Full text of wafangdian Bearing Co. LTD. 2026 first quarter report

Stock Code: 000706 Notice No.: 2026-17 Short Form of the Stock: Wazhou B

Wafangdian Bearing Company Limited

The First Quarterly Report of 2026

The Company and whole members of the Board guarantee that the information disclosed is true accurate and

complete and there are no fictitious records misleading statements or material omissions carried in the Report.Important Note:

1. Board of Directors and the Supervisory Committee of Wafangdian Bearing Company Limited (hereinafter

referred to as the Company) and its directors supervisors and senior executives should guarantee the reality

accuracy and completion of the quarterly report there are no any fictitious statements misleading statements or

important omissions carried in this report and shall take legal responsibilities individual and/or joint.

2. Person in charge of the Company head of accounting and person in charger of accounting organ (accounting

officer) hereby confirm that the financial information of this Quarterly Report is authentic accurate and complete.

3. The first quarterly report audited or not

□Yes √No

I. Main financial data

(i) Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data or not

□Yes√ No

Changes of this period over

Current Period Same period of last year

same period of last year（%）

Operating income (yuan) 570327865.59 670576656.24 -14.95%

Net profit attributable to shareholders of

-957220.77-7775309.0487.69%

the listed company (yuan)

Net profit excluding non-recurring gains

and losses attributable to shareholders of -6972276.08 -14549594.19 52.08%

the listed company (yuan)

Net cash flow from operating activities

1584236.1627045356.92-94.14%

(yuan)

Basic earnings per share (yuan/share) -0.0024 -0.0193 87.56%

Diluted earnings per share (yuan/share) -0.0024 -0.0193 87.56%

Weighted average return on equity -0.48% -3.02% 2.54%

Changes of this period-end

End of this period End of last period over same period-end of last

year (%)

Total assets (yuan) 2752217280.76 2787274723.39 -1.26%

Owners' equity attributable to

198718472.94199023958.34-0.15%

shareholders of the listed company (yuan)

1Full text of wafangdian Bearing Co. LTD. 2026 first quarter report

(ii) Items of non-recurring gains and losses

√ Applicable □Not applicable

Unit: RMB/CNY

Item Current amount Note

Gains and losses from disposal of non-current assets (including the write-off portion of

91622.26

the provision for asset impairment)

Government subsidies included in the current profit and loss (except for government

subsidies that are closely related to the company's normal business operations comply

1581667.74

with national policies and regulations enjoy according to established standards and

have a continuous impact on the company's profit and loss)

Except for the effective hedging operations related to the normal business operations

of the company the gains and losses arising from the changes in the fair value of

-6163.41

financial assets and financial liabilities held by non-financial enterprises as well as the

gains and losses resulting from the disposal of financial assets and financial liabilities

Debt restructuring gains and losses 3981829.64

Other non-operating income and expenses not covered by the above items 366099.08

amount to 6015055.31 --

Other specific information about profit and loss items that meet the definition of non-recurring profit and loss

□ Applicable□Not applicable

The company does not have other specific information about profit and loss items that meet the definition of

non-recurring profit and loss.A description of the situation in which the items of non-recurring gains and losses listed in Interpretative

Announcement No.1 on Information Disclosure of Publicly Issued Securities —— Non-recurring Gains and

Losses are defined as items of recurring gains and losses

□ Applicable □ Not applicable

The company does not define the items of non-recurring gains and losses listed in the Interpretative

Announcement No.1 on Information Disclosure of Publicly Issued Securities —— Non-recurring Gains and

Losses as items of recurring gains and losses.(iii) Circumstances and reasons for changes in major accounting data and financial indicators

