Wafangdian Bearing Company Limited 2025 Midyear Report
Wafangdian Bearing Co. LTD
2025 Midyear Report
August 2025
1Wafangdian Bearing Company Limited 2025 Midyear 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 2025 Midyear 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 ...................13
Chapter IV Corporate governance environment and so...14
Chapter V Important Matters .........................16
Chapter VI Change of Shares and Particulars about .. 22
Chapter VII Related Situation of bonds ..............25
Chapter VIII Financial Reports ..................... 26
III. Basic information of the company ...............46
Chapter IX Other Submitted Data ....................104
3Wafangdian Bearing Company Limited 2025 Midyear Report
File directory for future reference
(1) The 2025 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 2025 Midyear 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 12025–June 302025
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 2025 Midyear 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 2023 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 2023 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
Trace the adjustment or restate the reasons
Changes in accounting policies
This report period is an increase or
This reporting the same period of last year decrease over the same period last year
period
Before adjustment Adjusted Adjusted
Operating income (yuan) 1330615217.48 1122366451.83 1122366451.83 18.55%
Net profit attributable to -20930911.54 -46033131.67 -46033131.67 54.53%
6Wafangdian Bearing Company Limited 2025 Midyear Report
shareholders of the listed
company (yuan)
Net profit attributable to
shareholders of the listed
company after deducting non- -31677626.31 -57310697.51 -57310697.51 44.73%
recurring gains and losses
(yuan)
Net cash flows from operating
activities (yuan) 239656451.73 29465363.23 29465363.23 713.35%
Basic earnings per share
(yuan/share) -0.0520 -0.1143 -0.1143 54.51%
Diluted earnings per share
(yuan/share) -0.0520 -0.1143 -0.1143 54.51%
Weighted average return on
net assets -8.35% -13.19% -13.19% 4.84%
The increase or decrease at the end of
End of the End of the previous year this reporting period compared with the
reporting period end of the previous year
Before adjustment Adjusted Adjusted
Total assets (yuan) 3019913100.74 3316568117.52 3316568117.52 -8.94%
Net assets attributable to
shareholders of the listed 240615440.92 260983803.23 260983803.23 -7.80%
company (yuan)
The reasons for changes in accounting policies and the circumstances of accounting error corrections
Implement the provisions of "Accounting Treatment for quality guarantees of the guarantee Type that do not fall under individual performance
Obligations" in Interpretation No. 18 of the Accounting Standards for Business Enterprises
The Ministry of Finance issued the "Interpretation No. 18 of the Accounting Standards for Business Enterprises" (CAI Kuai [2024] No. 24
hereinafter referred to as "Interpretation No. 18") on December 6 2024. This interpretation comes into effect from the date of issuance and allows
enterprises to implement it in advance from the year of issuance.According to Interpretation No. 18 when accounting for the estimated liabilities arising from quality guarantees of the guarantee type that do not fall
under individual performance obligations the relevant provisions of Accounting Standard for Business Enterprises No. 13 - Contingent Matters
should be followed. Based on the determined estimated liability amount debit the "Cost of Main Business" "Cost of Other Business" and other
accounts and credit the "Estimated Liabilities" account. And it should be presented accordingly in items such as "Operating Costs" in the income
statement and "Other Current Liabilities" "Non-current Liabilities Due within one Year" and "Estimated Liabilities" in the balance sheet.When enterprises first implement the content of this interpretation if they originally recorded the quality guarantee of the guarantee type as "sales
expenses" etc. they should make retroactive adjustments in accordance with the changes in accounting policies. The Company has adjusted the
accounting treatment for quality guarantees of the guarantee type that do not fall under individual performance obligations from January to June
2024 as follows:
The consolidated financial statements adjusted the sales expenses of 4282123.51 yuan to the operating costs. The parent company's financial
statements adjusted the sales expenses of 4281734.63 yuan to the operating costs.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.
7Wafangdian Bearing Company Limited 2025 Midyear Report
□ 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) 106350.47
Government subsidies included in the profit and loss of the current period (except government subsidies that are
closely related to the normal operation of the company comply with national policies and regulations enjoy in 2780427.53
accordance with determined standards and have a continuous impact on the profit and loss of the company)
In addition to the effective hedging business related to the normal operation of the company the profit or loss of
fair value changes arising from the holding of financial assets and financial liabilities by non-financial enterprises -4622.55
and the loss or gain arising from the disposal of financial assets and financial liabilities
Gains and losses on debt restructuring 8661904.04
Other non-operating income and expenditure other than those mentioned above 106399.37
Other items of profit or loss that meet the definition of non-recurring profit or loss 1002352.64
Less: Income tax impact 1906096.73
total 10746714.77
Details of other 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 2025 Midyear 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
As the largest bearing technology and product R&D and manufacturing base in China the company has accumulated many years of practical
experience in bearing and related fields established a perfect bearing technology innovation system and maintains close cooperation with
domestic research institutes and universities. As the main drafter of several standards in the bearing industry we grasp the latest technological
trends in the development of the industry. In technology research and development product manufacturing marketing and user services have
established significant advantages.The company's personalized design and manufacturing process for customers can take into account the cost delivery time and customer needs
and improve the ability to respond to the market and customer personalized needs.The company has a complete product service system with all-weather dynamic service capability for product operation site. And with the "ten
value-added services" good image and by the majority of customers praise. The company has a strong production and manufacturing capacity and
quality assurance ability a wide range of services in railway metallurgy mining and other industries and fields.At present the company has established strategic cooperative relations with key customers in the field of equipment application in China. By
engaging in customer value engineering and carrying out in-depth marketing the company has firmly established its brand and influence in the
domestic bearing market. In the international market the company has successively obtained the certification qualification of the important target
market and the international visibility has been preliminarily established.III. Analysis of main business
An overview of the
9Wafangdian Bearing Company Limited 2025 Midyear Report
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 1330615217.48 1122366451.83 18.55%
Operating costs 1150818592.31 1000397426.48 15.04%
Sales expenses 68478445.36 76075715.40 -9.99%
Administrative expenses 66239142.71 59397610.59 11.52%
Financial expenses 6823106.07 16456340.40 -58.54% This is mainly due to the decline ininterest expenses
This is mainly due to the
Research and development 65781912.27 34845558.21 88.78% differences in R&D projects andinvestment progress compared to the same
period
This is mainly due to the significant
Net cash flows from 239656451.73 29465363.23 713.35% year-on-year decline in cash paidoperating activities for purchasing goods and receiving
services
The net cash recovered from the
Net cash flows from disposal of fixed assets increased
investing activities 1675027.67 -1634899.11 202.45% significantly while the cash paid forthe purchase and construction of
fixed assets decreased sharply
Net cash flows from The cash received from borrowing
financing activities -330970961.67 607924.81 -54542.75% and other sources decreasedsignificantly year-on-year
Net increase in cash and This was mainly due to a significant
cash equivalents -89254902.62 29681347.04 -400.71% decrease in net cash flow fromfinancing 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
1330615217.48100%1122366451.83100%18.55%
Revenue
Industry-classified
exit 34048195.13 2.56% 76261069.69 6.79% -55.35%
Traffic bearing 241794048.99 18.17% 204020646.18 18.18% 18.51%
Special bearing 507244225.22 38.12% 392046099.62 34.93% 29.38%
Universal bearing 474756237.71 35.68% 343471198.13 30.60% 38.22%
Industrial work and
39682188.412.98%45737500.754.08%-13.24%
semi-finished products
Other business 33090322.02 2.49% 60829937.46 5.42% -45.60%
10Wafangdian Bearing Company Limited 2025 Midyear Report
Products-classified
bearing 1257842707.05 94.53% 1015799013.62 90.51% 23.83%
Industrial work and
39682188.412.98%45737500.754.08%-13.24%
semi-finished products
Other business 33090322.02 2.49% 60829937.46 5.42% -45.60%
Region-classified
home 1296567022.35 97.44% 1046105382.14 93.21% 23.94%
abroad 34048195.13 2.56% 76261069.69 6.79% -55.35%
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 34048195.13 28888231.98 15.15% -55.35% -56.06% 1.37%
Among them:
traffic bearings 241794048.99 215298672.55 10.96% 18.51% 14.08% 3.47%
Special bearing 507244225.22 428747848.99 15.48% 29.38% 26.57% 1.89%
Universal bearing 474756237.71 433530854.81 8.68% 38.22% 28.46% 6.94%
Industrial work and
semi-finished 39682188.41 24827210.21 37.43% -13.24% -23.49% 8.38%
products
Other business 33090322.02 19525773.78 40.99% -45.60% -40.72% -4.86%
Points products
bearing 1257842707.05 1106465608.32 12.03% 23.83% 18.88% 3.65%
Industrial work and
semi-finished 39682188.41 24827210.21 37.43% -13.24% -23.49% 8.38%
products
Other business 33090322.02 19525773.78 40.99% -45.60% -40.72% -4.86%
Classification by region
domestic 1296567022.35 1121930360.33 13.47% 23.94% 20.59% 2.41%
foreign 34048195.13 28888231.98 15.15% -55.35% -56.06% 1.37%
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
Amount operating Amount Proportion of of increase and
Note on Major
income operating income decrease
Changes
Monetary funds 88049180.13 2.92% 239398923.10 7.22% -4.30%
Accounts
receivable 1045550333.24 34.62% 1026226986.45 30.94% 3.68%
Contract assets 10106014.60 0.33% 11498470.21 0.35% -0.02%
11Wafangdian Bearing Company Limited 2025 Midyear Report
Inventory 651196466.79 21.56% 688440738.43 20.76% 0.80%
Investment
property 76189652.13 2.52% 71679927.05 2.16% 0.36%
Long-term equity
investment 0.00 0.00%
Fixed assets 424356561.00 14.05% 437398315.29 13.19% 0.86%
Construction in
progress 16691520.90 0.55% 34740635.71 1.05% -0.50%
Right-of-use
assets 0.00% 0.00%
Short-term
borrowing 432000000.00 14.31% 570000000.00 17.19% -2.88%
Contract liabilities 32755051.06 1.08% 34098145.99 1.03% 0.05%
2. Main overseas assets
□ Applicable□ Inapplicable
3. Assets and liabilities measured at fair value
□ Applicable□ Inapplicable
In RMB Yuan
Changes in Changes Impairment Current Current
item Opening fair value for in the of thebalance the current accumulated fair current purchase sale
Other item
period value of an equity period amount amount
changes
Financial assets
1. Trading
financial assets
(excluding 221882.59 -4622.55 -349773.26 217260.04
derivative
financial assets)
4. Other equity
instrument 0.00
investments
Total financial
assets 221882.59 -4622.55 -349773.26 0.00 0.00 0.00 0.00 217260.04
The above total 221882.59 -4622.55 -349773.26 0.00 0.00 0.00 0.00 217260.04
financial
liabilities 0.00 0.00 0.00 0.00 0.00 0.00 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 type "Restrictedsituation book balance book value
Restrictive Limited
types circumstances
Monetary Other monetary Margin for bank
funds funds acceptance 45920930.03 45920930.03
Other monetary Margin for bank
drafts funds acceptance drafts
Monetary 10500000.00 10500000.00 Other monetary Letter of creditfunds funds deposit 28240000.00 28240000.00
Other monetary Letter of credit
funds deposit
Monetary 1349386.78 1349386.78 Other monetary Guarantee 4330694.83 4330694.83 Other monetary Guaranteefunds funds deposit funds deposit
Notes
receivable Supply chain bill Bill pledge 16503410.77 16503410.77
Supply chain
bill Bill pledge
12Wafangdian Bearing Company Limited 2025 Midyear Report
Notes Commercial
receivable 4545045.09 4545045.09 acceptance bill Bill pledge 20888325.70 20888325.70
Commercial
acceptance bill Bill pledge
Notes Bank Bank
receivable acceptance Bill pledge 1177401.62 1177401.62 acceptance Bill pledgedraft draft
Total 16394431.87 16394431.87 117060762.95 117060762.95
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
Chang
The Chang es in
Varieti securiti Initial Accou Openi e in the
Curren Report
t Curren ing Source
es of Stock es invest nting ng fair cumulmeasu value ative purcha t sale period
Ending Accou s of
securiti code referre ment rement book for the fair se amoun profit
book nting
es d to cost value value subject
fundin
as" model current value
amoun t and g
period of t loss
equity
Domes Chong Fair Transa
tic and 60100 qingiron 56703 value 22188
- - ctional debt-
foreign 5 3.30 measu 2.59 4622. 34977 0.00 0.00 0.00
21726
0.04 financi for-
stocks and rement 55 3.26 al equitysteel assets
--
Total 56703 -- 22188 4622. 34977 0.00 0.00 0.00 217263.30 2.59 -- --55 3.26 0.04
(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 Net worth Operating Operating Net profit
13Wafangdian Bearing Company Limited 2025 Midyear Report
company company business registered assets income profit
type capital
Wazhou Production and
liaoyang bearing subsidiar sales of bearings 1935000 219777 -69703367. 92351512. 2024542.2 1973422.3manufacturing y and mechanical 0.00 205.49 66 5 0
co. LTD manufacturing 48
Dalian wazhou
precision motor subsidiar Production and 1000000 162680 -
car bearing co. y sales of bearings 0.00 466.49 84955701.
