Wafangdian Bearing Company Limited the Q3 Report for 2025

Stock code:200706 Stock ID: Wazhou B No:2025-33

Wafangdian Bearing Company Limited

The Third Quarterly Report for 2025

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

accurate and complete and there are no any fictitious records misleading statements or

important omissions.Important Content Notice:

1. The Board of Directors all directors and senior management warrant the truthfulness accuracy and

completeness of the quarterly report affirm that there are no false records misleading statements or material

omissions and assume individual and joint legal liabilities.

2. The company's legal representative the person in charge of accounting operations and the head of the

accounting department (or the accounting supervisor) declare: They guarantee the truthfulness accuracy and

completeness of the financial information in the quarterly report.

3. Whether the financial accounting report for the third quarter has been audited.

□Yes□No

I. Main financial data

(i) Main accounting data and financial indexes

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

□ Yes□ No

Reasons for retrospective adjustment or restatement

Change in accounting policies

1Wafangdian Bearing Company Limited the Q3 Report for 2025

The current report From the beginning

period increased of the year to the end

the same period of last year or decreased

From the of the report period

Current compared with the beginning of the the same period of last year the increase or

reporting same period last year to the end of decrease compared

period year the reporting with the same period

period last year

Before adjustment Adjusted Adjusted Beforeadjustment Adjusted Adjusted

Operating income (yuan) 545785818.80 503219497.92 503219497.92 8.46% 1876401036.28 1625585949.75 1625585949.75 15.43%

Net profit attributable to -

shareholders of the listed 8582720.1 -2267654.62 -2267654.62 -278.48% -29513631.64 -48300786.29 -48300786.29 38.90%

company (yuan) 0

Net profit attributable to

shareholders of the listed -

company after deducting 14003412. -7763768.45 -7763768.45 -80.37% -45681038.69 -65074465.95 -65074465.95 29.80%

non-recurring gains and 38

losses (yuan)

Net cash flows from

operating activities (yuan) — — — — 280204051.67 83171947.61 83171947.61 236.90%

Basic earnings per share

(yuan/share) -0.021 -0.0057 -0.0057 -268.42% -0.0733 -0.1200 -0.1200 38.92%

Diluted earnings per share

(yuan/share) -0.021 -0.0057 -0.0057 -268.42% -0.0733 -0.1200 -0.1200 38.92%

Weighted average return on

net assets -3.63% -0.70% -0.70% -2.93% -11.98% -13.90% -13.90% 1.92%

Last year-end The end of this report year increased or decreased from

at the end of the reporting period the end of the previous year

Before adjustment Adjusted Adjusted

Total assets (yuan) 2860012891.14 3316568117.52 3316568117.52 -13.77%

Owners' equity attributable

to shareholders of the listed 231732012.44 260983803.23 260983803.23 -11.21%

company (yuan)

2Wafangdian Bearing Company Limited the Q3 Report for 2025

Reasons for Changes in Accounting Policies and Correction of Accounting Errors

Implementation of the provisions in "Accounting Standards for Business Enterprises Interpretation No. 18" regarding the

accounting treatment of warranty-type quality assurances that do not constitute separate performance obligations.The Ministry of Finance issued "Accounting Standards for Business Enterprises Interpretation No. 18" (Caikuai [2024] No. 24

hereinafter referred to as "Interpretation No. 18") on December 6 2024. This interpretation is effective from the date of issuance

and allows enterprises to apply it in advance from the year of release.Interpretation No. 18 stipulates that when accounting for estimated liabilities arising from warranty-type quality assurances that

do not constitute separate performance obligations enterprises shall in accordance with the relevant provisions of "Accounting

Standards for Business Enterprises No. 13 - Contingencies" debit accounts such as "Cost of Main Business" and "Cost of Other

Operations" and credit the "Estimated Liabilities" account. Correspondingly these amounts shall be presented in the "Operating

Costs" line item in the income statement and in items such as "Other Current Liabilities" "Current Portion of Non-Current

Liabilities" and "Estimated Liabilities" in the balance sheet.When an enterprise initially applies the provisions of this interpretation if the originally recognized warranty-type quality

assurance was recorded in "Selling Expenses" it shall be retrospectively adjusted as a change in accounting policy. The

adjustments made by the Company for the accounting treatment of warranty-type quality assurances that did not constitute

separate performance obligations for the period January to September 2024 are as follows:

