 2 years 1083146.99 889646.99
2 to 3 years 1838308.31 2409108.18
More than 3 years 6884916.17 6753644.27
3 to 4 years 1189981.53 1203245.68
Four to five years 186222.09 196403.88
More than 5 years 5508712.55 5353994.71
total 18934708.89 16411773.60
3) Classified disclosure according to bad debt provision method
□Applicable □ Not applicable
In RMB Yuan
Ending balance Opening Balance
Items Booking balance Provision Booking balance Provision BookiBooking
ng
Amount % Amount % value Amount % Amount % value
Account
s
receiva
ble with
607936079333100.0607933337.046079333100.00
individu 32.11%
33.51.510%.51%.51%
al bad
debt
provisio
n
Among them:
Provisio 12855 2370226 18.44 10485 1033244 62.96 2370226 22.9467.89% 7962
n for 375.38 .34 % 149.04 0.09 % .34 % 213.7
52Wafangdian Bearing Co. LTD 2025 Midyear Report
bad 5
debts
on a
portfolio
basis
Among them:
Account 1017
12402237022619.1110032101734761.99237022625.25
age 65.50% 3479.
529.92.34%303.589.37%.34%
portfolio 37
Back-
up cash 123960.7 0.76 1239
0.00%0.00
reserve 2 % 60.72
s
Combin
ation of 452845 452845 0.21 3500
2.39%35000.00
related .46 .46 % 0.00
parties
7962
18934100.008449559104851641177100.08449559
total 213.7
708.89%.85149.043.600%.85
5
Category Name of provision for Bad Debts by individual item:Individual accruals
In RMB Yuan
Opening balance Ending balance
name
Bad debt Bad debt Reason for
Book balance Book balance Provision ratio
reserve reserve provision
Provide bad
debt provision non-
6079333.516079333.516079333.516079333.51100.00%
on a case-by- recoverable
case basis
total 6079333.51 6079333.51 6079333.51 6079333.51
Category Name of Bad debt provision by portfolio:Credit risk portfolio
In RMB Yuan
name Ending balance
Book balance Bad debt reserve Provision ratio
Within 1 year 8097550.28 404877.51 5.00%
1 to 2 years 935646.99 93564.70 10.00%
2 to 3 years 1519141.67 303828.33 20.00%
3 to 4 years 489981.53 244990.77 50.00%
Four to five years 186222.09 148977.67 80.00%
More than 5 years 1173987.36 1173987.36 100.00%
Combination of related
452845.46
parties
total 12855375.38 2370226.34
Loss Provision Prepare for significant changes in book balances during the period
53Wafangdian Bearing Co. LTD 2025 Midyear Report
□Applicable □ Not applicable
4) Provision for bad debts accrued recovered or rolled back in the current period
5) Other receivables actually written off during the current period
6) Other receivables in the top five of the closing balances collected by the defaulting party
In RMB Yuan
Percentage of Ending balance
Nature of total ending of allowance for
Unit name Ending balance aging
money balance of other doubtful
receivables accounts
Anhui Conch Cement Co. Two to three
bail 1300000.00 6.87% 260000.00
LTD years
Shenyang Railway Bus
Factory China Railway Within 1
bail 1216300.00 6.42%
Shenyang Bureau Group year
Co. LTD
China Railway Logistics Co.bail 1183070.00 1-2 years 6.25% 59153.50
LTD
Material Procurement Office
bail 507400.00 1-2 years 2.68% 35520.00
Daqin Railway Co. LTD
China Railway Materials
bail 500400.00 1-2 years 2.64% 15000.00
Co. LTD
amount to 4707170.00 24.86% 369673.50
9. Advance payment
(1) Prepayments are shown according to aging
In RMB Yuan
aging Ending balance Opening balance
amount scale amount scale
Within 1 year 7607747.79 87.28% 9059242.73 82.74%
1 to 2 years 349026.14 4.00% 691092.65 6.31%
2 to 3 years 759835.41 8.72% 1142161.71 10.43%
More than 3 years 0.00% 56027.74 0.52%
total 8716609.34 10948524.83
(2) The advance payment of the top five of the closing balance collected by the prepaid object
Percentage of total closing balance of
prepayer Ending balance
prepayments (%)
Daye Special Steel Co. LTD 5678111.01 65.14
State Grid Liaoning Electric Power Co.
413410.684.74
LTD. Dalian Power Supply Company
Fushun Special Steel Co. LTD 276494.39 3.17
Quike Chemical (China) Co. LTD 201176.50 2.31
China Railway Track Rail Technology
156516.121.80
Service Group Co. LTD
amount to 6725708.70 77.16
10. Inventory
Whether the company is required to comply with real estate industry disclosure requirements
54Wafangdian Bearing Co. LTD 2025 Midyear Report
no
(1) Inventory classification
In RMB Yuan
Ending balance Opening balance
Reserve for Reserve for
inventory inventory
item decline or decline or
Book balance contract Book value Book balance contract Book value
performance performance
cost cost
impairment impairment
Raw material 61897920.41 10373535.37 51524385.04 71827818.05 10373535.37 61454282.68
Goods in 148790569.4 137289927.9 149656639.7 138155998.2
11500641.5411500641.54
process 9 5 8 4
Goods in 515476214.4 449427158.7 544114655.3 478065599.6
66049055.7066049055.70
stock 5 5 3 3
Turnover
927491.26185271.20742220.06458772.00185271.20273500.80
material
Delivery of
12212774.9912212774.9910491357.0810491357.08
goods
739304970.6651196466.7776549242.2688440738.4
total 88108503.81 88108503.81
0943
(2) Data resources recognized as inventories
(3) Reserve for inventory decline and impairment of contract performance costs
In RMB Yuan
Current increase Current decrease
item Opening
Turn back or Ending balancebalance accrual other other
resell
10373535.
raw and processed material 10373535.37
37
11500641.
goods in process 11500641.54
54
66049055.
merchandise inventory 66049055.70
70
Turnover materials 185271.20 185271.20
88108503.
amount to 88108503.81
81
11. Holding assets for sale
12. Non-current assets that mature within one year
13. Other current assets
In RMB Yuan
item Ending balance Opening balance
Input tax to be deducted 39839368.87 53298611.95
total 39839368.87 53298611.95
14. Debt investment
15. Other debt investments
16. Investment in other equity instruments
In RMB Yuan
Openin Gains Loss Gains Loss Dividen Ending Reasons
Project name
g recogniz recogni accrued to accrued to d balance specified as
55Wafangdian Bearing Co. LTD 2025 Midyear Report
balance ed as zed in other other income measured at
other other comprehe comprehe recogniz fair value and
compreh compre nsive nsive ed for for which
ensive hensive income at income at the changes are
income income the end of the end of period included in
in the in the the the period other
current current current comprehensi
period period period ve income
Shanghai Aimuyi
electromechanic 20000 10000 200000
al equipment 00.00 00.00 0.00
chain Co. LTD
Tianjin Bogang
No. 12
Enterprise
Management
Partnership 13019 2352.6 130195
(Limited 58.80 4 8.80
Partnership)
(Qian 'an Zha Yi
Steel Group Co.LTD.)
Trust Beneficiary
Rights of CCB
Trust - Caidie
No.1 Property
11818118187
Rights Trust
79.869.86
Plan (Qian 'an
Zha Yi Iron and
Steel Group Co.LTD.)
General
Technology
Group Dalian
Machine Tool 74230 742308
Co. LTD. 89.69 9.69
(Dalian Longhui
Industry and
Trade Co. LTD.)