94431968.4397928.74403197.3
09 16 5 0LTD
Wazhou
precision
spherical roller subsidiar Produce and sellspherical roller 1940000 226323 116242700 158225050bearings y bearings 00.00 233.79 .52 .49
783738.96783738.96
(wafangdian)
co. LTD
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable □ Not applicable
Description of main holding companies
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 supervisors and senior managers of the company
□ Applicable□ Inapplicable
Name The position held type date cause
Zhao Qingtao director leave one's post January 192025 personal reasons
Fang Bo director leave one's post January 192025 personal reasons
14Wafangdian Bearing Company Limited 2025 Midyear Report
Tan Jianguang director leave one's post January 152025 retire
Sun Shicheng supervisor leave one's post January 152025 retire
Lu Ning Employee director Elected May 232025 change the term of office
Li Dong director Elected May 232025 change the term of office
Sun Ye director Elected May 232025 change the term of office
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
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 2025 Midyear 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 2025 Midyear 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 2025 Midyear 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
A summary of other lawsuits that As of the end
occurred during the reporting As of the end of of the
period remained unresolved as of 1458.09 No Unfinished the reporting reporting Augustthe end of this reporting period cases period the case period the 262025
and did not meet the standards for was not closed case was not
major litigation disclosure closed
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□
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
19Wafangdian Bearing Co. LTD 2025 Midyear Report
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
Whether there is non-operating associated creditor's rights and debts
□ Yes □ No
Debt payable to related parties
Beginning New amount Current Interest of
related balance of this period repayment this period
Ending
party Relationship Reason (ten (ten amount (ten interest rate (ten
balance (ten
thousand thousand thousand thousand thousand
yuan) yuan) yuan) yuan) yuan)
The controlling
shareholder and
Wazhou other
The
company
Group and enterprises
its controlled by the
needs to 0 15000 3.00% 0 15000
subsidiaries same controlling
borrow
shareholder and money for
ultimate business
controller
The impact of related debt on
the company's operating results Provide working capital for the company.and financial position
5. Dealings with related financial companies
□ Applicable□ Inapplicable
There is no deposit loan credit granting or other financial business between the company and the related finance company or between the
finance company holding the company and its 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 the details of daily related-party transactions please refer to the "Announcement of Wafangdian Bearing Co. Ltd. on the Estimated Daily
Related-Party Transactions in 2025" disclosed by the company on the Juchao Information Network on April 29 2025 as well as Section 8 Part
14 "Related Parties and Related Party Transactions" Section 5 "Related-Party Transaction Details" of this report.
Inquiries related to the website for the disclosure of temporary reports on significant related-party transactions
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
20Wafangdian Bearing Co. LTD 2025 Midyear Report
There is no contract situation in the company's reporting period.
(3) Leasing situation
□ Applicable□ Inapplicable
Lease information
The company's rental income in this period is 9818700 yuan including: rental income from related parties is 9591600 yuan.The company's lease expenditure in this period is 9620400 yuan including 9487400 yuan of lease fee paid to related parties.The related party leases of the Company are detailed in Section 8 Financial Report Section 14 Related Parties and Related Party Transactions 5
Related Party Transactions.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.XII. Explanation of other major matters
□ Applicable □ Not applicable
There are no other major matters that need to be explained during the reporting period.XIV.Major matters of the company's subsidiaries
□ Applicable□ Not applicable
21Wafangdian 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 subtotal number proportionshares conversion
I. Unlisted and
circulating shares 244000000.0 60.61%
24400000
0.060.61%
1. Shares of the
sponsors 244000000.0 60.61%
24400000
0.060.61%
Among them: the
state holds shares 244000000.0 60.61%
24400000
0.060.61%
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% 15860000circulating shares 0.0 39.39%
1. RMB ordinary
shares
2. Foreign capital
stocks listed in 158600000.0 39.39% 15860000 39.39%
China 0.0
3. Foreign capital
stocks listed
abroad
4 other
III. Total number of
shares 402600000.0 100.00%
40260000
0.0100.00%
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
22Wafangdian 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 4979 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 The condition of a pledge
common Change Number of listed and mark or freeze
Shareholder's name Nature of the stake shares held at s in the
unlisted and tradable
shareholders the end of the reportin tradableordinary ordinary Shares in The numberreporting g period shares state of
period shares held held
Wafangdian Bearing State-owned
Group Co. Ltd. legal person 60.61% 244000000 0 244000000 0
Inapplica
ble 0
Dalian Youth
Development other 19.70% 79300000 79300 0 7930000 Inapplica 0
Foundation 000 0 ble
China Merchants
Securities Hong Overseas legalperson 2.24% 9033295 37400 0 9033295
Inapplica
Kong Limited ble
0
Huang Junyue Domesticnatural person 1.81% 7302709 0 0 7302709
Inapplica
ble 0
Hu Xiaofeng Domestic 0.47% 1879277 0 0 1879277 Inapplicanatural person ble 0
BOCI SECURITIES Foreign legal 0.33% 1310000 0 0 1310000 InapplicaLIMITED person ble 0
GUOTAI JUNAN
SECURITIES Overseas legal Inapplica（HONG KONG） person 0.20% 793400 6400 0 793400 ble 0
LIMITED
Wang Xiao Domestic Inapplicanatural persons 0.19% 774420 0 0 774420 ble 0
Chen Peng Domesticnatural persons 0.18% 738100 0 0 738100
Inapplica
ble 0
MANKWAI WING Overseas
natural person 0.18% 713101 0 0 713101
Inapplica
ble 0文贵荣
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)
Among the top ten shareholders of the company there is no related relationship or concerted action
A statement of such shareholder between the largest shareholder and other shareholders and the top ten shareholders of tradable
association or concerted action shares. The related relationship and concerted action between other shareholders the top tenshareholders 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
23Wafangdian Bearing Co. LTD 2025 Midyear Report
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 Foundation 79300000 B 79300000
China Merchants Securities Hong Kong
Limited 10850957 B 10850957
Huang Junyue 7302709 B 7302709
Hu Xiaofeng 1879277 B 1879277
BOCI SECURITIES LIMITED 1433154 B 1433154
GUOTAI JUNAN SECURITIES
HONG KONG LIMITED 793400 B 793400（ ）
Wang Xiao 774420 B 774420
Chen Peng 738100 B 738100
MANKWAI WING文贵荣 713101 B 713101
Jiang Guangsen 687900 B 687900
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)
Whether the company's top 10 common Stockholders and the top 10 common Stockholders with unlimited conditions of sale will make an
agreed repurchase transaction during the reporting period
□ Yes □ No
The company's top 10 common Stockholders and the top 10 common Stockholders with unlimited conditions of sale did not make an agreed
repurchase transaction during the reporting period.IV.Changes in shareholding of directors supervisors and senior management
personnel
□ Applicable□ Inapplicable
The shareholding status of directors supervisors and senior managers of the company has not changed during the reporting period. Please refer
to the 2023 annual Report for details.V.Change of controlling shareholder or actual controller
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.