In the consolidated financial statements selling expenses of RMB 6040620.00 were reclassified to operating costs. In the parent

company's financial statements selling expenses of RMB 6031357.40 were reclassified to operating costs.(ii) Items and amounts of non-recurring profit (gains)/losses

□Applicable □ Not applicable

UNIT:yuan

Amount from the

Project Amount for the beginning of the yearreporting period to the end of the Explanation

reporting period

Gains or losses from the disposal of illiquid assets (including the

write-off portion of asset impairment provisions already made) -2226.46 104124.01

Government subsidies included in the current period's profit and loss

(excluding those closely related to the company's normal business

operations in compliance with national policy regulations enjoyed 2266555.92 5046983.45

in accordance with determined standards and having a continuous

impact on the company's profit and loss)

Except for the effective hedging business related to the company's

normal business operations the gains or losses from changes in fair

value of financial assets and financial liabilities held by non-financial 32357.88 27735.33

enterprises as well as the gains or losses from the disposal of

financial assets and financial liabilities

Gains or losses from debt restructuring 4026880.04 12688784.08

Other non-operating income and expenses except for the above items 89285.99 195685.36

Other profit and loss items that conform to the definition of non-

recurring gains and losses 0.00 1002352.64

Less: Income tax impact amount 992161.09 2898257.82

Total 5420692.28 16167407.05 --

The specific circumstances of other profit and loss items that conform to the definition of non-recurring gains and losses:

□ Applicable □ Not applicable

3Wafangdian Bearing Company Limited the Q3 Report for 2025

The company has no other specific circumstances that meet the definition of non-recurring gains and losses.A statement on defining the non-recurring gains and losses items listed in the "Explanatory Announcement on Information

Disclosure of Companies Offering Securities to the Public No. 1 - Non-recurring Gains and Losses" as recurring gains and losses

items

□ Applicable □ Not applicable

The company does not define the non-recurring gains and losses items listed in the "Explanatory Announcement No. 1 on

Information Disclosure of Companies Offering Securities to the Public - Non-recurring Gains and Losses" as recurring gains and

losses items.(iii) Particulars about changes in items of main accounting data and financial index and explanations of

reasons

□Applicable □Not applicable

Unit: ten thousand yuan

Number Project Ending Beginning Increase/ Percentagefigures figures decrease change Reasons for change

1 Monetary funds 8374 23940 -15566 -65.0% Bank deposits and other monetary funds have decreasedsince the beginning of the year

2 Other payables 50905 13526 37380 276.4% The main purpose is to borrow money from relatedparties

3 Research and This is mainly due to the differences in R&D projectsdevelopment expenses 11425 8618 2807 32.6% and progress compared to the same period

4 Financial expenses 922 2396 -1475 -61.5% The main reason is the decline in bill discount interestand interest expenses

5 Other income 994 1994 -1001 -50.2% The main reason is the decline in the additionaldeduction for value-added tax

6 Investment income 1369 1035 334 32.3% The main reason is the increase in net gains from debtrestructuring

7 Non-operating income 45 472 -426 -90.4% The main reason is the decline in write-off and fineincome for the current period

Cash paid for

8 purchasing goods or 14121 40355 -26234 -65.0% Monetary payments to suppliers have decreased

receiving services

9 All taxes and fees paid 6465 3872 2593 67.0% The value-added tax and additional taxes paid in thisperiod have increased year-on-year

10 Obtain the cashreceived from the loan 16200 46000 -29800 -64.8% The amount of reverse loans in this period has decreased

II. Shareholders Information

(i) Total number of common shareholders and preference shareholders with voting rights recovered and

top ten common shareholders

Unit: Share

Total common shareholders at the end 4952 Total preference shareholders with voting rightsof report period recovered at end of reporting period (if applicable) 0

Shareholding status of the top 10 shareholders (excluding shares lent through the securities lending program)