1190610023119069
Total
928.3552.6428.35
17. Long-term receivables
18. Long-term equity investment
19. Other non-current financial assets
20. Investment real estate
(1) Investment real estate using cost measurement model
□ Applicable □ Not applicable
In RMB Yuan
Houses and Construction in
item Land use right total
buildings progress
I. Original book value
1. Opening balance 112228925.54 52861118.81 165090044.35
2. Increase in the
13640919.060.0013640919.06
current period
56Wafangdian Bearing Co. LTD 2025 Midyear Report
(1) Outsourcing 0.00 0.00 0.00
(2) Transfer of
inventory fixed assets
4465509.780.004465509.78
and construction in
progress
(3) Increase in business
combinations
(3) Other transfers 9175409.28
3. Reduction amount in
591563.840.00591563.84
the current period
(1) Disposal 0.00 0.00 0.00
(2) Other transfers 591563.84 0.00 591563.84
4. End-of-period
125278280.7652861118.81178139399.57
balance
II.Accumulated
depreciation and
amortization
1. Opening balance 69524288.87 23885828.43 93410117.30
2. Increase in the
8216846.33660756.008877602.33
current period
(1) Provision or
2065030.57660756.002725786.57
amortization
(2) Other transfers 6151815.76 6151815.76
3. Reduction amount in
337972.190.00337972.19
the current period
(1) Disposal 0.00 0.00 0.00
(2) Other transfers 337972.19 0.00 337972.19
4. End-of-period
77403163.0124546584.43101949747.44
balance
III. Impairment
Provisions
1. Opening balance
2. Increase in the
current period
(1) Provision
3. Reduction amount in
the current period
(1) Disposal
(2) Other transfers
4. End-of-period
balance
Iv. Book value
1. End-of-period book
47875117.7528314534.3876189652.13
value
2. Initial book value 42704636.67 28975290.38 71679927.05
Recoverable amounts are determined at the net of fair value less disposal costs
□ Applicable □ Not applicable
Recoverable amounts are determined at the present value of projected future cash flows
□ Applicable□ Not applicable
The reason for the discrepancy between the foregoing information and the information used in the previous year's
impairment test or external information
Reasons for the difference between the company's previous annual impairment test information and the actual
situation of the year
Other notes:
57Wafangdian Bearing Co. LTD 2025 Midyear Report
(2) Investment real estate measured at fair value
□ Applicable □ Not applicable
21. Fixed assets
item Ending balance Opening balance
Fixed assets 424356561.00 437398315.29
total 424356561.00 437398315.29
(1) Fixed assets
In RMB Yuan
machinery delivery Electronic Other
Project buildings total
equipment equipment equipment equipment
I. Original Book
Value:
1. Opening 289536784 1071033507 234130132.6 1668986172
17231477.4157054270.50
balance .35 .85 3 .74
2. Increase the
amount in this 0.00 19489299.61 0.00 709813.35 8215688.49 28414801.45
period
(1) Purchase 0.00 0.00 0.00 0.00 0.00 0.00
(2) Transfer of
construction in 0.00 19489299.61 0.00 709813.35 2788423.90 22987536.86
progress
(3) The number
of business
combinations
has increased
(4) Changes in
the category of 0.00 0.00 0.00 0.00 5427264.59 5427264.59
fixed assets
(5) Transfer out
to investment 0.00 0.00 0.00 0.00 0.00 0.00
real estate
3. Reduced
9862549.1
amount in this 33354785.62 447816.77 4257756.70 4173.47 47927081.68
2
period
Disposal or
591563.8432294044.69447816.77578372.884173.4733915971.65
scrapping
(2) Transfer out
8583845.4
to investment 0.00 0.00 0.00 0.00 8583845.44
4
real estate
(3) Changes in
the category of 687139.84 1060740.93 0.00 3679383.82 0.00 5427264.59
fixed assets
4. Closing 279674235 1057168021 242341647.6 1649473892
16783660.6453506327.15
balance .23 .84 5 .51
Ii. Accumulated
Depreciation
1. Opening 196133491 811729768.8 137615929.8 1200273751
13267876.9241526684.15
balance .93 0 8 .68
2. Increase the
3243620.7
amount in this 23116489.28 444869.31 1180399.44 6310061.90 34295440.70
7
period
3243620.7
(1) Provision 23116489.28 444869.31 1180399.44 2367494.60 30352873.40
7
(2) Changes in
0.000.000.000.003942567.303942567.30
the category of
58Wafangdian Bearing Co. LTD 2025 Midyear Report
fixed assets
3. Reduced
6738049.6
amount in this 23450179.81 417737.68 3198471.47 2673.94 33807112.57
7
period
Disposal or
342880.4322802642.05417737.68484767.602673.9424050701.70
scrapping
(2) Transfer out
5813843.5
to investment 0.00 0.00 0.00 0.00 5813843.57
7
real estate
(3) Changes in
the category of 581325.67 647537.76 0.00 2713703.87 0.00 3942567.30
fixed assets
4. Closing 192639063 811396078.2 143923317.8 1200762079
13295008.5539508612.12
balance .03 7 4 .81
Iii. Impairment
Provision
1. Opening 1166765.4
29359495.0225027.00625936.70136881.6031314105.77
balance 5
2. Increase the
amount in this 0.00 0.00 0.00 0.00 0.00 0.00
period
(1) Provision 0.00 0.00 0.00 0.00 0.00 0.00
(2) Changes in
the category of 0.00 0.00 0.00 0.00 131370.94 0.00
fixed assets
3. Reduced
amount in this 0.00 6862902.13 17101.18 77714.91 1135.85 6958854.07
period
Disposal or
0.006862902.1317101.1877714.911135.856958854.07
scrapping
(2) Changes in
the category of 0.00 131370.94 0.00 0.00 0.00
fixed assets
4. Closing 1166765.4
22496592.897925.82548221.79135745.7524355251.70
balance 5
Iv. Book Value
Book value at
85868406.223275350.6424356561.0
the end of the 3480726.27 13449493.24 98282584.06
7580
period
2. Initial book 92236526. 229944244.0 437398315.2
3938573.4914901649.6596377321.15
value 97 3 9
(2) Temporarily idle fixed assets
(3) Fixed assets leased through operating leases
(4) The fixed assets that have not completed the title certificate
(5) Impairment test of fixed assets
□ Applicable □ Not applicable
(6) Liquidation of fixed assets
22. Construction in progress
In RMB Yuan
item Ending balance Opening balance
Construction in progress 16691520.90 34740635.71
total 16691520.90 34740635.71
59Wafangdian Bearing Co. LTD 2025 Midyear Report
(1) Construction in progress
In RMB Yuan
Ending balance Opening balance
item
Book Reserve for Reserve for
Book value Book balance Book value
balance impairment impairment
Precision
bearing factory 1254867.25 1254867.25 794690.25 794690.25
renovation
Renovation of
the seventh
finished 3555799.28 3453144.41 102654.87 3555799.28 3453144.41 102654.87
product factory
area
Spherical roller
bearing
1198862.551110842.5588020.001703287.331110842.55592444.78
assembly
production line
Grinding and
processing
production line 741000.00 741000.00 741000.00 741000.00
maintenance
and renovation
Railway
665647.8524854.40640793.45665647.8524854.40640793.45
renovation
Ultra precision
machine
456878.68456878.68456878.68456878.68
installation
project
Channel 2
construction 256249.27 222849.70 33399.57 256249.27 222849.70 33399.57
project
Precision
rolling element 13091.45 13091.45 13091.45 13091.45
modification
Grinding and
processing 38957.26 38957.26 38957.26 38957.26
production line
computer
18000.0018000.0018000.0018000.00
project
Dalian
Industrial Park 5590.45 5590.45 5590.45 5590.45
project
Equipment to
3542332.841069687.132472645.7118257773.901081752.5117176021.39
be installed
Plant workshop
renovation 80188.68 80188.68
project
Overhaul of
large 5088495.58 5088495.58 5498470.80 5498470.80
equipment
Rail bearing
maintenance 683185.84 683185.84
branch project
Renovation
and upgrading
1628318.591628318.59
project of CNC
production
60Wafangdian Bearing Co. LTD 2025 Midyear Report
lines for
components in
medium and
large-sized
branch
companies
The bearing
project of the 530973.45 530973.45
bullet train
A major repair
of a joint 1550000.00 1550000.00
company
Company
engineering 5707837.18 5707837.18 5707837.18 5707837.18
transformation
The company's
ball base 543982.29 543982.29 329203.54 329203.54
project
23770777.7
Total 7079256.87 16691520.90 41831957.96 7091322.25 34740635.71
7
(2) Changes in the current period of important construction projects under construction
In RMB Yuan
Wher
Oth
Propo e: the
Amoun er Intere
rtion amou
t of decr st Curre
of nt of
fixed eas capital nt
Estim Open Curre Endin cumul Projec intere
assets es ization intere Sourc
Project ated ing nt g ative t st
transfe in accu st e of
name amou balan increa balan projec progre capital
rred in the mulat capital funds
nt ce se ce t input ss ization
the curr ed ization
to in the
current ent amou rate
budge curren
period peri nt
t t
od
period
Large
special
branch
1400
pressure
quenchi 444 2289
2734
ng and 900. 395.8 0.00 other
295.86
heat 00 6
treatmen
t
producti
on line
project
Ultra
precision
330
machine 33008
088. 0.00 other
installati 8.50
50
on
project
Ball 504
336284070
bearing 424. 0.00 other
83.197.97
inner 78
61Wafangdian Bearing Co. LTD 2025 Midyear Report
race
super
precision
machine
project
of
accessor
y
compan
y
