Wafangdian Bearing Company Limited 2026Midyear Report
Wafangdian Bearing Co. LTD
2026 Midyear Report
August 2026
1Wafangdian Bearing Company Limited 2026Midyear Report
Chapter I. Important notes contents and definitions
The board of directors the directors and senior managers of the company shall guarantee that the
contents of the semi-annual report are true accurate and complete without any false records misleading
statements or major omissions and shall bear individual and joint legal liabilities.Wang Jiyuan the person in charge of the company Sun Najuan the person in charge of the accounting
work and Xuan Songtao the person in charge of the accounting organization (the person in charge of the
accounting) declare that they guarantee the truthfulness accuracy and completeness of the financial report in
the semi-annual report.All directors have attended the meeting of the board of directors to review the semi-annual report.In the third section of this report "Management Discussion and Analysis" under "X. Risks Faced by the
Company and Countermeasures" the company has detailedly described the possible risks in its operations
and the countermeasures. Investors are kindly requested to pay attention to the relevant content.The company does not plan to distribute cash dividends do not send bonus shares do not increase
capital stock with accumulation fund.
2Wafangdian Bearing Company Limited 2026Midyear Report
Catalogue
Chapter I. Important notes contents and definition... 2
Glossary ............................................ 5
Chapter II.Company Profile .......................... 6
Chapter III Management Discussion and analysis ...... 9
I. Major business of the Company during the report... 9
IV. Analysis of non-main business .................. 11
V. Analysis of assets and liabilities .............. 11
VI. Analysis of investment status ...................12
Chapter IV Corporate governance environment and so...14
Chapter V Important Matters .........................16
Chapter VI Change of Shares and Particulars about .. 23
Chapter VII Related Situation of bonds ..............26
Chapter VIII Financial Reports ..................... 27
III. Basic information of the company ...............47
3Wafangdian Bearing Company Limited 2026Midyear Report
File directory for future reference
(1) The 2026 half-year financial statement of the Company containing the signature and seal of the
legal representative the person in charge of accounting and the person in charge of accounting;
(2) the semi-annual report containing the signature of the legal representative of the company;
(3) Originals of all documents of the company publicly disclosed in newspapers designated by the
CSRC during the reporting period and manuscripts of announcements.
4Wafangdian Bearing Company Limited 2026Midyear Report
Glossary
Terms Defined as Description
Companythe Company Defined as Wafangdian Bearing Company Limited
Wazhou Group Defined as Wafangdian Bearing Group Company
the report period the current period Defined as January 12026–June 302026
Liaozhou Co.Ltd Defined as Wazhou Liaoyang Bearing Manufacture Co.Ltd
Dalian motor Defined as Dalian motor Bearing Co.Ltd
SRB company Defined as Wazhou spherial roller bearing company limited
The Board of Directors Defined as Wafangdian Bearing Company Limited The Board ofDirectors
The Shareholders’ Meeting Defined as Wafangdian Bearing Company Limited TheShareholders’ Meeting
SZSE Defined as Shen Zhen Stock Exchange
SRC Defined as China Securities Regulatory Commission
5Wafangdian Bearing Company Limited 2026Midyear Report
Chapter II.Company Profile
I. Company Information
Abbreviated name of the stock Wazhou B Stock code: 200706
Listing location of the Company’s
stock: Shenzhen Stock Exchange
Chinese name of the Company 瓦房店轴承股份有限公司
Abbreviation of Chinese name 瓦轴股份公司
English name of the Company Wafangdian Bearing Company Limited
Abbreviation of English name WBC
Legal representative of the
Company Wang Jiyuan
II.Contacts
Secretary of the Board Representative of Stock Affairs
Name Sun Najuan Ke Xin
Correspondence address No. 1 Beigongji Street Wafangdian City No. 1 Beigongji Street Wafangdian CityLiaoning Province China. Liaoning Province China.Consulting telephone 0411-62198008 0411-62198236
Fax 0411-62198333 0411-62198333
E-mail zwz2308@126.com zwz2308＠126.com
III.Other information
1. Company contact information
The company's registered address office address and its postal code the company's website address E-mail box during the reporting period
whether changes
□ Applicable□ Inapplicable
The company's registered address office address and its postal code company's website address and E-mail address will not change during the
reporting period. Please refer to the 2025 Annual Report for details.
2. Information disclosure and storage location
Whether the location of information disclosure and storage changes during the reporting period
□ Applicable□ Inapplicable
The name of the information disclosure newspaper selected by the company and the website designated by China Securities Regulatory
Commission to publish the semi-annual report. The reporting period of the preparation place of the semi-annual report of the company remains
unchanged for details please refer to the 2025 annual report.
3. Other relevant information
Whether other relevant information has changed during the reporting period
□ Applicable□ Inapplicable
IV. Main accounting data and financial indicators
Whether the company needs to retroactively adjust or restate the previous year's accounting data
□ Yes □ No
This reporting
period the same period of last year
This report period is an increase or
decrease over the same period last year
Operating income (yuan) 1184970752 1330615217.48 -10.95% 1184970752.18.18
Net profit attributable to
shareholders of the listed 7324544.44 -20930911.54 134.99% 7324544.44
company (yuan)
6Wafangdian Bearing Company Limited 2026Midyear Report
Net profit attributable to
shareholders of the listed
company after deducting non- -8225520.72 -31677626.31 74.03% -8225520.72
recurring gains and losses
(yuan)
Net cash flows from operating
activities (yuan) 44857385.39 239656451.73 -81.28% 44857385.39
Basic earnings per share
(yuan/share) 0.0182 -0.0520 135.00% 0.0182
Diluted earnings per share
(yuan/share) 0.0182 -0.0520 135.00% 0.0182
Weighted average return on
net assets 3.60% -8.35% 11.95% 3.60%
End of the The increase or decrease at the end of
reporting period End of the previous year this reporting period compared with theend of the previous year
Total assets (yuan) 2812706446 2787274723.39 0.91% 2812706446.27.27
Net assets attributable to
shareholders of the listed 208292211.0 199023958.34 4.66% 208292211.07
company (yuan) 7
V. Differences in accounting information under IAS and domestic accounting standard
1. At the same time differences in net profit and net assets in financial reports disclosed in accordance with international accounting standards and
Chinese accounting standards.□ Applicable□ Inapplicable
During the reporting period there is no difference between the net profit and net assets in the financial reports disclosed in accordance with
international accounting standards and Chinese accounting standards.
2. At the same time the differences of net profit and net assets in financial reports disclosed in accordance with overseas accounting standards and
Chinese accounting standards.□ Applicable□ Inapplicable
During the reporting period there is no difference between the net profit and net assets in the financial reports disclosed in accordance with
overseas accounting standards and Chinese accounting standards.VI. Non-recurring gain/loss items and amounts
□ Applicable□ Inapplicable
In RMB Yuan
item Amount Remarks
Gain or loss on disposal of illiquid assets (including the write-off of the asset impairment provision) 107376.24
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 2848445.accordance with determined standards and have a continuous impact on the profit and loss of the company) 24
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 -46225.55
and the loss or gain arising from the disposal of financial assets and financial liabilities
Gains and losses on debt restructuring 11092523.93
Other non-operating income and expenditure other than those mentioned above 1547945.
7Wafangdian Bearing Company Limited 2026Midyear Report
30
total 15550065.16
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
□ Applicable□ Not applicable
The Company has no other specific circumstances that meet the definition of non-recurring profit or loss.The company does not have other specific circumstances of profit and loss items that meet the definition of non-recurring profit and loss.The non-recurring profit and loss items listed in Explanatory Announcement No. 1 -- Non-Recurring Profit and Loss of Companies with Publicly
Issued Securities are defined as recurring profit and loss items
□ Applicable□ Not applicable
The company does not define the non-recurring profit and loss items listed in Explanatory Announcement No. 1 -- Non-Recurring Profit and Loss as
recurring profit and loss items.
8Wafangdian Bearing Company Limited 2026Midyear Report
Chapter III Management Discussion and analysis
I. Major business of the Company during the reporting period
The business scope of our company includes: permitted projects: inspection and testing services import and export of goods import and export of
technology (projects that must be approved by law can only be carried out after approval by relevant departments and the specific business items
are subject to the approval results). General projects: Bearing manufacturing manufacturing of bearings gears and transmission components
sales of high-speed precision heavy-duty bearings sales of bearings gears and transmission components bearing sales general equipment
manufacturing (excluding special equipment manufacturing) manufacturing of high-speed rail equipment and accessories mechanical equipment
sales sales of special equipment key systems and components for rail transit lubricating oil sales sales of high-speed rail equipment and
accessories Sales of wind turbine generators and their components sales of mechanical parts and components manufacturing of railway
locomotive and vehicle parts sales of railway locomotive and vehicle parts manufacturing of auto parts and accessories wholesale of auto parts
retail of auto parts repair of metal products sales of metal materials sales of metal products metal surface treatment and heat treatment
processing quenching processing Mechanical parts and components processing land use right leasing housing leasing non-residential real
estate leasing mechanical equipment leasing computer and communication equipment leasing transportation equipment leasing services office
equipment leasing services warehousing equipment leasing services special equipment leasing labor services (excluding labor dispatch)
Technical services technical development technical consultation technical exchange technical transfer and technical promotion (except for
projects that require approval in accordance with the law business activities are carried out independently based on the business license in
accordance with the law)
The company has strong production and manufacturing capabilities as well as quality assurance capabilities and provides extensive services to
various industries and fields such as railways metallurgy and mining.II. core competitiveness analysis
The Company boasts a comprehensive product and service system and round-the-clock dynamic on-site service capacity for product operation
scenarios. It has won wide recognition from customers thanks to its well-received "Ten Value-Added Services". Equipped with robust manufacturing
and quality assurance capabilities the Company provides extensive products and services covering various industries and sectors including railway
metallurgy and mining. The Company has established strategic cooperation partnerships with key clients in China’s domestic equipment application
sectors. By participating in customers’ value engineering projects to conduct in-depth marketing it has firmly built up its brand image and market
influence in China’s bearing industry.III. Analysis of main business
An overview of the
Please refer to the relevant content of "I. Main Business Engaged in by the Company during the Reporting Period".Major financial data year-on-year changes
In RMB Yuanthe current reporting Same period last (+/-）Compared with the
period year same period last year Cause of change
Operating income 1184970752.18 1330615217.48 -10.95%
Operating costs 1011570681.96 1150818592.31 -12.10%
Sales expenses 67420532.56 68478445.36 -1.54%
Administrative expenses 61463749.71 66239142.71 -7.21%
Financial expenses 8013671.18 6823106.07 17.45%
Research and development The main reason is a decrease in
investment 40530503.54 65781912.27 -38.39% the investment in research anddevelopment materials.
9Wafangdian Bearing Company Limited 2026Midyear Report
Net cash flows from 44857385.39 239656451.73 -81.28% The main reason is a year-on-yearoperating activities decline in operating inflows.Net cash flows from The main reason is a year-on-year
investing activities 997578.31 1675027.67 -40.44% decrease in cash inflows frominvestment activities.Net cash flows from The main reason is a year-on-year
financing activities 1395282.05 -330970961.67 100.42% decrease in cash outflows fromfinancing activities.The main reason is a significant
Net increase in cash and 47244551.76 -89254902.62 152.93% year-on-year increase in the netcash equivalents cash flow generated from financing
activities.The composition or source of profit of the company during the reporting period has undergone major changes
□ Applicable□ Not applicable
There was no significant change in the composition or source of profits during the reporting period.Composition of operating revenue
In RMB Yuanthe current reporting period Same period last year (+/-）Compared
Proportion of Proportion of with the same period
Amount Amount
operating income operating income last year
Total operating
1184970752.18100%1330615217.48100%-10.95%
Revenue
Industry-classified
exit 13337105.05 1.13% 34048195.13 2.56% -60.83%
Traffic bearing 199344967.80 16.82% 241794048.99 18.17% -17.56%
Special bearing 443003278.07 37.39% 507244225.22 38.12% -12.66%
Universal bearing 471279946.17 39.77% 474756237.71 35.68% -0.73%
Industrial work and
26652110.272.25%39682188.412.98%-32.84%
semi-finished products
Other business 31353344.82 2.65% 33090322.02 2.49% -5.25%
Products-classified
bearing 1126965297.09 95.10% 1257842707.05 94.53% -10.40%
Industrial work and
26652110.272.25%39682188.412.98%-32.84%
semi-finished products
Other business 31353344.82 2.65% 33090322.02 2.49% -5.25%
Region-classified
home 1171633647.13 98.87% 1296567022.35 97.44% -9.64%
abroad 13337105.05 1.13% 34048195.13 2.56% -60.83%
The industry product or region that accounts for more than 10% of the company's operating revenue or profit
□ Applicable □ Not applicable
In RMB Yuan
Operating Operating costs Gross profit margin
Gross income increased or increased or
Operating income Operating cost profit compared with decreased compared decreased compared
margin the same to the same period of to the same period of
period last year the previous year the previous year
Industry-classified
exit 13337105.05 9336615.10 30.00% -60.83% -67.68% 14.85%
10Wafangdian Bearing Company Limited 2026Midyear Report
Among them: 199344967.8 178620681.7
traffic bearings 10.40% -17.56% -17.04% -0.56%0 1
Special bearing 443003278.0 368118191.7 16.90% -12.66% -14.14% 1.42%
77
Universal bearing 471279946.1 425884071.2 9.63% -0.73% -1.76% 0.95%
70
Industrial work and
semi-finished 26652110.27 13069783.04 50.96% -32.84% -47.36% 13.53%
products
Other business 31353344.82 16541339.14 47.24% -5.25% -15.28% 6.25%
Points products
bearing 1126965297 981959559.7 12.87% -10.40% -11.25% 0.84%.098
Industrial work and
semi-finished 26652110.27 13069783.04 50.96% -32.84% -47.36% 13.53%
products
Other business 31353344.82 16541339.14 47.24% -5.25% -15.28% 6.25%
Classification by region
domestic 1171633647 1002234066 14.46% -9.64% -10.67% 0.99%.13.86
foreign 13337105.05 9336615.10 30.00% -60.83% -67.68% 14.85%
In case of any adjustment of the statistical caliber of the company's main business data during the reporting period the company's main business
data in the latest period shall be adjusted according to the caliber of the end of the reporting period
□ Applicable□ Not applicable
IV. Analysis of non-main business
□ Applicable□ Not applicable
V. Analysis of assets and liabilities
1. Major changes in asset composition
In RMB Yuan
the current reporting period Same period last year
Proportion of The proportion Note on Major
Amount operating Amount Proportion of of increase and Changes
income operating income decrease
Monetary funds 111531042.25 3.97% 65287519.84 2.34% 1.63%
Accounts
receivable 927360217.84 32.97% 872114645.31 31.29% 1.68%
Contract assets 5258761.24 0.19% 5258761.24 0.19% 0.00%
Inventory 551851868.43 19.62% 636325993.85 22.83% -3.21%
Investment
property 71142558.97 2.53% 73919295.42 2.65% -0.12%
Long-term equity
investment 0.00 0.00%
Fixed assets 382146917.75 13.59% 406111493.56 14.57% -0.98%
Construction in
progress 7268202.66 0.26% 10513430.99 0.38% -0.12%
Right-of-use
assets 0.00% 0.00%
Short-term
borrowing 0.00% 82053118.00 2.94% -2.94%
Contract liabilities 36573801.46 1.30% 31776246.33 1.14% 0.16%
Long-term loan 0.00% 0.00% 0.00%
Lease liability 0.00% 0.00%
2. Main overseas assets
□ Applicable□ Inapplicable
3. Assets and liabilities measured at fair value
□ Applicable□ Inapplicable
11Wafangdian Bearing Company Limited 2026Midyear Report
In RMB Yuan
Changes in Changes Impairment
item Opening fair value for in the of the
Current Current Other
balance the current accumulated fair current purchase sale changes item
period value of an equity period amount amount
Financial assets
1. Trading
financial assets
(excluding 246536. - 200310.6366722.63
derivative 22 46225.55 7
financial assets)
4. Other equity
instrument 870539 8705393
investments 3.14 .14
Total financial 895192 - 8905703
assets 366722.63 0.00 0.00 0.00 0.009.36 46225.55 .81
The above total 895192 - 8905703366722.63 0.00 0.00 0.00 0.00
9.3646225.55.81
financial
liabilities 0.00 0.00
Other changes
none
Whether the measurement attributes of the company's main assets have changed significantly during the reporting period
□ Yes □ No
4. Limitation of asset rights at the end of the report period
Project terminal The end of last year
book balance book value Restricted "Restricted situation book balance book value Restrictive Limitedtype types circumstances
Other Margin/SDN
Monetary Margin/SDN Other monetary
funds 672447.89 672447.89
monetary
funds / bank sanctions freeze or 1642200.30 1642200.30 funds / bank
sanctions freeze
or litigation
deposits litigation involved deposits involved
Accounts
Receivable 439887711.54 439887711.54 See Section Expired6 (3) endorsement 405338560.48 405338560.48
See Section 6 Expired
Bills (3) endorsement
Accounts
Receivable 59027915.58 59027915.58
Supply Expired
chain bills endorsement 59547219.71 59547219.71
Supply chain Expired
bills endorsement
In total 499588075.01 499588.075.01 466527980.49 466527980.49
VI. Analysis of investment status
1. The general situation
□ Applicable□ Inapplicable
2. Significant equity investment acquired during the reporting period
□ Applicable□ Inapplicable
3. Significant ongoing non-equity investments during the reporting period
□ Applicable□ Inapplicable
4. Investment in financial assets
(1) Securities investment
In RMB Yuan
Varieti Stock The Initial Accou Openi Chang Chang Curren Curren Report Ending Accou Sourcees of code securiti invest nting ng e in es in t t sale ing book nting s ofsecuriti es ment measu book fair the purcha amoun period value subject fundin
12Wafangdian Bearing Company Limited 2026Midyear Report
es referre cost rement value value cumul se t profit g
d to model for the ative amoun and
as" current fair t loss
period value
of
equity
Domes Chong Fair Transa
tic and 60100 qingiron 56703 value 24653
- - 20031 ctional debt-
foreign 5 3.30 measu 6.22 46225 36672 0.00 0.00 0.00 0.67 financi for-
stocks and rement .55 2.63 al equitysteel assets
Total 56703 -- 24653
--
3.306.2246225366720.000.000.00
20031----.552.630.67
(2) Derivative investment
□ Applicable□ Inapplicable
There were no derivatives investments during the reporting period.
5. Use of raised funds
□ Applicable□ Not applicable
There is no use of raised funds during the reporting period.VII Sale of major assets and shares
1. Sale of major assets
□ Applicable□ Inapplicable
No significant assets were sold during the reporting period.
2. Sale of major equity
□ Applicable□ Inapplicable
VII.Analysis of major holding companies
□ Applicable□ Inapplicable
During the reporting period the company has no important information about the holding and shareholding company that should be disclosed.The main subsidiaries and the shareholding companies that have more than 10% impact on the company's net profit
In RMB Yuan
The name of the The The main The Total Operating Operating
company companytype business
registered Net worth
capital assets income profit
Net profit
Wazhou Production and
liaoyang bearing subsidiar sales of bearings 1935000 225685 -67682038. 54795394. 3025151.1 3177391.2manufacturing y and mechanical 0.00 626.23 31 4 7
co. LTD manufacturing 88
Dalian wazhou
precision motor subsidiar Production and 1000000 118770 - 39546789.car bearing co. y sales of bearings 0.00 162.25 86317785. 74 -343247.82 -340682.48
LTD 16
Wazhou
precision
spherical roller subsidiar Produce and sell 1940000 212364 115257012 79876455.bearings y spherical roller 00.00 037.37 .12 70 355761.58 355761.58
(wafangdian) bearings
co. LTD
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable □ Not applicable
Description of main holding companies
13Wafangdian Bearing Company Limited 2026Midyear Report
IX. Structured subjects controlled by the company
□ Applicable□ Inapplicable
X. Risks faced by the Company and countermeasures
On January 152025 the company was added to the SDN List (Special Designated Nationals and Blocked Persons List) by the U.S. Treasury
Department's Office of Foreign Assets Control (OFAC). Entities on this list will face restrictions in transactions with U.S. entities overseas asset
transfers foreign exchange settlements partnerships financing and other related activities.Affected by relevant sanctions the company has faced intensified financing difficulties. Both domestic and overseas clients have experienced
declining procurement volumes or even halted purchases leading to mounting survival pressures. To alleviate operational strain the company has
implemented multiple effective measures: With support from stakeholders it has focused on acquiring new customers and boosting product gross
margins. Meanwhile active applications for working capital financing have been submitted to ensure stable business operations.XI. The formulation and implementation of the market value management system and the valuation
enhancement plan
Whether the company has established a market value management system.□ Yes□ No
Whether the company has disclosed plans to raise its valuation.□ Yes□ No
XII. Implementation of the "Quality Return Double Improvement" action plan
Whether the company disclosed the "quality return double improvement" action plan announcement.□ Yes□ No
Chapter IV Corporate governance environment and society
I. Changes of directors and senior managers of the company
□ Applicable□ Inapplicable
The company's directors and senior management personnel did not undergo any changes during the reporting period. For details please refer to
the 2025 annual report.II.Profit distribution and capital reserve conversion into share capital during the reporting period
□ Applicable□ Inapplicable
The company plans not to distribute cash dividends not to send bonus shares and not to convert the capital reserve into share capital every six
months.III. The implementation of the company's equity incentive plan employee stock ownership plan or other
employee incentive measures
□ Applicable□ Inapplicable
During the reporting period the company had no equity incentive plans employee stock ownership plans or other employee incentive measures
and their implementation status.Iv. Environmental Information Disclosure Situation
Whether the listed company and its major subsidiaries are included in the list of enterprises that disclose environmental information in accordance
with the law
□ Applicable□ Inapplicable
V. Social Responsibility Situation
The company earnestly fulfills its due social responsibilities. While pursuing economic benefits for the enterprise it actively assumes the
responsibilities that should be borne for the all-round development of the country and society the natural environment and resources as well as for
shareholders employees customers consumers suppliers communities and other stakeholders. It has realized the social value of the enterprise
14Wafangdian Bearing Company Limited 2026Midyear Report
and achieved a good win-win situation for the country society and stakeholders. Strengthening environmental protection enhancing resource
efficiency and influencing and driving local economic development through project construction and other means have effectively promoted the
coordinated development of the company with society nature and other stakeholders.The company strictly adheres to the relevant national and local laws regulations and document requirements to handle endowment insurance
unemployment insurance medical insurance work-related injury insurance maternity insurance housing provident fund and large medical mutual
aid insurance for its employees. Provide timely assistance and support to employees in difficulty. We have established and improved the
employment system including the salary system and incentive mechanism to ensure that employees enjoy their labor rights and fulfill their labor
obligations in accordance with the law. We have established and improved the labor safety and health system strictly implemented the national
labor safety and health regulations and standards provided labor safety and health education occupational protection and health check-ups for
employees offered them a healthy and safe working and living environment and prevented accidents during the labor process to the greatest
extent and reduced the hazards of occupational diseases.In its business operations the company adheres to the principles of voluntariness fairness equivalent compensation and good faith strictly
controls quality targets and ensures the provision of qualified products. The company's technical department is actively engaged in the
development of new products and new materials. The company guarantees that all the products or services it provides comply with relevant
national quality standards or have been certified by relevant national quality inspection departments and is actively applying for various third-party
certifications at home and abroad. The company attaches great importance to after-sales service for customers and properly handles complaints
and suggestions raised by customers and consumers. We strictly conducted third-party qualification reviews and on-site inspections of suppliers
selected qualified ones carefully understood their demands and actively created a favorable cooperative atmosphere.The company has dispatched village cadres to the surrounding areas of Dalian City to support rural construction assume social responsibilities
continuously strengthen village Party organizations and enhance Party building work. Promote the work of strengthening villages and enriching the
people implement projects benefiting farmers and increase the income of village collectives. Carry out village appearance improvement enhance
governance levels do a good job in publicity and supervision promptly organize the clearance of garbage sites improve the living environment
and build beautiful villages..