24Wafangdian Bearing Co. LTD 2025 Midyear Report
VI. Relevant Information about preferred Shares
□ Applicable□ Inapplicable
No preferred stock existed at the reporting period.Chapter VII Related Situation of bonds
□ Applicable□ Inapplicable
25Wafangdian 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 2025.6.30 2025.1.1
Current Assets:
Monetary funds 88049180.13 239398923.10
Settlement of provisions
Lend funds
Trading financial assets 217260.04 221882.59
Derivative financial assets
Notes receivable 520119998.16 597196581.19
Accounts receivable 1045550333.24 1026226986.45
Financing of receivables 42502064.44 48925906.07
prepayment 8716609.34 10948524.83
Premium receivable
Reinsurance accounts receivable
Reserves receivable for reinsurance contracts
Other receivables 10485149.04 7962213.75
Among them: interest receivable
Dividends receivable
Buy and sell financial assets
stock 651196466.79 688440738.43
Where: Data resources
Contract assets 10106014.60 11498470.21
Holding assets for sale
Non-current assets maturing within one year
Other current assets 39839368.87 53298611.95
Total current assets 2416782444.65 2684118838.57
Non-current assets:
Make loans and advances
Debt investment
Other debt investments
Long-term receivables
26Wafangdian Bearing Co. LTD 2025 Midyear Report
Long-term equity investment
Investments in other equity instruments 11906928.35 11906928.35
Other non-current financial assets
Investment real estate 76189652.13 71679927.05
Fixed assets 424356561.00 437398315.29
Construction in progress 16691520.90 34740635.71
Productive biological assets
Oil and gas assets
Usufruct assets
Intangible assets 68119317.12 70121059.58
Where: Data resources
Development expenditure
Where: Data resources
goodwill
Long-term deferred expenses 5866676.59 6602412.97
Deferred tax assets
Other non-current assets
Total non-current assets 603130656.09 632449278.95
Total assets 3019913100.74 3316568117.52
Current liabilities:
Short-term loan 432000000.00 570000000.00
Borrow from the central bank
Borrowed funds
Transactional financial liabilities
Derivative financial liability
Notes payable 112973447.30 401129901.60
Accounts payable 1767186217.48 1663816039.46
Advances received
Contractual liability 32755051.06 34098145.99
Funds used to sell and repurchase financial assets
Take deposits and deposit with other banks
To buy and sell securities
Underwrite securities
Payroll payable to employees 39108596.01 42089354.01
Taxes payable 8642452.27 12064219.60
Other payables 287629191.45 135258184.75
Among them: interest payable
Dividend payable
Fees and commissions payable
Reinsurance accounts payable
Holding liabilities held for sale
Non-current liabilities due within one year 98350000.00
27Wafangdian Bearing Co. LTD 2025 Midyear Report
Other current liabilities 4254711.05 4417479.62
Total current liabilities 2684549666.62 2961223325.03
Non-current liabilities:
Reserve for insurance contracts
Long-term loan
Bonds payable
Among them: Preferred stock
Perpetual bond
Lease liability
Long-term payables 344974.84 344974.84
Long-term employee compensation payable
Projected liabilities 56966352.57 55771671.86
Deferred income 36912180.58 37719857.35
Deferred income tax liabilities 524485.21 524485.21
Other non-current liabilities
Total non-current liabilities 94747993.20 94360989.26
Total liabilities 2779297659.82 3055584314.29
Owner's equity:
Capital stock 402600000.00 402600000.00
Other equity instruments
Among them: Preferred stock
Perpetual bond
Capital reserve 485691050.47 485691050.47
Less: Treasury shares
Other comprehensive income
Special reserve 2867643.47 2305094.24
Surplus reserve 136770391.01 136770391.01
General risk reserve
Undistributed profit -787313644.03 -766382732.49
Total owner's equity attributable to parent company 240615440.92 260983803.23
Minority interest
Total owners' equity 240615440.92 260983803.23
Total liabilities and owners' equity 3019913100.74 3316568117.52
Chairman: Wang Jiyuan General Accountant : Sun Najuan Accounting charger: Xuan Songtao
2. Balance sheet of parent company
In RMB Yuan
Item 2025.6.30 2025.1.1
Current Assets:
Monetary funds 86103833.05 237603355.24
Trading financial assets 217260.04 221882.59
Derivative financial assets
28Wafangdian Bearing Co. LTD 2025 Midyear Report
Notes receivable 517173358.41 598162807.95
Accounts receivable 1004233892.89 990716081.66
Financing of receivables 41176762.40 44303611.96
prepayment 7639752.35 10125500.59
Other receivables 253637816.14 265704686.03
Among them: interest receivable
Dividends receivable
stock 486382572.96 437173417.69
Where: Data resources
Contract assets 10106014.60 11498470.21
Holding assets for sale
Non-current assets maturing within one year
Other current assets 39839368.87 53254761.44
Total current assets 2446510631.71 2648764575.36
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 226488897.67 226488897.67
Investments in other equity instruments 11906928.35 11906928.35
Other non-current financial assets
Investment real estate 71068077.96 66151054.38
Fixed assets 283299712.89 289356808.71
Construction in progress 15176031.43 31415493.14
Productive biological assets
Oil and gas assets
Usufruct assets
Intangible assets 54792659.81 56459406.17
Where: Data resources
Development expenditure
Where: Data resources
goodwill
Long-term deferred expenses 5866676.59 6602412.97
Deferred tax assets
Other non-current assets
Total non-current assets 668598984.70 688381001.39
Total assets 3115109616.41 3337145576.75
Current liabilities:
Short-term loan 432000000.00 570000000.00
Transactional financial liabilities
Derivative financial liability
Notes payable 112973447.30 401129901.60
29Wafangdian Bearing Co. LTD 2025 Midyear Report
Accounts payable 1637181362.15 1465053380.82
Advances received
Contractual liability 32727346.79 34060441.72
Payroll payable to employees 33098480.67 34267209.57
Taxes payable 6402903.47 10016846.15
Other payables 277301727.12 122802562.47
Among them: interest payable
Dividend payable
Holding liabilities held for sale
Non-current liabilities due within one year 0.00 98350000.00
Other current liabilities 4254555.08 4417323.65
Total current liabilities 2535939822.58 2740097665.98
Non-current liabilities:
Long-term loan
Bonds payable
Among them: Preferred stock
Perpetual bond
Lease liability
Long-term payables 244974.84 244974.84
Long-term employee compensation payable
Projected liabilities 56655815.81 55730460.81
Deferred income 9704980.48 11203199.32
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 66605771.13 67178634.97
Total liabilities 2602545593.71 2807276300.95
Owner's equity:
Capital stock 402600000.00 402600000.00
Other equity instruments
Among them: Preferred stock
Perpetual bond
Capital reserve 485678443.26 485678443.26
Less: Treasury shares
Other comprehensive income
Special reserve 534661.40 0.00
Surplus reserve 136770391.01 136770391.01
Undistributed profit -513019472.97 -495179558.47
Total owners' equity 512564022.70 529869275.80
Total liabilities and owners' equity 3115109616.41 3337145576.75
3. Consolidated income statement
In RMB Yuan
project Half year 2025 Half of 2024
30Wafangdian Bearing Co. LTD 2025 Midyear Report
I. Total operating income 1330615217.48 1122366451.83
Among them: operating income 1330615217.48 1122366451.83
Interest income
The premium has been made
Fee and commission income
2. Total operating cost 1367699027.34 1193873939.27
Among them: operating cost 1150818592.31 1000397426.48
The interest payments
Fees and commission expenses
Surrender gold
Net payout for claims
Draw the net insurance liability reserve
Policy bonus payout
Reinsurance expenses
Taxes and surcharges 9557828.62 6701288.19
Cost of sales 68478445.36 76075715.40
Management fees 66239142.71 59397610.59
Research and development costs 65781912.27 34845558.21
Finance charges 6823106.07 16456340.40
Among them: interest expense 7581344.95 12349659.00
Interest income 450534.54 1159618.61
Plus: other benefits 5966962.04 15162592.13
Investment income (loss marked with "-") 9664256.68 6737445.76
Among them: income from investment in joint ventures and joint ventures
Financial assets measured at amortized cost terminate recognition of earnings
Exchange gain (marked with "-" for loss)
Net exposure hedging gain (loss marked with "-")
Income from change in fair value (marked with "-" for loss) -4622.55 -58552.35
Credit impairment loss (marked with "-") 313552.31 9166.55
Asset impairment loss (marked with "-")
Gain on disposal of assets (loss marked with "-") 351928.90 69219.93
3. Operating profit (loss marked with "-") -20791732.48 -49587615.42
Plus: non-operating income 278299.73 4184321.12
Less: non-operating expenses 417478.79 629837.37
Iv. Total profit (total loss marked with "-") -20930911.54 -46033131.67
Less: Income tax expense
V. Net profit (Net loss marked with "-") -20930911.54 -46033131.67
(a) classification according to business continuity
1. Net profit from continuing operations (net loss marked with "-") -20930911.54 -46033131.67
2. Net profit from terminated operations (net loss marked with "-")
(2) Classification according to ownership
1. Net profit attributable to the owner of the parent company -20930911.54 -46033131.67
31Wafangdian 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 -20930911.54 -46033131.67
Total comprehensive income attributable to owner of parent company -20930911.54 -46033131.67
Total comprehensive income attributable to minority shareholders
8. Earnings per Share
(1) Basic earnings per share -0.0520 -0.1143
(2) Diluted earnings per share -0.0520 -0.1143
Chairman: Wang Jiyuan General Accountant : Sun Najuan Accounting charger: Xuan Songtao
4. Profit statement of the parent company
In RMB Yuan
ITEM Half year 2025 Half of 2024
I. Operating income 1316908462.25 1139633696.97
Minus: Operating costs 1151863836.30 1015581974.84
Taxes and surcharges 6381819.99 5179429.65
Cost of sales 67756928.31 71183583.99
Management fees 55461499.94 49338808.66
Research and development costs 57708042.42 30857894.95
Finance charges 6713442.29 16493394.13
Including: interest expense 7581344.95 12349659.00
Interest income 448230.47 1114822.32
Plus: Other benefits 4917025.54 14132958.53
Investment income (Loss marked with "-") 5684796.90 5417269.14
32Wafangdian 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 "-") -4622.55 -58552.35
Credit impairment loss (marked with "-") 280891.43 9166.55