Equipme
nt
renovati
on of
68316831
railway other
85.8485.84
bearing
mainten
ance
branch
The
compan
y's
three-
dimensio
nal 4385
4385
library 321.1 0.00 other
321.10
renovati 0
on
project is
a value-
added
project
High
speed
train
axle box
bearing
5301905
low 2436
973. 254.4 0.00 other
temperat 227.90
455
ure test
machine
renovati
on
project
Ball
base
54395439
surface other
82.2982.29
grinding
machine
1811014107261227
Total 038 3422. 641.3 0.00 168.1
6.737333
23. Productive biological assets
24. Oil and gas assets
□ Applicable □ Not applicable
25. Use the assets
62Wafangdian Bearing Co. LTD 2025 Midyear Report
26. Intangible assets
(1) Intangible assets
item Land use right Patent right software total
I. Original book value
1. Opening balance 124575250.35 12055595.99 136630846.34
2. Increased amount for the
current period
(1) Purchase
(2) Internal research and
development
(3) Increased business mergers
3. Decrease the amount in the
current period
(1) Disposal
4. Closing balance 124575250.35 12055595.99 136630846.34
II. Cumulative amortization
1. Opening balance 57154037.24 9355749.52 66509786.76
2. Increased amount for the
1560151.16441591.302001742.46
current period
(1) Provision 1560151.16 441591.30 2001742.46
3. Decrease the amount in the
current period
(1) Disposal
4. Closing balance 58714188.40 9797340.82 68511529.22
III. Reserve for impairment
1. Opening balance
2. Increased amount for the
current period
(1) Provision
3. Decrease the amount in the
current period
(1) Disposal
4. Closing balance
IV. Book value
1. Ending book value 65861061.95 2258255.17 68119317.12
2. Opening book value 67421213.11 2699846.47 70121059.58
27. Goodwill
28. Long-term deferred expenses
In RMB Yuan
Amortization
Opening
item Current increase amount for the Other reduction Ending balance
balance
current period
Expenditure on
improvement of 3932858.79 574681.32 3358177.47
fixed assets
House maintenance
2669554.18161055.062508499.12
expenditure
total 6602412.97 735736.38 5866676.59
29. Deferred tax assets/deferred tax liabilities
(1) Unoffset deferred income tax assets
(2) Unoffset deferred income tax liabilities
63Wafangdian Bearing Co. LTD 2025 Midyear Report
In RMB Yuan
project ending balance beginning balances；initial balance
Asset evaluation
appreciation in non- Taxable temporary Deferred income tax Taxable temporary Deferred income tax
controlling enterprise differences liabilities differences liabilities
mergers
amount to 3496568.07 524485.21 3496568.07 524485.21
project 3496568.07 524485.21 3496568.07 524485.21
(3) Deferred income tax assets or liabilities presented on a net basis after offsetting
In RMB Yuan
Deferred income tax
Ending balance of Deferred income tax Deferred tax assets
assets and liabilities
deferred tax assets assets and liabilities or liabilities after
project offsetting each other
or liabilities after offsetting each other write-off of the
at the end of the
write-off at the beginning opening balance
period
Deferred income tax
524485.21524485.21
liabilities
(4) The details of deferred income tax assets have not been confirmed
In RMB Yuan
project ending balance beginning balances
Deductible temporary differences 290568029.91 430976118.37
Deductible loss 856258144.28 805391478.16
Total 1146826174.19 1236367596.53
(5) The deductible losses of unrecognized deferred income tax assets will mature in the following years
In RMB Yuan
Year ending balance beginning balances Note
202414645709.83
202582495762.7982495762.79
202614116432.6314116432.63
202775136503.7975136503.79
2028103469846.02103469846.02
202982648926.0782648926.07
2030150374473.29150374473.29
2031127716833.64127716833.64
203292212084.5492212084.54
203362574905.5662574905.56
203465512375.95
total 856258144.28 805391478.16
30. Other non-current assets
31. Assets whose ownership or use rights are restricted
32. Short-term borrowing
(1) Classification of short-term loans
In RMB Yuan
item Ending balance Opening balance
Credit loan 432000000.00 570000000.00
total 432000000.00 570000000.00
33. Transactional financial liabilities
34. Derivative financial liabilities
64Wafangdian Bearing Co. LTD 2025 Midyear Report
35. Notes payable
In RMB Yuan
species Ending balance Opening balance
Commercial acceptance 26625291.30 20472638.17
Banker's acceptance 21000000.00 175309107.43
Letter of credit 65348156.00 205348156.00
total 112973447.30 401129901.60
36. Accounts payable
(1) Accounts payable are listed
In RMB Yuan
item Ending balance Opening balance
Payment for goods 1705181082.52 1607501304.61
Project fund 53129692.62 56314734.85
other 8875442.34
total 1767186217.48 1663816039.46
(2) Important accounts payable with a maturity of more than one year or overdue
37. Other payables
In RMB Yuan
item Ending balance Opening balance
Other payables 287629191.45 135258184.75
total 287629191.45 135258184.75
(1) Interest payable
(2) Dividends payable
(3) Other payables
1) List other payables by the nature of the payment
In RMB Yuan
item Ending balance Opening balance
Tender bond and deposit 1265698.75 300922.14
Rent trademark royalties and land payments payable
to the Group 139103.42
Authorized dealer margin 92193581.47 87359076.36
other 194030807.81 47598186.25
total 287629191.45 135258184.75
38. Advance payment
39. Contract liabilities
In RMB Yuan
item Ending balance Opening balance
Contract pending business 32755051.06 34098145.99
total 32755051.06 34098145.99
40. Pay employees
(1) Salaries payable to employees shall be listed
In RMB Yuan
item Opening balance Current increase Current decrease Ending balance
I short-term
compensation 37348348.42 169007559.70 171993951.53 34361956.59
II. Post-employment
benefits - Set up a 4705119.59 18099993.38 18146359.55 4658753.42
savings plan
65Wafangdian Bearing Co. LTD 2025 Midyear Report
III. Dismissal welfare 35886.00 888451.75 836451.75 87886.00
total 42089354.01 187996004.83 190976762.83 39108596.01
(2) Short-term salary is listed
In RMB Yuan
item Opening balance Current increase Current decrease Ending balance
1. Salaries bonuses
allowances and subsidies 32947366.87 134291705.70 135733650.91 31505421.66
2. Employee welfare
expenses 1750136.60 9350600.79 10861365.59 239371.80
3. Social insurance
premiums 17037.30 11542330.51 11559367.81 0.00
Among them: health
insurance premiums 16542.64 9263797.41 9280340.05 0.00
Industrial injury insurance
premium 494.66 1216551.21 1217045.87 0.00
Maternity insurance
premium 1061981.89 1061981.89 0.00
4. Housing fund 2506210.43 12482442.68 12437040.32 2551612.79
(5) Union funds and staff
education funds 127597.22 1340480.02 1402526.90 65550.34
total 37348348.42 169007559.70 171993951.53 34361956.59
(3) Set up deposit plan list
In RMB Yuan
item Opening balance Current increase Current decrease Ending balance
1. Basic endowment
insurance 4634392.14 17551476.02 17596973.56 4588894.60
2. Unemployment
insurance 70727.45 548517.36 549385.99 69858.82
total 4705119.59 18099993.38 18146359.55 4658753.42
41. Taxes should be paid
In RMB Yuan
item Ending balance Opening balance
Value-added tax 5967726.63 9626068.98
Individual income tax 89993.03 168808.45
City maintenance and construction
tax 297692.73 120272.26
Vehicle and vessel tax 523.35 523.35
House tax 775735.80 758803.28
Water taxes 1267.30
Education surcharge 133454.11 45825.66
Land use tax 613163.82 613163.82
Local education fees surcharge 77390.63 30088.25
Stamp duty 685504.87 700665.55
total 8642452.27 12064219.60
42. Holding liabilities held for sale
43. Non-current liabilities due within one year
In RMB Yuan
project Ending balance Opening balance
Long-term loans due within one year 98350000.00
amount to 98350000.00
44. Other current liabilities
66Wafangdian Bearing Co. LTD 2025 Midyear Report
In RMB Yuan
item Ending balance Opening balance
Pending resale tax 4254711.05 4417479.62
total 4254711.05 4417479.62
45. Long-term borrowing
46. Bonds payable
47. Lease liabilities
48. Long-term payables
In RMB Yuan
item Ending balance Opening balance
Long-term payables 100000.00 100000.00
Special payables 244974.84 244974.84
total 344974.84 344974.84
(1) List long-term payables according to the nature of the payments
In RMB Yuan
item Ending balance Opening balance
Payment for equipment 100000.00 100000.00
(2) Special payables
In RMB Yuan
item Opening Current Current Endingbalance increase decrease balance Formation reason
Special pollution
control 169974.84 169974.84
Information
construction 75000.00 75000.00
total 244974.84 244974.84
49. Long-term employee compensation payable
50. Projected liabilities
In RMB Yuan
item Ending balance Opening balance Formation reason
Product quality assurance 9640631.73 7651644.80 Advance product qualitycompensation