15Wafangdian Bearing Company Limited 2026Midyear Report
Chapter V Important Matters
I. Commitments made by the actual controller shareholders related parties acquirers and the company and other relevant parties to be fulfilled during the
reporting period and those that have not been fulfilled by the end of the reporting period
□ Applicable□ Inapplicable
Reasons for Committing Commitment Commitment Commitment Performance
Commitment content
commitment party type time period status
(I) Commitment on maintaining the independence of listed companies
I. Ensure the independence of personnel in listed companies:
1. Ensure that the senior management personnel of the listed company such as the general
manager deputy general manager financial officer and secretary of the board of directors do
The
not hold positions other than directors and supervisors in the company and other enterprises
commitment
controlled by the company (excluding the listed company and the enterprises controlled by it
regarding
the same below) and do not receive salaries in other enterprises controlled by the company;
maintaining
Ensure that the financial personnel of the listed company do not hold concurrent positions or
the
receive salaries in other enterprises controlled by the company. 2. Ensure that the labor
independenc
personnel relations and salary management system of the listed company are independent
e of the
from the company and other enterprises controlled by the company; 3. The nomination of
listed
The candidates for directors supervisors general managers and other senior management
company;
commitments Dalian personnel by the Company and other enterprises controlled by the Company to the listed
2.
made in the Heavy company shall be carried out through legal procedures and personnel appointment and
Commitment
acquisition Industry removal decisions shall not be made beyond the board of directors and shareholders' meeting Long-term Strictly
on reducing 2024/08/26
report or the Equipment of the listed company. effectiveness implement
and
report on Group Co. II. Ensuring the independence of assets of listed companies:
regulating
changes in LTD 1. Ensure that the listed company has an independent business system related to its operations
related-party
equity and related independent and complete assets; 2. Ensure that the funds assets and other
transactions;
resources of listed companies are not illegally occupied; 3. Ensure that the assets of the listed
3.
company are not used to provide illegal guarantees for the debts of the company and other
Commitment
enterprises controlled by the company.on avoiding
III. Ensuring the financial independence of listed companies:
competition
1. Ensure that the listed company establishes an independent financial department and
within the
independent financial accounting system and has a standardized and independent financial
same
accounting system; 2. Ensure that the listed company independently opens bank accounts and
industry.does not share bank accounts with the company and other enterprises controlled by the
company; 3. Ensure that listed companies pay taxes independently in accordance with the law;
4. To ensure that listed companies can make independent financial decisions our company
does not illegally interfere in the use of funds by listed companies.
16Wafangdian Bearing Company Limited 2026Midyear Report
IV. Ensuring the institutional independence of listed companies:
1. Ensure that the listed company establishes and improves the corporate governance structure
has an independent and complete organizational structure and there is no situation of
institutional confusion between this company and other enterprises controlled by this
company; 2. Ensure that the shareholders' meeting board of directors board of supervisors
independent directors senior management personnel etc. of the listed company independently
exercise their powers in accordance with laws regulations and the company's articles of
association.V. Ensuring the business Independence of Listed Companies:
1. Ensure that the listed company continues to have the assets personnel qualifications and
capabilities to carry out business activities independently and has the ability to operate
independently and continuously for the market; 2. Ensure that the Company and other
enterprises controlled by the Company avoid engaging in businesses that have substantive
competition with the main business of the listed company. If there is already competition in
the same industry commit to resolving it within a limited time. 3. Ensure that the related-party
transactions between the Company and other enterprises controlled by the company and the
listed company are minimized as much as possible; When conducting truly necessary and
unavoidable related-party transactions agreements will be signed in accordance with the law
and the necessary legal procedures will be fulfilled in accordance with relevant laws
regulations and the articles of association of the listed company.(II) Commitment on avoiding competition within the same industry
1.During the period when the Company is the indirect controlling shareholder of the listed
company the Company will take necessary and possible measures in accordance with the law
to prevent the Company and other enterprises controlled by the Company from engaging in
business or activities that constitute the same industry competition with the main business of
the listed company.
2. If the Company or other enterprises controlled by the Company obtain business
opportunities that constitute substantial competition in the same industry with the main
products of the listed company the Company will notify the listed company in writing and
make every effort to ensure that such new business opportunities are first provided to the
listed company or its holding enterprises on reasonable and fair terms and conditions. If the
listed company decides not to accept such new business opportunities the Company or other
enterprises controlled by the Company may accept such new business opportunities on their
own and engage in and operate such new businesses independently. If the regulatory authority
believes that the above-mentioned business conducted by the company or other enterprises
controlled by the company constitutes competition in the same industry with the main
business of the listed company or that the listed company and the enterprises controlled by it
intend to engage in the above-mentioned business Our company will adopt the methods
permitted by laws and regulations (including but not limited to asset injection trusteeship
17Wafangdian Bearing Company Limited 2026Midyear Report
asset transfer one party's cessation of related business adjustment of product structure
establishment of joint ventures etc.) to solve the problem.
3. The commitments made by our Company in avoiding and resolving competition in the same
industry are also applicable to other enterprises directly or indirectly controlled by our
Company. Our Company is obligated to supervise and ensure that such other enterprises
implement all the arrangements stated in the commitment letter and strictly abide by the
relevant commitments.(III) Commitment on reducing and regulating related-party transactions
1.After the completion of this transaction the acquirer and its other holding and participating
subsidiaries will strive to minimize and standardize related-party transactions with the listed
company and its holding enterprises.
2. For related-party transactions that cannot be avoided or occur for reasonable reasons the
acquirer and its other holding and participating subsidiaries will follow the principles of
market openness fairness and impartiality conduct them at fair and reasonable market prices
fulfill the decision-making procedures for related-party transactions in accordance with
relevant laws regulations and normative documents fulfill the obligation of information
disclosure in accordance with the law and handle the relevant approval procedures. It will not
take advantage of its position as an indirect controlling shareholder to infringe upon the
legitimate rights and interests of listed companies and other small and medium-sized
shareholders.
3. The acquirer guarantees that the above commitments will remain valid and irrevocable after
the completion of this transaction and during the period when the acquirer is the indirect
controlling shareholder of the listed company. In the event of any violation of the above
commitments the acquirer shall bear the losses caused to the listed company as a result.Whether the
commitment
YES
is fulfilled on
time.
18Wafangdian Bearing Co. LTD 2025 Midyear Report
II.Non-operational occupation of funds by controlling shareholders and other related parties of the
listed company
□ Applicable□ Inapplicable
During the reporting period there is no non-operational appropriation of funds by controlling shareholders and other related parties to the listed
company.III. Foreign guarantee in violation of regulations
□ Applicable□ Inapplicable
No violation of the company's external guarantee during the reporting period.IV.Employment and dismissal of accounting firms
Whether the semi-annual financial report has been audited
□ Yes □ No
The company's semi-annual report is unaudited.V. Explanations by the board of directors on the "non-standard audit Report" of the accounting firm
during the reporting period
□ Applicable□ Inapplicable
VI. Explanations by the Board of directors on the "non-standard audit Report" of the previous year
□ Applicable□ Inapplicable
VII. Bankruptcy reorganization related matters
□ Applicable□ Inapplicable
No bankruptcy reorganization related matters occurred during the company's reporting period.VIII. Litigation Matters
Major litigation and arbitration matters
□ Applicable□ Inapplicable
During the reporting period the company has no major litigation or arbitration matters.Other Litigation matters
□ Applicable□ Inapplicable
Amount Whetherprojected Progress of Litigation EnforcementBasic information of litigation involved (ten liabilities litigation (arbitration) of litigation Disclosure
Disclo
(arbitration) thousand are (arbitration) hearing results (arbitration) date
sure
Yuan) indexformed and impact judgments
Summary of other lawsuits that As of the
occurred during the reporting end of the
period which have been settled reporting34.02 Closed period all Has been Has been July 21by the end of this reporting period cases have completed completed 2026
/
and do not reach the standard for
disclosure of major lawsuits. beenclosed.Summary of other lawsuits that As of the
occurred during the reporting end of the Cases remain
period which have not been reporting Cases remain unresolved
settled by the end of this reporting 795.78 Open period unresolved as of as of the end July 21
period and do not reach the there are the end of the of the 2026
/
standard for disclosure of major still reporting period reporting
lawsuits. outstanding periodcases.IX. Punishment and rectification
□ Applicable□ Inapplicable
There is no punishment or rectification in the reporting period.X.The integrity status of the company and its controlling shareholders and actual controllers□
19Wafangdian Bearing Co. LTD 2025 Midyear Report
Applicable□ Inapplicable
XI. Major related Party Transactions
1. Related party transactions related to daily operations
□ Applicable□ Inapplicable
2. Related party transactions arising from the acquisition or sale of assets or shares
□ Applicable□ Inapplicable
During the reporting period of the company no related transactions of asset or equity acquisition or sale occurred.
3. Related party transactions of joint foreign investment
□ Applicable□ Inapplicable
During the reporting period the company has no related party transaction of joint foreign investment.
4. Associated creditor's rights and debt transactions
□ Applicable□ Inapplicable
There was no related creditor-debtor transactions during the reporting period of the company.
5. Dealings with related financial companies
□ Applicable□ Inapplicable
There is no deposit loan credit or other financial business between the company and its affiliated financial companies or related parties.
6. Transactions between financial companies controlled by the company and related parties
□ Applicable□ Inapplicable
There is no deposit loan credit or other financial business between the finance company controlled by the company and the related parties.
7. Other significant related party transactions
□ Applicable□ Inapplicable
For details on the routine related-party transactions please refer to the "Announcement on the Company's 2026 Routine Related-Party
Transactions Forecast" disclosed by the company on the Juchao Information Network on April 28 2026 as well as Section 8 Part 14 of this
report "Related Parties and Related Transactions" under "5. Transaction Details".For inquiries about the temporary report on major related-party transactions please visit the relevant website.Temporary Announcement Title Temporary announcement disclosure date Website name disclosed in the temporaryannouncement
Announcement on the Company's Estimated
Daily Transactions for 2026 April 28 2026 CNINFO (cninfo.com.cn)
XII. Major contracts and their performance
1.trusteeship contracting leasing matters
(1) Trusteeship
□ Applicable□ Inapplicable
There is no trusteeship situation during the reporting period of the company.
(2) Contracting situation
□ Applicable□ Inapplicable
There is no contract situation in the company's reporting period.
(3) Leasing situation
□ Applicable□ Inapplicable
Lease Situation Explanation
Our company has no significant lease contracts.
20Wafangdian Bearing Co. LTD 2025 Midyear Report
Projects that bring profits and losses to the company to reach more than 10% of the total profit of the company during the reporting period
□ Applicable□ Not applicable
During the reporting period there is no leasing project whose profit or loss for the company reaches more than 10% of the total profit of the
company.
2. Material guarantee
□ Applicable□ Not applicable
There is no major guarantee during the reporting period.
3. Entrust financial management
□ Applicable□ Not applicable
There is no entrusted financial management during the reporting period.
4. Other major contracts
□ Applicable□ Not applicable
There are no other major contracts in the reporting period.XIII.Registration Form for Activities such as Research Visits Communication and Interviews During
the Reporting Period
□ Applicable □ Not applicable
The main topics Index of the basic
Reception time Reception Reception Type of reception The person being discussed andLocation methods guests received the provided situation of the
materials research
Shenzhen Stock Online Shenzhen Stock
January 12th Exchange communication Individual Matters related to Exchange
2026 Interactive Easy via the network Individual investor the tender offer Interactive
Platform platform acquisition Platform
Shenzhen Stock Online Shenzhen Stock
January 26th Exchange communication Individual Individual
Matters related to Exchange
2026 Interactive Easy via the network investor the tender offeracquisition InteractivePlatform platform Platform
Shenzhen Stock Online Matters related to Shenzhen Stock
March 5 2026 Exchange communication Individual ExchangeInteractive Easy via the network Individual investor the tender offer Interactive
Platform platform acquisition Platform
Shenzhen Stock Online Matters related to Shenzhen Stock
June 24 2026 Exchange communication Individual Individual ExchangeInteractive Easy via the network investor the tender offer Interactive
Platform platform acquisition Platform
January 4 2026 Office Telephone Individual
Matters related to
communication Individual investor the tender offer NOacquisition
January 4th Office Telephone
Matters related to
2026 communication Individual
Individual
investor the tender offer NOacquisition
January 7th Office Telephone Individual
Matters related to
2026 communication Individual investor the tender offer NOacquisition
Matters related to
January 8 2026 Office Telephonecommunication Individual
Individual
investor the tender offer NOacquisition
Matters related to
January 9 2026 Office Telephone Individualcommunication Institution investor the tender offer NOacquisition
Telephone Individual Matters related toJanuary 13 2026 Office communication Individual investor the tender offer NOacquisition
January 19 2026 Office Telephone
Matters related to
communication Individual
Individual
investor the tender offer NOacquisition
May 12 2026 Office Telephonecommunication Individual
Individual Matters related to
investor the tender offer NO
21Wafangdian Bearing Co. LTD 2025 Midyear Report
acquisition
May 13 2026 Office Telephone Individual Individual
Matters related to
communication investor the tender offer NOacquisition
May 14 2026 Office Telephone Individual Individual
Matters related to
communication investor the tender offer NOacquisition
June 11 2026 Office Telephone Individual Individual
Matters related to
communication investor the tender offer NOacquisition
XIV. Explanation of other major matters
□ Applicable□ Not applicable
There are no other major matters that need to be explained during the reporting period.XV.Major matters of the company's subsidiaries
□ Applicable□ Not applicable
22Wafangdian Bearing Co. LTD 2025 Midyear Report
Chapter VI Change of Shares and Particulars about Shareholders
I. Changes in shares
1. Changes in shares
Unit:share
Before this change This change increases or decreases（＋－） After this change
Issuing Reserve
number proportion new Sendshares fund other
subtot
al number proportionshares conversion
I. Unlisted and
circulating shares 244000000.0 60.61%
244000000.
060.61%
1. Shares of the
sponsors 244000000.0 60.61%
244000000.
060.61%
Among them: the 244000000.state holds shares 244000000.0 60.61% 0 60.61%
The domestic legal
entity holds shares
Overseas legal
person holding
shares
other
2. Offering
corporate shares
3 internal labor
shares
4. Preferred stock
or other
II. Listed and 158600000.0 39.39% 158600000.circulating shares 0 39.39%
1. RMB ordinary
shares
2. Foreign capital
stocks listed in 158600000.0 39.39% 158600000. 39.39%
China 0
3. Foreign capital
stocks listed
abroad
4 other
III. Total number of 402600000.0 100.00% 402600000.shares 0 100.00%
Reasons for changes in shares
□ Applicable□ Inapplicable
Approval of changes in shares
□ Applicable□ Inapplicable
Changes in ownership of shares
□ Applicable□ Inapplicable
Implementation progress of share repurchase
□ Applicable□ Inapplicable
The implementation progress of share repurchase by means of collective bidding
□ Applicable□ Inapplicable
The impact of changes in shares on financial indicators such as basic earnings per share and diluted earnings per share and net assets per
share attributable to common shareholders of the Company in the latest year and the latest period
□ Applicable□ Inapplicable
Other disclosures deemed necessary by the Company or required by securities regulatory authorities
23Wafangdian Bearing Co. LTD 2025 Midyear Report
□ Applicable□ Inapplicable
2. Changes in restricted shares
□ Applicable□ Inapplicable
II. Securities issuance and listing
□ Applicable□ Inapplicable
III. The number of shareholders and stock holding of the company
Unit:share
Total number of preferred
Total number of common shareholders shareholders with voting
at the end of reporting period 2774 rights restored at the 0reporting End (if any)
(see Note 8)
Shares held by common shareholders holding more than 5% or the top 10 common shareholders
Number of Number of Number of The condition of a pledgecommon Change unlisted and listed and mark or freeze
Shareholder's name Nature of the shares held at s in the tradableshareholders stake the end of the reportin tradable ordinary Shares in The number
reporting g period ordinary
period shares held
shares state of
held
Wafangdian
State-owned
Bearing Group 29852455 54524 24400000 54524 Inapplica
legal person 74.15%
0
Corp. Ltd. 5 555 0 555
ble
Dalian Youth
Development other Inapplica19.70% 79300000 0 0 0 ble 0
Foundation
Domestic
Wang Xiao Inapplica0.19% 774420 0 0 0 0
natural person ble
Domestic
Chen Peng Inapplica
natural person 0.18% 738100 0 0 0 ble
0
Domestic
Jiang Guangsen Inapplica0.17% 700000 0 0 0 0
natural person ble
Bocom
International Foreign legal Inapplica
Securities Co. person 0.14% 575068 0 0 0 ble
0
LTD
Domestic
Li Zhijun Inapplica0.14% 573764 0 0 0 0
natural person ble
Domestic
Zhou Yan Inapplica
natural person 0.12% 463700 0 0 0 ble
0
Domestic
Zhou Mei Inapplica0.11% 443620 0 0 0
natural person ble
0
Domestic
Yang Yiguang Inapplica0.11% 437811 0 0 0 0
natural person ble
Situations in which strategic investors
or general legal persons are among the
top 10 common shareholders due to the NONE
placement of new shares (if any) (see
Note 3)
A statement of such shareholder Among the top ten shareholders of the company there is no related relationship or concerted action
association or concerted action between the largest shareholder and other shareholders and the top ten shareholders of tradableshares. The related relationship and concerted action between other shareholders the top ten
24Wafangdian Bearing Co. LTD 2025 Midyear Report
shareholders of tradable shares and the top ten shareholders of tradable shares and other
shareholders is unknown.The above shareholders involved in the
trustee/trustee voting rights waiver of There is no
voting rights of the explanation
Special description of the existence of a
repurchase account among the top 10 There is no
shareholders (if any) (see Note 11)
The shareholding of the top 10 outstanding common shareholders
Shareholder's name Number of listed and circulating common shares held at the end of the
Stake species
report Stake The numberspecies of
Dalian Youth Development
79300000 B 79300000
Foundation
Wafangdian Bearing Group Corp.
54524555 B 54524555
Ltd.Wang Xiao 774420 B 774420
Chen Peng 738100 B 738100
Jiang Guangsen 700000 B 700000
Bocom International Securities Co.