Nature of Proportion Amount of Number of non-

Information of shares pledged

Shareholder’s name shareholder of shares shares held tradable shares

tagged or frozen

held held State of share Amount

Wafangdian bearing State-owned

Group Co. LTD legal person 60.61% 244000000 244000000 inapplicability 0

Dalian Youth

Development Others 19.70% 79300000 0 inapplicability 0

4Wafangdian Bearing Company Limited the Q3 Report for 2025

Foundation

China Merchants

Securities (Hong Overseas legal

Kong) Limited person

2.69% 10844657 0 inapplicability 0

Huang Junyue Domesticnatural persons 1.81% 7302709 0 inapplicability 0

Hu Xiaofeng Domesticnatural persons 0.47% 1879277 0 inapplicability 0

BOCI SECURITIES Overseas legal

LIMITED person 0.36% 1433154 0 inapplicability 0

GUOTAI JUNAN

SECURITIES Overseas legal

HONG KONG person 0.20% 823400 0 inapplicability 0（ ）

LIMITED

Wang Xiao Domesticnatural persons 0.19% 774420 0 inapplicability 0

Chen Peng Domesticnatural persons 0.18% 738100 0 inapplicability 0

MANKWAI WING Overseas

natural person 0.18% 713101 0 inapplicability 0文贵荣

Shareholding status of the top 10 shareholders (excluding shares lent through securities lending and locked shares of senior

executives)

Type of shares

Shareholders’ name Number of listed shares held

Type Amount

Dalian Youth Development Foundation 79300000 B 79300000

China Merchants Securities (Hong

Kong) Limited 10844657 B 10844657

Huang Junyue 7302709 B 7302709

Hu Xiaofeng 1879277 B 1879277

BOCI SECURITIES LIMITED 1433154 B 1433154

GUOTAI JUNAN SECURITIES

HONG KONG LIMITED 823400 B 823400（ ）

Wang Xiao 774420 B 774420

Chen Peng 738100 B 738100

MANKWAI WING文贵荣 713101 B 713101

Jiang Guangsen 691600 B 691600

A description of the above shareholder affiliation or

concerted action None

Description of the Top 10 shareholders' participation

in margin trading (if any) None

The situation of shareholders holding more than 5% of the shares the top 10 shareholders and the top 10 shareholders of

unrestricted tradable shares participating in the lending of shares through the securities lending and borrowing business

□ Applicable□ Not applicable

The top 10 shareholders and the top 10 shareholders of unrestricted tradable shares have changed compared with the previous

period due to the reasons of lending/returning through the securities lending and borrowing system

□ Applicable□ Not applicable

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

stock held

□ Applicable √ Not applicable

III. Other significant events

□ Applicable□ Not applicable

5Wafangdian Bearing Company Limited the Q3 Report for 2025

During the reporting period the negative impact of the company's designation on the U.S. SDN List has become increasingly

apparent and continues to intensify placing greater pressure on both its operations and financing environment. As a result of the

sanctions the constraints on the company's financing channels have proven difficult to alleviate effectively. In addition

procurement orders from certain domestic and international customers have declined and some cooperative relationships have

even been terminated posing ongoing challenges to the company's business expansion and revenue stability.Despite actively

implementing various countermeasures—such as exploring new customer bases improving product gross margins and seeking

support for working capital—the company has not yet achieved fundamental mitigation of these risks. Although the company

continues to explore response strategies under the guidance and support of its major shareholder and the State-owned Assets

Supervision and Administration Commission (SASAC) it still faces significant financial pressure tight funding conditions and

operational uncertainties. Investors are hereby advised to take note of the associated risks.IV. Quarterly financial statements