The product has quality problems
Wind power product quality claims 31966946.32 32761252.54 and the customer is seeking
compensation
Rail bearing maintenance
business to compensate 15358774.52 15358774.52 Bearings are repaired to
customers for losses compensate customers for losses
Total 56966352.57 55771671.86
51. Deferred income
In RMB Yuan
item Opening Current Current Endingbalance increase decrease balance Formation reason
Government subsidy 15074718.6 1260000.6 00 1498218.84
14836499.8 Receive government
2 subsidies
The plant and land cost of the
Old factory relocation 22645138.6 22075680.7 new plant due to the
compensation 9 569457.93 6 demolition of the old plant of
Liao Axis
67Wafangdian Bearing Co. LTD 2025 Midyear Report
total 37719857.3 1260000. 2067676.77 36912180.55 00 8
52. Other non-current liabilities
53. Capital stock
In RMB Yuan
This change increases or decreases (+ -)
Opening balance EndingIssue new Share Conversiondivide of provident other subtotal balanceshares nd fund shares
Total share 402600000.00 402600000.00
54. Other equity instruments
55. Capital reserve
In RMB Yuan
item Opening balance Current increase Current decrease Ending balance
Capital premium (equity
premium) 201956446.52 201956446.52
Other capital reserves 283734603.95 283734603.95
total 485691050.47 485691050.47
56. Treasury stocks
57. Other comprehensive income
58. Special reserve
In RMB Yuan
item Opening balance Current increase Current decrease Ending balance
Safety cost 2305094.24 3831389.92 3268840.69 2867643.47
total 2305094.24 3831389.92 3268840.69 2867643.47
59. Surplus reserve
In RMB Yuan
item Opening balance Currentincrease Current decrease Ending balance
Legal surplus reserve 116179772.10 116179772.10
Discretionary surplus
reserve 20590618.91 20590618.91
total 136770391.01 136770391.01
60. Undistributed profit
In RMB Yuan
item Current period Previous period
Undistributed profit at the end of the previous period before
adjustment -766382732.49 -656170250.96
Adjust the undistributed profit at the beginning of the later
period -766382732.49 -656170250.96
Plus: Net profit attributable to the owner of the parent company
for the period -20930911.54 -110212481.53
Undistributed profit at the end of the period -787313644.03 -766382732.49
61. Operating income and operating costs
In RMB Yuan
item Current amount Amount incurred in the previous period
income cost income cost
Main business 1297524895.46 1131292818.53 1061536514.37 967457579.92
Other business 33090322.02 19525773.78 60829937.46 32939846.56
68Wafangdian Bearing Co. LTD 2025 Midyear Report
total 1330615217.48 1150818592.31 1122366451.83 1000397426.48
62. Taxes and surcharges
In RMB Yuan
item Current amount Amount incurred in the previousperiod
City maintenance and construction
tax 2970002.57 1248903.51
Education surcharge 2121114.97 892395.21
House tax 1647231.77 1682859.35
Land use tax 1382431.64 1396322.33
Stamp duty 1420212.63 1382431.64
other 16835.04 98376.15
total 9557828.62 6701288.19
63. Administrative expenses
In RMB Yuan
item Current amount Amount incurred in the previousperiod
Employee compensation 51992583.25 46369150.19
Amortization of intangible assets 2001742.46 2330909.06
Guard and fire cost 1609068.09 1392699.83
Depreciation cost 1985814.69 1937298.41
Business entertainment 165316.91 150005.48
Travel expense 1109040.96 1545759.45
Other expenses 7375576.35 5671788.17
total 66239142.71 59397610.59
64. Sales expenses
In RMB Yuan
item Current amount Amount incurred in the previousperiod
Employee compensation 37698149.82 35618809.35
Quality compensation 817987.23 2485770.67
freight 604876.90 1526973.95
Travel expense 6690045.12 8224272.03
Trademark royalty 9731454.38 9734456.39
Business activity expense 3782163.92 4902384.98
Rental fee 400807.50 325207.50
Conference expense 523403.45 125291.49
Other expenses 8229557.04 13132549.04
total 68478445.36 76075715.40
65. Research and development costs
In RMB Yuan
item Current amount Amount incurred in the previousperiod
Material input 43582392.71 19065794.72
Technical service fee design fee
new process specification setting fee
(equipment debugging fee - new
product tooling)
Labor cost 5459731.85 2818090.92
Amortization of depreciation expense
and long-term expense 2232237.46 335857.29
Fuel power 782504.74 414503.22
Research and development
equipment repair and rental costs 184681.90 97828.47
69Wafangdian Bearing Co. LTD 2025 Midyear Report
Processing cost 18352.96 9721.81
Test fee
Other expenses 13522010.65 12103761.78
total 65781912.27 34845558.21
66. Financial expenses
In RMB Yuan
item Current amount Amount incurred in the previousperiod
Interest expense 7581344.95 12349659.00
Less: Interest income 450534.54 1159618.61
Plus: exchange loss -1148506.78 -1564763.50
Other expenditure 840802.44 6831063.51
total 6823106.07 16456340.40
67. Other income
In RMB Yuan
Other sources of income Current amount Amount incurred in the previousperiod
Government subsidy 2780427.53 3983557.69
Input tax plus credit 3108617.20 11104357.26
Personal income tax withholding fee 77916.34 74677.18
Direct VAT relief 0.97
total 5966962.04 15162592.13
68. Net exposure hedging income
69 fair value change income
In RMB Yuan
Source of income from changes in
fair value Current amount
Amount incurred in the previous
period
Trading financial assets -4622.55 -58552.35
total -4622.55 -58552.35
70. Investment income
In RMB Yuan
item current period Last period
Dividend income from investments in other equity
instruments during the holding period 1002352.64 1000000.00
Proceeds from debt restructuring 8661904.04 5737445.76
total 9664256.68 6737445.76
71. Credit impairment loss
In RMB Yuan
project current period Last period
Bad debt loss on notes receivable -300000.00
Bad debt losses on accounts
receivable 613552.31 9166.55
amount to 313552.31 9166.55
72. Impairment loss on assets
73. Gain on disposal of assets
In RMB Yuan
Source of asset disposal proceeds current period Last period
Gain on disposal of non-current
assets 351928.90 69219.93
total 351928.90 69219.93
70Wafangdian Bearing Co. LTD 2025 Midyear Report
74. Non-operating income
In RMB Yuan
The amount included in the
project current period Last period non-recurring profit and loss
of the current period
Fine income -53003.46 1544031.29 -53003.46
Write-off of payments that cannot be made 230350.08 2410441.77 230350.08
other 100953.11 229848.06 100953.11
total 278299.73 4184321.12 278299.73
75. Non-operating expenses
In RMB Yuan
The amount included in the
project current period Last period non-recurring profit and
loss of the current period
Loss of non-current assets destroyed and
scrapped 249003.22 524378.09 249003.22
A fine spending 54500.00 104438.18 54500.00
other 113975.57 1021.10 113975.57
total 417478.79 629837.37 417478.79
76. Income tax expenses
77. Other comprehensive income
See notes for details
78. Cash flow statement items
(1) Cash related to operating activities
Other cash received in connection with operating activities
In RMB Yuan
project current period Last period
Interest income 432887.16 1090640.70
Government subsidies 1430244.51 1106572.40
Come-and-go money 18202032.93 21252337.79
Return the deposit 5500.00 5000.00
other 4195845.05 123266.18
A combined 24266509.65 23577817.07
Other cash payments in connection with operating activities
In RMB Yuan
project current period Last period
Cost of sales 17356439.08 18671887.05
Management fees 4392810.03 3326608.47
Finance charges 496368.60 1228045.09
other 22268873.14 48864634.12
A combined 44514490.85 72091174.73
(2) Cash related to investment activities
(3) Cash related to fund-raising activities
Other cash received in connection with fund-raising activities
In RMB Yuan
project current period Last period
Bill discount 71721936.89 326425473.31
Borrowing from related parties 150000000.00
The deposit will be recovered upon
maturity. 14191213.55 18663394.30
Total 235913150.44 345088867.61
71Wafangdian Bearing Co. LTD 2025 Midyear Report
Other cash disbursements in connection with fund-raising activities
In RMB Yuan
project current period Last period
Bill payable at maturity 299744866.45 246605895.28
deposit 30879433.46 78568067.54
total 330624299.91 325173962.82
Changes in liabilities arising from financing activities
□ Applicable □ Not applicable
79. Supplementary information to cash flow statement
(1) Supplementary information to the statement of cash flows
In RMB Yuan
Supplementary information current period Last period
1. Reconciliation of net profit to cash flow from
operating activities:
Net profit -20930911.54 -46033131.67
Plus: Provision for asset impairment
Depreciation of fixed assets depletion of oil and gas