575068 B 575068
LTD
Li Zhijun 573764 B 573764
Zhou Yan 463700 B 463700
Zhou Mei 443620 B 443620
Yang Yiguang 437811 B 437811
A description of the association or
concerted action between the top 10 Among the top ten shareholders of the company there is no related relationship or concerted action
Unlimited-Sale common shareholders between the largest shareholder and other shareholders and the top ten shareholders of tradable
and the top 10 Unlimited-Sale Common shares. The related relationship and concerted action between other shareholders the top ten
Shareholders and the top 10 Common shareholders of tradable shares and the top ten shareholders of tradable shares and other
Shareholders shareholders is unknown.Description of Top 10 Common
Shareholders Participating in Margin There is no
Trading (if any) (see Note 4)
The situation of shareholders holding more than 5% of the shares the top 10 shareholders and the top 10 shareholders with unrestricted
tradable shares participating in the margin lending business by lending shares
□ Applicable □ Not applicable
The top 10 shareholders and the top 10 unrestricted tradable shareholders of the company have changed due to reasons related to margin
lending and return in the previous period
□ Applicable □ Not applicable
Did the top 10 ordinary shareholders and the top 10 unrestricted tradable ordinary shareholders of the company conduct agreed repurchase
transactions during the reporting period
□ Yes □ No
The top 10 ordinary shareholders and the top 10 unrestricted tradable ordinary shareholders of the company did not conduct agreed repurchase
transactions during the reporting period.IV.Changes in shareholding of directors and senior management personnel
□ Applicable□ Inapplicable
Initial The The Final The initial The The
Name Position Employme number of number of number of holding number of number of number ofnt status shares additional shares quantity restricted restricted restricted
held shares reduced (shares) stocks stocks stocks
25Wafangdian Bearing Co. LTD 2025 Midyear Report
(shares) issued this this period granted awarded in awarded at
period (shares) (shares) this period the end of
(shares) (shares) the term
(shares)
Fang Bo Director Resignation 1500 0 1500 0 0 0 0
Total -- -- 1500 0 1500 0 0 0 0
V.Change of controlling shareholder or actual controller
The company has previously disclosed that the actual controller was planning to change the control rights but the process had not yet been
completed. Please provide an update on the progress of the control rights change.□ Applicable□ Inapplicable
Change of controlling shareholder during reporting period
□ Applicable□ Inapplicable
The controlling shareholder of the company has not changed during the reporting period.Actual controller changes during the reporting period
□ Applicable□ Inapplicable
The actual controller of the company has not changed during the reporting period.VI. Relevant Information about preferred Shares
□ Applicable□ Inapplicable
No preferred stock existed at the reporting period.Chapter VII Related Situation of bonds
□ Applicable□ Inapplicable
26Wafangdian Bearing Co. LTD 2025 Midyear Report
Chapter VIII Financial Reports
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 2026.6.30 2026.1.1
Current Assets:
Monetary funds 111531042.25 65287519.84
Settlement of provisions
Lend funds
Trading financial assets 200310.67 246536.22
Derivative financial assets
Notes receivable 562259020.05 500110673.70
Accounts receivable 927360217.84 872114645.31
Financing of receivables 87938977.52 64928833.08
prepayment 7748093.20 9287712.68
Premium receivable
Reinsurance accounts receivable
Reserves receivable for reinsurance contracts
Other receivables 15389177.53 10631908.31
Among them: interest receivable
Dividends receivable
Buy and sell financial assets
stock 551851868.43 636325993.85
Where: Data resources
Contract assets 5258761.24 5258761.24
Holding assets for sale
Non-current assets maturing within one year
Other current assets 2703270.09 50298808.19
Total current assets 2272240738.82 2214491392.42
Non-current assets:
Make loans and advances
Debt investment
Other debt investments
Long-term receivables
27Wafangdian Bearing Co. LTD 2025 Midyear Report
Long-term equity investment
Investments in other equity instruments 8705393.14 8705393.14
Other non-current financial assets
Investment real estate 71142558.97 73919295.42
Fixed assets 382146917.75 406111493.56
Construction in progress 7268202.66 10513430.99
Productive biological assets
Oil and gas assets
Usufruct assets
Intangible assets 64557182.54 66301236.59
Where: Data resources
Development expenditure
Where: Data resources
goodwill
Long-term deferred expenses 6645452.39 6949581.27
Deferred tax assets
Other non-current assets 282900.00
Total non-current assets 540465707.45 572783330.97
Total assets 2812706446.27 2787274723.39
Current liabilities:
Short-term loan 82053118.00
Borrow from the central bank
Borrowed funds
Transactional financial liabilities
Derivative financial liability
Notes payable 60370597.50 370597.50
Accounts payable 1203331491.03 1261731806.69
Advances received
Contractual liability 36573801.46 31776246.33
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 30565357.79 49061641.96
Taxes payable 9029207.28 8932707.47
Other payables 663791490.44 587079378.98
Among them: interest payable
Dividend payable
Fees and commissions payable
Reinsurance accounts payable
Holding liabilities held for sale
Non-current liabilities due within one year
28Wafangdian Bearing Co. LTD 2025 Midyear Report
Other current liabilities 503670221.31 469016692.21
Total current liabilities 2507332166.81 2490022189.14
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 63066105.59 62247622.41
Deferred income 32882199.12 34847189.82
Deferred income tax liabilities 788788.84 788788.84
Other non-current liabilities
Total non-current liabilities 97082068.39 98228575.91
Total liabilities 2604414235.20 2588250765.05
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 -3199157.02 -3201535.21
Special reserve 3581181.07 1639850.97
Surplus reserve 136770391.01 136770391.01
General risk reserve
Undistributed profit -817151254.46 -824475798.90
Total owner's equity attributable to parent company 208292211.07 199023958.34
Minority interest
Total owners' equity 208292211.07 199023958.34
Total liabilities and owners' equity 2812706446.27 2787274723.39
Chairman: Wang Jiyuan General Accountant : Sun Najuan Accounting charger: Xuan Songtao
2. Balance sheet of parent company
In RMB Yuan
Item 2026.6.30 2026.1.1
Current Assets:
Monetary funds 109611661.28 62726188.11
Trading financial assets 200310.67 246536.22
Derivative financial assets
29Wafangdian Bearing Co. LTD 2025 Midyear Report
Notes receivable 558868279.07 497182824.72
Accounts receivable 873631678.80 867794392.68
Financing of receivables 84634262.34 64457568.41
prepayment 7165340.19 8815214.66
Other receivables 247045163.58 245164992.88
Among them: interest receivable
Dividends receivable
stock 390950900.17 525147258.82
Where: Data resources
Contract assets 5258761.24 5258761.24
Holding assets for sale
Non-current assets maturing within one year
Other current assets 692551.03 49955969.26
Total current assets 2278058908.37 2326749707.00
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 226488897.67 226488897.67
Investments in other equity instruments 8705393.14 8705393.14
Other non-current financial assets
Investment real estate 66310017.25 68679455.19
Fixed assets 256159006.97 271405080.88
Construction in progress 6468063.88 10050847.29
Productive biological assets
Oil and gas assets
Usufruct assets
Intangible assets 51948482.87 53357540.82
Where: Data resources
Development expenditure
Where: Data resources
goodwill
Long-term deferred expenses 6570052.39 6949581.27
Deferred tax assets
Other non-current assets 282900.00
Total non-current assets 622649914.17 645919696.26
Total assets 2900708822.54 2972669403.26
Current liabilities:
Short-term loan 82053118.00
Transactional financial liabilities
Derivative financial liability
Notes payable 60370597.50 370597.50
30Wafangdian Bearing Co. LTD 2025 Midyear Report
Accounts payable 1057766048.94 1231268246.54
Advances received
Contractual liability 36573801.46 31755996.33
Payroll payable to employees 23693519.14 39804727.20
Taxes payable 7307417.88 5817395.80
Other payables 651720349.50 574587108.18
Among them: interest payable
Dividend payable
Holding liabilities held for sale
Non-current liabilities due within one year
Other current liabilities 517985320.29 466718720.38
Total current liabilities 2355417054.71 2432375909.93
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 62398311.21 61798365.54
Deferred income 6854554.80 8229767.64
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 69497840.85 70273108.02
Total liabilities 2424914895.56 2502649017.95
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 -3199157.02 -3201535.21
Special reserve 771894.65 2607.15
Surplus reserve 136770391.01 136770391.01
Undistributed profit -546827644.92 -551829520.90
Total owners' equity 475793926.98 470020385.31
Total liabilities and owners' equity 2900708822.54 2972669403.26
3. Consolidated income statement
In RMB Yuan
project Half year 2026 Half of 2025
31Wafangdian Bearing Co. LTD 2025 Midyear Report
I. Total operating income 1184970752.18 1330615217.48
Among them: operating income 1184970752.18 1330615217.48
Interest income
The premium has been made
Fee and commission income
2. Total operating cost 1194258717.30 1367699027.34
Among them: operating cost 1011570681.96 1150818592.31
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 5259578.35 9557828.62
Cost of sales 67420532.56 68478445.36
Management fees 61463749.71 66239142.71
Research and development costs 40530503.54 65781912.27
Finance charges 8013671.18 6823106.07
Among them: interest expense 66852.96 7581344.95
Interest income 630239.22 450534.54
Plus: other benefits 2874696.07 5966962.04
Investment income (loss marked with "-") 12096052.24 9664256.68
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) -46225.55 -4622.55
Credit impairment loss (marked with "-") 32665.26 313552.31
Asset impairment loss (marked with "-")
Gain on disposal of assets (loss marked with "-") 107376.24 351928.90
3. Operating profit (loss marked with "-") 5776599.14 -20791732.48
Plus: non-operating income 1594841.35 278299.73
Less: non-operating expenses 46896.05 417478.79
Iv. Total profit (total loss marked with "-") 7324544.44 -20930911.54
Less: Income tax expense
V. Net profit (Net loss marked with "-") 7324544.44 -20930911.54
(a) classification according to business continuity
1. Net profit from continuing operations (net loss marked with "-") 7324544.44 -20930911.54
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 7324544.44 -20930911.54
32Wafangdian Bearing Co. LTD 2025 Midyear Report
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 7324544.44 -20930911.54
Total comprehensive income attributable to owner of parent company 7324544.44 -20930911.54
Total comprehensive income attributable to minority shareholders
8. Earnings per Share
(1) Basic earnings per share 0.0182 -0.0520
(2) Diluted earnings per share 0.0182 -0.0520
Chairman: Wang Jiyuan General Accountant : Sun Najuan Accounting charger: Xuan Songtao
4. Profit statement of the parent company
In RMB Yuan
ITEM Half year 2026 Half of 2025
I. Operating income 1173439856.24 1316908462.25
Minus: Operating costs 1019973866.05 1151863836.30
Taxes and surcharges 3779030.89 6381819.99
Cost of sales 66553384.85 67756928.31
Management fees 50194848.70 55461499.94
Research and development costs 29052206.13 57708042.42
Finance charges 8013465.22 6713442.29
Including: interest expense 66852.96 7581344.95
Interest income 626569.24 448230.47
Plus: Other benefits 2042365.57 4917025.54
Investment income (Loss marked with "-") 5638916.68 5684796.90
33Wafangdian Bearing Co. LTD 2025 Midyear Report
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 "-") -46225.55 -4622.55
Credit impairment loss (marked with "-") 9002.79 280891.43
Asset impairment loss (marked with "-")
Income from asset disposal (marked with "-" for loss) 91622.26 351928.90
II. Operating profit (Loss marked with "-") 3608736.15 -17747086.78
Add: non-operating income 1440035.88 262711.31
Less: non-operating expenses 46896.05 355539.03
III. Total profit (Total loss marked with "-") 5001875.98 -17839914.50
Less: income tax expense
IV. Net Profit (Net loss marked with "-") 5001875.98 -17839914.50
(1) Net profit from continuing operations (net loss marked with "-") 5001875.98 -17839914.50
(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
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 5001875.98 -17839914.50
VII. Earnings per Share:
(1) Basic earnings per share 0.0124 -0.0443
Diluted earnings per share 0.0124 -0.0443
5. Consolidated cash flow statement
In RMB Yuan
project Half year 2026 Half of 2025
I. Cash flow generated by operating activities:
Cash received from selling goods and providing services 385860182.98 595884749.15
34Wafangdian Bearing Co. LTD 2025 Midyear Report
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 1967533.59 8110763.01
Other cash received in connection with operating activities 13050380.95 24266509.65
Subtotal of cash inflow from operating activities 400878097.52 628262021.81
Cash paid for goods and services 78711574.93 107379481.28
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 195093827.74 189692671.34
All taxes and fees paid 15445307.76 47018926.61
Other cash payments related to operating activities 66770001.70 44514490.85
Subtotal of cash outflow from operating activities 356020712.13 388605570.08
Net cash flow from operating activities 44857385.39 239656451.73
II. Cash flow generated by investing activities:
Recoup cash received on investment
Cash received for investment income 1003528.31 1000000.00
Net cash recovered from the disposal of fixed assets intangible assets and
other long-term assets 1049200.00
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 1003528.31 2049200.00
Cash paid for the purchase and construction of fixed assets intangible assets
and other long-term assets 5950.00 374172.33
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 5950.00 374172.33
Net cash flow from investing activities 997578.31 1675027.67
III. Cash flow generated by financing activities:
Absorb cash received from investment
35Wafangdian Bearing Co. LTD 2025 Midyear Report
Among them: the subsidiary absorbs the cash received from the investment of
minority shareholders
Obtain the cash received from the loan 162000000.00
Other cash received in connection with financing activities 83501517.61 235913150.44
Subtotal of cash inflow from financing activities 83501517.61 397913150.44
Cash paid to repay debts 82000000.00 390350000.00
Cash used to distribute dividends profits or repay interest payments 106235.56 7909812.20
Among them: dividends and profits paid by subsidiaries to minority shareholders
Payment of other cash in connection with financing activities 330624299.91
Subtotal of cash outflows from financing activities 82106235.56 728884112.11
Net cash flow from financing activities 1395282.05 -330970961.67
IV. Effect of exchange rate changes on cash and cash equivalents -5693.99 384579.65
V.Net increase in cash and cash equivalents 47244551.76 -89254902.62
Plus: Cash and cash equivalents balance at the beginning of the period 63915460.74 160907298.24
VI.Cash and cash equivalents balance at the end of the period 111160012.50 71652395.62
6. Cash flow statement of parent company
In RMB Yuan
Project Half year 2026 Half of 2025
I. Cash flow from operating activities:
Cash received from the sale of goods and services 378200428.06 584495164.23
The tax refund received 1964940.95 8108228.78
Received other cash related to operating activities 11958763.98 21408546.18
Total cash inflow from operating activities 392124132.99 614011939.19
Cash paid for goods and services 120232052.86 161531936.52
Cash paid to and on behalf of employees 157465271.42 153211544.87
All taxes and fees paid 7741325.21 26098493.06
Pay other cash related to operating activities 61185736.75 33660492.23
Total cash outflow from operating activities 346624386.24 374502466.68
Net cash flow from operating activities 45499746.75 239509472.51
Ii. Cash flow from investing activities:
Cash received from the recovery of investments
Cash received from investment income 1003528.31 1000000.00
Net cash received from the disposal of fixed assets intangible assets and
other long-term assets 1046400.00
Net cash received from disposal of subsidiaries and other operating units
Received other cash related to investing activities
Total cash inflow from investing activities 1003528.31 2046400.00
Cash paid for the acquisition of fixed assets intangible assets and other long-
term assets 5950.00 374172.33
Cash paid for investments
Net cash received from subsidiaries and other operating units
Pay other cash related to investing activities
36Wafangdian Bearing Co. LTD 2025 Midyear Report
Total cash outflow from investing activities 5950.00 374172.33
Net cash flow from investing activities 997578.31 1672227.67
Iii. Cash flow from financing activities:
Cash received from investment absorption
Cash received for the acquisition of loans 162000000.00
Other cash received in connection with financing activities 83501517.61 235913150.44
Total cash inflow from financing activities 83501517.61 397913150.44
Cash paid to repay debt 82000000.00 390350000.00
Cash paid out in dividends profits or interest payments 106235.56 7909812.20
Pay other cash related to financing activities 330624299.91
Total small cash outflow from financing activities 82106235.56 728884112.11
Net cash flow from financing activities 1395282.05 -330970961.67
IV. Impact of exchange rate fluctuations on cash and cash equivalents -5693.99 384579.65
V. Net increase in cash and cash equivalents 47886913.12 -89404681.84
Plus: the opening balance of cash and cash equivalents 61354122.97 159111730.38
Vi. Balance of cash and cash equivalents at the end of the period 109241036.09 69707048.54
37Wafangdian Bearing Co. LTD 2025 Midyear Report
7. Statement of Changes in consolidated owners' equity
This amount
In RMB Yuan
Half year 2026
Owner's equity in the parent company
Other equity instruments
ITEM Perpetu other Minority
Capital Prefe Capital less： appropria Surplus General
Owner’s
al public treasure comprehen tive public provision for Undistributed
sharehold
stock rred Oth sive profits Others totalCapital ers’ equity
equity
shar reserves stock reserve reserves risk
es Securitie
er income
s
I. Ending balance of 402600 4856910 -
the previous year 000.00 50.47 3201535.
1639851367703911990239199023958
210.97.01
-824475798.9058.34.34
Plus: Accounting
policy change
Early error correction
other
II the beginning 402600 4856910 - 163985 136770391 1990239 199023958
balance of this year 000.00 50.47 3201535. 0.97 .01 -824475798.9021 58.34 .34
III. Amount of
increase or decrease
in the current period 2378.19 1941330.10 7324544.44
92682529268252.7
(marked with "-" for .73 3
decrease)
(1) Total
comprehensive 7324544.44 7324544 7324544.4
income .44 4
(2) Owner investment
and capital reduction 2378.19 2378.19 2378.19
1.Common stock
38Wafangdian Bearing Co. LTD 2025 Midyear Report
invested by the
owner
2.Other equity
instrument holders 2378.19 2378.19 2378.19
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
(or equity)
3.Surplus reserves
cover losses
4 The change in the
defined benefit plan
is transferred to
retained earnings
39Wafangdian Bearing Co. LTD 2025 Midyear Report
5. Other
comprehensive
income carried
forward retained
earnings
6. Other
(5) Special reserves 194133 1941330 1941330.10.10 .10 0
1. This issue's 412901 4129015 4129015.9
extraction 5.94 .94 4
2. Used in this issue 218768 2187685 2187685.85.84 .84 4
(6) Others
IV. Ending balance of 402600 4856910 -3199157. 358118 136770391 -817151254.46 2082922 208292211the current period 000.00 50.47 02 1.07 .01 11.07 .07
The amount of the previous period
In RMB Yuan
Half year 2025
Owner's equity in the parent company
Other equity instruments
ITEM
Prefe Perpetu
other Minority
Capital Capital less： comprehen appropria Surplus Generalal Undistributed sharehold
Owner’s
stock rred Oth public treasure sive tive public provision for profits Others totalCapital ers’ equity
equity
shar er reserves stock reserve reserves risk
es Securitie incomes
I. Ending balance of 402600 4856910 230509 136770391
the previous year 000.00 50.47 4.24 .01 -766382732.49
2609838260983803
03.23.23
Plus: Accounting
policy change
Early error correction
other
II the beginning 402600 4856910 230509 136770391 -766382732.49 2609838 260983803
40Wafangdian Bearing Co. LTD 2025 Midyear Report
balance of this year 000.00 50.47 4.24 .01 03.23 .23
III. Amount of
increase or decrease 562549. - -in the current period -20930911.54 2036836 20368362.(marked with "-" for 23 2.31 31
decrease)
(1) Total - -
comprehensive -20930911.54 2093091 20930911.income 1.54 54
(2) Owner 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
41Wafangdian Bearing Co. LTD 2025 Midyear Report
1.Capital reserves to
increase capital (or
equity)
2.Surplus reserves
into increased capital
(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 reserves 562549. 562549.223 3 562549.23
1. This issue's 383138 3831389 3831389.9
extraction 9.92 .92 2
2. Used in this issue 326884 3268840 3268840.60.69 .69 9
(6) Others
IV. Ending balance of 402600 4856910 286764 136770391
the current period 000.00 50.47 3.47 .01 -787313644.03
2406154240615440
40.92.92
8. Statement of changes in owner's equity of the parent company
This amount
In RMB Yuan
Semiannual of 2026 period
Item
Capital stock Other equity instruments Capital public less： Other appropria Surplus public reserves General provision for Undistri Owner’s equity
42Wafangdian Bearing Co. LTD 2025 Midyear Report
Preferr Perpetual reserves treasure stock comprehensive tive risk buted
ed Capital Other income reserve profits
stock Securities
I. Balance at the end of last
year 402600000.00 485678443.26 -3201535.21 2607.15 136770391.01 -551829520.90 470020385.31
Plus: Change in accounting
policy
Previous error correction
other
II.The beginning balance of the
current year 402600000.00 485678443.26 -3201535.21 2607.15 136770391.01 -551829520.90 470020385.31
III. Amount of increase or
decrease in the current period 2378.19 769287. 5001875.98 5773541.67
(marked with "-" for decrease) 50
(1) Total comprehensive
income 5001875.98 5001875.98
(2) The owner invests and
reduces the capital 2378.19 2378.19
1. Common stock invested by
the owner
2. Other equity instrument
holders invested capital 2378.19 2378.19
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
43Wafangdian Bearing Co. LTD 2025 Midyear Report
owners' equity
1. Conversion of capital
reserves into increased capital
(or equity)
2. Surplus reserve into
increased capital (or equity)
3. Surplus reserves cover
losses
4. Set benefit plan changes
carried forward to retained
earnings
5. Other consolidated earnings
carried forward to retained
earnings
6. other
(5)Special reserves 769287.50 769287.50
1. This issue's extraction 1776428.63 1776428.63
2. Used in this issue 1007141.13 1007141.13
(6) Others
IV. Ending balance 402600000.00 485678443.26 -3199157.02 771894.65 136770391.01 -546827644.92 475793926.98
The amount of the previous period
In RMB Yuan
Semiannual of 2025 period
Other equity instruments
Item Capital public less Other appropria UndistriCapital stock Preferr Perpetual ：reserves treasure stock comprehensive tive Surplus public reserves
General provision for
risk buted Owner’s equityed Capital Other income reserve profits
stock Securities
I. Balance at the end of last
year 402600000.00 485678443.26 136770391.01 -495179558.47 529869275.80
44Wafangdian Bearing Co. LTD 2025 Midyear Report
Plus: Change in accounting
policy
Previous error correction
other
II.The beginning balance of the
current year 402600000.00 485678443.26 136770391.01 -495179558.47 529869275.80
III. Amount of increase or
decrease in the current period 534661. -17839914.50 -17305253.10
(marked with "-" for decrease) 40
(1) Total comprehensive
income -17839914.50 -17839914.50
(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
45Wafangdian Bearing Co. LTD 2025 Midyear Report
increased capital (or equity)
3. Surplus reserves cover
losses
4. Set benefit plan changes
carried forward to retained
earnings
5. Other consolidated earnings
carried forward to retained
earnings
6. other
(5)Special reserves 534661.40 534661.40
1. This issue's extraction 1672970.54 1672970.54
2. Used in this issue 1138309.14 1138309.14
(6) Others
IV. Ending balance 402600000.00 485678443.26 534661.40 136770391.01 -513019472.97 512564022.70
46Wafangdian Bearing Co. LTD 2026 Midyear Report
III. Basic information of the company
Wafangdian bearing co. LTD. (hereinafter referred to as the company) 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.This company and its various subsidiaries (collectively referred to as "the Group") belong to the bearing manufacturing industry and mainly
engage in the production and sales of various types of bearings.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 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
47Wafangdian Bearing Co. LTD 2026 Midyear Report
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).The registered address of this company: No. 1 Section 1 Beigongji Street Wafangdian City Liaoning Province. The legal representative: Wang
Jiyuan.This financial statement has been approved and presented by the company's board of directors on August 21 2026.IV. Basis for the preparation of financial statements
1. Establishment basis
The financial statements of this group are prepared on the basis of the going concern assumption based on the actual transactions and events
in accordance with the "Enterprise Accounting Standards - General Standards" (issued by the Ministry of Finance under Order No. 33 and
revised by Order No. 76) the specific accounting standards promulgated and revised by the Ministry of Finance on February 15 2006 and
thereafter enterprise accounting standards interpretations and other relevant regulations (collectively referred to as "enterprise accounting
standards") and the disclosure requirements of the "Rule 15 of the Securities Issuance Information Compilation Rules of the China Securities
Regulatory Commission - General Provisions on Financial Reports (Revised in 2023)"). According to the relevant provisions of enterprise
accounting standards the accounting of this group is based on the accrual basis. Except for certain financial instruments all of this financial
statement is based on historical cost for measurement. If an asset is impaired corresponding impairment provisions shall be made in
accordance with the relevant regulations.
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:
Based on the actual production and operation characteristics of the group in accordance with the relevant accounting standards for enterprises
specific accounting policies and estimates have been formulated for various transactions and matters such as the determination and
measurement of the bad debt provision for receivables the measurement of issued inventory the classification and depreciation method of fixed
assets the amortization of intangible assets the conditions for capitalization of research and development expenses and the recognition and
measurement of revenue. Please refer to the descriptions in Section IV of this note for details.
1 follow the accounting standards for business enterprises statement
The financial statements prepared by this group comply with the requirements of the enterprise accounting standards and truly and completely
reflect the financial position of the company and the group as of December 31 2025 as well as the operating results and cash flows and other
relevant information for the year 2025. Moreover the financial statements of the company and the group are in all significant aspects in
compliance with the disclosure requirements for financial statements and their notes as stipulated in the "Rule 15 - General Provisions on
Financial Reporting for Publicly Issued Securities Companies" revised by the China Securities Regulatory Commission in 2023.
2. Accounting period
48Wafangdian Bearing Co. LTD 2026 Midyear Report
The accounting periods of this group are divided into annual and interim periods. An interim period refers to a reporting period shorter than a
complete accounting year. The accounting year of this group adopts the Gregorian calendar year which starts from January 1st and ends on
December 31st each year.
3. Business cycle
The normal operating cycle refers to the period during which the Group acquires assets for processing and then realizes cash or cash
equivalents. The Group considers a 12-month period as its operating cycle and uses it as the standard for classifying the liquidity of assets and
liabilities.