√ Applicable □Not applicable

Unit: RMB/CNY

Amount

2026.01.01-

ofsame Increase

2026.03.31/ Amount of

period last and

Number Item End-of- increase or Explanation of change

year / decrease

period decrease

Initial ratio

amount

numbers

Mainly affected by the reduction in the portion of VAT

Other

1 174 398 -224 -56.3% carry-forward deduction recorded as other income compared

income

to the same period

Credit Mainly due to the write-off of bad debts and credit

2 impairme 16 27 -11 -40.6% impairment losses corresponding to the collection of

nt Loss accounts receivable and bills

Non- 1. Penalty income increased by 170000 yuan compared to

3 operating 38 13 25 190.7% the same period; 2. Other income increased by 80000 yuan

income compared to the same period.Non- 1. Non-current asset disposal losses decreased by 250000

4 operating 2 32 -31 -94.9% yuan compared to the same period; 2. Penalty expenses

expenses decreased by 15000 yuan compared to the same period and

2Full text of wafangdian Bearing Co. LTD. 2026 first quarter report

other expenses decreased by 45000 yuan compared to the

same period.Net cash

flow

generate

Operating inflows decreased by 56.15 million yuan year-on-

d from

year (mainly due to a decrease of 42.91 million yuan in cash

operating

received from selling goods and providing services);

5 activities 158 2705 -2546 -94.1%

Operating outflows decreased by 30.69 million yuan year-on-

Net cash

year (mainly due to a decrease of 30.43 million yuan in cash

flow

paid for purchasing goods and receiving services)

from

investing

activities

Investment cash inflows decreased by 1.05 million yuan

Net cash year-on-year (mainly due to a decrease of 1.05 million yuan

flow in the net cash received from the disposal of fixed assets

6 from 100 187 -86 -46.3% intangible assets and other long-term assets); Investment cash

financing outflows decreased by 180000 yuan year-on-year (mainly

activities due to a decrease of 180000 yuan in cash paid for the

construction of fixed assets)

Financing cash inflows decreased by 140.23 million yuan

year-on-year (mainly due to a decrease of 162 million yuan

Other in cash received from obtaining loans and an increase of

7 receivabl 140 -11827 11966 -101.2% 2.177 million yuan in other financing-related cash inflows);

es Financing cash outflows decreased by 259.89 million yuan

year-on-year (mainly due to a decrease of 17.542 million

yuan in cash paid for other financing-related expenses)

The reserve funds of the business division and regional

Notes headquarters increased by 1.74 million yuan compared to the

81690106362759.0%

payable beginning of the year and the guarantee funds increased by

2.97 million yuan compared to the beginning of the year.

Wages

9 5080 37 5043 13607.7% Affected by the payment of invoices to suppliers

payable

Mainly due to the accrual of bonuses and other expenses in

Other

10 2518 4906 -2388 -48.7% the previous year and their actual distribution in the current

income

year

II. Shareholder information

(i)The total number of ordinary shareholders the number of preferred shareholders whose voting rights

have been restored and a statement of the holdings of the top 10 shareholders

Unit: share

Total preference shareholders with voting

Total number of common shareholders at the

2774 rights recovered at end of reporting period (if 0

end of report period

applicable)

Top ten shareholders(excluding shares lent through refinancing)