assets depreciation of productive biological assets 34295440.70 32677433.51
Depreciation of tenure assets
Amortization of intangible assets 2001742.46 2857979.24
Amortization of long-term deferred expenses 735736.38 643963.77
Loss on disposal of fixed assets intangible assets
and other long-term assets (gain marked with "-") 351928.90 69219.93
Loss on retirement of fixed assets (income marked
with "-") 414054.00 524378.09
Loss on changes in fair value (gain marked with "-") 4622.55 58552.35
Financial expenses (income marked with "-") 7581344.95 16456340.40
Investment loss (income marked with "-") -9664256.68 -6737445.76
Decrease in deferred tax assets (increase marked
with "-")
Increase in deferred tax liabilities (decrease marked
with "-")
Decrease in inventory (increase marked with "-") 37244271.64 61498623.78
Decrease in operating receivables (increase marked
with "-") -63886058.07 -128846469.42
Increase in operating payables (decrease marked with
"-")251194984.1396286752.46
other 313552.31 9166.55
Net cash flow from operating activities 239656451.73 29465363.23
2. Major investments and financing activities that do
not involve cash payments:
debt-to-capital
Convertible bonds maturing within one year
Financing leases into fixed assets
3. Net changes in cash and cash equivalents:
The ending balance of cash 71652395.62 140345907.67
Less: Opening balance of cash 160907298.24 110664560.63
Plus: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -89254902.62 29681347.04
(2) Net cash received from subsidiaries paid during the period
(3) Net cash received from disposal of subsidiaries during the period
(4) Composition of cash and cash equivalents
72Wafangdian Bearing Co. LTD 2025 Midyear Report
In RMB Yuan
item Ending balance Opening balance
I. Cash 71652395.62 160907298.24
A bank deposit that can be used to pay at any time 71654748.26 110664560.63
III.Balance of cash and cash equivalents at the end of
the period 71652395.62 160907298.24
80. Note to the statement of changes in owners' equity
81. Foreign currency monetary items
(1) Foreign currency monetary items
project Ending foreign currency Equivalent exchange Ending translation of RMBbalance rates balance
monetary resources 102436.08
Including: US dollars 90.67 7.1586 649.07
Euro 12114.04 8.4024 101787.01
Hong Kong currency
accounts receivable 23203982.65
Including: US dollars 2854717.76 7.1586 20435782.56
Euro 329453.50 8.4024 2768200.09
Hong Kong currency
money borrowed for long
term
Including: US dollars
Euro
Hong Kong currency
(2) Explanation of overseas business entities including for significant overseas business entities the main overseas
place of operation the functional currency and the basis for selection should be disclosed. If the functional currency
changes the reasons should also be disclosed.□Applicable □ Not applicable
82. Leasing
(1) The Company as the lessee
□Applicable □ Not applicable
Variable lease payments not included in the measurement of lease liabilities
□Applicable □ Not applicable
item current period Last period
Interest expense on lease liabilities
Short-term lease expenses that are factored into the cost of the underlying
asset or the simplified treatment of current profit or loss 10168752.76 9854282.76
Lease expenses for short-term leases or low-value assets with simplified processing
□Applicable □ Not applicable
Project current period Last period
Interest expense on lease liabilities
Simplified short-term lease expenses included in the cost of relevant assets or
current profit or loss 9620386.74 10168752.76
(2) The Company shall be the lessor
Operating lease as lessor
73Wafangdian Bearing Co. LTD 2025 Midyear Report
□Applicable □ Not applicable
In RMB Yuan
Among them: Income related to
item Lease income variable lease payments not included
in lease collections
Income from operating leases 9818676.55
total 9818676.55
Finance lease as lessor
□ Applicable □ Not applicable
Undiscounted lease receipts for each of the next five years
□ Applicable □ Not applicable
Reconciliation of undiscounted lease receipts to net lease investments
(3) Recognize profit or loss on finance lease sales as a producer or distributor
□ Applicable □ Not applicable
83. Data resources
84. Others
VIII. R&d expenditure
In RMB Yuan
item current period Last period
research and development
expenditure 65781912.27 34845558.21
total 65781912.27 34845558.21
Among them: expensed research
and development expenditure 65781912.27 34845558.21
IX. Changes in the scope of consolidation
X.Rights and interests in other entities
1. Interests in subsidiaries
(1) The composition of enterprise group
In RMB Yuan
Subsidiary Registere Principalplace of Place of Business
Shareholding ratio Acquisition
name d capital operation registration nature direct indirect mode
Wazhou Production
Liaoyang Liaoyang Wangshuitai and sales of
Bearing 1935000 City street Taizihe bearing and Business
Manufacture 0.00 Liaoning District machinery
100.00% 0.00% combination
Co.Ltd Province Liaoyang City manufacturing
Production
Dalian motor Daliang Dalian Free and sales of Investment
Bearing 1000000 City Trade Zone 13 bearing and and
Co.Ltd 0.00 Liaoning Li Yongsheng machinery
100.00% 0.00% establishme
Province Street No. 12 manufacturin nt
g
No. 1
Wazhou Beigongji Production
spherial roller Wafangdian Street and sales of
bearing 1940000 Liaoning Wafangdian bearing and 100.00% 0.00% Business
company 00.00 Province City Liaoning machinery combination
limited Province manufacturin
China. g
74Wafangdian Bearing Co. LTD 2025 Midyear Report
2. Transactions where the share of the owner's equity in a subsidiary changes but the owner still controls the
subsidiary
3. Interests in joint ventures or associated enterprises
4. Important joint operation
5. Equity in structured entities not included in the consolidated financial statements
6. Others
XI. Government subsidies
1. Government subsidies recognized at the end of the reporting period according to the receivable amount
□ Applicable□ Not applicable
Reasons for not receiving the expected amount of government subsidy at the expected time
□ Applicable □Not applicable
2. Liabilities involving government subsidies
□Applicable □ Not applicable
In RMB Yuan
The Amount
amount included in Other
of non- Amount changAccounting Opening Related to
account balance subsidy operating
transferred to es in Ending
added in income in other income in curren balance
assets/earni
this the current the current period t
ngs
period period period
Deferred
income 37719857.35 807676.77
36912180. Related to
58 assets
total 37719857.35 807676.77 36912180.58
3. Government subsidies included in current profit and loss
□Applicable □ Not applicable
In RMB Yuan
Accounting account Current amount Amount incurred in the previousperiod
Deferred income/other income 807676.77 2677390.11
Bank deposits/other income 1972750.76 1380750.18
total 2780427.53 4058140.29
XII. Risks associated with financial instruments
1. Various risks arising from financial instruments
Our company is confronted with various financial risks in the course of its operation: credit risk liquidity risk and
market risk (including exchange rate risk interest rate risk and other price risks).
(1) Credit risk
Credit risk refers to the risk that a counterparty fails to fulfill its contractual obligations resulting in financial losses for
the company.The carrying amount of financial assets recognized in the consolidated balance sheet; For financial instruments
measured at fair value the book value reflects their risk exposure but it is not the maximum risk exposure. The
maximum risk exposure will change with future changes in fair value. To reduce credit risks the Group has established
a dedicated department to determine credit limits conduct credit approvals and implement other monitoring
procedures to ensure that necessary measures are taken to recover overdue claims. In addition the Group reviews
the recovery status of each individual receivables on each balance sheet date to ensure that adequate bad debt
provisions are made for amounts that cannot be recovered. Therefore the management of the Group believes that the
credit risk borne by the Group has been significantly reduced.
75Wafangdian Bearing Co. LTD 2025 Midyear Report
The working capital of this group is deposited in banks with high credit ratings so the credit risk of the working capital
is relatively low.The group has adopted necessary policies to ensure that all sales customers have a good credit record. Except for the
top five in terms of accounts receivable amount the Group has no other significant credit concentration risks.