4. Functional currency
The Renminbi is the main currency in the economic environment where the Company and its domestic subsidiaries operate. The Company and
its domestic subsidiaries use the Renminbi as their bookkeeping base currency. When preparing this financial statement the Renminbi is the
currency adopted by the Group.
5. importance criteria determination method and selection basis
□ Applicable□Not applicable
Project Importance criteria
Important individual accounts for which bad debt provisions The amount of individual provision exceeds 3% of the bad debt reserve of
have been made accounts receivable and is over 100000 yuan.The amount of bad debt provisions recovered or reversed for The amount recovered or reversed exceeds 3% of the bad debt reserve of
accounts receivable in the current period is significant accounts receivable and is over 100000 yuan.The amount written off exceeds 3% of the bad debt reserve of accounts
Important write-offs of receivables in the current period
receivable and is over 100000 yuan.
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
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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.The method of preparing consolidated financial statements
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 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
50Wafangdian Bearing Co. LTD 2026 Midyear Report
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 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 refers to the inventory cash of the group and the deposits that can be used for payment at any time. Cash equivalents refer to the
investments held by the group with a short maturity strong liquidity easy conversion into known amounts of cash and very low risk of value
fluctuation.
10. Translation of foreign currency business and foreign currency statements
1. Method for determining the conversion rate when conducting foreign currency transactions
For the foreign currency transactions of the Group at the initial recognition the spot exchange rate on the transaction date is used as the
conversion rate to convert the foreign currency amount into RMB for accounting.
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2. Conversion method for foreign currency monetary items on the balance sheet date and treatment method for exchange gains and losses
On the balance sheet date the balance of foreign currency monetary items is converted at the spot exchange rate on that date. The resulting
exchange differences except for those arising from foreign currency specific borrowings related to the construction of assets that meet the
capitalization criteria which are handled in accordance with the principle of capitalization of borrowing costs are all included in the current profit
and loss.
3. Conversion method for foreign currency financial statements
The assets and liabilities items in the balance sheet are converted at the spot exchange rate on the balance sheet date; other items of owner's
equity are converted at the spot exchange rate at the time of occurrence. The income and expense items in the income statement are converted
at the spot exchange rate on the transaction date.When disposing of an overseas operation the conversion difference of the foreign currency financial statements related to that overseas
operation shall be transferred from the owner's equity items to the current profit and loss of the disposal period.
11.Financial instruments
A financial asset or financial liability is recognized when the group becomes a party to a financial instrument contract.Classification of financial assets
Based on the business model for managing financial assets of the Group and the contractual cash flow characteristics of the financial assets
financial assets are classified at initial recognition as follows: financial assets measured at amortized cost financial assets measured at fair
value with changes recorded in other comprehensive income and financial assets measured at fair value with changes recorded in current profit
or loss.Financial assets measured at amortized cost
The Group classifies financial assets that simultaneously meet the following conditions and are not designated as financial assets measured at
fair value with changes recognized in current profit or loss as financial assets measured at amortized cost:
The business model is to collect contractual cash flows;
The contractual cash flows consist only of payments of principal and interest based on the outstanding principal amount.Financial assets measured at fair value and whose changes are included in other comprehensive income
The Group classifies financial assets that simultaneously meet the following conditions and are not designated as financial assets measured at
fair value with changes recognized in current profit or loss as financial assets measured at fair value and whose changes are included in other
comprehensive income (debt instruments):
The business model is to both collect contractual cash flows and sell the financial asset;
The contractual cash flows consist only of payments of principal and interest based on the outstanding principal amount.For non-trading equity instruments investments the Group can irrevocably designate them as financial assets measured at fair value and whose
changes are included in other comprehensive income (equity instruments) at the initial recognition. This designation is made on an individual
investment basis and the relevant investment is in accordance with the definition of equity instruments from the issuer's perspective.Financial assets measured at fair value and whose changes are recognized in current profit or loss
Apart from the financial assets measured at amortized cost and those measured at fair value and whose changes are recognized in other
comprehensive income the Group classifies all the remaining financial assets as financial assets measured at fair value and whose changes are
recognized in current profit or loss. At initial recognition if it is possible to eliminate or significantly reduce accounting mismatches the Group
can irrevocably designate the financial assets that should be classified as those measured at amortized cost or those measured at fair value and
whose changes are recognized in other comprehensive income as financial assets measured at fair value and whose changes are recognized in
52Wafangdian Bearing Co. LTD 2026 Midyear Report
current profit or loss.Classification of financial liabilities
Financial liabilities are classified at initial recognition as: financial liabilities measured at fair value and whose changes are recognized in current
profit or loss and financial liabilities measured at amortized cost.Financial liabilities that meet one of the following conditions can be designated at initial measurement as financial liabilities measured at fair
value and whose changes are recognized in current profit or loss:
This designation can eliminate or significantly reduce accounting mismatches;
According to formal written documents stating the enterprise's risk management or investment strategy the financial liability portfolio or the
combination of financial assets and financial liabilities is managed and evaluated based on fair value and this is reported internally by the
enterprise on the basis of this to key management personnel;
The financial liability contains embedded derivatives that need to be separated.Confirmation basis and measurement methods of financial instruments
Financial assets measured at amortized cost
The financial assets measured at amortized cost of the Group include accounts receivable notes accounts receivable other receivables etc.For such financial assets the Group initially measure them at fair value and related transaction costs are included in the initial recognition
amount; accounts receivable without significant financing components and those that the company decides not to consider the financing
component of no more than one year are initially measured based on the contract transaction price.Financial assets measured at fair value and whose changes are recognized in other comprehensive income (debt instruments)
Financial assets measured at fair value and whose changes are recognized in other comprehensive income (debt instruments) include
receivables financing etc. They are initially measured at fair value and related transaction costs are included in the initial recognition amount.This financial asset is subsequently measured at fair value and changes in fair value except for interest calculated using the actual interest rate
method impairment losses or gains and exchange gains or losses are all recognized in other comprehensive income.When derecognition occurs the accumulated gains or losses previously recognized in other comprehensive income are transferred from other
comprehensive income to current profit or loss.Financial assets measured at fair value and whose changes are recognized in other comprehensive income (equity instruments)
Financial assets measured at fair value and whose changes are recognized in other comprehensive income (equity instruments) include other
equity instrument investments etc. They are initially measured at fair value and related transaction costs are included in the initial recognition
amount. This financial asset is subsequently measured at fair value and changes in fair value are recognized in other comprehensive income.Dividends obtained are recognized in current profit or loss.When derecognition occurs the accumulated gains or losses previously recognized in other comprehensive income are transferred from other
comprehensive income to retained earnings.Financial assets measured at fair value and whose changes are included in current profits and losses
Financial assets measured at fair value and whose changes are included in current profits and losses include trading financial assets etc. They
are initially measured at fair value and related transaction costs are included in current profits and losses. These financial assets are
subsequently measured at fair value and changes in fair value are included in current profits and losses.Financial liabilities measured at fair value and whose changes are included in current profits and losses
Financial liabilities measured at fair value and whose changes are included in current profits and losses include trading financial liabilities
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derivative financial liabilities etc. They are initially measured at fair value and related transaction costs are included in current profits and losses.These financial liabilities are subsequently measured at fair value and changes in fair value are included in current profits and losses.When they are derecognized the difference between their book value and the payment made is included in current profits and losses.Financial liabilities measured at amortized cost
Financial liabilities measured at amortized cost include short-term loans notes payable accounts payable other payables long-term loans
long-term payables etc. They are initially measured at fair value and related transaction costs are included in the initial recognition amount.Interest calculated using the actual interest rate method during the holding period is included in current profits and losses.When they are derecognized the difference between the payment made and the book value of the financial liability is included in current profits
and losses.The criteria and measurement methods for the derecognition of financial assets and the recognition of financial asset transfers
When any of the following conditions is met the Group terminates the recognition of financial assets:
(1) The contractual right to receive cash flows from the financial asset is terminated;
(2) The financial asset has been transferred and almost all risks and rewards of the financial asset have been transferred to the transferee;
(3) The financial asset has been transferred although the Group has neither transferred nor retained almost all risks and rewards of the financial
asset but has not retained control over the financial asset.When the Group modifies or renegotiates the contract with the counterparty and constitutes a substantive modification the original financial
asset is derecognized and a new financial asset is recognized in accordance with the modified terms.When a financial asset transfer occurs if almost all risks and rewards of the financial asset are retained the financial asset is not derecognized.When determining whether a financial asset transfer meets the above conditions for derecognition of financial assets the principle of substance
over form is adopted.This group distinguishes the transfer of financial assets into overall transfer and partial transfer. If the overall transfer of financial assets meets
the conditions for termination recognition the difference between the two amounts will be recorded in the current profit and loss:
(1) The book value of the transferred financial assets;
(2) The sum of the consideration received from the transfer and the cumulative amount of the fair value changes originally directly recorded in
the owner's equity (in the case where the transferred financial assets are financial assets measured at fair value and their changes are included
in other comprehensive income (debt instruments)).If the partial transfer of financial assets meets the conditions for termination recognition the book value of the entire transferred financial assets
will be allocated between the terminated and non-terminated parts based on their respective relative fair values and the difference between the
two amounts will be recorded in the current profit and loss:
(1) The book value of the terminated part;
(2) The consideration for the terminated part and the cumulative amount of the fair value changes originally directly recorded in the owner's
equity corresponding to the terminated part (in the case where the transferred financial assets are financial assets measured at fair value and
their changes are included in other comprehensive income (debt instruments)).If the transfer of financial assets does not meet the conditions for termination recognition the financial asset will continue to be recognized and
the consideration received will be recognized as a financial liability.
54Wafangdian Bearing Co. LTD 2026 Midyear Report
Termination of Financial Liabilities
If the present obligation of a financial liability is all or partially relieved then the financial liability or a part thereof will be terminated; if the group
signs an agreement with the creditor to replace the existing financial liability with a new financial liability and the contract terms of the new
financial liability are materially different from those of the existing financial liability then the existing financial liability will be terminated and the
new financial liability will be recognized.If the contract terms of the existing financial liability are substantially modified then the financial liability or a part thereof will be terminated and
the modified financial liability will be recognized as a new financial liability.When a financial liability is partially or wholly terminated the difference between the book value of the terminated financial liability and the
consideration paid (including the transferred non-cash assets or the assumed new financial liability) will be recorded in the current profit and loss.If the group repurchases part of the financial liability at the repurchase date the book value of the financial liability will be allocated between the
continuingly recognized part and the terminated part based on their relative fair values. The difference between the book value allocated to the
terminated part and the consideration paid (including the transferred non-cash assets or the assumed new financial liability) will be recorded in
the current profit and loss.Impairment of financial assets
Method for recognizing impairment provisions
The Group accounts for impairment of financial assets measured at amortized cost financial assets measured at fair value with changes
recognized in other comprehensive income (debt instruments) and financial guarantee contracts etc. based on expected credit losses.The Group considers reasonable and well-founded information such as past events current conditions and predictions of future economic
conditions and uses the risk of default as a weight to calculate the probability-weighted amount of the difference between the contractual cash
flows receivable and the expected cash flows that can be received and recognizes the expected credit loss.For receivables and contract assets formed by transactions regulated by Accounting Standard for Business Enterprises No. 14 - Revenue
regardless of whether they contain significant financing components the Group always measures the loss provision at an amount equivalent to
the expected credit loss over the entire duration of the receivables.For lease receivables formed by transactions regulated by Accounting Standard for Business Enterprises No. 21 - Leases the Group chooses to
always measure the loss provision at an amount equivalent to the expected credit loss over the entire duration of the receivables.For other financial instruments the Group assesses the changes in credit risk of the relevant financial instruments since initial recognition at
each balance sheet date.The Group compares the risk of default of financial instruments at the balance sheet date with the risk of default at the initial recognition date to
determine the relative changes in the risk of default over the expected duration of the financial instruments and assesses whether the credit risk
of the financial instruments has significantly increased since initial recognition. Generally if the overdue period exceeds 30 days the Group
considers that the credit risk of the financial instrument has significantly increased unless there is conclusive evidence that the credit risk of the
financial instrument has not significantly increased since initial recognition.If the credit risk of a financial instrument is low at the balance sheet date the Group considers that the credit risk of the financial instrument has
not significantly increased since initial recognition.If the credit risk of a financial instrument has significantly increased since initial recognition the Group measures the loss provision at an amount
55Wafangdian Bearing Co. LTD 2026 Midyear Report
equivalent to the expected credit loss over the entire duration of the financial instrument; if the credit risk of the financial instrument has not
significantly increased since initial recognition the Group measures the loss provision at an amount equivalent to the expected credit loss over
the next 12 months. The increase or reversal amount of the impairment provision thus formed is recognized as an impairment loss or gain in the
current profit or loss. For financial assets measured at fair value with changes recognized in other comprehensive income (debt instruments) the
loss provision is recognized in other comprehensive income and the impairment loss or gain is recognized in the current profit or loss and the
carrying amount of the financial asset in the balance sheet is not reduced.If there is objective evidence indicating that a certain receivable has experienced credit impairment the Group recognizes impairment provisions
on an individual basis for that receivable.For receivables and contract assets formed by transactions regulated by Accounting Standard for Business Enterprises No. 14 - Revenue (2017)
regardless of whether they contain significant financing components the Group always measures the loss provision at an amount equivalent to
the expected credit loss over the entire duration of the receivables.For lease receivables the Group chooses to always measure the loss provision at an amount equivalent to the expected credit loss over the
entire duration of the receivables.Methods for determining credit losses of various financial assets
Except for certain financial assets that assess overdue credit losses on an individual basis the Group also assesses the expected credit losses
of financial assets measured at amortized cost based on the aging group.Except for the above receivables that are subject to individual bad debt provisions the Group classifies the remaining financial instruments
based on their credit risk characteristics into several groups and determines the expected credit losses on a group basis. The group has
established the following categories and determination basis for recognizing expected credit losses for its receivables such as commercial bills
accounts receivable receivables financing and other receivables: Impairment of financial assets
Method for recognizing impairment provisions
The Group accounts for impairment of financial assets measured at amortized cost financial assets measured at fair value with changes
recognized in other comprehensive income (debt instruments) and financial guarantee contracts etc. based on expected credit losses.The Group considers reasonable and well-founded information such as past events current conditions and predictions of future economic
conditions and uses the risk of default as a weight to calculate the probability-weighted amount of the difference between the contractual cash
flows receivable and the expected cash flows that can be received and recognizes the expected credit loss.For receivables and contract assets formed by transactions regulated by Accounting Standard for Business Enterprises No. 14 - Revenue
regardless of whether they contain significant financing components the Group always measures the loss provision at an amount equivalent to
the expected credit loss over the entire duration of the receivables.For lease receivables formed by transactions regulated by Accounting Standard for Business Enterprises No. 21 - Leases the Group chooses to
always measure the loss provision at an amount equivalent to the expected credit loss over the entire duration of the receivables.For other financial instruments the Group assesses the changes in credit risk of the relevant financial instruments since initial recognition at
each balance sheet date.The Group compares the risk of default of financial instruments at the balance sheet date with the risk of default at the initial recognition date to
determine the relative changes in the risk of default over the expected duration of the financial instruments and assesses whether the credit risk
of the financial instruments has significantly increased since initial recognition. Generally if the overdue period exceeds 30 days the Group
considers that the credit risk of the financial instrument has significantly increased unless there is conclusive evidence that the credit risk of the
financial instrument has not significantly increased since initial recognition.If the credit risk of a financial instrument is low at the balance sheet date the Group considers that the credit risk of the financial instrument has
56Wafangdian Bearing Co. LTD 2026 Midyear Report
not significantly increased since initial recognition.If the credit risk of a financial instrument has significantly increased since initial recognition the Group measures the loss provision at an amount
equivalent to the expected credit loss over the entire duration of the financial instrument; if the credit risk of the financial instrument has not
significantly increased since initial recognition the Group measures the loss provision at an amount equivalent to the expected credit loss over
the next 12 months. The increase or reversal amount of the impairment provision thus formed is recognized as an impairment loss or gain in the
current profit or loss. For financial assets measured at fair value with changes recognized in other comprehensive income (debt instruments) the
loss provision is recognized in other comprehensive income and the impairment loss or gain is recognized in the current profit or loss and the
carrying amount of the financial asset in the balance sheet is not reduced.If there is objective evidence indicating that a certain receivable has experienced credit impairment the Group recognizes impairment provisions
on an individual basis for that receivable.For receivables and contract assets formed by transactions regulated by Accounting Standard for Business Enterprises No. 14 - Revenue (2017)
regardless of whether they contain significant financing components the Group always measures the loss provision at an amount equivalent to
the expected credit loss over the entire duration of the receivables.For lease receivables the Group chooses to always measure the loss provision at an amount equivalent to the expected credit loss over the
entire duration of the receivables.Methods for determining credit losses of various financial assets
Except for certain financial assets that assess overdue credit losses on an individual basis the Group also assesses the expected credit losses
of financial assets measured at amortized cost based on the aging group.Except for the above receivables that are subject to individual bad debt provisions the Group classifies the remaining financial instruments
based on their credit risk characteristics into several groups and determines the expected credit losses on a group basis. The group has
established the following categories and determination basis for recognizing expected credit losses for its receivables such as commercial bills
accounts receivable receivables financing and other receivables:
Receivable Notes
Combination names The basis for determining the combination
Combination 1 Bank acceptance draft
Combination 2 Commercial acceptance draft
Combination 3 Financial company acceptance draft
Accounts Receivable and Contract Assets
Project The basis for determining the combination
Related party grouping Receivables from related parties within the scope of Dalian Heavy Industry Equipment Group Co. Ltd.Age grouping of accounts Receivables from other related parties
Receivables Financing
Project The basis for determining the combination
Accounts Receivable Notes Accounts receivable notes that aim to collect contractual cash flows as well as those that aim for sale
Supply Chain Vouchers Supply chain vouchers that aim to collect contractual cash flows as well as those that aim for sale
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Other Receivables
Project The basis for determining the combination
Other Receivables Related party combination
Other Receivables Age of accounts combination
Savings fund combination (classified and combined based on the creditworthiness of the transaction counterpart
Other Receivables
the nature of the funds and transaction security measures etc.)
If the Group no longer reasonably expects that the contractual cash flows of the financial assets can be fully or partially recovered it will directly
write down the book balance of the financial assets.
12. Notes Receivable
Refer to item 11.
13. Accounts Receivable
Refer to item 11.
14. Receivables Financing
Refer to item 11.
15. Other Receivables
The determination method and accounting treatment for the expected credit losses of other receivables
Refer to item 11.
16. Contract Assets
The Group presents contract assets or contract liabilities in the balance sheet based on the relationship between the performance of the
obligation and the customer's payment. The Group's rights to receive consideration for transferring goods or providing services (and such rights
depend on factors other than the passage of time) are presented as contract assets. Contract assets and contract liabilities under the same
contract are presented net. The rights that the Group has which are unconditional (depending only on the passage of time) to collect
consideration from the customer as an account receivable are presented separately.The determination method and accounting treatment for expected credit losses of contract assets are described in Note 4 (9) Financial Asset
Impairment.
17. Inventories
Classification of Inventories
Inventories are classified as: raw materials packaging materials low-value consumables work-in-progress finished goods etc.Valuation methods for the acquisition and issuance of inventories
Inventories are initially measured at cost. The cost of inventories includes purchase costs processing costs and other expenditures incurred to
bring the inventories to their current location and condition. Inventories are valued and priced using the real-time moving weighted average
method when issued.Methods for confirming the net realizable value of inventories and the recognition of impairment provisions
At the balance sheet date inventories should be measured at the lower of cost and net realizable value. If the cost of inventories is higher than
their net realizable value impairment provisions for inventories should be made. Net realizable value refers to the estimated selling price of the
inventory in normal operations minus the estimated costs to complete the inventory estimated selling expenses and related taxes and fees.Finished goods inventory items for sale and materials held for sale that are directly for sale in normal production and operation processes their
net realizable value should be determined based on the estimated selling price of the inventory minus the estimated selling expenses and
related taxes and fees; materials that need to be processed should be determined based on the estimated selling price of the finished products
58Wafangdian Bearing Co. LTD 2026 Midyear Report
minus the estimated costs to complete the inventory estimated selling expenses and related taxes and fees; inventories held for fulfilling sales
contracts or service contracts should be determined based on the contract price and if the quantity held exceeds the quantity ordered in the
sales contract the net realizable value of the excess part of the inventory should be determined based on the general selling price.After making impairment provisions for inventories if the factors that previously reduced the value of inventories have disappeared resulting in
the net realizable value of the inventories being higher than their book value the previously made impairment provisions can be reversed within
the amount and the reversed amount is included in the current profit and loss.
1. Inventory counting system is perpetual inventory system.
2. Depreciation methods for low-value consumables and packaging materials
Low-value consumables are depreciated using the one-time amortization method upon issuance; packaging materials are depreciated using the
one-time amortization method upon issuance.
18. Holding assets for sale
19. Debt investment
20. Other debt investment
21. Long-term receivables
22. Long-term equity investment
The long-term equity investment referred to in this section refers to the long-term equity investment held by the Group that has control joint
control or significant influence over the invested entity.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 group 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 group.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 group is able to exert significant
influence on the investee the investee is an associate enterprise of the group.Determination of initial investment costs
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.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.Subsequent measurement and profit and loss recognition methods
59Wafangdian Bearing Co. LTD 2026 Midyear Report
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.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 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 group 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 thegroup's accounting policies and accounting periods.The profit or loss of unrealized internal transactions between thegroup and its associate or joint venture shall be offset by the part attributable to
thegroup 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 thegroup 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 thegroup shall resume the recognition of the
income sharing amount after the income sharing amount has made up the unrecognized loss sharing amount.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
60Wafangdian Bearing Co. LTD 2026 Midyear Report
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.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.Thegroup 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
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Ratio of salvage Annual depreciation
category Depreciation method Depreciation life
value rate
Houses and buildings
Among them: houses factories three-
dimensional warehouses pipe networks Life averaging method 30 3 3.23
roads
Waste storage Life averaging method 20 3 4.85
Machinery and equipment Life averaging method 10 3 9.70
Transport equipment Life averaging method 5 3 19.40
Electronic equipment Life averaging method
Among them: electronic devices Life averaging method 5 3 19.40
Instrument and meter Life averaging method 10 3 9.70
Other equipment Life averaging method
Among them: conduction equipment Life averaging method 10 3 9.70
Special equipment Life averaging method 10 3 9.70
Office equipment Life averaging method 5 3 19.40
Other fixed assets Life averaging method 5 3 19.40
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.The methods for conducting impairment tests on construction in progress and for making impairment provisions are detailed in Note 4 Item 19
"Impairment of Long-Term Assets".