Amount Information of shares pledged

Proportion of non- tagged or frozen

Nature of Amount of shares

Shareholder’s name of shares tradable

shareholder held

held shares State of share Amount

held

Wafangdian Bearing State-owned legal 244000

74.15% 298524555 inapplicability 0.00

Group Corp. Ltd. person 000

Dalian Youth other 19.70% 79300000 0 inapplicability 0.00

Development

3Full text of wafangdian Bearing Co. LTD. 2026 first quarter report

Foundation

Overseas legal

Wang Xiao 0.19% 774420 0 inapplicability 0.00

person

Domestic natural

Chen Peng 0.18% 738100 0 inapplicability 0.00

person

Domestic natural

Jiang Guangsen 0.17% 700000 0 inapplicability 0.00

person

Bocom International Foreign legal

0.14% 575068 0 inapplicability 0.00

Securities Co. LTD person

Foreign legal

Li Zhijun 0.14% 573764 0 inapplicability 0.00

person

Domestic natural

Zhou Yan 0.12% 463700 0 inapplicability 0.00

person

Foreign legal

Zhou Mei 0.11% 443620 0 inapplicability 0.00

person

Domestic natural

Yang Yiguang 0.11% 437811 0 inapplicability 0.00

person

Top ten shareholders with tradable shares held

Type of shares

Shareholder’s name Amount of listed shares held

Type Amount

Domestically listed

Dalian Youth Development Foundation 79300000 79300000

foreign shares

Domestically listed

Wafangdian Bearing Group Corp. Ltd. 54524555 54524555

foreign shares

Domestically listed

Wang Xiao 774420 774420

foreign shares

Domestically listed

Chen Peng 738100 738100

foreign shares

Domestically listed

Jiang Guangsen 700000 700000

foreign shares

Domestically listed

Bocom International Securities Co. LTD 575068 575068

foreign shares

Domestically listed

Li Zhijun 573764 573764

foreign shares

Domestically listed

Zhou Yan 463700 463700

foreign shares

Domestically listed

Zhou Mei 443620 443620

foreign shares

Domestically listed

Yang Yiguang 437811 437811

foreign shares

Among the top ten shareholders there is no affiliation or

concerted action between the first majority shareholder and

other shareholders or the top ten outstanding shareholders;

Explanation on associated relationship among the aforesaid Affiliation or concerted action among other shareholders

shareholders among the top ten outstanding shareholders and between

the top ten outstanding shareholders and other

shareholders are not available.Description of the top 10 shareholders' participation in

None

margin trading (if any)

4Full text of wafangdian Bearing Co. LTD. 2026 first quarter report

Shareholders holding more than 5% the top 10 shareholders and the top 10 shareholders of unlimited tradable

shares participate in the refinancing business to lend shares

□ Applicable √ Not applicable

The top 10 shareholders and the top 10 shareholders of unlimited outstanding shares have changed from the

previous period due to refinancing lending/restitution reasons

□ Applicable √ Not applicable

(ii) Total shareholders with preferred stock held and shares held by top ten shareholders with preferred

stock held

□ Applicable √ Not applicable

III. Other important matters

□ Applicable □ Not applicable

In recent years due to the impact of the global economic recession economic restructuring and other factors

Wazhou B has suffered consecutive annual losses and its operating conditions have been deteriorating. Since

2025 the superposition of multiple adverse factors has further restricted the company's operations and its

financial risks continue to increase. If this situation persists it will inevitably intensify the company's operating

risks. Taking all factors into consideration Wazhou Group as the controlling shareholder of Wazhou B intends

to initiate a general offer to all holders of unrestricted tradable shares for the purpose of terminating the listing

status of Wazhou B so as to fully protect the interests of Wazhou B's shareholders and demonstrate the

responsibility of a state-owned enterprise.On January 19 2026 Wazhou Group disclosed the "Wafangdian Bearing Co. Ltd. Takeover Offer Report"

with the offer period from January 20 2026 to February 27 2026. The condition for the offer to become

effective is that as of 15:00 on the last trading day of the effective period of this takeover offer the number of

Wazhou B public shares temporarily deposited with the Shenzhen Branch of China Securities Depository and

Clearing Corporation Limited pursuant to accepted offers exceeds 39050000 shares meaning that after the

acquisition the number of Wazhou B public shares held by the public as a percentage of total share capital falls

below 10%. According to the listing rules of the Shenzhen Stock Exchange Wazhou B would no longer meet

the listing requirements and thus the offer would become effective.As of February 27 2026 there were 1459 shareholders who accepted the offer for Wazhou B with a total of

54524555 unrestricted tradable public shares accepted. According to the effective conditions set out in the

"Wafangdian Bearing Co. Ltd. Takeover Offer Report" the offer has become effective.The number of shares held by the public as a percentage of the company's total share capital is below 10%. In

accordance with the Securities Law the Shenzhen Stock Exchange Listing Rules and other relevant regulations

the company's share distribution no longer meets the listing requirements. The company will follow the relevant

procedures to delist its shares and issue corresponding announcements.