(2) Liquidity risk
Liquidity risk refers to the risk that an enterprise experiences a shortage of funds when fulfilling its obligation to settle
accounts by delivering cash or other financial assets.The approach of this group to managing liquidity risk is to ensure that there is sufficient capital liquidity to fulfill due
debts without causing unacceptable losses or damage to the corporate reputation. The Group regularly analyzes the
structure and maturity of liabilities to ensure there is sufficient capital. The management of this group monitors the use
of bank borrowings and ensures compliance with borrowing agreements. At the same time conduct financing
negotiations with financial institutions to maintain a certain credit line and reduce liquidity risks.The various financial liabilities of the Company are presented in undiscounted contractual cash flows by maturity date
as follows:
ending balance
Project
Immediate Within 1 year 1-2 2-5 More than The total undiscountedrepayment years years 5 years contract amount book value
Short-term
borrowing 432000000.00 432000000.00 432000000.00
Notes
payable 112973447.30 112973447.30 112973447.30
Long-term
borrowing
Total 544973447.30 544973447.30 544973447.30
ending balance
Project
Immediate Within 1 year 1-2 2-5 More than The total undiscountedrepayment years years 5 years contract amount book value
Short-term
borrowing 570000000.00 570000000.00 570000000.00
Notes
payable 401129901.60 401129901.60 401129901.60
Long-term
borrowing
Total 971129901.60 971129901.60 971129901.60
(3) Market risk
Market risk of financial instruments refers to the risk that the fair value or future cash flows of financial instruments
fluctuate due to changes in market prices including exchange rate risk interest rate risk and other price risks.
1) Interest rate risk
Interest rate risk refers to the risk that the fair value or future cash flows of financial instruments fluctuate due to
changes in market interest rates.The risk of changes in cash flows of financial instruments caused by interest rate fluctuations of the Group is mainly
related to floating-rate bank borrowings. The policy of this group is to maintain the floating interest rates of these
borrowings.
2) Exchange rate risk
Exchange rate risk refers to the risk that the fair value or future cash flows of financial instruments fluctuate due to
76Wafangdian Bearing Co. LTD 2025 Midyear Report
changes in foreign exchange rates.The Group's exposure to foreign exchange risks is mainly related to the US dollar and the Group's main export
business is denominated and settled in US dollars. As of June 30 2025 except for the balance of foreign currency
monetary items in Note 5 (54) of this note the assets and liabilities of the Group were all in RMB balance. The foreign
exchange risks arising from the assets and liabilities of such foreign currency balances may have an impact on the
operating results of the Group.The exchange rate risk faced by our company mainly stems from financial assets and financial liabilities denominated
in US dollars. The amounts of foreign currency financial assets and foreign currency financial liabilities converted into
RMB are presented as follows:
ending balance Balance at the end of the previous year
Project
dollar Other foreigncurrencies Total dollar
Other foreign
currencies Total
Monetary
funds 649.07 101787.01 102436.08 17634717.37 3687718.23 21322435.60
Accounts
receivable 20435782.56 2768200.09 23203982.65 12321831.39 2207814.76 14529646.15
Total 20436431.63 2869987.10 23306418.73 29956548.76 5895532.99 35852081.75
3) Other price risks
As of June 30 2025 the Group's purchased bearing assemblies may be affected by price fluctuations.Other price risks refer to the risks that the fair value or future cash flows of financial instruments fluctuate due to
changes in market prices other than exchange rate risk and interest rate risk.
2. Hedging
3. Financial assets
(1) Classification of transfer modes
□Applicable □ Not applicable
In RMB Yuan
The nature of the
Transfer mode transferred financial Amount of financial Termination
The judgment basis
assets transferred recognition condition of the termination ofassets confirmation
The bill is endorsed
and not due Banker's acceptance 236462078.36
Unterminated
acknowledgement
The bill is endorsed Commercial Unterminated
and not due acceptance 174720337.82 acknowledgement
The bill is endorsed Finance company 2413831.61 Unterminatedand not due acceptance bill acknowledgement
Total 413596247.79
(2) Financial assets that are derecognized due to transfer
□Applicable □ Not applicable
In RMB Yuan
The way financial assets The amount of financial Gains or losses related toProject are transferred assets terminated and the termination ofrecognized recognition
Receivables financing 59015814.28
Total 59015814.28
(3) Continue to be involved in the transfer of financial assets
□Applicable □ Not applicable
XIII. Disclosure of fair value
items F V at the year end
77Wafangdian Bearing Co. LTD 2025 Midyear Report
1st Level FV 2nd Level FV 3rd Level FV
Measurement Measurement Measurement Total
I. Continuously measured at FV
◆Tradable financial asset 217260.04 217260.04
1.Financial assets at fair value through profit or loss 217260.04 217260.04
（1）Equity instrument investment 217260.04 217260.04
◆Receivables financing 42502064.44 42502064.44
Total assets measured at fair value on an ongoing
basis 217260.04 42502064.44 42719324.48
XIV. Related parties and related transactions
1. The parent company of the enterprise
The parent The proportion of
Name of parent registered Nature of the
The company's
company business registered shareholding
voting rights of
capital ratio in the the parent
company company
Wafangdian
Bearing Group No. 1 Beigongji
Co. Ltd. Street
Bearings and all
Wafangdian Wafangdian City
kinds of equipment 519869400.（ Liaoning manufacturing. 00
60.61%60.61%
Bearing salesGroup Province China.）
A description of the parent company of the enterprise
The ultimate 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
For details of the Company's subsidiaries see the interests in other entities in Note 8.
3. The situation of the company's joint venture and associated enterprises
4. Other related parties
Names of other related parties Relationships between other related parties and theenterprise
The subsidiaries of Wafangdian Bearing Group Co. Ltd. The enterprises controlled by the same controllingshareholder and ultimate controller
Dalian Heavy Industry Equipment Group Co. Ltd. and its
subsidiaries Other related parties
The affiliated companies Wafangdian Bearing Group Co.Ltd. Other related parties
5. Related party transactions
(1) Related transactions for the purchase and sale of commodities the provision and receipt of services
Statement of goods purchased/services received
In RMB Yuan
Whether
Related party transaction Current Approved
it Amount of
The affiliated party content amount trading
exceeds previous
quotas thetrading period
limit
Wafangdian Bearing Group
Co. LTD. and its Spare parts 348781805 85000000.35 0.00 no
475723888
subsidiaries .16
Wafangdian Bearing Group
Co. LTD. and its Product 328733809 60000000.64 0.00 no 665060.58subsidiaries
Wafangdian Bearing Group Kinetic energy 26993189. 65000000. no 30880253.
78Wafangdian Bearing Co. LTD 2025 Midyear Report
Co. LTD. and its 50 00 06
subsidiaries
Wafangdian Bearing Group
Co. LTD. and its Equipment 23.25 9000000.0 no 1232078.3
subsidiaries 0 9
Dalian Heavy Industry
Equipment Group Co. Ltd. Maintenance 26378.73 1500000.00 no 119943.15and its subsidiaries
Security fire protection
services trademark usage
public facility sharing
publicity vehicle usage
Wafangdian Bearing Group technical development
Co. LTD. and its services interest on capital 32265488. 11000000 35905829.subsidiaries occupation 35 0.00
no 23
maintenance/greening
engineering labor labor
fees cover cleaning
training physical
examination etc
Table of Goods Sold/Services Provided
In RMB Yuan
The affiliated party Related party Current Amount of previoustransaction content amount period
Dalian Heavy Industry Equipment Group Co.Ltd. and its subsidiaries product 31980393.79 44816945.78
Wafangdian Bearing Group Co. LTD. and its 141903271.7
subsidiaries product 6 115798584.63
Wafangdian Bearing Group Co. LTD. and its
subsidiaries Materials 11287363.03 8646838.96
Wafangdian Bearing Group Co. LTD. and its Semi-finished
subsidiaries products and spare 139558.98 19960.86parts
Wafangdian Bearing Group Co. LTD. and its Services such as
subsidiaries heat treatment 32083674.21 57735725.83
Wafangdian Bearing Group Co. LTD. and its
subsidiaries Equipment 58229.88 397789.72
(2) Associated entrusted management/contracting and entrusted management/contracting
(3) Related leases
The Company as the lessor:
In RMB Yuan
Types of Lease income Lease income
Name of lessee leasehold recognized for the recognized in the
assets period previous period
Wafangdian Bearing Group Co. Ltd. and its
subsidiaries House 3638571.24 2735824.74
Wafangdian Bearing Group Co. Ltd. and its
subsidiaries Equipment 4851898.45 5194021.04
Wafangdian Bearing Group Co. Ltd. and its
subsidiaries Land 1101097.50 1111671.30
Wafangdian Bearing Group Co. Ltd. and its
subsidiaries House 3638571.24 2735824.74
The Company as lessee:
In RMB Yuan
Name of Types Simplified treatment Variable lease Interest Increased
lessor of of rental costs for payments not Rent paid expense access to
79Wafangdian Bearing Co. LTD 2025 Midyear Report
lease short-term leases included in the incurred on assets
hold and leases of low measurement lease liabilities
asset value assets (if of lease
s applicable) liabilities (if
applicable)
Amou Amoun
Amount nt Amount t
incurred Curre incurre incurred Curre incurre Curre
Amount
Current in the nt d in Current nt d in nt
incurre
amount previou amou the amount
in the d in the
nt previo previou
amou the amou
nt previo nt previous period us s period us s period
period period
Wafangdian
Bearing
Group Co. Land 158155 14845 15815 14845
Ltd. and its 2.54 46.34 52.54 46.34
subsidiaries
Wafangdian
Bearing
Group Co. Hous 677733 62928 67773 62928
Ltd. and its e 6.00 82.74 36.00 82.74
subsidiaries
Wafangdian
Bearing
Group Co. Equip 112850 12681 11285 12681
Ltd. and its ment 1.24 64.03 01.24 64.03
subsidiaries
(4) Related guarantee situation
(5) Fund lending by related parties
(6) Asset transfer and debt restructuring of related parties
(7) Remuneration for key management personnel
In RMB Yuan
item Current amount Amount incurred in the previousperiod
Key management compensation 855695.64 725344.26
6. Receivable and payables of related parties
(1) Receivable items
In RMB Yuan
Project
name Affiliated party
Ending balance Opening balance
Book Bad debt Book Bad debt
balance reserve balance reserve
Wafangdian Bearing Group Co. Ltd. 126372986. 52695347.6
2407853.620.00
Accounts and its subsidiaries 13 2
receivable Dalian Heavy Industry Equipment 103543860.