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 refer to non-monetary identifiable assets without physical form that the group owns or controls.Intangible assets are initially measured at cost. The cost of purchased intangible assets includes the purchase price relevant taxes and other
expenditures directly attributable to making the asset reach its intended use.When obtaining intangible assets the useful life of the asset is analyzed and determined.For intangible assets with a limited useful life they are amortized over the period during which the economic benefits are generated by the group;
if the period during which the intangible asset is expected to bring economic benefits to the group cannot be predicted it is regarded as an
intangible asset with an uncertain useful life and is not amortized.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
62Wafangdian Bearing Co. LTD 2026 Midyear Report
according to the beneficiaries. The 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 scope of capitalization of research and development expenditures
The group'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.Specific criteria for dividing the research stage and the development stage
The expenditures of the internal research and development projects of this group are classified into research stage expenditures and
development stage expenditures.Research stage: The stage of conducting original and planned investigation and research activities to obtain and understand new scientific or
technical knowledge etc.Development stage: The stage of applying the research results or other knowledge to a certain plan or design to produce new or materially
improved materials devices products etc. before commencing commercial production or use.Specific conditions for capitalizing expenditures in the development stage
Expenditures in the research stage are recorded in the current profit and loss account when they occur. Expenditures in the development stage
are recognized as intangible assets if they simultaneously meet the following conditions:
* The completion of the intangible asset to make it usable or marketable is technically feasible;
* There is an intention to complete the intangible asset and use or sell it;
* The way in which the intangible asset generates economic benefits including being able to prove the existence of a market for the products
produced using the intangible asset or the market for the intangible asset itself and for internal use being able to prove its usefulness;
* There are sufficient technical financial and other resources to support the development of the intangible asset and the ability to use or sell
the intangible asset;
* The expenditures attributed to the development stage of the intangible asset can be reliably measured.If it is impossible to distinguish between research stage expenditures and development stage expenditures all research and development
expenditures incurred shall be recorded in the current profit and loss account.
30. Impairment of long-term assets
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Long-term equity investments investment real estate measured by the cost model fixed assets construction in progressintangible assets with
limited useful life 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 group 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 group 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 group 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 group the group 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 group shall during the accounting period in which the employees provide services to the group calculate and determine the corresponding
amount of salary for the employees according to the prescribed basis and proportion 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 group 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
64Wafangdian Bearing Co. LTD 2026 Midyear Report
The group 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 group 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 group participates in the Enterprise annuity plan/Supplementary pension
insurance fund approved by the relevant state authorities. The group 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 group 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 group 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 group 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 group cannot unilaterally withdraw the
termination benefits provided by the termination of labor relations plan or reduction proposal; When the group recognizes costs or expenses
associated with restructuring involving the payment of termination benefits.
(4) Accounting treatment methods for other long-term employee benefits
34. Expected liabilities
Obligations relating to contingencies are recognised by the group as projected liabilities when the following conditions are met:
(1) The obligation is a current obligation of the group;
(2) the performance of the obligation is likely to result in the outflow of economic benefits from the group;
(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:
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* 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 group 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
The accounting policies adopted for revenue recognition and measurement
The Group recognizes revenue upon fulfilling the performance obligations in the contract that is when the customer obtains control of the
relevant goods or services. Obtaining control of the relevant goods or services means being able to dominate the use of the goods or services
and obtaining almost all the economic benefits from them.If a contract contains two or more performance obligations the Group allocates the transaction price to each individual performance obligation
based on the relative proportion of the standalone selling prices of the goods or services promised in each obligation. The Group measures
revenue based on the transaction price allocated to each individual performance obligation.The transaction price refers to the amount that the Group expects to receive as consideration for transferring goods or services to the customer
excluding amounts collected on behalf of third parties and amounts expected to be refunded to the customer. The Group determines the
transaction price based on the terms of the contract combined with its past practices. When determining the transaction price the Group
considers factors such as variable consideration significant financing components in the contract non-cash consideration and consideration
payable to the customer. The Group determines the transaction price including variable consideration at a level not exceeding the amount that is
highly likely not to be reversed in the cumulative revenue recognized when the relevant uncertainties are eliminated. For contracts with
significant financing components the Group determines the transaction price by assuming that the customer pays in cash at the time of
obtaining control of the goods or services. The Group amortizes the difference between the transaction price and the contract consideration over
the contract period using the effective interest rate method. One of the following conditions must be met for the performance obligation to be
fulfilled over a period of time: 1. The customer obtains and consumes the economic benefits brought by the Group's performance at the same
time. 2. The customer can control the goods under construction by the Group. 3. The Group has the right to receive payment for the cumulative
completed performance throughout the contract period. For performance obligations fulfilled at a point in time the Group recognizes revenue at
the point when the customer obtains control of the relevant goods or services. When determining whether the customer has obtained control of
the goods or services the Group considers the following signs: 1. The Group has the current right to collect consideration for the goods or
services that is the customer has the current obligation to make payment for the goods or services. 2. The Group has transferred the legal
ownership of the goods to the customer that is the customer has the legal ownership of the goods. 3. The Group has transferred the physical
goods to the customer that is the customer has physical possession of the goods. 4. The Group has transferred the main risks and rewards of
ownership of the goods to the customer that is the customer has obtained the main risks and rewards of ownership of the goods. 5. The
customer has accepted the goods or services. The Group determines the identity of the Company when entering into a transaction based on
whether it has control over the goods or services before transferring them to the customer. If the Group can control the goods or services before
transferring them to the customer the Group is the principal and recognizes revenue based on the total amount of received or receivable
consideration; otherwise the Group is the agent and recognizes revenue based on the amount of commission or handling fee expected to be
received.The specific methods of revenue recognition and measurement are disclosed according to the nature of the business.
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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.The cost incurred by the group 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 group's resources to meet performance obligations in the future.* This cost is expected to be recovered.The incremental cost incurred by the group 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 group 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 group 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 group 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 group 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 group 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 group'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 group'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 group 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.
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2.Confirmation time
Government grants are recognized when the group is able to meet the conditions attached to them and can receive them.
3.Accounting treatment
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 group it shall be included in other income; If it is not related to the daily activities of the
group it is included in non-operating income);
Government grants related to revenue that are used to compensate the group 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 group's daily activities; If it is not related to the daily activities of the group 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 group it is directly included in the
current profit and loss (if it is related to the daily activities of the group it is included in other income; If it is not related to the daily activities of the
group 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 group 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 group 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 group 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.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.
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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
The main categories of the leased assets of this group are buildings and land.Right to use assets
On the commencement date of the lease term the group 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 group;
costs expected to be incurred by the group 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 group 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 group 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 group shall in accordance with the principles set out in "4 (19) 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 group 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:
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 group;
The exercise price of the purchase option if the group 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 group will exercise the option
to terminate the lease.The group uses the inherent lease rate as the discount rate but if the inherent lease rate cannot be reasonably determined the group's
incremental borrowing rate will be used as the discount rate.The group 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.
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After the commencement of the lease term if the following circumstances occur the group 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 group 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 group 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 group 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
group 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 group 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 group 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.If the lease change causes the lease scope to be reduced or the lease term to be shortened the group 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 group 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 group 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 group 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 group
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 group 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 group recognizes the financial lease receivable for the financial lease and terminates the
recognition of the financial lease assets. When the group makes the initial measurement of the financial lease receivable the net lease
70Wafangdian Bearing Co. LTD 2026 Midyear Report
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 group 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 group 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 group 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 group 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;
If the change takes effect on the commencement date of the lease the lease will be classified as a finance lease and the group will account
for it in accordance with the group'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
1. Debt Restructuring
As the creditor
When the contractual right of the Group to receive cash flows from the creditor ceases the Group shall cease to recognize the creditor's claim.For debt restructuring through the settlement of assets or the conversion of debt into equity instruments the Group shall recognize the relevant
assets when they meet the definition and recognition conditions.For debt restructuring through the settlement of assets when the Group initially recognizes the non-financial assets acquired it shall measure
them at cost. The cost of inventory includes the fair value of the abandoned creditor's claim and the other costs directly attributable to the asset
to bring it to its current location and condition such as taxes transportation fees loading and unloading fees insurance premiums and other
costs. The cost of an investment in an associate or joint venture includes the fair value of the abandoned creditor's claim and other costs directly
attributable to the asset such as taxes and other costs. The cost of investment property includes the fair value of the abandoned creditor's claim
and other costs directly attributable to the asset such as taxes and other costs. The cost of fixed assets includes the fair value of the abandoned
creditor's claim and other costs directly attributable to the asset such as taxes transportation fees loading and unloading fees installation fees
professional service fees etc. The cost of biological assets includes the fair value of the abandoned creditor's claim and other costs directly
attributable to the asset such as taxes and other costs. The cost of intangible assets includes the fair value of the abandoned creditor's claim
and other costs directly attributable to making the asset reach the predetermined use state such as taxes and other costs. Debt restructuring
through the conversion of debt into equity instruments and resulting in the creditor converting the creditor's claim into equity investment in an
associate or joint venture shall be measured by the Group at the fair value of the abandoned creditor's claim and other costs directly attributable
to the asset. The difference between the fair value and the book value of the abandoned creditor's claim shall be recognized in the current profit
or loss.For debt restructuring through modifying other terms the Group shall recognize and measure the restructured creditor's claim in accordance with
the "III. (9) Financial Instruments" of this note.
71Wafangdian Bearing Co. LTD 2026 Midyear Report
For debt restructuring through the settlement of multiple assets or through a combination the Group shall first recognize and measure the
acquired financial assets and the restructured creditor's claim in accordance with the "III. (9) Financial Instruments" of this note and then
allocate the net amount of the fair value of the abandoned creditor's claim after deducting the recognized amount of the acquired financial assets
and the restructured creditor's claim based on the proportion of the fair value of each asset other than the acquired financial assets and
determine the cost of each asset based on the aforementioned methods. The difference between the fair value and the book value of the
abandoned creditor's claim shall be recognized in the current profit or loss.As the debtor
When the current obligation of the Group regarding the debt is discharged the Group shall cease to recognize the debt.For debt restructuring through the settlement of assets the Group shall cease to recognize the debt when the relevant assets and the debt being
settled meet the conditions for recognition. The difference between the book value of the debt being settled and the book value of the transferred
assets shall be recognized in the current profit or loss.For debt restructuring through the conversion of debt into equity instruments the Group shall cease to recognize the debt when the debt being
settled meets the conditions for recognition. When the equity instrument is initially recognized it shall be measured at the fair value of the equity
instrument. If the fair value of the equity instrument cannot be reliably measured it shall be measured at the book value of the debt being settled.The difference between the book value of the debt being settled and the recognized amount of the equity instrument shall be recognized in the
current profit or loss.For debt restructuring through modifying other terms the Group shall recognize and measure the restructured debt in accordance with the "III. (9)
Financial Instruments" of this note.For debt restructuring through the settlement of multiple assets or through a combination the Group shall recognize and measure the equity
instrument and the restructured debt in accordance with the aforementioned methods and the difference between the book value of the debt
being settled and the sum of the book value of the transferred assets and the recognized amounts of the equity instrument and the restructured
debt shall be recognized in the current profit or loss.
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 2026 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
The VAT taxable services calculated in accordance with the provisions of the Tax Law. Afterdeducting the input tax allowable for deduction in the current period the difference 13%、9%、6%、5%
shall be the VAT payable
Urban maintenance and
construction tax The tax is calculated based on the actual amount of turnover tax paid. 7%
Corporate income tax It is calculated at the prescribed tax rate based on the taxable income. 15%、25%
If there are different subjects of enterprise income tax rates the disclosure shall be explained
72Wafangdian Bearing Co. LTD 2026 Midyear Report
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 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 111182872.10 63915454.70
Other monetary funds 348170.15 1372065.14
A combined 111531042.25 65287519.84
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 or loss 200310.67 246536.22
A combined 200310.67 246536.22
3. Derivative financial assets
4.Notes receivable
（1）Category of notes receivable
In RMB Yuan
Items Closing Balance Opening Balance
Banker's acceptance 294196921.38 293562783.24
Commercial acceptance 268716160.07 203435408.83
Finance company acceptance bill 7490678.64 11266224.46
Bad debt reserve -8144740.04 -8153742.83
total 562259020.05 500110673.70
(2) Disclosure by classification according to bad debt provision method
In RMB Yuan
Ending balance Opening balance
Book balance Bad debtcategory reserve Book balance Bad debt reserve
amou amo Provisio Book value Provision Book value
nt scale unt n ratio amount scale amount ratio
73Wafangdian Bearing Co. LTD 2026 Midyear Report
Among them:
Notes receivable
for provision for 5704 814
doubtful 0376 100.0 508264416 8153742.0% 474 1.44% 562259020.05 .53 100.00% 83 1.60%
500110673
accounts on a 0.09 0.04 .70
combined basis
Among them:
Banker's 2941
acceptance 9692
51.58
%294196921.38
293562783.2457.76%
293562783
1.38.24
Finance 7490
company 678.6 1.31 7490678.64 11266224. 2.22% 11266224.acceptance bill 4 % 46 46
Commercial 2687 47.11 814
acceptance 1616 % 474 3.03% 260571420.03
20343540840.02%8153742.4.01%195281666
0.070.04.8383.00
5704814
total 0376 100.0 474 562259020.05 508264416 100.00% 8153742. 500110673
0.090%0.04.5383.70
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 294196921.38 0.00%
trade acceptance draft 7490678.64 0.00%
amount to 268716160.07 8144740.04 3.03%
name 570403760.09 8144740.04
Explanation of the basis for determining this combination:
Accounts receivable that are both aimed at collecting contractual cash flows and at selling.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
Change during the year
Category Opening balance Accrued Collected/reversed Closing BalanceWritten-off others
Commercial
acceptance bill 8153742.83 9002.79 8144740.04
Total 8153742.83 9002.79 8144740.04
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.
(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 210889024.17
Trade acceptance notes 224581252.41
Financial company acceptance bill 4417434.96
Total 439887711.54
74Wafangdian Bearing Co. LTD 2026 Midyear Report
5.Accounts receivable
(1) Age disclosure
In RMB Yuan
aging Ending book balance Opening book balance
Within 1 year (inclusive) 853174343.40 840257060.95
1 to 2 years 117115006.12 101777156.90
2 to 3 years 44622833.49 32261906.68
More than 3 years 72840407.51 60461324.78
3 to 4 years 13950165.69 9099385.71
Four to five years 9344690.35 5093807.93
More than 5 years 49545551.47 46268131.14
total 1087752590.52 1034757449.31
(2) Disclosure by classification according to bad debt provision method
In RMB Yuan
Ending balance Opening balance
category Book balance Bad debt reserve Book Book balance Bad debt reserveProvisi Bookamount scale amount on ratio value amount scale amount
Provision
ratio value
Accounts
receivable that
are set aside for 101806 9.36% 101616 99.81% 18946 1040328 10.05% 1038434108.77 641.17 7.60 77.62 10.02 99.82%
189467.6
bad debts on an 0
individual basis
Among them:
Accounts
receivable that 92717
are provided for 985946 90.64% 587757 5.96% 0750. 9307245 5879939 8719251
bad debts on a 481.75 31.51 24 71.69
89.95%3.986.32%77.71
combined basis
Among them:
Related party 849087 83744
grouping 55.08 7.81%
116404
5.661.37%709.4
61408095.93%11640456024405
26.15.66
1.90%0.49
Age grouping 901037 576116 8434282.83% 6.39% 6040. 8693164 84.02% 5763534 6.63% 8116811of accounts 726.67 85.85 82 75.54 8.32 27.22
108775 100.00 160392 92736total 14.75% 0217. 10347572590.52 % 372.68 449.31 100.00%
16264288721146
8404.00
15.72%45.31
Category name for bad debt provision calculated on an individual basis: Accounts receivable for which bad debt provision is calculated on an
individual basis
In RMB Yuan
name Opening Balance Ending balance
Book balance Bad debt reserve Book balance Bad debt reserve Provision ratio Reason forprovision
Accounts
receivable for
which bad debt 104032877.62 103843410.02 101806108.77 101616641.17 99.81% Expected to beprovisions are unrecoverable
made on a per-
item basis
total 104032877.62 103843410.02 101806108.77 101616641.17
Category name for bad debt provision calculated based on combination: Related party combination
In RMB Yuan
75Wafangdian Bearing Co. LTD 2026 Midyear Report
Name ending balance
book balance bad debt provision provisioning ratio
Portfolio of related parties 84908755.08 1164045.66 1.37%
Total 84908755.08 1164045.66
The basis for determining this combination is as follows:
In principle no bad debt provisions will be made unless there is clear evidence indicating that the full or partial recovery of the funds is
impossible.The category name for bad debt provisions calculated based on the combination: Aging Group
In RMB Yuan
Name ending balance
book balance bad debt provision provisioning ratio
Aging account combination 901037726.67 57611685.85 6.39%
Total 901037726.67 57611685.85
The basis for determining this combination is as follows:
Based on historical credit loss experience combined with the current situation and the forecast of future economic conditions a table comparing
the aging of accounts receivable with the expected credit loss rate over the entire duration is compiled and the expected credit loss is calculated.If the bad debt provision for accounts receivable is accrued 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 Ending balance
Accrued Other Collected/reversedincrease Written-off
Bad debt reserve 162642804.00 2250431.32 160392372.68
total 162642804.00 2250431.32 160392372.68
(4) Accounts receivable actually written off during the current period
In RMB Yuan
item Amount written off
Accounts receivable actually written off 2250431.32
The important details regarding the write-off of accounts receivable are as follows:
Whether the funds
Organization Name Nature of accounts Write-off amount Write-off reason The write-off are generated fromreceivable procedures fulfilled related-party
transactions
Shandong Taishan
Steel Group Co. Ltd. Payment for goods 2220385.22
Expected inability to Management
recover approval No
Total 2220385.22
(5) The receivables and contractual assets of the top five closing balances collected by the defaulting party.
In RMB Yuan
76Wafangdian Bearing Co. LTD 2026 Midyear Report
Percentage of the Ending balance of
Ending allowance for
Ending balance of balance of Ending balance of
total balance of
Unit name accounts receivable accounts receivable
doubtful accounts
accounts receivable contract and contract assets and contract assets
receivable and
assets at the end of the allowance for
period impairment ofcontract assets
China State Railway Group
Co. Ltd. and its affiliated 136759490.23 118996.41 136878486.64 12.58% 9510365.57
companies
Wafangdian Bearing Group
Co. Ltd. and its affiliated 80517958.01 80517958.01 7.40% 1279184.27
companies
Anshan Iron and Steel Group
Co. Ltd. and its subsidiaries 25845257.98 25845257.98 2.38% 4320917.26
Chongqing Gearbox Co. Ltd. 25249785.46 1017614.72 26267400.18 2.41% 1342855.15
China First Heavy Industries
Group Corporation Limited 22206476.85 276493.26 22482970.11 2.07% 2235769.91
and its affiliated companies
Total 290578968.53 1413104.39 291992072.92 26.84% 18689092.16
6. Contractual assets
(1) Contract assets
project Closing Balance Beginning balance
Book value Provision fordecline Net book value Book value
Provision for
decline Net book value
Contract
performance 7119828.52 1861067.28 5258761.24 7119828.52 1861067.28 5258761.24
A combined 7119828.52 1861067.28 5258761.24 7119828.52 1861067.28 5258761.24
(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
Items Booking balance Provision Booking Booking balance Provision Booking
Amount % Amount % value Amount % Amount % value
Among them:
Bad debt
provisions are 302695 42.5 1656423 54.72 13705
made on an 3.42 1% .52 % 29.90 3026953.42 42.51%
1656423.
5254.72%
1370529.90
individual basis
Among them:
Provision for 409287 57.4 204643.7 38882 3888231
bad debts is 5.10 9% 6 5.00% 31.34 4092875.10 57.49% 204643.76 5.00% .34
accrued based
77Wafangdian Bearing Co. LTD 2026 Midyear Report
on a
combination of
factors.Among them:
Aging account 409287 57.4 204643.7
combination 5.10 9% 6 5.00%
38882
31.344092875.1057.49%204643.765.00%
3888231.34
Total 711982 1861067 52587 7119828.52 1861067. 52587618.52 .28 61.24 28 .24
Category name for bad debt provision calculation on a single basis: Bad debt provision is calculated separately through individual assessment
In RMB Yuan
beginning balances ending balance
Name
book balance bad debt bad debt Accrualprovision book balance provision provisioning ratio Reason
The expected
Individual tests uncollectible
are provided for 3026953.42 1656423.52 3026953.42 1656423.52 54.72% amount is
separately recognized as abad debt
provision.Total 3026953.42 1656423.52 3026953.42 1656423.52
Bad debt provision category: Aging-based grouping
In RMB Yuan
Name ending balance
book balance bad debt provision provisioning ratio
By age group of accounts 4092875.10 204643.76 5.00%
Total 4092875.10 204643.76
The basis for determining this combination is as follows:
Based on historical credit loss experience combined with the current situation and predictions of future economic conditions a table comparing
the aging of accounts receivable with the expected credit loss rate over the entire duration is compiled and the expected credit loss is calculated.A provision for bad debts is made according to the general model of expected credit loss.□ Applicable □ Not applicable
7. Receivables financing
(1) Classification and listing of receivables financing
In RMB Yuan
item Ending balance Opening balance
78Wafangdian Bearing Co. LTD 2026 Midyear Report
Accounts Receivable Bills 66266216.55 45079733.86
Supply chain certificate 22717450.40 20893788.65
Provision for bad debts -1044689.43 -1044689.43
Total 87938977.52 64928833.08
（2） Disclosure classified by the bad debt provision method
In RMB Yuan
Ending balance Opening balance
item book balance bad debt provision book balance bad debt provisionbook book
amount ratio amount provisioni valueng ratio amount ratio amount
provisioni value
ng ratio
among：
Recognize
a bad debt
provision 88983666 100.0 1044689 8793897 6597352 1044689 6492883
based on a .95 0% .43 1.17% 7.52 2.51 100.00% .43 1.58% 3.08
combinatio
n of factors
among：
Among
them: 66266216 74.47 6626621 4507973
Receivable .55 % 6.55 3.86 68.33%
4507973
3.86
bills
Supply
chain 22717450 25.53 1044689 4.60% 2167276 2089378 31.67% 1044689 1984909
vouchers .40 % .43 0.97 8.65 .43
5.00%9.22
Total 88983666 1044689 8793897 6597352 1044689 6492883.95 .43 7.52 2.51 .43 3.08
Bad debt provision accounting method: Based on credit risk characteristics
In RMB Yuan
Name ending balance
book balance bad debt provision provisioning ratio
Accounts Receivable Bills 66266216.55
Supply chain certificate 22717450.40 1044689.43 4.60%
Total 88983666.95 1044689.43
(3)The status of bad debt provisions recognized recovered or reversed during the current period
79Wafangdian Bearing Co. LTD 2026 Midyear Report
In RMB Yuan
class Current period change amount
beginning
bad debt balances counting and Revoke or Write-off or ending balance
provision drawing reverse derecognition Other changes
amount to 1044689.43 1044689.43
class 1044689.43 1044689.43
(4) Receivables financing pledged by the Company at the period-end
(5) Accounts receivable financing for which the Company has performed endorsement or discounting but for which the maturity date has not yet
arrived as of the balance sheet date
In RMB Yuan
project Amount of termination of recognition atperiod-end Unrecognized amount at period-end
Bank-accepted bill of exchange 82970301.23
Supply Chain Certificate 39014603.22
amount to 121984904.45
8. Other receivables
In RMB Yuan
item Ending balance Opening balance
Other receivables 15389177.53 10631908.31
total 15389177.53 10631908.31
(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 13013456.06 9440995.28
Personal cash reserves 2106652.68 3714719.01
Other amounts 8582646.84 5789772.07
total 23702755.58 18945486.36
2) Aging disclosure
In RMB Yuan
aging Ending book balance Opening book balance
Within 1 year (inclusive) 9638324.80 7778270.21
1 to 2 years 3000265.25 2306549.30
80Wafangdian Bearing Co. LTD 2026 Midyear Report
2 to 3 years 1738852.17 447630.99
More than 3 years 9325313.36 8413035.86
3 to 4 years 1848523.37 1781018.27
Four to five years 899684.90 1127576.79
More than 5 years 6577105.09 5504440.80
total 23702755.58 18945486.36
3) Classified disclosure according to bad debt provision method
□Applicable□ Not applicable
In RMB Yuan
Ending balance Opening Balance
Items Booking balance Provision Booking Booking balance Provision Booking
Amount % Amount % value Amount % Amount % value
Accounts
receivabl
e with 5206086 5206086.4 100.00 5206086.4 27.48 5206086.4
21.96%100.00%
individual .42 2 % 2 % 2
bad debt
provision
Among them:
Provision
for bad
18496663107491.616.80153891713739399.72.523107491.610631
debts on 78.04% 22.62%
9.163%7.5394%3908.31
a portfolio
basis
Among them:
Related
25000.