Asset impairment loss (marked with "-") 0.00 0.00
Income from asset disposal (marked with "-" for loss) 351928.90 48386.78
II. Operating profit (Loss marked with "-") -17747086.78 -29452160.60
Add: non-operating income 262711.31 4184321.08
Less: non-operating expenses 355539.03 600024.19
III. Total profit (Total loss marked with "-") -17839914.50 -25867863.71
Less: income tax expense
IV. Net Profit (Net loss marked with "-") -17839914.50 -25867863.71
(1) Net profit from continuing operations (net loss marked with "-") -17839914.50 -25867863.71
(2) Net profit from discontinued operations (net loss marked with "-")
V.Net after-tax income of other comprehensive income
(1) other comprehensive income that cannot be reclassified into profit or loss
1. Remeasure the change amount of the set benefit plan
2. Other comprehensive income that cannot be transferred to profit or loss under
the equity method
3. Changes in fair value of other equity instruments
4. Changes in fair value of the enterprise's own credit risk
5. Other
(2) other comprehensive income that is reclassified into profit and loss
1. Other comprehensive income that can be converted to profit or loss under the
equity method
2. Changes in fair value of other creditor's rights investments
3. The amount of financial assets reclassified into other comprehensive income
4. Credit impairment provisions for other debt investments
5. Cash flow hedging reserves
6. Foreign currency financial statements translation difference
7. Other
VI Total comprehensive income -17839914.50 -25867863.71
VII. Earnings per Share:
(1) Basic earnings per share -0.0443 -0.0643
Diluted earnings per share -0.0443 -0.0643
5. Consolidated cash flow statement
In RMB Yuan
project Half year 2025 Half of 2024
I. Cash flow generated by operating activities:
Cash received from selling goods and providing services 595884749.15 603806987.56
33Wafangdian 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 8110763.01 7684071.88
Other cash received in connection with operating activities 24266509.65 23577817.07
Subtotal of cash inflow from operating activities 628262021.81 635068876.51
Cash paid for goods and services 107379481.28 304211429.56
Net increase in customer loans and advances
Net increase in deposits with central banks and interbank funds
Cash for payment of claims under the original insurance contract
Net increase in divestment funds
Cash to pay interest fees and commissions
Cash to pay policy dividends
Cash paid to and for employees 189692671.34 208594526.17
All taxes and fees paid 47018926.61 20706382.82
Other cash payments related to operating activities 44514490.85 72091174.73
Subtotal of cash outflow from operating activities 388605570.08 605603513.28
Net cash flow from operating activities 239656451.73 29465363.23
II. Cash flow generated by investing activities:
Recoup cash received on investment
Cash received for investment income 1000000.00 1000000.00
Net cash recovered from the disposal of fixed assets intangible assets and
other long-term assets 1049200.00 10657.35
Net cash received from disposal of subsidiaries and other business units
Other cash received in connection with investing activities
Subtotal of cash inflow from investing activities 2049200.00 1010657.35
Cash paid for the purchase and construction of fixed assets intangible assets
and other long-term assets 374172.33 2645556.46
Cash paid for investment
Net increase in pledged loans
Obtain net cash paid by subsidiaries and other business units
Other cash payments related to investment activities
Subtotal of cash outflow from investing activities 374172.33 2645556.46
Net cash flow from investing activities 1675027.67 -1634899.11
III. Cash flow generated by financing activities:
Absorb cash received from investment
34Wafangdian 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 395000000.00
Other cash received in connection with financing activities 235913150.44 345088867.61
Subtotal of cash inflow from financing activities 397913150.44 740088867.61
Cash paid to repay debts 390350000.00 395550000.00
Cash used to distribute dividends profits or repay interest payments 7909812.20 18756979.98
Among them: dividends and profits paid by subsidiaries to minority shareholders
Payment of other cash in connection with financing activities 330624299.91 325173962.82
Subtotal of cash outflows from financing activities 728884112.11 739480942.80
Net cash flow from financing activities -330970961.67 607924.81
IV. Effect of exchange rate changes on cash and cash equivalents 384579.65 1242958.11
V.Net increase in cash and cash equivalents -89254902.62 29681347.04
Plus: Cash and cash equivalents balance at the beginning of the period 160907298.24 110664560.63
VI.Cash and cash equivalents balance at the end of the period 71652395.62 140345907.67
6. Cash flow statement of parent company
In RMB Yuan
Project Half year 2025 Half of 2024
I. Cash flow from operating activities:
Cash received from the sale of goods and services 584495164.23 588032973.54
The tax refund received 8108228.78 7684071.88
Received other cash related to operating activities 21408546.18 22120387.42
Total cash inflow from operating activities 614011939.19 617837432.84
Cash paid for goods and services 161531936.52 355036073.16
Cash paid to and on behalf of employees 153211544.87 172031012.54
All taxes and fees paid 26098493.06 13255483.04
Pay other cash related to operating activities 33660492.23 47982622.26
Total cash outflow from operating activities 374502466.68 588305191.00
Net cash flow from operating activities 239509472.51 29532241.84
Ii. Cash flow from investing activities:
Cash received from the recovery of investments
Cash received from investment income 1000000.00 1000000.00
Net cash received from the disposal of fixed assets intangible assets and
other long-term assets 1046400.00 10657.35
Net cash received from disposal of subsidiaries and other operating units
Received other cash related to investing activities
Total cash inflow from investing activities 2046400.00 1010657.35
Cash paid for the acquisition of fixed assets intangible assets and other long-
term assets 374172.33 451582.36
Cash paid for investments
Net cash received from subsidiaries and other operating units
Pay other cash related to investing activities
35Wafangdian Bearing Co. LTD 2025 Midyear Report
Total cash outflow from investing activities 374172.33 451582.36
Net cash flow from investing activities 1672227.67 559074.99
Iii. Cash flow from financing activities:
Cash received from investment absorption
Cash received for the acquisition of loans 162000000.00 395000000.00
Other cash received in connection with financing activities 235913150.44 345088867.61
Total cash inflow from financing activities 397913150.44 740088867.61
Cash paid to repay debt 390350000.00 395550000.00
Cash paid out in dividends profits or interest payments 7909812.20 18756979.98
Pay other cash related to financing activities 330624299.91 325173962.82
Total small cash outflow from financing activities 728884112.11 739480942.80
Net cash flow from financing activities -330970961.67 607924.81
IV. Impact of exchange rate fluctuations on cash and cash equivalents 384579.65 1242958.11
V. Net increase in cash and cash equivalents -89404681.84 31942199.75
Plus: the opening balance of cash and cash equivalents 159111730.38 102803929.87
Vi. Balance of cash and cash equivalents at the end of the period 69707048.54 134746129.62
36Wafangdian Bearing Co. LTD 2025 Midyear Report
7. Statement of Changes in consolidated owners' equity
This amount
In RMB Yuan
Half year 2025
Owner's equity in the parent company
Other equity instruments
ITEM Perpetu other Minority
Capital Prefe Capital less： appropria Surplus Generalal comprehen Undistributed sharehold
Owner’s
rred Oth public treasure tive public provision for Others total ers’ equity equitystock
shar Capital er reserves stock
sive reserve reserves risk profits
es Securitie incomes
I. Ending balance of 402600 4856910 230509 136770391 2609838 260983803
the previous year 000.00 50.47 4.24 .01 -766382732.49 03.23 .23
Plus: Accounting
policy change
Early error correction
other
II the beginning 402600 4856910 230509 136770391 2609838 260983803
balance of this year 000.00 50.47 4.24 .01 -766382732.49 03.23 .23
III. Amount of
increase or decrease - -
in the current period 562549.23 -20930911.54 2036836 20368362.(marked with "-" for 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
37Wafangdian Bearing Co. LTD 2025 Midyear Report
2.Other equity
instrument holders
invested capital
3 The amount of
share-based
payment included in
the owner's equity
4 Others
(3) Profit distribution
1.Withdraw surplus
reserves
2.Extract general risk
provision
3.Distribution to
owners (or
shareholders)
4．Other
(4) Internal carry-
over of owners'
equity
1.Capital reserves to
increase capital (or
equity)
2.Surplus reserves
into increased capital
(or equity)
3.Surplus reserves
cover losses
4 The change in the
defined benefit plan
is transferred to
retained earnings
5. Other
comprehensive
38Wafangdian Bearing Co. LTD 2025 Midyear Report
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 2406154 240615440
the current period 000.00 50.47 3.47 .01 -787313644.03 40.92 .92
The amount of the previous period
In RMB Yuan
Half year 2024
Owner's equity in the parent company
Other equity instruments
ITEM Perpetu other Minority
Capital Prefe Capital less： appropria Surplus Generalal sharehold
Owner’s
stock rred Oth public treasure
comprehen Undistributed
sive tive public provision for profits Others total ers’ equity
equity
shar Capital er reserves stock reserve reserves risk
es Securitie incomes
I. Ending balance of 402600 4856910 241487 136770391 -656170250.96 3713060 371306068the previous year 000.00 50.47 7.63 .01 68.15 .15
Plus: Accounting
policy change
Early error correction
other
II the beginning 402600 0.00 0.00 0.0 4856910 241487 136770391 3713060 371306068balance of this year 000.00 0 50.47 7.63 .01 -656170250.96 68.15 .15
III. Amount of
increase or decrease 141042
-46033131.67--
446227044622709.
39Wafangdian Bearing Co. LTD 2025 Midyear Report
in the current period 1.96 9.71 71
(marked with "-" for
decrease)
(1) Total - -
comprehensive -46033131.67 4603313 46033131.income 1.67 67
(2) Owner investment
and capital reduction
1.
Common stock
invested by the
owner
2.