5Full text of wafangdian Bearing Co. LTD. 2026 first quarter report

IV. Quarterly financial statements

(i) Financial statement

1. Consolidate Balance Sheet

Prepared by Wafangdian Bearing Company Limited

Unit: RMB/CNY

Project Ending balance Beginning balances

Current assets

Monetary funds 68264993.90 65287519.84

Settle the reserve fund

Set aside funds

Trading financial assets 240372.81 246536.22

Derivative financial assets

Notes receivable 511948312.44 500110673.70

Accounts receivable 900445188.18 872114645.31

Financing of receivables 85734336.52 64928833.08

Advance payment 8727482.68 9287712.68

Premium receivable

Reinsured accounts receivable

Reserves receivable from reinsurance contracts

Other receivables 16900535.50 10631908.31

Among them: Interest receivable

Dividends receivable

Purchase resale financial assets

Inventory 574434526.76 636325993.85

Among them: Data resources

Contract assets 5258761.24 5258761.24

Hold assets for sale

Non-current assets due within one year

Other current assets 23411576.89 50298808.19

Total current assets 2195366086.92 2214491392.42

Non-current assets

Issue loans and advances

Debt investment

Other debt investments

Long-term receivables

Long-term equity investment

Investments in other equity instruments 8705393.14 8705393.14

Other non-current financial assets

Investment real estate 72530927.17 73919295.42

Fixed assets 391728799.03 406111493.56

Construction in progress 11393541.06 10513430.99

Productive biological assets

Oil and gas assets

Right-of-use assets

Intangible assets 65429209.57 66301236.59

Among them: Data resources

Development expenditure

Among them: Data resources

Goodwill

Long-term deferred expenses 6780423.87 6949581.27

Deferred income tax assets

Other non-current assets 282900.00 282900.00

Total non-current assets 556851193.84 572783330.97

Total assets 2752217280.76 2787274723.39

Current liabilities

6Full text of wafangdian Bearing Co. LTD. 2026 first quarter report

Short-term borrowing 82053118.00

Borrow from the central bank

Withdraw funds

Transactional financial liabilities

Derivative financial liabilities

Notes payable 50800397.50 370597.50

Accounts payable 1255754881.83 1261731806.69

Advance receipt

Contract liability 23825411.28 31776246.33

Funds for selling and repurchasing financial assets

Deposit absorption and interbank placement

Act as an agent for the trading of securities

Act as an agent for underwriting securities funds

Employee compensation payable 25183580.66 49061641.96

Taxes payable 5152819.21 8932707.47

Other payables 670885988.38 587079378.98

Among them: Interest payable

Dividends payable

Payable handling fees and commissions

Reinsured accounts payable

Hold liabilities for sale

Non-current liabilities due within one year

Other current liabilities 423924311.95 469016692.21

Total current liabilities 2455527390.81 2490022189.14

Non-current liabilities

Insurance contract reserve

Long-term borrowing

Bonds payable

Among them: Preferred stock

Perpetual bond

Lease liability

Long-term payables 344974.84 344974.84

Long-term employee compensation payable

Estimated liabilities 62972958.86 62247622.41

Deferred income 33864694.47 34847189.82

Deferred income tax liability 788788.84 788788.84

Other non-current liabilities

Total non-current liabilities 97971417.01 98228575.91

Total liabilities 2553498807.82 2588250765.05

Owner's equity

Equity capital 402600000.00 402600000.00

Other equity instruments

Among them: Preferred stock

Perpetual bond

Capital reserve 485691050.47 485691050.47

Reduce: Inventory stocks

Other comprehensive income -3201535.21 -3201535.21

Special reserve 2291586.34 1639850.97

Surplus reserve 136770391.01 136770391.01

General risk preparedness

Undistributed profit -825433019.67 -824475798.90

Total owner's equity attributable to the parent company 198718472.94 199023958.34