party 20000.00 0.08% 20000.00 25000.00 0.13%
00
group
Surplus
210665221066521291885.312918
fund 8.89% 6.82%.68.68785.37
group
Account
16370013107491.618.98132625212422514.65.573107491.693150
age 69.06% 25.01%
6.483%4.8557%322.94
group
23702758313578.0153891718945486.8313578.010631
total 100.00%
5.5857.53365908.31
Category name for bad debt provision calculated on a single basis: Other receivables that are tested individually and for which bad debt
provision is calculated separately
In RMB Yuan
Opening balance Ending balance
name
Book balance Bad debt reserve Book balance Bad debt reserve Provision ratio Reason forprovision
Other receivables It is expected that
that are tested 5206086.42 5206086.42 5206086.42 5206086.42 100.00% it cannot be
individually and recovered.for which bad
81Wafangdian Bearing Co. LTD 2026 Midyear Report
debt provisions
are made
separately
total 5206086.42 5206086.42 5206086.42 5206086.42
Category name for bad debt provision calculated based on combination: Credit risk characteristic combination
In RMB Yuan
Name ending balance
book balance bad debt provision provisioning rate
Related party
combination 20000.00
Surplus fund combination 2106652.68
Aging account
combination 16370016.48 3107491.63 18.98%
Total 18496669.16 3107491.63
The basis for determining this combination:
Apart from the above receivables for which bad debt provisions are made on a single basis the Group classifies the remaining financial
instruments based on their credit risk characteristics into several groups and determines the expected credit losses on a group basis.Bad debt provisions are made according to the general model of expected credit losses:
In RMB Yuan
The first stage The second stage The third stage
Bad debt provision Expected credit losses
Expected credit Expected credit losses
losses over the throughout the entire
throughout the entire Total
duration (incorporating
next 12 months duration (where no creditimpairment has occurred) already occurred creditimpairment)
Balance as of January 1 2026 3107491.63 5206086.42 8313578.05
Balance as of January 1 2026 is
included in this period
Balance as of June 30 2026 3107491.63 5206086.42 8313578.05
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
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
The
nature of Proportion of the Bad debt provision
Company Name the funds ending balance aging total ending balance – Period-end
Margin of other receivables balance
deposit
Daqin Railway Co. LTD. Material Margin
purchasing office deposit 2173595.00 1–5 years 9.17% 183679.75
Anhui Conch Cement Co. LTD Margindeposit 1300000.00 3–4 years 5.48% 650000.00
82Wafangdian Bearing Co. LTD 2026 Midyear Report
China Railway Shenyang Bureau
Group Co. Ltd. Shenyang Railway Margindeposit 1216300.00 1–2 years 5.13% 60815.00Vehicle Factory
CRRC Logistics Co. LTD Margindeposit 1174508.00 Within 1 year 4.96% 117450.80
The
Shanxi Railway Construction nature of
Engineering Co. Ltd. the funds 1125983.00 Within 1 year 4.75% 56299.15Margin
deposit
Total Margindeposit 6990386.00 29.49% 1068244.70
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 6313386.75 81.48% 8574276.95 92.32%
1 to 2 years 1154706.45 14.90% 0.00%
2 to 3 years 280000.00 3.61% 630831.99 6.79%
More than 3 years 0.00% 82603.74 0.89%
total 7748093.20 9287712.68
Explanation for the reasons why overdue prepayments (with an age exceeding one year and significant in amount) have not been settled in a
timely manner:
(2) The advance payment of the top five of the closing balance collected by the prepaid object
Organization Name year end balance Proportion of the total year-end balance of prepaidaccounts (%)
Bengang Steel Plates Co.Ltd 5678111.01 73.28
Wafangdian Bearing Group National Bearing
Engineering Technology Research 413410.68 5.34
Northeast Special Steel Group Co. Ltd. 276494.39 3.57
China Railway Fuel Group Beijing Co. Ltd. 628250.79 8.11
Dalian Hongqian Municipal Engineering Co. Ltd. 554800.00 7.16
Total 7551066.87 97.46
10. Inventory
Whether the company is required to comply with real estate industry disclosure requirements
no
(1) Inventory classification
In RMB Yuan
item Ending balance Opening balance
Book balance Reserve for Book value Book balance Reserve for Book value
83Wafangdian Bearing Co. LTD 2026 Midyear Report
inventory decline inventory decline
or contract or contract
performance cost performance cost
impairment impairment
Raw material 42789705.81 12558592.95 30231112.86 60710575.37 12558592.95 48151982.42
Goods in process 119428047.19 11353869.92 108074177.27 119338500.26 11353869.92 107984630.34
Goods in stock 461199216.73 81082033.99 380117182.74 511318017.16 79973033.99 431344983.17
Turnover material 833008.82 602878.58 230130.24 1248011.18 602878.58 645132.60
Delivery of goods 33199265.32 33199265.32 48199265.32 48199265.32
total 657449243.87 105597375.44 551851868.43 740814369.29 104488375.44 636325993.85
(2) Data resources recognized as inventories
(3) Reserve for inventory decline and impairment of contract performance costs
In RMB Yuan
item Opening Current increase Current decrease
balance accrual other Turn back orresell other
Ending balance
raw and processed material 12558592.95 12558592.95
goods in process 11353869.92 11353869.92
merchandise inventory 79973033.99 1109000.00 81082033.99
Turnover materials 602878.58 602878.58
amount to 104488375.4 1109000.4 00 0.00 0.00 0.00 105597375.44
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
Deferred deductible input VAT 2703270.09 50294287.94
Others 4520.25
Total 2703270.09 50298808.19
14. Debt investment
15. Other debt investments
16. Investment in other equity instruments
In RMB Yuan
Gains Loss Gains Reasons
recognized recognize accrued to Loss specified as
as other d in other accrued to Dividend measured at fair
Opening comprehe comprehe
other
comprehensi other income value and forProject name balance nsive nsive ve income at comprehensi recognize
Ending which changes
income in income in ve income at d for the
balance
the end of are included in
the current the the current the end of period other
period currentperiod period
the period comprehensive
income
Shanghai Aimuyi
electromechanical 8705393 1000000 8705393.1
equipment chain .14 .00 4
Co. LTD
Tianjin Bogang No.
12 Enterprise 3528.31
84Wafangdian Bearing Co. LTD 2026 Midyear Report
Management
Partnership (Limited
Partnership) (Qian
'an Zha Yi Steel
Group Co. LTD.)
Trust Beneficiary
Rights of CCB Trust
- Caidie No.1
Property Rights
Trust Plan (Qian 'an
Zha Yi Iron and
Steel Group Co.LTD.)
General Technology
Group Dalian
Machine Tool Co.LTD. (Dalian
Longhui Industry
and Trade Co.LTD.)
Total 8705393 1003528 8705393.1.14 .31 4
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
item Houses and buildings Land use right Construction in progress total
I. Original book value
1. Opening balance 125278280.77 52861118.81 178139399.58
2. Increase in the current
period
(1) Outsourcing 0.00 0.00 0.00
(2) Transfer of inventory
fixed assets and construction 0.00 0.00 0.00
in progress
(3) Increase in business
combinations
3. Reduction amount in the
current period
(1) Disposal
(2) Other transfers
4. End-of-period balance 125278280.77 52861118.81 178139399.58
II.Accumulated depreciation
and amortization
1. Opening balance 79012763.72 25207340.44 104220104.16
2. Increase in the current
period 2115980.46 660755.99 2776736.45
(1) Provision or amortization 2115980.46 660755.99 2776736.45
3. Reduction amount in the
85Wafangdian Bearing Co. LTD 2026 Midyear Report
current period
(1) Disposal
(2) Other transfers
4. End-of-period balance 81128744.18 25868096.43 106996840.61
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 value 44149536.59 26993022.38 71142558.97
2. Initial book value 46265517.05 27653778.37 73919295.42
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
21. Fixed assets
item Ending balance Opening balance
Fixed assets 382146917.75 406111493.56
total 382146917.75 406111493.56
(1) Fixed assets
In RMB Yuan
Project buildings machinery delivery Electronicequipment equipment equipment Other equipment total
I. Book Value:
1. Initial Balance 279844854.50 1053268765.71 16302881.63 59630423.27 234047423.85 1643094348.96
2. Increase Amount This
Period 0.00 217094.07 0.00 5680410.05 0.00 5897504.12
(1) Purchase 0.00 0.00 0.00 6151.48 0.00 6151.48
(2) Transfer from
Construction in Progress 0.00 217094.07 0.00 5674258.57 0.00 5891352.64
(3) Increase from
Business Combination
3. Decrease Amount This 0.00 2172591.Period 67 257782.27 680471.17 0.00 3110845.11
(1) Disposal or Scrap 0.00 2172591.67 257782.27 680471.17 0.00 3110845.11
4. Final Balance 279844854.50 1051313268.11 16045099.36 64630362.15 234047423.85 1645881007.97
II. Accumulated
Depreciation
1. Beginning Balance 196629786.83 818996272.90 13091067.35 43744599.48 139910294.56 1212372021.12
86Wafangdian Bearing Co. LTD 2026 Midyear Report
2. Increase in Current
Period 3184001.27
22905130.68472287.011366575.091865772.9829793767.03
(1) Provision 3184001.27 22905130.68 472287.01 1366575.09 1865772.98 29793767.03
3. Decrease in Current 0.00 2107413.Period 93 257782.27 612005.76 0.00 2977201.96
(1) Disposal or Scrapping 0.00 2107413.93 257782.27 612005.76 0.00 2977201.96
4. Ending Balance 199813788.10 839793989.65 13305572.09 44499168.81 141776067.54 1239188586.19
III. Impairment Provision
1. Beginning Balance 1074996.20 22657298.15 7925.82 646004.77 224609.34 24610834.28
2. Increase in Current
Period
(1) Provision
3. Decrease in Current
Period 0.00 0.00 0.00 65330.25 0.00 65330.25
(1) Disposal or Scrapping 0.00 0.00 0.00 65330.25 0.00 65330.25
4. Ending Balance 1074996.20 22657298.15 7925.82 580674.52 224609.34 24545504.03
IV. Book Value
1. Book Value at the End
of the Period 78956070.20
18886198
0.312731601.4519550518.8292046746.97382146917.75
2. Book Value at the
Beginning of the Period 82140071.47
21161519
4.663203888.4615239819.0293912519.95406111493.56
(2) Temporarily idle fixed assets
Project Book value accumulated provision for diminutiondepreciation in value book value Note
Houses and
buildings 38094078.82 34536936.98 3557141.84
Machinery and
equipment 73618543.12 62812202.66 8161563.03 2644777.43
Transportation
equipment 234048.57 227027.11 7021.46
Electronics and other
items 2791094.54 2271709.29 223335.68 296049.57
In total 114737765.05 99847876.04 8384898.71 6504990.30
(3) Fixed assets leased through operating leases
(4) The fixed assets that have not completed the title certificate
Project Book value Reasons for the failure to obtain property ownership certificates
Seven finished product vehicle 1036678.11 The land spans two plots and cannot be registered; awaiting consolidation ofloading factory the land
Conical and cylindrical flaw The actual obtained land certificate is Wa Guo (1994) 027 and the registered
detection and packaging rooms 85407.83 rights holder is Wa Fadian Bearing Factory Comprehensive Factory. Theproperty and land are inconsistent
Dalian Industrial Park ball bearing The ownership of the factory building and the ownership of the land are
workshop 21830743.26 inconsistent and the property ownership certificate cannot be processedtemporarily
Outdoor storage shed of Dalian ball The ownership of the factory building and the ownership of the land are
bearing workshop 395069.56 inconsistent and the property ownership certificate cannot be processedtemporarily
In total 23347898.76
(5) Impairment test of fixed assets
87Wafangdian Bearing Co. LTD 2026 Midyear Report
□ Applicable□ Not applicable
(6) Liquidation of fixed assets
22. Construction in progress
In RMB Yuan
item Ending balance Opening balance
Construction in progress 7268202.66 10513430.99
total 7268202.66 10513430.99
(1) Construction in progress
In RMB Yuan
item Ending balance Opening balance
Book balance Reserve forimpairment Book value Book balance
Reserve for
impairment Book value
Ultra-precision machine
installation project 456878.68 456878.68 0.00 456878.68 456878.68
Dalian Industrial Park project 5590.45 5590.45 0.00 5590.45 5590.45
Equipment to be installed 5334981.63 987470.88 4347510.75 7337976.83 987470.88 6350505.95
Stock project renovation 1175375.39 1175375.39 955350.36 955350.36
Stock base surface project 1087964.58 1087964.58 1087964.58 1087964.58
Computer engineering 18000.00 18000.00 0.00 18000.00 18000.00
Precision rolling element
renovation 13091.45 13091.45 0.00 13091.45 13091.45
Grinding processing
production line 38957.26 38957.26 0.00 38957.26 38957.26
Maintenance and renovation
of grinding processing 741000.00 741000.00 0.00 741000.00 741000.00
production line
Seven finished products
renovation 3555799.28 3453144.41 102654.87 3555799.28 3453144.41 102654.87
Spherical roller bearing
assembly production line 1198862.55 1169162.55 29700.00 1198862.55 1169162.55 29700.00
Major equipment overhaul 266002.83 80870.09 185132.74 853657.69 80870.09 772787.60
Railway renovation 52991.45 27254.40 25737.05 665647.85 27254.40 638393.45
Construction project of
Channel Two 256249.27 234157.39 22091.88 256249.27 234157.39 22091.88
Update and renovation project
of component numerical
control production line of 497825.18 205789.78 292035.40 759772.08 205789.78 553982.30
medium and large-sized
branch companies
In total 14699570.00 7431367.34 7268202.66 17944798.33 7431367.34 10513430.99
(2) Current changes in the major ongoing construction projects
In RMB Yuan
Est Amount Where:
im of fixed Other Proportion Interest the Soassets decrea of Proj capitali amount of Current urc
Project ate Openin Currentd g increas transfer ses in Ending cumulative ect zation interest interest ename am balance e red in the balance project prog accumu capitalizati capitaliza of
ou the current input to ress lated on in the tion rate fun
nt current period budget amount current dsperiod period
Equipment
to be 76045 15902 48037 43910
installed 27.61 21.53 26.67
0.0022.47
88Wafangdian Bearing Co. LTD 2026 Midyear Report
Seven
finished 35557
product 99.28 0.00 0.00 0.00
35557
99.28
renovations
Shareholdin
g project 10507 22002 0.00 0.00 12708
renovations 95.36 5.03 20.39
Shareholdin
g base 10879
surface 64.58 0.00 0.00 0.00
10879
64.58
project
Update and
renovation
project for
component
CNC 75977
production 2.08 0.00
26194
6.900.00
49782
5.18
lines of
medium and
large-scale
branches
Ultra-
precision
machine 45687 0.00 0.00 0.00 45687
installation 8.68 8.68
project
In total 14515 18102 50656 11260737.59 46.56 73.57 0.00 310.58
(3) The situation of impairment provision for construction in progress made in this period
Project Initial balance This issue adds This period reduction Closing balance Reason forProvisioning
Impairment provision for
construction in progress 7431367.34 7431367.34
In total 7431367.34 7431367.34 --
23. Productive biological assets
24. Oil and gas assets
25. Use the assets
26. Intangible assets
(1) Intangible assets
Project Land use rights Patent Patent-freerights technology software total
I. Book Value
1. Beginning Balance 124575250.35 12244275.14 136819525.49
2. Current Increase Amount
(1) Purchase
(2) Internal Research and Development
(3) Increase from Business Combination
3. Current Decrease Amount
(1) Disposal
4. Ending Balance 124575250.35 12244275.14 136819525.49
II. Accumulated Depreciation
1. Beginning Balance 60322305.00 10195983.90 70518288.90
2. Current Increase Amount 1560151.17 183902.88 1744054.05
89Wafangdian Bearing Co. LTD 2026 Midyear Report
(1) Provision 1560151.17 183902.88 1744054.05
3. Current Decrease Amount
(1) Disposal
4. Ending Balance 61882456.17 10379886.78 72262342.95
III. Impairment Provision
1. Beginning Balance
2. Current Increase Amount
(1) Provision
3. Current Decrease Amount
(1) Disposal
4. Ending Balance
IV. Book Value
1. Ending Book Value 62692794.18 1864388.36 64557182.54
2. Beginning Book Value 64252945.35 2048291.24 66301236.59
27. Goodwill
28. Long-term deferred expenses
In RMB Yuan
item Opening balance Current Amortization amount for the Otherincrease current period reduction Ending balance
Fixed asset improvement
expenses 4825923.89 649690.14 908635.52 4566978.51
Building maintenance
expenses 2123657.38 161055.06 1962602.32
Road usage fees 115871.56 115871.56
In total 6949581.27 765561.70 1069690.58 6645452.39
29. Deferred tax assets/deferred tax liabilities
(1) Unoffset deferred income tax assets
(2) Unoffset deferred income tax liabilities
(3) Deferred income tax assets or liabilities presented on a net basis after offsetting
In RMB Yuan
Deferred income tax Deferred income tax
project assets and liabilities
Ending balance of
deferred tax assets or assets and liabilities
Deferred tax assets or
offsetting each other at liabilities after write-off offsetting each other at
liabilities after write-off of
the end of the period the beginning the opening balance
Deferred income tax
liabilities 788788.84 788788.84
(4) The details of deferred income tax assets have not been confirmed
In RMB Yuan
project ending balance beginning balances
Deductible losses 790821313.82 856258144.28
Bad debt losses of receivable bills 8153742.83 9849657.75
Bad debt losses of accounts receivable 162642804.00 145149697.84
Bad debt losses of financing of receivables 1044689.43
Bad debt losses of other receivables 8313578.05 8449559.85
Losses from inventory depreciation 104488375.44 88108503.81
Losses from impairment of fixed assets 24610834.28 31314105.77
Losses from impairment of construction in progress 7431367.34 7091322.25
Losses from impairment of contract assets 1861067.28 605182.64
In total 1109367772.47 1146826174.19
(5) The deductible losses of unrecognized deferred income tax assets will mature in the following years
90Wafangdian Bearing Co. LTD 2026 Midyear Report
In RMB Yuan
Year ending balance beginning balances Note
202582495762.79
202614116432.6314116432.63
202775136503.7975136503.79
2028103469846.02103469846.02
202982648926.0782648926.07
2030150374473.29150374473.29
2031127716833.64127716833.64
203292212084.5492212084.54
203362574905.5662574905.56
203465512375.9565512375.95
203517058932.33
total 790821313.82 856258144.28
30. Other non-current assets
In RMB Yuan
ending balance initial balance
Project provision for provision for
book balance diminution in book value book balance diminution in book value
value value
Advance
payment for 282900.00 282900.00
construction work
In total 282900.00 282900.00
31. Assets whose ownership or use rights are restricted
In RMB Yuan
Project end of term the beginning of the periodbook
balance book value
Restricted Restricted book
Type conditions balance book value
Restricted Restricted
Type conditions
Other Margin/SDN Other Margin/SDN
Monetary monetary sanctions sanctions
funds 672447.89 672447.89 funds / bank freeze or
1642200.3 1642200.3 monetary
0 0 funds / bank freeze or
deposits litigation deposits litigationinvolved involved
Notes 439887711 439887711 See Section Expired Expired
receivable .54 .54 6 (3) endorsemen
405338560 405338560 See Section
t .48 .48 6 (3)
endorsemen
t
Accounts 59027915. 59027915. Supply chain Expiredendorsemen 59547219. 59547219. Supply chain
Expired
receivable 58 58 bills 71 71 bills endorsement t
In total 499588075 499588075 466527980 466527980.01 .01 .49 .49
32. Short-term borrowing
(1) Classification of short-term loans
In RMB Yuan
item Ending balance Opening balance
Credit loan 82053118.00
total 82053118.00
33. Transactional financial liabilities
34. Derivative financial liabilities
35. Notes payable
In RMB Yuan
species Ending balance Opening balance
91Wafangdian Bearing Co. LTD 2026 Midyear Report
Commercial acceptance 60000000.00
Letter of credit 370597.50 370597.50
total 60370597.50 370597.50
36. Accounts payable
(1) Accounts payable are listed
In RMB Yuan
item Ending balance Opening balance
Within 1 year 919266147.29 919158607.52
1–2 years 180504336.16 228473959.18
2–3 years 38824898.61 36112904.20
Over 3 years 64736108.97 77986335.79
amount to 1203331491.03 1261731806.69
37. Other payables
In RMB Yuan
item Ending balance Opening balance
Other payables 663791490.44 587079378.98
total 663791490.44 587079378.98
(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
Margin and deposit 79614464.60 82966684.78
Loan and interest 542000000.00 460329726.03
Other 42177025.84 43782968.17
In total 663791490.44 587079378.98
38. Advance payment
39. Contract liabilities
In RMB Yuan
item Ending balance Opening balance
Payment for goods 36573801.46 31776246.33
total 36573801.46 31776246.33
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 44309178.08 159909680.29 178196165.64 26022692.73
II. Post-employment
benefits - Set up a 4653177.88 16979074.84 17125553.67 4506699.05
savings plan
III. Dismissal welfare 99286.00 797240.19 860560.18 35966.01
total 49061641.96 177685995.32 196182279.49 30565357.79
(2) Short-term salary is listed
In RMB Yuan
92Wafangdian Bearing Co. LTD 2026 Midyear Report
item Opening balance Current increase Current decrease Ending balance
1. Wages bonuses allowances
and subsidies 37272803.28 107435795.41 121746035.87 22962562.82
2. Employee welfare expenses 3018721.40 8775488.01 11289080.21 505129.20
3. Social insurance premiums 2330.00 10445808.96 10448138.96 0.00
Among them: Medical insurance
premiums 2250.00 9526392.70 9528642.70 0.00
Work injury insurance premiums 80.00 919416.26 919496.26 0.00
4. Housing provident fund 2503000.03 12534206.00 12596893.28 2440312.75
5. Union funds and employee
training funds 506894.48 1205319.76 1648526.28 63687.96
8. Other short-term
compensation 1005428.89 19513062.15 20467491.04 51000.00
In total 44309178.08 159909680.29 178196165.64 26022692.73
(3) Set up deposit plan list
In RMB Yuan
item Opening balance Current increase Current decrease Ending balance
1. Basic endowment
insurance 4583194.06 16472298.95 16618652.78 4436840.23
2. Unemployment
insurance 69983.82 506775.89 506900.89 69858.82
total 4653177.88 16979074.84 17125553.67 4506699.05
41. Taxes should be paid
In RMB Yuan
item Ending balance Opening balance
Value-added tax 6430546.93 6281267.42
Individual income tax 134633.51 148637.64
City maintenance and construction tax 377024.06 336765.59
Vehicle and vessel tax 523.35 523.35
House tax 766598.62 769261.38
Resource taxes 1215.50 5258.80
Education surcharge 155584.83 138331.21
Land use tax 612301.75 613163.82
Local education fees surcharge 103723.20 92220.79
Stamp duty 447055.53 547277.47
total 9029207.28 8932707.47
42. Holding liabilities held for sale
43. Non-current liabilities due within one year
44. Other current liabilities
In RMB Yuan
item Ending balance Opening balance
Supply chain vouchers that have been endorsed but are not yet
due as of the balance sheet date 59027915.58 59547219.71
Commercial acceptance bills that have been endorsed but are
not yet due as of the balance sheet date 224581252.41 174581559.89
Bank acceptance bills that have been endorsed but are not yet
due as of the balance sheet date 210889024.17 227644005.26
Financial company acceptance bills that have been endorsed but
are not yet due as of the balance sheet date 4417434.96 3112995.33
Deferred VAT to be reversed 4754594.19 4130912.02
In total 503670221.31 469016692.21
45. Long-term borrowing
46. Bonds payable
93Wafangdian Bearing Co. LTD 2026 Midyear Report
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
total 100000.00 100000.00
(2) Special payables
In RMB Yuan
item Opening Current Current Endingbalance increase decrease balance Formation reason
The Finance Bureau of Wafangdian City and the
Special pollution Environmental Protection Bureau of Wafangdian
control 169974.84 169974.84 City jointly approved the allocation through thedocument "Wafangdian Finance Bureau
Document [2004] No. 217".The Finance Bureau of Dalian City and the
Economic and Information Technology
Information Commission of Dalian City approved the
construction 75000.00 75000.00 allocation through the documents "Dalian FinanceBureau Document [2012] No. 917" and "Dalian
Economic and Information Technology
Commission Document [2012] No. 199".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 guarantee 18306043.74 16472767.59 Advance payment for product qualitycompensation
Compensation for customer losses in
railway bearing maintenance business 14460996.22 15298721.79
Compensation for customer losses due to
bearing maintenance
Wind power product quality claim 30299065.63 30476133.03 The product has quality issues and is beingpursued for compensation by the customer
In total 63066105.59 62247622.41
51. Deferred income
In RMB Yuan
item Opening Currentbalance increase Current decrease Ending balance Formation reason
Government subsidies 12899895.75 1375212.84 11524682.91 Receiving government subsidies
Relocation compensation The funds for building the new
for the old factory area of 21947294.07 589777.86 21357516.21 factory site and the factory land due
Liaozhou Company to the demolition of the old factoryarea of Liaozhou Company
Government subsidies 34847189.82 0.00 1964990.70 32882199.12
94Wafangdian Bearing Co. LTD 2026 Midyear Report
52. Other non-current liabilities
53. Capital stock
In RMB Yuan
This change increases or decreases (+ -)
Opening balance Issue new Share Conversion of
Ending
shares dividend provident fund other subtotal
balance
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
In RMB Yuan
Current period amount
Deduct:
Deduct: Amount Amount
previously previously
recognized in recognized in After-tax
Opening other
other Deduct: amount After-tax
item balance Current pre- comprehensive
comprehensi Income attributabl amount ending
tax amount income that is ve income Tax e to the attributable balance
transferred to that is Expense parent to the parent
profit or loss in transferred to company company
the current retained
period earnings inthe current
period.