Other equity
instrument holders
invested capital
(3) Profit distribution
1.Withdraw surplus
reserves
2.Extract general risk
provision
3.Distribution to
owners (or
shareholders)
4．Other
(4) Internal carry-
over of owners'
equity
1.Capital reserves to
increase capital (or
equity)
2.Surplus reserves
into increased capital
(or equity)
40Wafangdian Bearing Co. LTD 2025 Midyear Report
3.Surplus reserves
cover losses
4. Set the change of
benefit plan to carry
forward retained
earnings
5. Other
comprehensive
income carried
forward retained
earnings
6. Other
(5) Special reserves 141042 1410421 1410421.91.96 .96 6
1. This issue's 569477 5694779 5694779.4
extraction 9.47 .47 7
2. Used in this issue 428435 4284357 4284357.57.51 .51 1
(6) Others
IV. Ending balance of 402600 0.00 0.00 0.0 4856910 382529 136770391 0.00 -702203382.63 3266833 326683358the current period 000.00 0 50.47 9.59 .01 58.44 .44
8. Statement of changes in owner's equity of the parent company
This amount
In RMB Yuan
Semiannual of 2025 period
Other equity instruments
Item Capital public less Other appropria UndistriCapital stock Preferr Perpetual ： comprehensive tive Surplus public reserves General provision for buted Owner’s equity
ed Capital Other reserves treasure stock income reserve risk profits
stock Securities
I. Balance at the end of last
year 402600000.00 485678443.26 136770391.01 -495179558.47 529869275.80
Plus: Change in accounting
41Wafangdian Bearing Co. LTD 2025 Midyear Report
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 534661.40 -17839914.50 -17305253.10(marked with "-" for decrease)
(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
increased capital (or equity)
42Wafangdian Bearing Co. LTD 2025 Midyear Report
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
The amount of the previous period
In RMB Yuan
Semiannual of 2024 period
Other equity instruments
Item Other appropria Undistri
Capital stock Preferr Perpetual Capital public less： comprehensive tive Surplus public reserves General provision forreserves treasure stock 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 -421976934.76 603071899.51
Plus: Change in accounting
policy
Previous error correction
other
II.The beginning balance of the 402600000.00 485678443.26 136770391.01 -421976934.76 603071899.51
43Wafangdian Bearing Co. LTD 2025 Midyear Report
current year
III. Amount of increase or
decrease in the current period 673375.06 -25867863.71 -25194488.65(marked with "-" for decrease)
(1) Total comprehensive
income -25867863.71 -25867863.71
(2) The owner invests and
reduces the capital
1. Common stock invested by
the owner
2. Other equity instrument
holders invested capital
3. The amount of a share
payment included in the
owner's equity
4. other
(3) Profit distribution
1. Extract the surplus reserve
2. Distribution to owners (or
shareholders)
3. other
(4) Internal carry-over of
owners' equity
1. Conversion of capital
reserves into increased capital
(or equity)
2. Surplus reserve into
increased capital (or equity)
3. Surplus reserves cover
losses
4. Set benefit plan changes
carried forward to retained
earnings
44Wafangdian Bearing Co. LTD 2025 Midyear Report
5. Other consolidated earnings
carried forward to retained
earnings
6. other
(5)Special reserves 673375.06 673375.06
1. This extract 2576762.36 2576762.36
2. In current use 1903387.30 1903387.30
(6) Others
IV. Ending balance 402600000.00 485678443.26 673375.06 136770391.01 -447844798.47 577877410.86
45Wafangdian Bearing Co. LTD 2025 Midyear Report
III. Basic information of the company
Wafangdian bearing co. LTD. (hereinafter referred to as the company together with subsidiaries referred to as the group) on July 16 1996 the
dalian economic reform committee general reform commission approved hair [1996] no. 64 by wafangdian bearing group co. LTD. (hereinafter
referred to as wazhou group) as the sole sponsor of the company The main production and operation assets (and their related liabilities)
authorized by the state to be held at a discounted price shall be invested in and established by means of social collection.On February 19 1997 the State Securities Commission issued Document No.9 [1997] and approved the company to publicly issue domestic
listed foreign capital shares (B shares) to the public and listed them for trading.On March 19 1997 the founding meeting of the Company and the first meeting of the Board of Directors decided that the effective date of the
reorganization of the company's accounting system (that is the date of the establishment of the company's accounts) was determined as April 1
1997.
On March 20 1997 THE COMPANY GOT THE BUSINESS LICENSE OF ENTERPRISE LEGAL PERSON THE registration NUMBER IS
24239971-2. Business scope for bearings mechanical equipment auto parts and related products manufacturing and sales.
On March 25 1997 the Company's domestic listed foreign capital shares (B shares) were officially listed and traded in Shenzhen Stock
Exchange raising 406.58 million yuan and the company's registered capital was 330 million yuan after the issue.According to the shenzhen stock exchange on August 30 2006 issued "on the shenzhen stock exchange stock listing rules > supplementary
notice on the problem of distribution of equity of listed companies (hereinafter referred to as the" notice ") on September 30 the company in
2006 on the basis of the financial report audited implement turn add equity capital accumulation fund With 2.2 shares for every 10 shares the
total share capital increased from 333 million shares to 402.6 million shares among which the legal person shares owned by Waxhuan Group
increased from 20 million shares to 244.0 million shares accounting for 60.6% of the total share capital; SKF of Sweden increased from 65
million shares to 79.3 million shares accounting for 19.7% of the total capital; Public shares increased from 65 million to 79.3 million accounting
for 19.7% of the total share capital. After the implementation of this plan the company's equity structure will meet the provisions of the
Supplementary Notice of the Shenzhen Stock Exchange.The parent company of the company is Wafangdian Bearing Group Co. LTD. The general meeting of shareholders is the power organ of the
Company exercising the power to make decisions on major matters such as the company's business policy financing investment and profit
distribution in accordance with law. The board of directors shall be responsible to the general meeting of shareholders and exercise the decision-
making power of the company according to law; The management shall be responsible for organizing the implementation of the resolutions of
the general meeting of shareholders and the Board of directors and shall preside over the production and operation management of the
enterprise.The company belongs to the bearing manufacturing industry mainly engaged in all kinds of bearing production and sales business. Registered
place: No. 1 Section 1 Beigongji Street Wafangdian City Liaoning Province. Legal representative: Wang Jiyuan.Business Scope: Permitted
items: inspection and testing services import and export of goods import and export of technologies (for items subject to approval according to
law business activities can only be carried out after approval by relevant departments and the specific business items shall be subject to the
approval 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
46Wafangdian Bearing Co. LTD 2025 Midyear Report
surface treatment and heat treatment processing quenching process Machinery parts parts processing Land use right leasing Housing
leasing Non-residential real estate leasing Machinery and equipment leasing Computer and communication equipment leasing Transportation
equipment leasing services Office Equipment leasing services Storage equipment leasing services Special equipment leasing Labor Services
(excluding labor dispatch) Technical services technology development technology consultation technology exchange technology transfer and
technology promotion (except for the projects subject to approval according to law independently carry out business activities according to law
with the business license).IV. Basis for the preparation of financial statements
1. Establishment basis
These financial statements are in accordance with the Accounting Standards for Business Enterprises - Basic Standards and various specific
accounting standards the Application Guide of Accounting Standards for Business Enterprises the interpretation of Accounting Standards for
Business Enterprises and other relevant provisions promulgated by the Ministry of Finance (hereinafter collectively referred to as "Accounting
Standards for Business Enterprises"). And the relevant provisions of the China Securities Regulatory Commission "Information Disclosure and
Reporting Rules for Companies that Publicly Issue Securities No. 15 - General Provisions for Financial Reports".
2.Going concern
The financial statements have been prepared on the basis of the going concern assumption.V.Important Accounting policies and estimates
Specific accounting policies and accounting estimates tips:
Specific accounting policies and accounting estimates formulated by the Group based on actual production and operation characteristics include
the operating cycle the recognition and measurement of bad debt provisions for receivables the measurement of issued inventories the
classification and depreciation of fixed assets the amortization of intangible assets the capitalization conditions for research and development
expenses and the recognition and measurement of revenue.
1 follow the accounting standards for business enterprises statement
These financial statements comply with the requirements of the Accounting Standards for Business Enterprises issued by the Ministry of Finance
and give a true and complete view of the Company's consolidated and parent company financial position as of June 30 2025 and the
consolidated and parent company's operating results and cash flows for the half-year of 2025.
2. Accounting period
A fiscal year begins on January 1 and ends on December 31.
3. Business cycle
The business cycle of the company is 12 months.
4. Functional currency
The Group takes RMB as its functional currency.
5. importance criteria determination method and selection basis
□ Applicable□Not applicable
6. under the same control and not under the same control of the accounting treatment of enterprise merger
Business combination under the same control: the assets and liabilities acquired by the merging party in the business combination (including the
goodwill formed by the acquisition of the merged party by the ultimate controlling party) are measured on the basis of the carrying value of the
assets and liabilities of the merged party in the consolidated financial statements of the ultimate controlling party at the merger date. The
difference between the book value of the net assets acquired in the merger and the book value of the merger consideration paid (or the total
47Wafangdian Bearing Co. LTD 2025 Midyear Report
nominal value of the issued shares) the capital premium in the capital reserve is adjusted and the retained earnings are adjusted if the capital
premium in the capital reserve is insufficient to be written off.Business combination under non-identical control: The cost of combination is the fair value of the assets paid by the purchaser liabilities
incurred or assumed and equity securities issued by the purchaser to acquire control of the purchaser on the purchase date. The difference
between the cost of the merger and the acquiree's share of the fair value of identifiable net assets obtained in the merger is recognized as
goodwill; The difference in the cost of the merger that is less than the acquiree's share of the fair value of identifiable net assets acquired in the
merger is recognized in profit or loss for the period. The identifiable assets liabilities and contingent liabilities of the acquiree that are eligible for
recognition acquired in the merger are measured at fair value at the purchase date.The expenses directly related to the business combination are recognized in the current profit or loss when incurred; Transaction costs incurred
in the issuance of equity or debt securities for the purpose of a business combination are included in the initial recognition amount of the equity
or debt securities.
7. The judgment criteria of control and the preparation method of consolidated financial statements
1. Judgment criteria of control
The consolidated scope of the consolidated financial statements is determined on a control basis and includes the Company and all subsidiaries.Control means that the company has power over the investee enjoys variable returns by participating in related activities of the investee and
has the ability to use its power over the investee to influence the amount of returns.
2.Merge program
The Company regards the entire enterprise Group as one accounting entity and prepares consolidated financial statements in accordance with
unified accounting policies to reflect the overall financial position operating results and cash flows of the enterprise Group. The effect of internal
transactions between the Company and its subsidiaries or subsidiaries shall be offset. If the internal transaction indicates that the relevant asset
has an impairment loss the loss shall be fully recognized. If the accounting policies and accounting periods adopted by the subsidiary are
inconsistent with those of the Company necessary adjustments shall be made in accordance with the accounting policies and 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
48Wafangdian Bearing Co. LTD 2025 Midyear Report
period respectively.During the reporting period if a subsidiary or business is added as a result of a business combination not under the same control it is included
in the consolidated financial statements from the purchase date on the basis of the fair value of each identifiable asset liability and contingent
liability identified at the purchase date.If the investee that is not under the same control can be controlled due to additional investment or other reasons the equity held by the
purchaser before the purchase date shall be remeasured according to the fair value of the equity on the purchase date and the difference
between the fair value and the carrying value shall be included in the current investment income. Other comprehensive income related to the
equity held by the purchaser before the purchase date which can be reclassified into profit or loss later and other changes in owners' equity
under the equity method are converted into investment income for the current period of the purchase date.
(2) Disposal of subsidiaries
* General treatment methods
When the control of the investee is lost due to the disposal of part of the equity investment or for other reasons the remaining equity investment
after disposal shall be remeasured according to its fair value on the date of the loss of control. The sum of the consideration obtained from the
disposal of the equity and the fair value of the remaining equity minus the difference between the share of the original subsidiary's net assets
and the sum of goodwill that should have been continuously calculated from the purchase date or the merger date based on the original
shareholding ratio is included in the investment income during the period of loss of control. Other comprehensive income related to the equity
investment of the original subsidiary which can be reclassified into profit or loss later and other changes in owner's equity under the equity
method of accounting are converted to current investment income 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.