(i) Financial statement

1. Consolidate balance sheet

Prepared by Wafangdian Bearing Company Limited

Unit: Yuan

Project ending balance beginning balances

Current assets

Monetary funds 83742459.40 239398923.10

Settlement reserve fund

Withdraw funds

Trading financial assets 249617.92 221882.59

Derivative financial assets

Notes receivable 438306906.76 597196581.19

Accounts receivable 916386762.59 1026226986.45

Receivables financing 55333138.42 48925906.07

Advance payment 20259673.55 10948524.83

Premium receivable

Reinsurance accounts receivable

Reserve receivable for reinsurance contracts

Other receivables 6914299.31 7962213.75

Among them: Interest receivable

Dividends receivable

Buy resale financial assets

Inventory 696183084.21 688440738.43

Among them: data resources

Contract assets 10106014.60 11498470.21

Hold assets for sale

Non-current assets due within one year

Other current assets 43793816.49 53298611.95

Total current assets 2271275773.25 2684118838.57

Non-current assets

Issue loans and advances

Debt investment

Other debt investments

Long-term receivables

Long-term equity investment

Other equity instrument investments 11906928.35 11906928.35

Other non-current financial assets

6Wafangdian Bearing Company Limited the Q3 Report for 2025

Investment property 74789773.00 71679927.05

Fixed assets 411332894.35 437398315.29

Construction in progress 17509057.24 34740635.71

Productive biological assets

Oil and gas assets

Right-of-use assets

Intangible assets 67118445.88 70121059.58

Among them: data resources

Development expenditure

Among them: data resources

Goodwill

Long-term deferred expenses 6080019.07 6602412.97

Deferred income tax assets

Other non-current assets

Total non-current assets 588737117.89 632449278.95

Total assets 2860012891.14 3316568117.52

Current liabilities

Short-term borrowing 252000000.00 570000000.00

Borrow from the central bank

Borrowed funds

Trading financial liabilities

Derivative financial liabilities

Notes payable 75348156.00 401129901.60

Accounts payable 1605787143.98 1663816039.46

Advance payment

Contract liabilities 27903287.14 34098145.99

Proceeds from the sale of repurchased financial assets

Deposit absorption and interbank lending

Act as an agent for the trading of securities

Act as an agent for underwriting securities funds

Employee Compensation payable 39980306.79 42089354.01

Taxes payable 9744009.90 12064219.60

Other payables 509053320.38 135258184.75

Among them: Interest payable

Dividends payable

Payable handling fees and commissions

Reinsurance accounts payable

Liabilities held for sale

Non-current liabilities due within one year 0.00 98350000.00

Other current liabilities 3623981.75 4417479.62

Total current liabilities 2523440205.94 2961223325.03

Non-current liabilities

Insurance contract reserve

Long-term borrowing

Bonds payable

Among them: preferred stocks

Perpetual bond

Lease liability

Long-term payables 344974.84 344974.84

Long-term employee compensation payable

Estimated liabilities 68101527.51 55771671.86

Deferred income 35869685.20 37719857.35

Deferred income tax liability 524485.21 524485.21

Other non-current liabilities

Total non-current liabilities 104840672.76 94360989.26

Total liabilities 2628280878.70 3055584314.29

7Wafangdian Bearing Company Limited the Q3 Report for 2025

Owner's equity

Share capital 402600000.00 402600000.00

Other equity instruments

Among them: preferred stocks

Perpetual bond

Capital reserve 485691050.47 485691050.47

Less: Inventory stocks

Other comprehensive income

Special reserve 2566935.09 2305094.24

Surplus reserve 136770391.01 136770391.01

General risk Provision

Undistributed profits -795896364.13 -766382732.49

Total owner's equity attributable to the parent company 231732012.44 260983803.23

Minority shareholders' equity

Total owner's equity 231732012.44 260983803.23

Total liabilities and owner's equity 2860012891.14 3316568117.52

Legal Representative:Wang Jiyuan Person in Charge of Accounting Operations：Sun Naijuan

Head of Accounting Department：Xuan Songtao

2. Consolidated Profit Statement (from the year-begin to the period-end)

Unit: Yuan

Current period

Item Prior-period amount

amount

I. Total operating income 1876401036.28 1625585949.75

Among them: operating income 1876401036.28 1625585949.75

Interest income

The premium has been made

Fee and commission income

2. Total operating cost 1930750291.14 1709353450.52

Among them: operating cost 1590623487.80 1396206572.72

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 13528874.74 10170989.14

Cost of sales 104754253.66 109842961.40

Management fees 98374215.89 82986788.60

Research and development costs 114252362.65 86182502.40

Finance charges 9217096.40 23963636.26

Among them: interest expense 8341322.72 18712656.21

Interest income 729252.86 1456629.87

Plus: other benefits 9938545.97 19944734.38

Investment income (loss marked with "-") 13691136.72 10349572.81

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)

8Wafangdian Bearing Company Limited the Q3 Report for 2025

Net exposure hedging gain (loss marked with "-")

Income from change in fair value (marked with "-" for loss) 27735.33 -7704.25

Credit impairment loss (marked with "-") 878395.83 709438.92

Asset impairment loss (marked with "-") 0.00 0.00

Gain on disposal of assets (loss marked with "-") 351955.82 412941.80

3. Operating profit (loss marked with "-") -29461485.19 -52358517.11

Plus: non-operating income 452328.10 4716134.46

Less: non-operating expenses 504474.55 658403.64

Iv. Total profit (total loss marked with "-") -29513631.64 -48300786.29

Less: Income tax expense

V. Net profit (Net loss marked with "-") -29513631.64 -48300786.29

(a) classification according to business continuity

1. Net profit from continuing operations (net loss marked with "-") -29513631.64 -48300786.29

2. Net profit from terminated operations (net loss marked with "-")

(2) Classification according to ownership

1. Net profit attributable to shareholders of the parent company (net loss marked

-29513631.64-48300786.29

with "-")