1. Other
comprehensi
ve income
that cannot - -
be 3201535.2 2378.19 2378.19 3199157.0
reclassified 1 2
into profit or
loss
Fair value
changes in - -
other equity 3201535.2 2378.19 2378.19 3199157.0
instrument 1 2
investments
Total other - -
comprehensi 3201535.2 2378.19 2378.19 3199157.0
ve income 1 2
Other notes including the reclassification of the effective portion of cash flow hedge gains or losses into adjustments to the initial recognition
amount of the hedged item:
58. Special reserve
95Wafangdian Bearing Co. LTD 2026 Midyear Report
In RMB Yuan
item Opening balance Current increase Current decrease Ending balance
Safety cost 1639850.97 4129015.94 2187685.84 3581181.07
total 1639850.97 4129015.94 2187685.84 3581181.07
59. Surplus reserve
In RMB Yuan
item Opening balance Current increase 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 -824475798.90 -766382732.49
Adjust the undistributed profit at the beginning of the later period -824475798.90 -766382732.49
Plus: Net profit attributable to the owner of the parent company for the period 7324544.44 -58093066.41
Undistributed profit at the end of the period -817151254.46 -824475798.90
61. Operating income and operating costs
In RMB Yuan
item Current amount Amount incurred in the previous period
income cost income cost
Main business 1153617407.36 995029342.82 1297524895.46 1131292818.53
Other business 31353344.82 16541339.14 33090322.02 19525773.78
total 1184970752.18 1011570681.96 1330615217.48 1150818592.31
62. Taxes and surcharges
In RMB Yuan
item Current amount Amount incurred in the previous period
City maintenance and construction tax 743708.23 2970002.57
Education surcharge 530922.19 2121114.97
House tax 1665887.60 1647231.77
Land use tax 1380707.50 1382431.64
Stamp duty 924508.29 1420212.63
other 13844.54 16835.04
total 5259578.35 9557828.62
63. Administrative expenses
In RMB Yuan
item Current amount Amount incurred in the previous period
Employee compensation 44738381.50 51992583.25
Amortization of intangible assets 1905109.10 2001742.46
Guard and fire cost 1617821.60 1609068.09
Depreciation cost 2044655.28 1985814.69
Business entertainment 151156.95 165316.91
Travel expense 1182990.34 1109040.96
Other expenses 9823634.94 7375576.35
total 61463749.71 66239142.71
64. Sales expenses
In RMB Yuan
item Current amount Amount incurred in the previous period
Employee compensation 33693463.75 37698149.82
96Wafangdian Bearing Co. LTD 2026 Midyear Report
Quality compensation 1599231.70 817987.23
freight 436711.88 604876.90
Travel expense 7346881.99 6690045.12
Trademark royalty 8679499.04 9731454.38
Business activity expense 4496141.55 3782163.92
Rental fee 445541.79 400807.50
Conference expense 11813.94 523403.45
Other expenses 10711246.92 8229557.04
total 67420532.56 68478445.36
65. Research and development costs
In RMB Yuan
item Current amount Amount incurred in the previous period
Material input 22620791.96 43582392.71
Technical service fee design fee new
process specification setting fee (equipment 103773.58
debugging fee - new product tooling)
Labor cost 7397206.25 5459731.85
Amortization of depreciation expense and
long-term expense 2005370.89 2232237.46
Fuel power 482128.14 782504.74
Research and development equipment repair
and rental costs 113788.88 184681.90
Processing cost 18352.96
Other expenses 7807443.84 13522010.65
total 40530503.54 65781912.27
66. Financial expenses
In RMB Yuan
item Current amount Amount incurred in the previous period
Interest expense 66852.96 7581344.95
Less: Interest income 630239.22 450534.54
Plus: exchange loss 531494.67 -1148506.78
Other expenditure 8045562.77 840802.44
total 8013671.18 6823106.07
67. Other income
In RMB Yuan
Other sources of income Current amount Amount incurred in the previous period
Government subsidy 2848791.69 2780427.53
Input tax plus credit -28442.96 3108617.20
Personal income tax withholding fee 54346.37 77916.34
Direct VAT relief 0.97 0.97
total 2874696.07 5966962.04
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 -46225.55 -4622.55
total -46225.55 -4622.55
70. Investment income
In RMB Yuan
item current period Last period
Dividend income from investments in other equity
instruments during the holding period 1003528.31 1002352.64
97Wafangdian Bearing Co. LTD 2026 Midyear Report
Proceeds from debt restructuring 11092523.93 8661904.04
total 12096052.24 9664256.68
71. Credit impairment loss
In RMB Yuan
project current period Last period
Bad debt loss on notes receivable 32665.26 -300000.00
Bad debt losses on accounts receivable 613552.31
amount to 32665.26 313552.31
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 107376.24 351928.90
total 107376.24 351928.90
74. Non-operating income
In RMB Yuan
The amount included in the non-
project current period Last period recurring profit and loss of the
current period
Fine income 1442591.34 -53003.46 1442591.34
Write-off of payments that cannot be made 152245.62 230350.08 152245.62
other 4.39 100953.11 4.39
total 1594841.35 278299.73 1594841.35
75. Non-operating expenses
In RMB Yuan
The amount included in the non-
project current period Last period recurring profit and loss of the
current period
Loss of non-current assets destroyed and scrapped 249003.22 0.00
fines forfeits and penalty expenditure 8000.00 54500.00 8000.00
other 38896.05 113975.57 38896.05
total 46896.05 417478.79 46896.05
76. Income tax expenses
（1）Income Tax Expense Statement
（2） Accounting Profit and Income Tax Expense Adjustment Process
In RMB Yuan
item Current period amount
total profit 7324544.44
Income tax expense calculated at the statutory or applicable tax rate 1098681.67
The impact of subsidiaries being subject to different tax rates 29867.48
The impact of non-deductible costs expenses and losses 8000.00
The impact of additional deductible expenses as stipulated by tax law -1136549.15
77. Other comprehensive income
For details please refer to Note 7(57) – Other Comprehensive Income.
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
98Wafangdian Bearing Co. LTD 2026 Midyear Report
Interest income 630019.28 432887.16
Government subsidies 1563336.83 1430244.51
Come-and-go money 7007320.59 18202032.93
Return the deposit 6000.00 5500.00
other 3843704.25 4195845.05
A combined 13050380.95 24266509.65
Other cash payments in connection with operating activities
In RMB Yuan
project current period Last period
Cost of sales 12117488.22 17356439.08
Management fees 7150986.33 4392810.03
Finance charges 75893.31 496368.60
other 47425633.84 22268873.14
A combined 66770001.70 44514490.85
(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
Borrowing from related parties 82000000.00 150000000.00
Recovery of security deposit upon maturity 1501517.61 14191213.55
Total 83501517.61 235913150.44
Other cash receipts related to financing activities– Note:
Other cash payments related to financing activities
In RMB Yuan
project current period Last period
Bill payable at maturity 299744866.45
deposit 30879433.46
total 330624299.91
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 7324544.44 -20930911.54
Plus: Provision for asset impairment
Depreciation of fixed assets depletion of oil and gas assets
depreciation of productive biological assets 28542275.51 34295440.70
Depreciation of tenure assets
Amortization of intangible assets 1905109.10 2001742.46
Amortization of long-term deferred expenses 1069690.58 735736.38
Loss on disposal of fixed assets intangible assets and other long-
term assets (gain marked with "-") 107376.24 351928.90
Loss on retirement of fixed assets (income marked with "-") 414054.00
Loss on changes in fair value (gain marked with "-") 46225.55 4622.55
Financial expenses (income marked with "-") 8582264.83 7581344.95
99Wafangdian Bearing Co. LTD 2026 Midyear Report
Investment loss (income marked with "-") -12096052.24 -9664256.68
Decrease in deferred tax assets (increase marked with "-")
Increase in deferred tax liabilities (decrease marked with "-")
Decrease in inventory (increase marked with "-") 83365125.42 37244271.64
Decrease in operating receivables (increase marked with "-") -141362278.95 -63886058.07
Increase in operating payables (decrease marked with "-") 67340439.65 251194984.13
other 32665.26 313552.31
Net cash flow from operating activities 44857385.39 239656451.73
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 111160012.50 71652395.62
Less: Opening balance of cash 63915460.74 160907298.24
Plus: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents 47244551.76 -89254902.62
(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
In RMB Yuan
item Ending balance Opening balance
I. Cash 111160012.50 63915460.74
A bank deposit that can be used to pay at any time 111182872.10 71652395.62
III.Balance of cash and cash equivalents at the end of the period 111160012.50 63915460.74
80. Note to the statement of changes in owners' equity
81. Foreign currency monetary items
(1) Foreign currency monetary items
project Ending foreign currency balance Equivalent exchange rates Ending translation of RMBbalance
monetary resources 94708.77
Including: US dollars 90.72 6.8109 617.88
Euro 12114.03 7.7671 94090.88
Hong Kong currency
accounts receivable 5812502.90
Including: US dollars 729531.02 6.8109 4968762.82
Euro 108630.00 7.7671 843740.07
Hong Kong currency
money borrowed for long term
Including: US dollars
Euro
Hong Kong currency
(2) The nature of currency non-convertibility and its financial implications the spot exchange rate adopted and its estimation process as well as
the risks faced by enterprises due to currency non-convertibility;
□ Applicable□ Not applicable
100Wafangdian Bearing Co. LTD 2026 Midyear Report
(3) Description of overseas operating entities: For significant overseas operating entities the principal place of business abroad the functional
currency and the rationale for selecting such currency shall be disclosed; where the functional currency changes the reason for such change
shall also be disclosed.□ Applicable□ Not applicable
(4)The absence of convertibility between the functional currency used in overseas operations and the reporting currency of the enterprise.
□ 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
Lease costs for short-term leases or leases of low-value assets (simplified treatment)
□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
Short-term lease costs accounted for using a simplified treatment (either as part of the cost of
related assets or in the current period's profit or loss) 9497194.92 9487389.78
total 9497194.92 9487389.78
(2) The Company shall be the lessor
Operating lease as lessor
□Applicable□ Not applicable
In RMB Yuan
Among them: Income related to variable
item Lease income lease payments not included in lease
collections
Income from operating leases 9999899.55 9772790.20
total 9999899.55 9772790.20
Finance lease as lessor
□ Applicable□ Not applicable
Undiscounted lease receipts for each of the next five years
□ Applicable□ Not applicable
Adjustment Schedule between Uncollected Lease Receivables (Before Discounting) and Net Lease Investment
83. Data resources
84. Others
VIII. R&d expenditure
In RMB Yuan
item current period Last period
101Wafangdian Bearing Co. LTD 2026 Midyear Report
Material input 22620791.96 43582392.71
Technical service fees design fees new process procedure
development fees (equipment debugging fees - new product 103773.58
tooling)
Labor costs 7397206.25 5459731.85
Depreciation expenses and long-term expense amortization 2005370.89 2232237.46
Fuel and power 482128.14 782504.74
Repair and rental fees for research and development equipment 113788.88 184681.90
processing charges 18352.96
other expenses 7807443.84 13522010.65
total 40530503.54 65781912.27
Among them:Expensed R&D Expenses 40530503.54 65781912.27
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 name Registered Principal place Place ofcapital of operation registration Business nature
Shareholding ratio Acquisition
direct indirect mode
Wazhou
Liaoyang Wangshuitai Production and
Bearing 19350000.Liaoyang City
Liaoning street Taizihe sales of bearing Business
Manufacture 00 Province District Liaoyang and machinery
100.00% 0.00% combination
Co.Ltd City manufacturing
Dalian Free Trade Production and
Dalian motor 10000000. Daliang City Zone 13 Li sales of bearing Investment
Bearing Co.Ltd 00 Liaoning 100.00% 0.00% andProvince Yongsheng Street and machineryNo. 12 manufacturing establishment
No. 1 Beigongji
Wazhou spherial Wafangdian Street Production and
roller bearing 194000000 Liaoning Wafangdian City sales of bearing 100.00% 0.00% Business
company limited .00 Province Liaoning and machinery combination
Province China. manufacturing
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
Accounting
account Opening balance
The Amount Amount transferred to Other Ending Related to
amount of included in other income in the change balance assets/earning
102Wafangdian Bearing Co. LTD 2026 Midyear Report
subsidy non-operating current period s in s
added in income in the current
this period current period period
Deferred
income 34847189.82 1964990.70 36812180.52
Related to
assets
total 34847189.82 1964990.70 36812180.52
3. Government subsidies included in current profit and loss
□Applicable□ Not applicable
In RMB Yuan
Accounting account Current amount Amount incurred in the previous period
Deferred income/other income 1964990.70 807676.77
Bank deposits/other income 883800.99 1972750.76
total 2848791.69 2780427.53
XII. Risks Associated with Financial Instruments
1. Various Risks Arising from Financial Instruments
The main financial instruments of the Group include receivables accounts payable etc. The detailed information on each financial instrument is
provided in the relevant items of this note. The Group faces various financial risks during its operations: credit risk liquidity risk and market risk
(including exchange rate risk interest rate risk and other price risks).
1. 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.Exchange Rate Risk
Exchange rate risk refers to the risk that the fair value or future cash flows of financial instruments fluctuate due to changes in foreign exchange
rates.The Group's exposure to foreign exchange risk is mainly related to the US dollar. The Group's main export business is denominated and settled
in US dollars. As of December 31 2025 except for the foreign currency monetary items balance as described in Note 5 (55) the Group's assets
and liabilities are all in RMB. The foreign currency balances of assets and liabilities may have an impact on the Group's operating performance.The exchange rate risk faced by the Group mainly originates 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:
Current year
Item
Impact on profits Impact on shareholder equity
The RMB exchange rate against the US dollar
appreciated by 1%. -49693.81 -49693.81
The RMB exchange rate against the US dollar
depreciated by 1%. 49693.81 49693.81
The RMB appreciated by 1% against the euro. -9378.31 -9378.31
The RMB depreciated by 1% against the euro. 9378.31 9378.31
Note 1: The table above uses positive numbers to indicate increases and negative numbers to indicate decreases.Note 2: The changes in shareholders' equity shown in the above table do not include retained earnings.Other price risks
As of June 30 2026 the purchase of bearing components by the group 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
103Wafangdian Bearing Co. LTD 2026 Midyear Report
than exchange rate risks and interest rate risks.Credit risk
Credit risk refers to the risk that the counterparty fails to fulfill contractual obligations resulting in financial losses for the group.The book amount of confirmed financial assets in the consolidated balance sheet; for financial instruments measured at fair value the book
value reflects their exposure to risk but it is not the maximum risk exposure. The maximum risk exposure will change as the fair value changes
in the future.To reduce credit risk the group has established a specialized department to determine credit limits conduct credit approvals and implement
other monitoring procedures to ensure that necessary measures are taken to recover overdue debts. In addition the group reviews the recovery
situation of each individual receivable at each balance sheet date to ensure that sufficient bad debt provisions are made for uncollectible
amounts. Therefore the management of the group believes that the credit risk assumed by the group has been significantly reduced.The group's liquid funds are deposited in banks with high credit ratings so the credit risk of liquid funds is low.The group has adopted necessary policies to ensure that all sales customers have a good credit record. Except for the top five accounts
receivable amounts the group has no other significant credit concentration risks.Liquidity risk
Liquidity risk refers to the risk that an enterprise experiences a shortage of funds when fulfilling obligations to settle in the form of delivering cash
or other financial assets.The group's method of managing liquidity risk is to ensure there is sufficient liquidity of funds to fulfill due debts without causing unacceptable
losses or damaging the group's reputation. The group regularly analyzes the liability structure and maturity to ensure there is sufficient funds.The group's management monitors the use of bank borrowings and ensures compliance with loan agreements. At the same time the group
conducts financing negotiations with financial institutions to maintain a certain credit line and reduce liquidity risk.The financial liabilities of the company are presented below in the form of undiscounted contractual cash flows by maturity date.As of June 302026 the financial liabilities held by the Group are analyzed below based on the maturity dates of the undiscounted remaining
contractual obligations:
Item Within 1 year 1-2year 2-5year Over 5 years
accounts payable-others 545242147.34
notes payable 60370597.5
XIII. Disclosure of fair value
1. The fair value at period-end of assets and liabilities measured at fair value;
F V at the year end
items 1st Level FV 2nd Level FV 3rd Level FV
Measurement Measurement Measurement Total
I. Continuously measured at FV -- -- -- --
1.Tradable financial asset 200310.67 200310.67
(1).Financial assets at fair value through profit or
loss 200310.67 200310.67
(2). Equity Instrument Investments 200310.67 200310.67
3. Other Equity Instrument Investments 8705393.14 8705393.14
6.Accounts Receivable Financing 87938977.52 87938977.52
Total assets measured at fair value over time 200310.67 96644370.66 96844681.33
II. Non-recurring fair value measurements -- -- -- --
2. Basis for determining market prices for continuous and non-continuous Level 1 fair value measurement items
For certain equity instrument investments held within the Group's trading financial assets the measurement basis is the unadjusted closing price
on the public stock exchange as of June 302026.
3. For continuous and non-continuous Level 2 fair value measurement items qualitative and quantitative information regarding the valuation
techniques and key parameters used;
4. For continuous and non-continuous third-level fair value measurement items the valuation techniques employed and the qualitative and
104Wafangdian Bearing Co. LTD 2026 Midyear Report
quantitative information pertaining to the key parameters;
The Group has established relevant processes to identify appropriate valuation techniques and input values for Level 3 fair value measurements.The Group's Securities Investment Department regularly reviews these processes as well as the appropriateness of the fair value determination
methods employed.XIV. Related parties and related transactions
1. The parent company of the enterprise
The parent
Name of parent registered Nature of the business The registered company's
The proportion of
company capital shareholding ratio in voting rights of the
the company parent company
Wafangdian Bearing No. 1 Beigongji
Group Co. Ltd. Street Wafangdian Bearings and all kinds of
（ Wafangdian City Liaoning equipment 519869400.00 60.61% 60.61%Bearing Group Province China. manufacturing. sales）
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 regarding the subsidiaries of this enterprise please refer to Note "10: Interests in Other Entities".
3. The situation of the company's joint venture and associated enterprises
For details regarding the Company's significant joint ventures or associates please refer to the Notes.