49Wafangdian Bearing Co. LTD 2025 Midyear Report
(4) Partial disposal of the equity investment in the subsidiary without loss of control
The difference between the disposal price and the disposal of long-term equity investment and the share of net assets continuously calculated
by the subsidiary since the purchase date or the merger date shall be adjusted for the equity premium in the capital reserve in the consolidated
balance sheet and if the equity premium in the capital reserve is insufficient to be offset the retained earnings shall be adjusted.
8. Classification of joint venture arrangement and accounting treatment of joint operation
9. Determination criteria for cash and cash equivalents
Cash means cash on hand of the Company and deposits that can be used for payment at any time. Cash equivalents refer to investments held
by the Company with a short term strong liquidity easy to convert into known amounts of cash and little risk of changes in value.
10. Translation of foreign currency business and foreign currency statements
1. Foreign currency transactions
For foreign currency business the spot exchange rate on the date of occurrence of the transaction is used as the conversion rate to convert the
amount of foreign currency into RMB.The balance of foreign currency monetary items at the balance sheet date is translated at the spot rate at the balance sheet date and the
resulting exchange difference except for the exchange difference arising from special foreign currency borrowings related to the acquisition and
construction of assets eligible for capitalization in accordance with the principle of capitalization of borrowing costs is recognized in the profit or
loss of the current period.
2. Translation of foreign currency financial statements
The assets and liabilities in the balance sheet shall be translated at the spot exchange rate at the balance sheet date; Owners' equity items are
translated at the spot exchange rate at the time of occurrence except for "undistributed profit" items. The income and expense items in the
income statement are translated using the spot exchange rate on the date of occurrence of the transaction.When disposing of an overseas operation the difference in the translation of foreign currency financial statements related to the overseas
operation is transferred from the owner's equity item to the profit or loss of the disposal period.
11.Financial instruments
The Company recognizes a financial asset financial liability or equity instrument when it becomes a party to a financial instrument contract.
1. Classification of financial instruments
Based on the Company's business model of managing financial assets and the contractual cash flow characteristics of financial assets financial
assets are classified at initial recognition into: financial assets measured at amortized cost financial assets measured at fair value and whose
changes are included in other comprehensive income and financial assets measured at fair value and whose changes are included in current
profit or loss.The Company classifies financial assets measured at amortized cost that are not designated at fair value and whose changes are recognized in
profit or loss for the current period and meet both of the following conditions:
- The business model aims to collect contract cash flow;
Contract cash flow is only the payment of the principal and interest based on the outstanding principal amount.The Company classifies financial assets (debt instruments) measured at fair value and recorded in other comprehensive income as financial
assets (debt instruments) measured at fair value that meet the following conditions and are not designated as fair value and whose changes are
recorded in profit or loss for the current period:
- A business model aimed at both collecting contract cash flows and selling the financial asset;
Contract cash flow is only the payment of the principal and interest based on the outstanding principal amount.
50Wafangdian Bearing Co. LTD 2025 Midyear Report
For investments in non-trading equity instruments the Company may upon initial recognition irrevocably designate them as financial assets
(equity instruments) that are measured at fair value and whose changes are included in other comprehensive income. The designation is made
on the basis of a single investment and the underlying investment meets the definition of an equity instrument from the point of view of the issuer.In addition to the above financial assets measured at amortized cost and at fair value and whose changes are included in other comprehensive
income the Company classifies all remaining financial assets as financial assets measured at fair value and whose changes are included in
current profit or loss. At initial recognition if accounting misalignments can be eliminated or significantly reduced the Company may irrevocably
designate financial assets that should be classified as measured at amortized cost or at fair value and whose changes are recorded in other
comprehensive income as financial assets that are measured at fair value and whose changes are recorded in profit or loss for the current
period.Financial liabilities are classified at initial recognition into financial liabilities measured at fair value and whose changes are recognised in profit or
loss for the period and financial liabilities measured at amortised cost.A financial liability that meets one of the following criteria may be designated as a financial liability measured at fair value at initial measurement
and whose changes are recognised in profit or loss for the current period:
1) This designation can eliminate or significantly reduce accounting mismatches.
2) Manage and evaluate the performance of a portfolio of financial liabilities or a portfolio of financial assets and financial liabilities on a fair value
basis in accordance with the enterprise risk management or investment strategy as set out in the formal written documents and report internally
to key management on this basis.
3) The financial liability contains embedded derivatives that need to be spun off separately.
2. Basis for recognition and measurement of financial instruments
(1) Financial assets measured at amortized cost
Financial assets measured at amortized cost include notes receivable accounts receivable other receivables long-term receivables debt
investments etc. which are initially measured at fair value and related transaction costs are included in the initial recognized amount;
Receivables that do not contain a significant financing component and receivables that the Company decides not to take into account a
financing component that is less than one year old are initially measured at the contract transaction price.Interest calculated using the effective interest method during the holding period is included in current profit or loss.At the time of recovery or disposal the difference between the price obtained and the carrying value of the financial asset is included in the
current profit or loss.
(2) Financial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive income
Financial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive income including
receivables financing other debt investments etc. are initially measured at fair value and related transaction costs are included in the initial
recognition amount. The financial asset is subsequently measured at fair value and changes in fair value are included in other comprehensive
income except for interest impairment losses or gains and exchange gains and losses calculated using the effective interest method.Upon termination of recognition the accumulated gains or losses previously recognized in other comprehensive income are transferred out of
other comprehensive income and recognized in current profit or loss.
(3) Financial assets measured at fair value and whose changes are included in other comprehensive income (equity instruments)
Financial assets (equity instruments) measured at fair value and whose changes are included in other comprehensive income including
investments in other equity instruments are initially measured at fair value and related transaction costs are included in the initial recognition
amount. The financial asset is subsequently measured at fair value and changes in fair value are included in other comprehensive income.
51Wafangdian Bearing Co. LTD 2025 Midyear Report
Dividends earned are included in current profit or loss.Upon termination of recognition accumulated gains or losses previously recognized in other comprehensive income are transferred from other
comprehensive income and recognized in retained earnings.
(4) Financial assets measured at fair value and whose changes are recognized in profit or loss for the current period
Financial assets that are measured at fair value and whose changes are included in current profit or loss include transactional financial assets
derivative financial assets other non-current financial assets etc. which are initially measured at fair value and related transaction costs are
included in current profit or loss. The financial asset is subsequently measured at fair value and changes in fair value are recognised in profit or
loss for the period.
(5) Financial liabilities measured at fair value and whose changes are recognized in profit or loss for the current period
Financial liabilities that are measured at fair value and whose changes are included in current profit or loss include transactional financial
liabilities derivative financial liabilities etc. which are initially measured at fair value and related transaction costs are included in current profit or
loss. This financial liability is subsequently measured at fair value and changes in fair value are recognised in profit or loss for the period.Upon termination of recognition the difference between the carrying value and the consideration paid is included in the current profit or loss.
(6) Financial liabilities measured at amortized cost
Financial liabilities measured at amortized cost including short-term borrowings notes payable accounts payable other payables long-term
borrowings bonds payable long-term payables are initially measured at fair value and related transaction expenses are included in the initial
recognition amount.1
Interest calculated using the effective interest method during the holding period is included in current profit or loss.Upon termination of recognition the difference between the consideration paid and the carrying value of the financial liability is included in the
current profit or loss.
3. Termination of recognition and transfer of financial assets
The Company terminates the recognition of financial assets when one of the following conditions is met:
- Termination of contractual rights to receive cash flows from financial assets;
- The financial assets have been transferred and virtually all the risks and rewards of ownership of the financial assets have been transferred to
the transferring party;
- The financial assets have been transferred although the Company neither transfers nor retains virtually all of the risks and rewards in the
ownership of the financial assets but does not retain control of the financial assets.If the Company and the counterparty modify or renegotiate the contract and it constitutes a substantial amendment the original financial asset
shall be terminated and a new financial asset shall be recognized in accordance with the revised terms.When a financial asset is transferred if almost all the risks and rewards in the ownership of the financial asset are retained the recognition of the
financial asset is not terminated.When judging whether the transfer of financial assets meets the above conditions for termination of recognition of financial assets the principle
of substance over form is adopted.The company divides the transfer of financial assets into whole transfer and partial transfer of financial assets. If the overall transfer of financial
assets meets the conditions for termination of recognition the difference between the following two amounts shall be included in the current
profit or loss:
(1) the book value of the transferred financial assets;
(2) The sum of the consideration received as a result of the transfer and the accrued amount of the change in fair value originally credited
52Wafangdian Bearing Co. LTD 2025 Midyear Report
directly to owners' equity (where the financial asset involved in the transfer is a financial asset (debt instrument) measured at fair value and
whose change is credited to other comprehensive income).If the partial transfer of financial assets meets the conditions for termination of recognition the overall carrying value of the transferred financial
assets shall be apportioned between the terminated part and the unterminated part according to their relative fair value and the difference
between the following two amounts shall be included in the current profit or loss:
(1) Terminate the book value of the part recognized;
(2) The sum of the consideration for the portion of the termination of recognition and the amount corresponding to the portion of the termination
of recognition in the cumulative amount of the change in fair value that was originally directly included in the owner's equity (where the financial
asset involved in the transfer is a financial asset (debt instrument) that is measured at fair value and whose change is included in other
comprehensive income).If the transfer of financial assets does not meet the conditions for termination of recognition the financial assets continue to be recognized and
the consideration received is recognized as a financial liability.
4. Termination of recognition of financial liabilities
If the present obligation of a financial liability has been discharged in whole or in part the recognition of the financial liability or part thereof shall
be terminated; If the Company signs an agreement with creditors to assume a new financial liability to replace the existing financial liability and
the contractual terms of the new financial liability are materially different from those of the existing financial liability the existing financial liability
shall be terminated and the new financial liability shall be recognized at the same time.If all or part of the contract terms of the existing financial liability are materially modified the recognition of the existing financial liability or part of
the existing financial liability is terminated and the financial liability after the modification is recognized as a new financial liability.When a financial liability is fully or partially terminated for recognition the difference between the carrying value of the financial liability
terminated for recognition and the consideration paid (including non-cash assets transferred out or new financial liabilities assumed) is
recognized in profit or loss for the current period.If the Company repurchases part of the financial liability the carrying value of the whole financial liability shall be allocated on the repurchase
date according to the relative fair value of the continuing recognition part and the terminated recognition part. The difference between the
carrying value assigned to the discontinued recognition portion and the consideration paid (including non-cash assets transferred out or new
financial liabilities assumed) is recognised in profit or loss for the period.