Minority shareholders' equity

Total owner's equity 198718472.94 199023958.34

Total liabilities and owner's equity 2752217280.76 2787274723.39

Legal Representative: Wang Jiyuan Person in charge of accounting works: Sun Najuan Person in charge of accounting institute: Xuan Songtao

7Full text of wafangdian Bearing Co. LTD. 2026 first quarter report

2. Consolidated Profit Statement

Unit: RMB/CNY

Current period occurrence

item Prior-period amount

amount

I. Total operating Revenue 570327865.59 670576656.24

Among them: Operating income 570327865.59 670576656.24

Interest income

Earned premiums

Fee and commission income

Ii. Total Operating Cost 578620784.00 688835994.70

Among them: Operating costs 492686747.02 602753886.40

Interest expense

Handling fee and commission expenses

Surrender payment

Net compensation expenses

Extract the net amount of insurance liability reserves

Policy dividend expenditure

Reinsurance fee

Taxes and surcharges 2589956.99 5389982.47

Sales expenses 30479062.34 29639562.51

Administrative expenses 31194852.67 28330100.37

Research and development expenses 17484516.92 17941234.44

Financial expenses 4185648.06 4781228.51

Among them: Interest expense

Interest income

Add: Other income 1740623.61 3983024.89

Investment income (losses are indicated by a "-" sign) 4985357.95 6120034.62

Among them: Investment income from associated enterprises

and joint ventures

The gains of financial assets measured at amortized cost are

derecognized

Exchange gains (losses are indicated by a "-" sign)

Net exposure hedging gain (losses are indicated by a "-" sign)

Gains from changes in fair value (losses are indicated by a "-"

-6163.41

sign)

Credit impairment loss (losses are indicated by a "-" sign) 158158.15 266214.00

Impairment loss of assets (losses are indicated by a "-" sign)

Gains from asset disposal (losses are indicated by a "-" sign) 91622.26 307669.51

Iii. Operating Profit (Losses are indicated by a "-" sign) -1323319.85 -7582395.44

Add: non-operating income 382655.35 131622.66

Decrease: Non-operating expenses 16556.27 324536.26

Iv. Total Profit (Total loss is indicated by a "-" sign) -957220.77 -7775309.04

Reduction: Income tax expense

V. Net Profit (Net loss is indicated by a "-" sign) -957220.77 -7775309.04

(1) Classification by business continuity

1.Net profit from continuing operations (Net loss is indicated

-957220.77-7775309.04

by a "-" sign)

2. Net profit from termination of operations (Net loss is

indicated by a "-" sign)

(2) Classification by ownership

1.Net profit attributable to the owners of the parent company -957220.77 -7775309.04

2. Minority shareholders' gains and losses

Vi. Net after-tax amount of other comprehensive income

The net after-tax amount of other comprehensive income

attributable to the owners of the parent company

(1) Other comprehensive income that cannot be reclassified

8Full text of wafangdian Bearing Co. LTD. 2026 first quarter report

into profit or loss

1.Remeasure the change in the defined benefit plan

2.Other comprehensive income that cannot be converted to

profit or loss under the equity method

3. Changes in the fair value of other equity instrument

investments

4. Changes in the fair value of the enterprise's own credit risk

5. Others

(2) Other comprehensive income that is reclassified into

profit or loss

1.Other comprehensive income that can be converted into

profit or loss under the equity method

2. Changes in the fair value of other debt investments

3.The amount of financial assets reclassified and included in

other comprehensive income

4.Credit impairment provisions for other debt investments

5. Cash flow hedging reserve

6. Translation differences of foreign currency financial

statements

7. Others

The net after-tax amount of other comprehensive income

attributable to minority shareholders

Vii. Total Comprehensive Income -957220.77 -7775309.04

The total comprehensive income attributable to the owners of

-957220.77-7775309.04

the parent company

The total comprehensive income attributable to minority

shareholders

Viii. Earnings per Share:

(1) Basic earnings per share -0.0024 -0.0193

(II) Diluting earnings per share -0.0024 -0.0193

Legal Representative:Wang Jiyuan Person in charge of accounting works: Sun Najuan Person in charge of accounting institute: Xuan Songtao