4. Other related parties
Names of other related parties Relationships between other related parties and the enterprise
Dalian Waxial Group Bearing Equipment Manufacturing Co. The enterprises controlled by the same controlling shareholder andultimate controller
Wazhou Exact Forge Co. Ltd The enterprises controlled by the same controlling shareholder andultimate controller
Wafangdian Bearing Group Wind Power Bearing Co. The enterprises controlled by the same controlling shareholder andultimate controller
Wazhou Group Exact Transmission Bearing Co. Ltd The enterprises controlled by the same controlling shareholder andultimate controller
Wazhou Group Special Precision Bearing Co. Ltd. The enterprises controlled by the same controlling shareholder andultimate controller
Wazhou Group High-End Auto Bearing Co.Ltd The enterprises controlled by the same controlling shareholder andultimate controller
Dalian Zhixin Machinery Trading Co. Ltd The enterprises controlled by the same controlling shareholder andultimate controller
Wazhou Group Precision Roller Co.Ltd The enterprises controlled by the same controlling shareholder andultimate controller
Wazhou Group Precision Retainer Co.Ltd The enterprises controlled by the same controlling shareholder andultimate controller
Leipzig Roller Ball Bearing Manufacturing Co. The enterprises controlled by the same controlling shareholder andultimate controller
Wafangdian Bearing Power Co.Ltd The enterprises controlled by the same controlling shareholder andultimate controller
Wazhou Group National Bearing Engineering Technology Research The enterprises controlled by the same controlling shareholder and
Centre Co.Ltd ultimate controller
Wafangdian Bearing Group Dalian Wind Power Spindle Bearing Co. The enterprises controlled by the same controlling shareholder andultimate controller
Wafangdian Bearing Group Shanghai R&D Center Co. Ltd. The enterprises controlled by the same controlling shareholder andultimate controller
ZWZ Group (Europe) Bearing Co. Ltd. The enterprises controlled by the same controlling shareholder andultimate controller
Wafangdian Tongda Bearing Manufacturing Co. Other related parties
Jietai gete wazhou Automobile Bearing co. LTD(Dalian) Other related parties
105Wafangdian Bearing Co. LTD 2026 Midyear Report
Wafangdian Bearing Education and Training Center Other related parties
Dalian Diye Gikai Wax Shaft Industry Co. Ltd Other related parties
Subsidiaries of Dalian Heavy Industries Crane Group Co. Ltd. Other entities controlled by the ultimate controllingparty
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 it
The affiliated party Related party transaction content Current amount Approved exceeds Amount oftrading quotas the trading previous period
limit
Wafangdian Bearing Group Co.LTD. and its subsidiaries Spare parts
28107089760000000348781805
no.640.00.35
Wafangdian Bearing Group Co. Product 140543205 30000000 328733809LTD. and its subsidiaries no.81 0.00 .64
Wafangdian Bearing Group Co.LTD. and its subsidiaries Kinetic energy
21678570.5500000026993189.
no
35.0050
Wafangdian Bearing Group Co. 1000000.LTD. and its subsidiaries Equipment 62918.59 no 23.2500
Dalian Heavy Industry Equipment
Group Co. Ltd. and its Maintenance no 26378.73
subsidiaries
Security services fire safety
services trademark usage
occupation of public facilities
advertising services vehicle
Wafangdian Bearing Group Co. usage technical development 37822927. 90000000 32265488.LTD. and its subsidiaries services interest on fund nooccupation maintenance/greening 78 .00 35
services engineering labor
services labor fees jacket
cleaning services training
medical examinations etc.Table of Goods Sold/Services Provided
In RMB Yuan
The affiliated party Related party transactioncontent Current amount Amount of previous period
Dalian Heavy Industry Equipment Group Co. Ltd. and its
subsidiaries product 31980393.79
Wafangdian Bearing Group Co. LTD. and its subsidiaries product 153471524.6 141903271.76
0
Wafangdian Bearing Group Co. LTD. and its subsidiaries Materials 4565065.38 11287363.03
Wafangdian Bearing Group Co. LTD. and its subsidiaries Semi-finished productsand spare parts 139558.98
Wafangdian Bearing Group Co. LTD. and its subsidiaries Services such as heattreatment 22651368.15 32083674.21
Wafangdian Bearing Group Co. LTD. and its subsidiaries Equipment 58229.88
(2) Associated entrusted management/contracting and entrusted management/contracting
(3) Related leases
The Company as the lessor:
106Wafangdian Bearing Co. LTD 2026 Midyear Report
In RMB Yuan
Lease income
Name of lessee Types ofleasehold assets recognized for the
Lease income recognized
period in the previous period
Wafangdian Bearing Group Co. Ltd. and its subsidiaries House 3045644.65 3638571.24
Wafangdian Bearing Group Co. Ltd. and its subsidiaries Equipment 4910211.44 4851898.45
Wafangdian Bearing Group Co. Ltd. and its subsidiaries Land 1816934.11 1101097.50
The Company as lessee:
In RMB Yuan
Simplified treatment of Variable lease
rental costs for short- payments not Interest expense
Types term leases and leases included in themeasurement of Rent paid incurred on lease
Increased access to
of of low value assets (if liabilities assetslease liabilities (if
Name of lessor leaseh applicable)old applicable)
assets Amountincurred Curren
Amount Amount Amount Amount
Current t incurred Current incurred Current incurred
Curren
t incurred
amount in the amoun in the in the in the in theprevious t previous
amount previous amount previous amoun previous
period period period period t period
Wafangdian
Bearing Group Land 1581552. 1581552 158155 1581552Co. Ltd. and 53 .54 2.53 .54
its subsidiaries
Wafangdian
Bearing Group House 6815773. 6777336 681577 6777336Co. Ltd. and 51 .00 3.51 .00
its subsidiaries
Wafangdian
Bearing Group Equipm 1099868. 1128501 109986 1128501
Co. Ltd. and ent 88 .24 8.88 .24
its subsidiaries
(4) Related guarantee situation
(5) Fund lending by related parties
(6) Asset transfer and debt restructuring of related parties
The affiliated party Types Current amount Amount incurred in the previousperiod
Wazhou Group High-End Auto Bearing Co.Ltd Debt restructuring
and its Subsidiaries 60870.11 132572.19loss
Wafangdian Bearing Group Wind Power Bearing Debt restructuring
Co. 390000.00loss
Wafangdian Bearing Group Co. Ltd. Debt restructuring 634188.99 509812.52
gains
Dalian Waxial Group Bearing Equipment Debt restructuring
Manufacturing Co. 5263.16 75481.16gains
Wazhou Exact Forge Co. Ltd Debt restructuring 702309.43 131578.95
gains
Wazhou Group Precision Retainer Co.Ltd Debt restructuring 40000.00 160529.24
gains
Wazhou Group National Bearing Engineering Debt restructuring
Technology Research Centre Co.Ltd 49742.28 50759.47gains
Wafangdian Bearing Group Wind Power Bearing Debt restructuring
Co. 98400.00gains
Wafangdian Tongda Bearing Manufacturing Co. Debt restructuring 70000.00
gains
107Wafangdian Bearing Co. LTD 2026 Midyear Report
(7) Remuneration for key management personnel
In RMB Yuan
item Current amount Amount incurred in the previous period
Key management compensation 2431048.00 618163.80
6. Receivable and payables of related parties
(1) Receivable items
In RMB Yuan
Project name Affiliated party Ending balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Accounts Wazhou Group High-End
receivable Auto Bearing Co.Ltd 3930178.86
Accounts Wazhou Group Exact
receivable Transmission Bearing Co. 9557749.30Ltd
Accounts Leipzig Roller Ball Bearing
receivable Manufacturing Co. 210519.56 21051.96
Accounts Dalian Zhixin Machinery
receivable Trading Co. Ltd 80517958.01 1279184.27 46701880.81 1279184.27
Accounts Dalian Dazhong Mechanical
receivable and Electrical Installation 50.00Engineering Co.Accounts Dalian Great Oak Machinery
receivable Manufacturing Co. 76763.98 1267342.70
Accounts Dalian Huarui Heavy
receivable Industry Group Co. Ltd. 4314033.09 66033.09
Notes
Receivable Dalian Great Oak MachineryManufacturing Co. 150000.00 7500.00
Notes Wazhou Exact Forge Co.Receivable Ltd 20000000.00
Notes Wafangdian Bearing Group
Receivable Wind Power Bearing Co. 30560.11 10000000.00Ltd.Notes Dalian Zhixin Machinery
Receivable Trading Co. Ltd 17990983.77 899549.19
Notes Wafangdian Bearing Group
Receivable Co. Ltd. 51793673.67
Accounts
Receivable Dalian Great Oak Machinery
Financing Manufacturing Co.
2256.05
Accounts
Receivable Dalian Zhixin Machinery
Financing Trading Co. Ltd
66777.59
Accounts
Receivable Wafangdian Bearing Group 1040000.00
Financing Co. Ltd.Advance Wafangdian Bearing Power
payment Co.Ltd 1119704.91 1822624.54
Advance Dalian Wafangdian Group
payment Bearing Equipment 610405.32 478000.00Manufacturing Co. Ltd.Advance Wazhou Group Special
payment Precision Bearing Co. Ltd. 90400.00
Other Wafangdian Bearing Group
receivables Co. Ltd. 25000.00 25000.00
108Wafangdian Bearing Co. LTD 2026 Midyear Report
(2) Payable items
In RMB Yuan
项目名称 Affiliated party Ending book balance Opening book balance
payable
account Dalian Wazhou Bearing Manufacturing Equipment Co. Ltd 2322625.19 5216717.18
payable
account Dalian Zhixin Machinery Trading Co. Ltd 18428.32
payable
account Wafangdian Tongda Bearing Manufacturing Co. Ltd 54939927.58 53989932.83
payable
account Wafangdian Bearing Power Co.Ltd 9874808.17 11451887.88
payable Wafangdian Bearing Group Dalian Wind Power Spindle
account Bearing Co. 17039957.26 14559366.11
payable
account Wafangdian Bearing Group Wind Power Bearing Co. Ltd. 31065975.28 21454613.09
payable
account Wazhou Group High-End Auto Bearing Co.Ltd 12983953.16 17683523.83
payable Wazhou Group National Bearing Engineering Technology
account Research Centre Co.Ltd 15627307.65 14193114.46
payable
account Wazhou Group Precision Retainer Co.Ltd 35039243.07 37799372.58
payable
account Wazhou Group Special Precision Bearing Co. Ltd. 5967793.57 4078223.03
payable
account Wafangdian Bearing Group Co. Ltd. 121689411.59 167490157.46
payable
account Wazhou Exact Forge Co. Ltd 113872911.21 154569781.59
payable
account Wazhou Group Exact Transmission Bearing Co. Ltd 504809.62
payable
account Dalian Dazhong Testing Technology Service Co. Ltd. 1108.00
payable
account Dalian Huarui Heavy Industry Group Co. Ltd. 1.00
Other
payables Wafangdian Bearing Group Co. Ltd. 1555801.87 14586506.71
Other
payables Wafangdian Bearing Power Co.Ltd 1887498.33 2287498.33
Other
payables Dalian Zhixin Machinery Trading Co. Ltd 542000000.00 460329726.03
XV. Share payment
XVI. Commitments and contingencies
1. Important commitments
Material commitments as of the balance sheet date
no
(1) Significant contingencies existing at the balance sheet date
(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
109Wafangdian Bearing Co. LTD 2026 Midyear Report
(1) Age disclosure
In RMB Yuan
aging Ending book balance Opening book balance
Within 1 year (inclusive) 799521034.24 838847662.72
1 to 2 years 117039776.24 98842640.03
2 to 3 years 44387343.55 32261906.68
More than 3 years 69511968.64 56897395.97
3 to 4 years 13950165.69 9099385.71
Four to five years 9344690.35 5093807.93
More than 5 years 46217112.60 42704202.33
total 1030460122.67 1026849605.40
(2) Disclosure by classification according to bad debt provision method
In RMB Yuan
category Ending balance Opening balanceBook balance Bad debt reserve Book Book balance Bad debt reserve Book
amount scale amount Provision ratio value amount scale amount
Provision
ratio value
Accounts
receivable that are
set aside for bad 982421 9.54% 98052 99.81% 189467 100468 9.78% 10027948 18946
debts on an 79.96 712.36 .60 948.81 1.21
99.81%7.60
individual basis
Among them:
Accounts
receivable that are
provided for bad 932217 90.46 58775 873442 926380 58775731.
86760
debts on a 942.71 % 731.51
6.31%211.20656.5990.22%516.34%4925.08
combined basis
Among them:
Related Party 409704 11640 39806 1164045 581673
Group 56.74 3.98% 45.66 2.84% 411.08 5.78 .66% 1.96 84.70%
Ageing portfolio 891247 86.49 57611 6.46% 833635485.97 % 685.85 800.12 84.44
5761168809437
5.85%6.64540.38%
total 103046 100.00 156828 15.22% 873631 102684 100.00% 15905521
86779
0122.67%443.87678.809605.402.7215.49%4392.68
(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 Current variationOpening balance accrual Take back or turn Cancel after Ending balanceback verification other
Bad debt reserve 159055212.72 2226768.85 156828443.87
total 159055212.72 2226768.85 156828443.87
(4) Accounts receivable actually written off during the current period
In RMB Yuan
item Amount written off
Accounts receivable actually written off 2250431.32
Important accounts receivable write-off transactions:
Whether the
Unit name Accounts ReceivableNature Write-off amount Write-off reason Write-off procedure
payment arose from
a related-party
transaction
Shandong Taishan payment for goods 2220385.22 Expected to be Management no
110Wafangdian Bearing Co. LTD 2026 Midyear Report
Steel Group Co. Ltd. unrecoverable Approval
Total 2220385.22
(5) The receivables and contractual assets of the top five closing balances collected by the defaulting party
In RMB Yuan
Percentage of the Ending balance of
Ending balance of Ending Ending balance of total balance of
allowance for
balance of doubtful accountsUnit name accounts accounts receivable accounts receivable receivable and
receivable contractassets and contract assets
and contract assets
at the end of the allowance for
period impairment ofcontract assets
China State Railway Group Co.Ltd. and its affiliated companies 136759490.23 118996.41 136878486.64 13.28% 9510365.57
Wafangdian Bearing Group
Co. Ltd. and its affiliated 80517958.01 80517958.01 7.81% 1279184.27
companies
Ansteel Group Co. Ltd. and its
subsidiaries 25845257.98 25845257.98 2.51% 4320917.26
Chongqing Gearbox Co. Ltd. 25249785.46 1017614.72 26267400.18 2.55% 1342855.15
China First Heavy Industries
Co. Ltd. and its subsidiaries 22206476.85 276493.26 22482970.11 2.18% 2235769.91
Total 290578968.53 1413104.39 291992072.92 28.33% 18689092.16
2. Other receivables
In RMB Yuan
item Ending balance Opening balance
Other receivables 247045163.58 245164992.88
total 247045163.58 245164992.88
(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
Intercompany Receivables and Payables 236511588.97 236702647.05
Margin Deposits and Security Deposits 9168853.14 8199052.15
Employee Petty Cash 2096652.68 3714719.01
other 6467219.62 3747725.50
total 254244314.41 252364143.71
2) Aging disclosure
In RMB Yuan
aging Ending book balance Opening book balance
Within 1 year (inclusive) 9628324.80 6510728.91
1 to 2 years 2004265.25 2271158.73
2 to 3 years 1738852.17 236273647.43
More than 3 years 240872872.19 7308608.64
3 to 4 years 234525509.42 1781018.27
Four to five years 899684.90 1132081.15
More than 5 years 5447677.87 4395509.22
total 254244314.41 252364143.71
111Wafangdian Bearing Co. LTD 2026 Midyear Report
3) Classified disclosure according to bad debt provision method
In RMB Yuan
category Ending balance Opening balanceBook balance Bad debt reserve Book Book balance Bad debt reserveProvision Bookamount scale amount ratio value amount scale amount
Provision
ratio value
Provision
for bad
debts on 5206086 2.06% 5206086 100.00% 5206086 2.06% 5206086an .42 .42 .42 .42 100.00%
individual
basis
Among
them:
Provision
for bad
debts on 2490382 97.95% 1993064 0.80% 2470451 2471580 1993064 2451649
a portfolio 27.99 .41 63.58 57.29
97.94%.410.81%92.88
basis
Among
them:
Related
Party 2326969 91.52% 2326969 2358360 93.45% 2358360
Group 86.05 86.05 16.44 16.44
Collateral
and
deposit 13953.50 0.01% 13953.50 13953.50 0.01% 13953.50
combinati
on
Ageing 1632728 6.42% 1993064 12.21% 1433422 1130808 4.48% 1993064 17.63% 9315022portfolio 8.44 .41 4.03 7.35 .41 .94
total 2542443 719915014.41 100.00% .83 2.83%
24704512523641100.00%71991502.85%245164963.5843.71.8392.88
Category name for individual impairment of bad debt provisions: Other receivables subject to individual
impairment of bad debt provisions
name Opening balance Ending balance
Book balance Bad debt reserve Book balance Bad debt reserve Provision ratio Reason forprovision
Other receivables
for which bad
debt provisions 5206086.42 5206086.42 5206086.42 5206086.42 100.00% It is expected to be
are made on a unrecoverable.per-item basis
total 5206086.42 5206086.42 5206086.42 5206086.42
Combination-based bad debt provision category name: Related Party Combination
Name ending balance
book balance bad debt provision Provision ratio
Related party group 232696986.05 0.00%
Total 232696986.05
The basis for determining this combination:
Apart from the above receivables for which bad debt provisions are made on a single-item basis the Group classifies the remaining financial
instruments based on their credit risk characteristics into several combinations. On this basis it determines the expected credit losses. Generally
no bad debt provisions are made based on credit risk characteristics unless there is clear evidence indicating that the full or partial recovery of
the funds is impossible.
112Wafangdian Bearing Co. LTD 2026 Midyear Report
Categories for bad debt provisions based on combinations: Guarantee and Deposit Combination
In RMB Yuan
Name ending balance
book balance bad debt provision Provision ratio
Collateral and deposit 13953.50 0.00%
combination
Total 13953.50
Description of the basis for determining the portfolio: Except for the above- mentioned receivables for which impairment for bad debts is
assessed on an individual basis the Group classifies the remaining financial instruments into several portfolios based on credit risk
characteristics and determines expected credit losses on a portfolio basis. Based on credit risk characteristics no allowance for bad debts shall
be provided in principle unless there is clear evidence that all or part of the receivables are indeed irrecoverable.Category name for allowance for bad debts assessed on a portfolio basis:?Aging- based Portfolio
In RMB Yuan
Name ending balance
book balance bad debt provision Provision ratio
Account Age Segments 16327288.44 1993064.41 12.21%
Total 16327288.44 1993064.41
Explanation of the basis for determining this combination:
Drawing on historical credit loss experience combined with current conditions and forecasts of future economic conditions the expected credit
loss is calculated based on the exposure at default and the lifetime expected credit loss rate.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 loss overExpected credit losses the entire duration (no Expected credit loss over the Total
for the next 12 months credit impairment entire duration (credit
occurred) impairment has occurred)
Balance as of January 1
20261993064.415206086.427199150.83
The balance as of January 1
2026 is in the current period
Balance as of June 30 2026 1993064.41 5206086.42 7199150.83
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 Current variationOpening balance accrual Take back or turnback Resell or write off other
Ending balance
Bad debt reserve 7199150.83 7199150.83
total 7199150.83 7199150.83
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
Unit name Nature of money Ending balance aging Percentage of total Ending balance of
113Wafangdian Bearing Co. LTD 2026 Midyear Report
ending balance of allowance for
other receivables doubtful accounts
Dalian wazhou precision
motor car bearing co. Intercompany
LTD transactions
114575829.47 3-4year 45.07%
Wazhou liaoyang bearing Intercompany
manufacturing co. LTD transactions 118111156.58 3-4year 46.46%
Materials Procurement
Institute of Daqin Railway Deposit 2173595.00 1-5year 0.85% 183679.75
Co. Ltd
Anhui Conch Cement
Co. LTD Deposit 1300000.00 3-4year 0.51% 650000.00
Shenyang Railway
Passenger Car Works
China Railway Shenyang Deposit 1216300.00 Within 1 year 0.48% 60815.00
Group Co. LTD
Total 237376881.05 93.37% 894494.75
3. Long-term equity investment
In RMB Yuan
item Ending balance Opening balance
Book balance Reserve for Reserve forimpairment Book value Book balance impairment Book value
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
Opening Impairment Changes in the current period Impairmentinvestee Closingbalance (book reservebeginning Additional Reduce
Provision balance reserve
value) balance investment investment
for other ending
impairment (book value) balance
Wazhou
Liaoyang bearing 32242259.95 32242259.manufacturing Co. 95
LTD
Dalian Wazhou
precision motor
automobile bearing 45478956.37
45478956.
37
Co. LTD
Wazhou precision
spherical roller
bearing 148767681.3 148767681
(Wafangdian) limited 5 .35
liability company
total 226488897.6 2264888977 .67
4. Operating income and operating costs
In RMB Yuan
item Current amount Amount incurred in the previous period
income cost income cost
Main business 1144156410.73 1005108540.57 1286564016.29 1135892058.76
Other business 29283445.51 14865325.48 30344445.96 15971777.54
total 1173439856.24 1019973866.05 1316908462.25 1151863836.30
5. Investment income
In RMB Yuan
item Current amount Amount incurred in the previous period
114Wafangdian Bearing Co. LTD 2026 Midyear Report
Dividend income from investments in other
equity instruments during the holding period 1003528.31 1002352.64
Proceeds from debt restructuring 4635388.37 4682444.26
Total 5638916.68 5684796.90
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 107376.24
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 accordance with determined standards and have a continuous 2848445.24
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 or gain arising from the disposal of financial -46225.55
assets and financial liabilities
Gains and losses on debt restructuring 11092523.93
Other non-operating income and expenditure other than those mentioned above 1547945.30
total 15550065.16 --
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 return on Earnings per share
equity Basic earnings per share Diluted earnings per share(RMB/share) (RMB/share)
Net profit attributable to the company's
common shareholders 3.60% 0.0182 0.0182
Net profit attributable to the company's
common shareholders after deducting -4.04% -0.0204 -0.0204
non-recurring gains and losses
3. Differences in accounting data under domestic and foreign accounting standards
(1) The difference between net profit and net assets in financial reports disclosed under both international accounting standards and Chinese
accounting standards
□ Applicable□Not applicable
(2) The difference between net profit and net assets in financial reports disclosed under both foreign accounting standards and Chinese
accounting standards
□ Applicable□Not applicable
(3) Explanation of the reasons for the difference of accounting data under domestic and foreign accounting standards the name of the overseas
audit institution should be indicated if the difference adjustment is made to the data audited by the overseas audit institution
4. Others
115Wafangdian Bearing Co. LTD 2026 Midyear Report
116
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