5.Methods for determining the fair value of financial assets and financial liabilities
A financial instrument in which there is an active market and its fair value is determined by the quotation in the active market. Financial
instruments for which there is no active market are determined at fair value using valuation techniques. In valuation the Company uses valuation
techniques that are applicable in the current circumstances and supported by sufficient available data and other information selects input values
that are consistent with the characteristics of the asset or liability considered by market participants in the transaction of the underlying asset or
liability and gives preference to the relevant observable input values. Unobservable input values are used only if the relevant observable input
values are unavailable or impractical to obtain.
6. Test methods and accounting treatment for impairment of financial assets
The Company estimates individually or in combination expected credit losses on financial assets measured at amortized cost financial assets
(debt instruments) measured at fair value and whose changes are included in other comprehensive income and financial guarantee contracts.The Company recognizes expected credit losses by calculating the present value of the difference between the cash flows receivable from the
contract and the cash flows expected to be received weighted by the risk of default taking into account reasonable and evidence-based
53Wafangdian Bearing Co. LTD 2025 Midyear Report
information about past events current conditions and projections of future economic conditions.For receivables and contractual assets arising from transactions regulated by IAS 14 - Revenue whether or not they contain a significant
financing component the Company always measures its loss provision at an amount equal to expected credit losses over the entire duration.For lease receivables resulting from transactions regulated by IAS 21 - Leases the Company chooses to always measure its loss provision at an
amount equal to expected credit losses over the entire duration.For other financial instruments the Company assesses at each balance sheet date the changes in the credit risk of the relevant financial
instruments since their initial recognition.The Company compares the risk of default of the financial instruments at the balance sheet date with the risk of default at the initial recognition
date to determine the relative change in the risk of default over the expected life of the financial instruments to assess whether the credit risk of
the financial instruments has increased significantly since the initial recognition. Generally the Company considers that the credit risk of the
financial instrument has increased significantly if the maturity exceeds 30 days unless there is conclusive evidence that the credit risk of the
financial instrument has not increased significantly since the initial recognition.If the credit risk of a financial instrument is low at the balance sheet date the Company considers that the credit risk of the financial instrument
has not increased significantly since its initial recognition.If the credit risk of the financial instrument has increased significantly since the initial recognition the Company measures its loss reserve at an
amount equivalent to the expected credit loss over the entire life of the financial instrument; If the credit risk of the financial instrument has not
increased significantly since the initial recognition the Company measures its loss reserve at an amount equivalent to the expected credit loss of
the financial instrument over the next 12 months. The resulting increase or reversal of the loss provision is recognised in the current profit or loss
as impairment loss or gain. For financial assets (debt instruments) that are measured at fair value and whose changes are recognized in other
comprehensive income the loss provision is recognized in other comprehensive income and the impairment loss or gain is recognized in profit
or loss for the current period without reducing the carrying value of the financial asset as shown in the balance sheet.If there is objective evidence that a financial asset has suffered credit impairment the Company shall make an impairment provision for the
financial asset on an individual basis.For receivables and contractual assets formed from transactions regulated by Accounting Standard for Enterprises 14 - Revenue (2017)
whether or not they contain a significant financing component the Company always measures its loss provision at an amount equal to expected
credit losses over the entire duration.For lease receivables the Company chooses to always measure its loss provision at an amount equal to expected credit losses over the entire
duration.In addition to assessing overdue credit losses on an individual basis for certain financial assets the Group also assesses expected credit losses
on financial assets measured at amortised cost on an aging portfolio basis.In addition to the above receivables for which the provision for bad debts is made individually the Company divides the remaining financial
instruments into several combinations according to the credit risk characteristics on the basis of which the expected credit losses are
determined. The Company's combination of expected credit losses for notes receivable accounts receivable receivables financing other
receivables etc. and the basis for determination are as follows:
item Combination class Determination basis
With reference to the historical credit loss experience combined with the current
Accounts Aging portfolio situation and the forecast of the future economic situation the comparison table ofreceivable 1 the expected credit loss rate of the accounts receivable aging and the whole life is
prepared to calculate the expected credit loss.Accounts Combination of related parties In principle no provision is made for doubtful accounts unless there is clear
54Wafangdian Bearing Co. LTD 2025 Midyear Report
receivable 2 evidence that it is indeed impossible to recover all or part of the money
Notes receivable 1 Banker's acceptance
Notes receivable 2 Commercial acceptance
Notes receivable 3 Finance company acceptancebill
Financing of
receivables Banker's acceptance
Other receivables 1 Combination of related parties In principle no provision is made for doubtful accounts unless there is clearevidence that it is indeed impossible to recover all or part of the money
Other receivables 2 Aging portfolio
Risk-free portfolio (classified by With reference to the historical credit loss experience combined with the current
the reputation of the transaction situation and the forecast of the future economic situation the expected credit loss
Other receivable 3 object the nature of the is calculated through the default risk exposure and the expected credit loss rate of
payment transaction the whole duration.safeguards etc.)
If the Company no longer reasonably expects that the cash flow of the financial asset contract can be recovered in whole or in part it shall
directly write down the book balance of the financial asset.
18. Holding assets for sale
19. Debt investment
20. Other debt investment
21. Long-term receivables
22. Long-term equity investment
1.Common control significant influence criteria
Joint control refers to the common control of an arrangement in accordance with the relevant agreement and the relevant activities of the
arrangement must be agreed upon by the participants who share control. Where the Company together with other joint ventures exercises joint
control over the investee and enjoys rights over the net assets of the investee the investee shall be a joint venture of the Company.Significant influence refers to having the power to participate in the decision-making of the financial and operational decisions of the investee
but not being able to control or jointly control the formulation of these policies with other parties. Where the Company is able to exert significant
influence on the investee the investee is an associate enterprise of the Company.
2.Determination of initial investment costs
(1) Long-term equity investment formed by business merger
For a long-term equity investment in a subsidiary formed by a combination of enterprises under the same control the initial investment cost of
the long-term equity investment is based on the share of the acquired owner's equity in the book value of the consolidated financial statements
of the ultimate controlling party on the merger date. The difference between the initial investment cost of long-term equity investment and the
book value of the consideration paid and the equity premium in the capital reserve; The retained earnings are adjusted when the equity
premium in the capital reserve is insufficient to write off. If the investore under the same control can be controlled due to additional investment or
other reasons the difference between the initial investment cost of long-term equity investment recognized in accordance with the above
principles and the sum of the book value of long-term equity investment before the merger plus the book value of the new consideration for
further shares acquired on the merger date shall be adjusted for the equity premium and the retained earnings shall be deducted if the equity
premium is insufficient.For a long-term equity investment in a subsidiary formed by a merger of enterprises not under the same control the merger cost determined on
the purchase date shall be regarded as the initial investment cost of the long-term equity investment. If the investee under different control can
be controlled due to additional investment or other reasons the initial investment cost shall be the sum of the book value of the equity
investment originally held plus the cost of the new investment.
55Wafangdian Bearing Co. LTD 2025 Midyear Report
(2) Long-term equity investments made through means other than business consolidation
For long-term equity investment obtained by cash payment the initial investment cost shall be based on the purchase price actually paid.For long-term equity investments obtained by issuing equity securities the initial investment cost shall be based on the fair value of the equity
securities issued.
3.Subsequent measurement and profit and loss recognition methods
(1) Long-term equity investments accounted for by the cost method
The Company's long-term equity investments in subsidiaries are accounted for using the cost method unless the investment is held for sale. In
addition to the cash dividends or profits declared but not yet paid in the price or consideration actually paid at the time of investment acquisition
the Company recognizes the current investment income according to the cash dividends or profits declared and paid by the investee.
(2) Long-term equity investments accounted for by the equity method
Long-term equity investments in associates and joint ventures shall be accounted for using the equity method. If the initial investment cost is
greater than the investment it shall enjoy the difference in the share of the fair value of the identifiable net assets of the investee without
adjusting the initial investment cost of long-term equity investment; When the initial investment cost is less than the investment the difference in
the share of the fair value of the identifiable net assets of the investee shall be included in the current profit or loss and the cost of long-term
equity investment shall be adjusted.The Company recognizes investment income and other comprehensive income respectively according to the share of net profit and loss and
other comprehensive income realized by the investee and adjusts the book value of long-term equity investment; The book value of long-term
equity investment shall be reduced accordingly in accordance with the profit or cash dividend declared by the investee; For changes in owner's
equity other than net profit and loss other comprehensive income and profit distribution of the investee (" Other owner's equity changes ") the
carrying value of long-term equity investments is adjusted and included in owner's equity.When recognizing the share of the investee's net profit and loss other comprehensive income and other changes in owner's equity it is
recognized on the basis of the fair value of the investee's identifiable net assets at the time of acquisition of the investment and after adjusting
the net profit and other comprehensive income of the investee in accordance with the company's accounting policies and accounting periods.The profit or loss of unrealized internal transactions between the company and its associate or joint venture shall be offset by the part
attributable to the company calculated in proportion to its share and the investment income shall be recognized on this basis except where the
assets invested or sold constitute business. If the unrealized internal transaction loss occurred with the investee is an asset impairment loss it
shall be fully recognized.The net loss incurred by the Company to the joint venture or associated enterprise except for the obligation to bear additional losses shall be
limited to the carrying value of the long-term equity investment and other long-term interests that substantially constitute the net investment in
the joint venture or associated enterprise. If a joint venture or associate enterprise later realizes net profit the company shall resume the
recognition of the income sharing amount after the income sharing amount has made up the unrecognized loss sharing amount.
(3) Disposal of long-term equity investments
If a long-term equity investment is disposed of the difference between the carrying value and the actual purchase price shall be included in the
current profit or loss.If part of the long-term equity investment accounted for by the equity method is disposed of and the remaining equity is still accounted for by the
equity method the other comprehensive income recognized by the original equity method is carried forward on the same basis as the relevant
assets or liabilities directly disposed of by the invee and the changes in other owners' equity are transferred to the current profit or loss in
proportion.Where the common control or significant influence on the investee is lost due to the disposal of equity investment or other reasons other
comprehensive income recognized by the original equity investment as a result of the equity method accounting shall be accounted for on the
same basis as the direct disposal of the relevant assets or liabilities by the investee when the equity method accounting is terminated. All other
changes in owners' equity are transferred to current profit or loss upon termination of the equity method.