3. Consolidated Cash Flow Statement

Current period occurrence Prior-period

Item

amount amount

I. Cash flows generated from operating activities:

Cash received from the sale of goods and the provision of

183989282.43226902601.88

services

Net increase in customer deposits and interbank deposits

The net increase in borrowing from the central bank

The net increase in funds borrowed from other financial

institutions

Cash received from the premiums of the original insurance

contract

Received net cash from reinsurance business

Net increase in policyholders' savings and investment funds

Cash for receiving interest handling fees and commissions

Net increase in borrowed funds

Net increase in funds from the repurchase business

Net cash received from agency trading of securities

Tax and fee refunds received 1967533.59 8110763.01

Receive other cash related to business operations 5998912.23 13094062.54

Small amount of cash inflow from operating activities 191955728.25 248107427.43

Cash paid for purchasing goods and accepting services 37586381.30 68023957.93

9Full text of wafangdian Bearing Co. LTD. 2026 first quarter report

Net increase in customer loans and advances

The net increase in deposits with the central bank and interbank

funds

Cash for paying the compensation of the original insurance

contract

Net increase in funds split out

Cash for paying interest handling fees and commissions

Cash for paying policy dividends

Cash paid to and on behalf of employees 110550629.87 110887416.76

All taxes and fees paid 10895327.55 23473285.35

Pay other cash related to business operations 31339153.37 18677410.47

Small amount of cash outflow from operating activities 190371492.09 221062070.51

Net cash flows generated from operating activities 1584236.16 27045356.92

Ii. Cash Flows generated from Investment Activities:

Recover the cash received from the investment

Cash received for obtaining investment income 1003528.31 1000000.00

Net cash recovered from the disposal of fixed assets intangible

1049200.00

assets and other long-term assets

Dispose of the net cash received by subsidiaries and other

business units

Receive other cash related to investment activities

Small amount of cash inflow from investment activities 1003528.31 2049200.00

Cash paid for the purchase and construction of fixed assets

181046.91

intangible assets and other long-term assets

Cash paid for investment

Net increase in pledged loans

Obtain the net cash paid by subsidiaries and other business units

Pay other cash related to investment activities

A small amount of cash outflow from investing activities 181046.91

Net cash flows generated from investment activities 1003528.31 1868153.09

Iii. Cash Flows generated from financing activities:

Absorb the cash received from investments

Among them: The cash received by the subsidiary from

absorbing the investment of minority shareholders

Obtain the cash received from the loan 162000000.00

Receive other cash related to fundraising activities 83501517.61 61731015.56

Small amount of cash inflows from financing activities 83501517.61 223731015.56

Cash paid for repaying debts 82000000.00 162000000.00

Cash for distributing dividends profits or paying interest 106235.56 4573640.17

Among them: dividends and profits paid by subsidiaries to

minority shareholders

Pay other cash related to financing activities 175424299.91

A small amount of cash outflow from financing activities 82106235.56 341997940.08

Net cash flows generated from financing activities 1395282.05 -118266924.52

Iv. The Impact of Exchange Rate Fluctuations on Cash and Cash

-3708.35377237.90

Equivalents

V. Net increase in cash and cash equivalents 3979338.17 -88976176.61

Add: Balance of cash and cash equivalents at the beginning of

63915460.74160907298.24

the period

Vi. Balance of cash and cash equivalents at the end of the period 67894798.91 71931121.63

Unit: RMB/CNY

(ii)The first implementation of the new accounting standards from 2026 to adjust the first

implementation of the financial statements at the beginning of the year related items

□ Applicable √ Not applicable

10Full text of wafangdian Bearing Co. LTD. 2026 first quarter report

(iii) Audit report

Whether the 1st quarterly report has been audited or not

□Yes √ No

The 1st quarterly report of the Company has not been audited.Board of Directors of

Wafangdian Bearing Company Limited

11