2315614.96115103.355189842.60
Group Co. Ltd. and its subsidiaries 93
Advance Wafangdian Bearing Group Co. Ltd.
1773006.38
payment and its subsidiaries
Other
Wafangdian Bearing Group Co. Ltd.receivable 457845.46 20000.00
and its subsidiaries
s
(2) Payable items
80Wafangdian Bearing Co. LTD 2025 Midyear Report
In RMB Yuan
Project name Affiliated party Ending book Opening bookbalance balance
Wafangdian Bearing Group Co. Ltd. and its subsidiaries 482870334.51 315999255.48
payable
account Dalian Heavy Industry Equipment Group Co. Ltd. and its 145547.84 455434.39
subsidiaries
Wafangdian Bearing Group Co. Ltd. and its subsidiaries 152634633.17 2415350.75
Other
payables Dalian Heavy Industry Equipment Group Co. Ltd. and its 0.00 32502.00
subsidiaries
XV. Share payment
1. Overall situation of share-based payment
□Applicable □ Not applicable
2. The situation of share-based payments settled in equity
□Applicable □ Not applicable
3. The situation of share-based payments settled in cash
□Applicable □ Not applicable
4. Share-based payment expenses for this period
□Applicable □ Not applicable
5. The modification and termination of share-based payment
6. Others
XVI. Commitments and contingencies
1. Important commitments
Important commitments of the Group that do not need to be disclosed as of June 30 2025.
2. Contingencies
(1) Significant contingencies existing at the balance sheet date
Important contingent matters that the Group does not need to disclose as of June 30 2025.
(2) If the company has no important contingencies that need to be disclosed it should also be explained
The company has no material contingent matters that need to be disclosed.
3. Others
XVII. Matters after the balance sheet date
XVIII.Other important matters
XIX. Notes on major items of the parent company's financial statements
1. Accounts receivable
(1) Age disclosure
In RMB Yuan
aging Ending book balance Opening book balance
Within 1 year (inclusive) 951185445.96 923943439.94
1 to 2 years 116167190.29 108743236.61
2 to 3 years 30370017.89 28591618.31
More than 3 years 47261490.88 70573274.55
3 to 4 years 10186255.50 17461725.43
Four to five years 2596572.20 20435133.89
81Wafangdian Bearing Co. LTD 2025 Midyear Report
More than 5 years 34478663.18 32676415.23
total 1144984145.02 1131851569.41
(2) Disclosure by classification according to bad debt provision method
In RMB Yuan
Ending balance Opening balance
category Book balance Bad debtreserve Book balance Bad debt reserve
amou Provis
Book Book
amount scale ion valuent amount scale amount
Provisio value
ratio n ratio
Accounts
receivable that
are set aside 71334 6.00 7133 100.0 71334 7133437 100.00
for bad debts 371.53 % 4371. 0% 371.53 6.30% 1.53 %
on an individual 53
basis
Among them:
Accounts
receivable that 10736 93.77 6941 1004 10605 9907are provided for 49773. % 5880. 6.47% 2338 17197. 93.70%
69801116.58%1608
bad debts on a 49 60 92.89 88 6.22 1.66
combined basis
Among them:
97955
Aging portfolio 9216.3 85.55
66899126
2923.6.83%662989314778.91%6461127
8285
4%632.71194.643.63
7.23%3592
1.01
Combination of 94090 8.22 2522 9156 167370 1621
related parties 557.15 % 956.9 2.68% 7600. 003.24 14.79%
51898423.10%8016
718.590.65
11449 100.0 1407 12.29 1004 11318 9907total 84145. 0% 5025 % 2338 51569.
100.001411354
%87.7512.47%1608022.1392.89411.66
Category Name of provision for Bad Debts by individual item:Individual provision
In RMB Yuan
name Opening balance Ending balance
Book balance Bad debt Book balance Bad debt Provision ratio Reason forreserve reserve provision
Individual
provision 71334371.53 71334371.53 71334371.53 71334371.53 100.00%
non-
recoverable
total 71334371.53 71334371.53 71334371.53 71334371.53
Category name of bad debt provision by combination: By credit risk characteristics
In RMB Yuan
Name ending balance
book balance bad debt provision Provision ratio
Within one year 836090981.53 41804549.08 5.00%
One to two years 98742111.75 9874211.17 10.00%
Two to three years 30066317.71 6013263.54 20.00%
Three to four years 9889568.45 4944784.22 50.00%
Four to five years 2570606.48 2056485.18 80.00%
More than 5 years 2199630.43 2199630.43 100.00%
Portfolio of related parties 94090557.15 2522956.97
Total 1073649773.49 69415880.60
Explanation of the basis for determining this combination:
It is determined based on the characteristics of credit risk
If the bad debt provision for accounts receivable is made in accordance with the general model of expected credit
losses:
82Wafangdian Bearing Co. LTD 2025 Midyear Report
□Applicable □ Not applicable
(3) the provision for bad debts accrued recovered or rolled back during the period
Provision for bad debts in the current period:
In RMB Yuan
category Opening Current variation Ending
balance accrual Take back or Cancel afterturn back verification other
balance
Bad debt 141135487.7
reserve 5 384230.75 1004.87
140750252.1
3
total 141135487.75 384230.75 1004.87
140750252.1
3
(4) Accounts receivable actually written off during the current period
In RMB Yuan
item Amount written off
Accounts receivable actually written off 1004.87
(5) The receivables and contractual assets of the top five closing balances collected by the defaulting party
In RMB Yuan
Percentage of Ending balance
Ending of allowance for
Ending balance balance Ending balance
the total balance
of accounts doubtful
Unit name of accounts of of accountsreceivable and receivable and
accounts
receivable contract contract assets contract assets
receivable and
assets at the end of the allowance for
period impairment ofcontract assets
China State Railway
Group Co. Ltd. and its 216048811.82 3852475.80 219901287.62 18.35% 10995064.38affiliated companies
Wafangdian Bearing
Group Co. Ltd. and its 91774942.19 91774942.19 7.66%
affiliated companies
CRRC Corporation
Limited and its affiliated 31830198.44 31830198.44 2.66% 1591509.92
companies
Anben Group and its
affiliated companies 26125515.91 26125515.91 2.18% 1306275.80
Baowu Group and its
affiliated companies 25735985.41 25735985.41 2.15% 1286799.27
Total 391515453.77 3852475.80 395367929.57 33.00% 15179649.37
2. Other receivables
In RMB Yuan
item Ending balance Opening balance
Dividends receivable 253637816.14 265704686.03
Other receivables 253637816.14 265704686.03
total 253637816.14 265704686.03
(1) Interest receivable
(2) Dividends receivable
(3) Other receivables
1) Classification of other receivables by nature of amounts
In RMB Yuan
Nature of money Ending book balance Opening book balance
83Wafangdian Bearing Co. LTD 2025 Midyear Report
Other receivables 260972948.77 273039818.66
total 260972948.77 273039818.66
2) Aging disclosure
In RMB Yuan
aging Ending book balance Opening book balance
Within 1 year (inclusive) 252515786.43 263191579.22
1 to 2 years 694205.08 889646.99
2 to 3 years 1838308.31 2399108.18
More than 3 years 5924648.95 6559484.27
3 to 4 years 1189981.53 1203245.68
Four to five years 186222.09 186403.88
More than 5 years 4548445.33 5169834.71
total 260972948.77 273039818.66
3) Classified disclosure according to bad debt provision method
In RMB Yuan
categor Ending balance Opening balance
y Book balance Bad debt reserve Book Book balance Bad debt reserve Book
amount scale amount Provisio valuen ratio amount scale amount
Provisio value
n ratio
Provisio
n for
bad
debts 5144066.29 1.97%
51440100.005144051440100.00
on an 66.29 %
0.0066.291.88%66.29%
individu
al basis
Among
them:
Provisio
n for
bad
debts 255828882.48 98.03%