2. Profit and loss of minority shareholders (net loss marked with "-")

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 -29513631.64 -48300786.29

(1) Total comprehensive income attributable to the owner of the parent company -29513631.64 -48300786.29

(2) Total comprehensive income attributable to minority shareholders

8. Earnings per Share

(1) Basic earnings per share -0.0733 -0.1200

(2) Diluted earnings per share -0.0733 -0.1200

Legal Representative:Wang Jiyuan Person in Charge of Accounting Operations：Sun Naijuan

Head of Accounting Department：Xuan Songtao

9Wafangdian Bearing Company Limited the Q3 Report for 2025

3. Consolidated Cash Flow Statement (from the year-begin to the period-end)

Unit: Yuan

Item Current period Last period

I. Cash flows arising from operating activities:

Cash received from selling commodities and providing labor services 803832890.59 882536439.10

Net increase of customer deposit and interbank deposit

Net increase of loan from central bank

Net increase of capital borrowed from other financial institution

Cash received from original insurance contract fee

Net cash received from reinsurance business

Net increase of insured savings and investment

Cash received from interest commission charge and commission

Net increase of capital borrowed

Net increase of returned business capital

Net cash received by agents in sale and purchase of securities

Write-back of tax received 10600282.59 12680879.66

Other cash received concerning operating activities 28857473.00 30187964.38

Subtotal of cash inflow arising from operating activities 843290646.18 925405283.14

Cash paid for purchasing commodities and receiving labor service 141205067.09 403549721.57

Net increase of customer loans and advances

Net increase of deposits in central bank and interbank

Cash paid for original insurance contract compensation

Net increase of capital lent

Cash paid for interest commission charge and commission

Cash paid for bonus of guarantee slip

Cash paid to/for staff and workers 283025215.25 298901843.99

Taxes paid 64652990.87 38724681.20

Other cash paid concerning operating activities 74203321.30 101057088.77

Subtotal of cash outflow arising from operating activities 563086594.51 842233335.53

Net cash flows arising from operating activities 280204051.67 83171947.61

II. Cash flows arising from investing activities:

Cash received from recovering investment

Cash received from investment income 1002352.64 1000000.00

Net cash received from disposal of fixed intangible and other long-term

1049200.0014700.70

assets

Net cash received from disposal of subsidiaries and other units

Other cash received concerning investing activities

Subtotal of cash inflow from investing activities 2051552.64 1014700.70

Cash paid for purchasing fixed intangible and other long-term assets 1858761.71 4474692.15

Cash paid for investment

Net increase of mortgaged loans

Net cash received from subsidiaries and other units obtained

Other cash paid concerning investing activities

Subtotal of cash outflow from investing activities 1858761.71 4474692.15

Net cash flows arising from investing activities 192790.93 -3459991.45

III. Cash flows arising from financing activities

10Wafangdian Bearing Company Limited the Q3 Report for 2025

Cash received from absorbing investment

Including: Cash received from absorbing minority shareholders’

investment by subsidiaries

Cash received from loans 162000000.00 460000000.00

Other cash received concerning financing activities 415913167.25 367088867.61

Subtotal of cash inflow from financing activities 577913167.25 827088867.61

Cash paid for settling debts 566350000.00 468550000.00

Cash paid for dividend and profit distributing or interest paying 10278851.41 24522188.31

Including: Dividend and profit of minority shareholder paid by

subsidiaries

Other cash paid concerning financing activities 367079253.82 377905041.43

Subtotal of cash outflow from financing activities 943708105.23 870977229.74

Net cash flows arising from financing activities -365794937.98 -43888362.13

IV. Influence on cash and cash equivalents due to fluctuation in exchange rate 383759.56 687740.50

V. Net increase of cash and cash equivalents -85014335.82 36511334.53

Add: Balance of cash and cash equivalents at the period-begin 160907298.24 110664560.63

VI. Balance of cash and cash equivalents at the period-end 75892962.42 147175895.16

(II) Adjustments to Relevant Items in the Opening Financial Statements of the Initial Year of Application

upon First-Time Adoption of New Accounting Standards from 2025

□ Applicable□ Not applicable

(III) Audit report

Whether the 3rd quarterly report has been audited or not

□Yes□No

The 3rd quarterly report of the Company has not been audited.Board of Directors of

Wafangdian Bearing Company Limited

11