2191025363726789521910265704
on a 66.34
0.86%816.14752.3798.12%66.340.82%686.03
portfolio
basis
Among
them:
Aging 11110 4.26% 21910 19.72% 78032 99943 21910 78032portfolio 209.77 66.34 53.03 19.37 3.66% 66.34 21.92% 53.03
Reserv
e fund 0.00% 20000. 0.01% 20000.portfolio 00 00
Combin
ation of 244718 93.77% 245814 257881 257881related 672.71 563.11 433.00 94.45% 433.00
parties
total 260972 100.00 73351 253637 273039 100.00 73351 265704948.77 % 32.63 816.14 818.66 % 32.63 686.03
Category Name of provision for Bad Debts by individual item:Individual provision
In RMB Yuan
name Opening balance Ending balance
Book balance Bad debt Bad debt Reason forreserve Book balance reserve Provision ratio provision
Individual It is expected
provision 5144066.29 5144066.29 5144066.29 5144066.29 100.00% to beunrecoverable.total 5144066.29 5144066.29 5144066.29 5144066.29
84Wafangdian Bearing Co. LTD 2025 Midyear Report
Name of bad debt provision category by portfolio: Credit Risk portfolio
In RMB Yuan
Name ending balance
book balance bad debt provision Provision ratio
Within one year 7414787.95 370739.40 5.00%
One to two years 546705.08 54670.51 10.00%
Two to three years 1376031.41 275206.28 20.00%
Three to four years 489981.53 244990.77 50.00%
Four to five years 186222.09 148977.67 80.00%
More than 5 years 1096481.71 1096481.71 100.00%
Portfolio of related parties 244718672.71
Total 255828882.48 2191066.34
Explanation of the basis for determining this combination:
Provisions are made based on the characteristics of credit risk
Bad debt provisions are made based on the general model of expected credit losses:
In RMB Yuan
The first stage The second stage The third stage
Provision for bad debts Expected credit Expected credit loss Expected credit loss over Total
losses for the next over the entire the entire duration (credit
12 months duration (no credit impairment hasimpairment occurred) occurred)
Balance as of January
120257335132.637335132.63
The balance as of
January 1 2025 is in
the current period
Balance as of June 30
20257335132.637335132.63
The basis for the division of each stage and the proportion of bad debt provisions
The significant changes in the book balance of the loss provision for the current period
□Applicable □ Not applicable
4) Provision for bad debts accrued recovered or rolled back in the current period
Provision for bad debts in the current period:
In RMB Yuan
category Opening Current variation Ending
balance accrual Take back or Resell or write balanceturn back off other
Bad debt
reserve 7335132.63 7335132.63
total 7335132.63 7335132.63
5) Other receivables actually written off during the current period
6) Other receivables in the top five of the closing balances collected by the defaulting party
In RMB Yuan
Percentage of Ending balance
Unit name Nature of Ending balance aging total ending of allowance formoney balance of other doubtful
receivables accounts
Wazhou liaoyang Borrowing
bearing from related 98611156.58 Within four years 37.79%
manufacturing co. parties
85Wafangdian Bearing Co. LTD 2025 Midyear Report
LTD
Dalian wazhou Borrowing
precision motor car from related 126015640.28 Within four years 48.29%
bearing co. LTD parties
Wazhou Precision
Spherical Roller Borrowing
Bearing from related 19639030.39 Within four years 7.53%
(Wafangdian) Co. parties
LTD
Anhui Conch
Cement Co. LTD Deposit 1300000.00
Within three
years 0.50% 260000.00
Shenyang Railway
Passenger Car
Works China Deposit 1216300.00 Within one year 0.47% 60815.00
Railway Shenyang
Group Co. LTD
Borrowing
Total from related 246782127.25 94.58% 320815.00
parties
7) Other receivables are presented due to centralized fund management
3. Long-term equity investment
In RMB Yuan
Ending balance Opening balance
item Reserve Reserve
Book balance for Book value Book balance forimpairmen impairmen Book value
t t
Invest in
subsidiaries 226488897.67 226488897.67 226488897.67 226488897.67
total 226488897.67 226488897.67 226488897.67 226488897.67
(1) Investment in subsidiaries
In RMB Yuan
Impairme Changes in the current periodOpening Closing Impairmeninvestee balance nt reserve
Addition Reduce Provision balance t reserve
(book value) beginning
al
investm investme
for other (book ending
balance impairme value) balance
ent nt nt
Wazhou
Liaoyang
bearing 32242259. 3224225
manufacturing 95 9.95
Co. LTD
Dalian Wazhou
precision motor 45478956. 4547895
automobile 37 6.37
bearing Co. LTD
Wazhou
precision
spherical roller
bearing 14876768 1487676
(Wafangdian) 1.35 81.35
limited liability
company
total 22648889 22648887.67 97.67
4. Operating income and operating costs
86Wafangdian Bearing Co. LTD 2025 Midyear Report
In RMB Yuan
item Current amount Amount incurred in the previous period
income cost income cost
Main business 1286564016.29 1135892058.76 1057439468.53 984316313.48
Other business 30344445.96 15971777.54 82194228.44 31265661.36
total 1316908462.25 1151863836.30 1139633696.97 1015581974.84
5. Investment income
In RMB Yuan
item Current amount Amount incurred in the previousperiod
Dividend income from investments in
other equity instruments during the 1002352.64 1000000.00
holding period
Proceeds from debt restructuring 4682444.26 4417269.14
Total 5684796.90 5417269.14
6. Others
XX.Supplementary information
1. Non-recurring profit and loss statement for the current period
□Applicable □ Not applicable
In RMB Yuan
item amount Instructions
Gain or loss on disposal of illiquid assets 106350.47
Government subsidies included in the profit and loss of the current period
(except government subsidies that are closely related to the normal operation
of the company comply with national policies and regulations enjoy in 2780427.53
accordance with determined standards and have a continuous impact on the
profit and loss of the company)
In addition to the effective hedging business related to the normal operation of
the company the profit or loss of fair value changes arising from the holding of
financial assets and financial liabilities by non-financial enterprises and the loss -4622.55
or gain arising from the disposal of financial assets and financial liabilities
Gains and losses on debt restructuring 8661904.04
Other non-operating income and expenditure other than those mentioned
above 106399.37
Other items of profit or loss that meet the definition of non-recurring profit or
loss 1002352.64
Less: Income tax impact 1906096.73
total 10746714.77 --
Details of other items of profit or loss that meet the definition of non-recurring profit or loss:
□ Applicable □Not applicable
The Company has no other specific circumstances that meet the definition of non-recurring profit or loss.The non-recurring profit and loss items listed in Explanatory Announcement No. 1 on Information Disclosure of Publicly
Issued Securities Companies - Non-recurring Profit and Loss are defined as the fact sheet of the regular profit and loss
items
□ Applicable □Not applicable
2. Return on equity and earnings per share
Reporting period profit Weighted average Earnings per share
return on equity Basic earnings per share Diluted earnings per share
(RMB/share) (RMB/share)
Net profit attributable to the
company's common -8.35% -0.0520 -0.0520
shareholders
87Wafangdian Bearing Co. LTD 2025 Midyear Report
Net profit attributable to the
company's common
shareholders after deducting -11.17% -0.0787 -0.0787
non-recurring gains and losses
88
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