56Wafangdian Bearing Co. LTD 2025 Midyear Report
If the company loses the control over the investee due to the disposal of part of the equity investment or other reasons and the remaining equity
can jointly control or significantly affect the investee when preparing individual financial statements it shall be calculated according to the equity
method and when the remaining equity is regarded as self-acquired it shall be adjusted by the equity method. Other comprehensive income
recognized before the acquisition of the control of the investee is carried forward on the same basis as the direct disposal of related assets or
liabilities by the investee and the changes in other owner's equity recognized by the equity method are transferred to the current profit or loss on
a proportional basis; If the remaining equity cannot jointly control or exert significant influence on the investee it is recognized as a financial
asset and the difference between the fair value and the carrying value on the date of loss of control is included in the current profit or loss and
all other comprehensive income and other changes in owners' equity recognized before the acquisition of the control of the investee are carried
forward.If the equity investment of the subsidiary is disposed of step by step through multiple transactions until the control is lost and it is a package
transaction each transaction shall be accounted for as a transaction that disposed of the equity investment of the subsidiary and lost the control.The difference between the disposal price of each disposal and the book value of the disposed equity against the entitled long-term equity
investment before the loss of control is first recognized as other comprehensive income in individual financial statements and then transferred to
the loss and profit of the current period when the control is lost. If it is not a package transaction each transaction shall be accounted for
separately.
23. Investment real estate
Investment real estate measurement model
Cost measurement
Depreciation or amortization method
Investment real estate refers to real estate held for the purpose of earning rent or capital appreciation or both including land use rights that
have been leased land use rights that have been held and are to be transferred after appreciation and buildings that have been leased
(including buildings that have been leased after completion of self-construction or development activities and buildings that are under
construction or development and will be leased in the future).Subsequent expenditures related to investment real estate are included in the cost of investment real estate when the related economic benefits
are likely to flow in and their costs can be reliably measured; Otherwise it is charged to current profit or loss when incurred.The Company adopts a cost model for the measurement of existing investment real estate. The depreciation policy for investment real estate -
leased buildings measured according to the cost model is the same as that for the Company's fixed assets and the amortization policy for
leased land use rights is the same as that for intangible assets.
24. Fixed assets
(1) Confirm the conditions
Fixed assets refer to tangible assets with a unit value of more than 2000 yuan that are held for the purpose of producing commodities providing
services renting or operating management and have a service life exceeding one fiscal year. Fixed assets are recognized when both of the
following conditions are met:
(1) The economic benefits related to the fixed assets are likely to flow into the enterprise;
(2) The cost of the fixed asset can be measured reliably.
Fixed assets are initially measured at cost (taking into account the impact of anticipated disposal cost factors).Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the economic benefits related to them are likely to
flow in and their costs can be reliably measured; To terminate the recognition of the book value of the replaced portion; All other subsequent
expenses are recognised in profit or loss as incurred.
（2） Depreciation method
57Wafangdian Bearing Co. LTD 2025 Midyear Report
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.
26. Borrowing costs
27. Biological assets
28. Oil and gas assets
29. Intangible assets
(1) Service life and the basis for its determination estimate amortization method or review procedure
Intangible assets with limited service life shall be amortized within the time limit during which they bring economic benefits to the enterprise;
Intangible assets that cannot be foreseen to bring economic benefits to the enterprise shall be regarded as intangible assets with uncertain
service life and shall not be amortized.The right to the use of the land shall be amortized on an average basis according to the period of grant from the date of grant; ERP software and
other intangible assets shall be amortized in equal stages according to the shortest among the expected service life the benefit life stipulated in
the contract and the effective life stipulated by law. Amortization amounts are included in the cost of the relevant assets and current profit or loss
according to the beneficiaries. The estimated useful life and amortization method of intangible assets with limited useful life are reviewed at the
end of each year and are treated as accounting estimate changes if they occur.
(2) The scope of research and development expenditures and related accounting treatment.
The Company's expenses incurred in the process of conducting research and development include related staff salaries materials consumed
related depreciation and amortization expenses and other related expenses of the personnel engaged in research and development activities
and are summarized as follows:
The relevant employee compensation of the personnel engaged in R&D activities mainly refers to the relevant employee compensation of the
personnel directly engaged in R&D activities the management personnel closely related to R&D activities and the direct service personnel.Depreciation expense refers to the expense of depreciation of instruments equipment and buildings in use for research and development
activities. Long-term deferred expenses refer to long-term deferred expenses incurred in the course of alteration modification renovation and
repair of research and development facilities.
58Wafangdian Bearing Co. LTD 2025 Midyear Report
Direct input expense refers to the related expenditure actually incurred by enterprises for the implementation of research and development
activities. Including direct consumption of materials fuel and power costs; Expenses for the operation maintenance adjustment inspection
inspection and repair of instruments and equipment used in research and development activities as well as lease fees for fixed assets rented
through business leasing for research and development activities.
30. Impairment of long-term assets
Long-term equity investments investment real estate measured by the cost model fixed assets construction in progress use rights assets
intangible assets with limited useful life oil and gas assets and other long-term assets where there are signs of impairment at the balance sheet
date impairment tests shall be conducted. If the impairment test results show that the recoverable amount of the asset is lower than its carrying
value an impairment provision shall be made according to the difference and included in the impairment loss. The recoverable amount is the
higher of the fair value of the asset net of disposal costs and the present value of the asset's expected future cash flows. The asset impairment
reserve is calculated and recognized on the basis of individual assets and if it is difficult to estimate the recoverable amount of an individual
asset the recoverable amount of the asset group is determined on the basis of the asset group to which the asset belongs. An asset group is the
smallest portfolio of assets that can independently generate cash inflows.For goodwill formed as a result of business merger intangible assets with uncertain service life intangible assets that have not yet reached the
usable state regardless of whether there are signs of impairment at least at the end of each year impairment tests.The Company conducts goodwill impairment tests and the carrying value of goodwill formed as a result of the business combination is
apportioned to the relevant asset group in a reasonable way from the date of purchase; If it is difficult to apportion to the relevant asset group it
is apportioned to the relevant asset group combination. An associated asset group or combination of asset groups is an asset group or
combination that can benefit from the synergies of a business combination.When conducting an impairment test on the related asset group or asset group combination containing goodwill if there are signs of impairment
in the asset group or asset group combination related to goodwill the impairment test is first conducted on the asset group or asset group
combination excluding goodwill and the recoverable amount is calculated and compared with the relevant carrying value to recognize the
corresponding impairment loss. Then an impairment test is conducted on the asset group or asset group combination containing goodwill to
compare its carrying value with the recoverable amount. If the recoverable amount is lower than the carrying value the impairment loss amount
is first offset against the carrying value of the goodwill in the asset group or asset group combination. The book value of the other assets is then
reduced proportionally according to the proportion of the book value of the asset group or the asset group combination of other assets other than
goodwill. Once the above-mentioned asset impairment loss is recognized it will not be reversed in the subsequent accounting period.
31. Long-term deferred expenses
Long-term deferred expenses are expenses that have already been incurred but are liable for the current and subsequent periods for an
apportionment period of more than one year. Such expenses are amortized evenly over the benefit period and if the long-term unamortized
expense item does not benefit subsequent accounting periods the full amortized value of the item that has not been amortized is carried to profit
or loss for the current period.
32. Contractual liabilities
The Company shows contractual assets or contractual liabilities in the balance sheet according to the relationship between the performance
obligations and the customer's payments. Obligations of the Company to transfer goods or provide services to customers for which consideration
has been received or received from customers are shown as contractual liabilities. Contract assets and contract liabilities under the same
contract are shown in net terms.
33. Employee compensation
(1) Accounting treatment of short-term compensation
During the accounting period in which employees provide services to the Company the Company recognizes the short-term compensation
actually incurred as a liability and includes it in the profit or loss of the current period or the cost of related assets.The Company shall during the accounting period in which the employees provide services to the Company calculate and determine the
corresponding amount of salary for the employees according to the prescribed basis and proportion 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.
59Wafangdian Bearing Co. LTD 2025 Midyear Report
The employee welfare expenses incurred by the Company are included in the current profit or loss or related asset costs according to the actual
amount incurred when actually incurred among which non-monetary benefits are measured at fair value.
(2) Accounting treatment of post-resignation benefits
(1) Set a drawdown plan
The Company shall pay basic pension insurance and unemployment insurance for its employees in accordance with the relevant regulations of
the local government. During the accounting period when the employees provide services to the Company the amount payable shall be
calculated according to the payment base and proportion prescribed by the local regulations recognized as liabilities and included in the profit
or loss of the current period or the cost of related assets. In addition the Company participates in the Enterprise annuity plan/Supplementary
pension insurance fund approved by the relevant state authorities. The Company pays contributions to the annuity plan/local social insurance
institution according to a certain proportion of the total salary of the employees and the corresponding expenditure is included in the profit and
loss of the current period or the cost of related assets.
(2) Set a benefit plan
According to the formula determined by the expected cumulative benefit unit method the Company will attribute the benefit obligation arising
from the defined benefit plan to the period during which the employee provides the service and record it in the current profit or loss or related
asset cost.A deficit or surplus resulting from the present value of defined benefit plan obligations less the fair value of defined benefit plan assets is
recognized as a defined benefit plan net liability or net asset. If there is surplus in the defined benefit plan the Company shall measure the net
assets of the defined benefit plan by whichever is lower than the surplus of the defined benefit plan or the upper limit of assets.All defined benefit plan obligations including those expected to be paid within twelve months after the end of the annual reporting period in
which the employee rendered services are discounted at the balance sheet date based on the market yield of Treasury bonds or high-quality
corporate bonds in an active market that match the maturity and currency of defined benefit plan obligations.The cost of services incurred by the defined benefit Plan and the net interest on the net liabilities or net assets of the defined benefit plan are
recognised in profit or loss or the cost of the related assets for the period; Changes resulting from the remeasurement of net liabilities or net
assets of defined benefit plans are recognized in other comprehensive income and are not carried back to profit or loss in subsequent
accounting periods and the portion originally recognized in other comprehensive income is fully carried forward to undistributed profit within
equity at the termination of the original defined benefit plan.At the time of settlement of defined benefit plans settlement gains or losses are recognized based on the difference between the present value
of defined benefit plan obligations and the settlement price determined on the settlement date.
(3) The accounting treatment method of dismissal welfare
If the Company provides termination benefits to employees the employee compensation liability arising from the termination benefits shall be
recognized at an early date and recorded in the current profit or loss of either of the following: If the Company cannot unilaterally withdraw the
termination benefits provided by the termination of labor relations plan or reduction proposal; When the Company recognizes costs or expenses
associated with restructuring involving the payment of termination benefits.
(4) Accounting treatment methods for other long-term employee benefits
34. Expected liabilities
Obligations relating to contingencies are recognised by the Company as projected liabilities when the following conditions are met:
(1) The obligation is a current obligation of the Company;
(2) the performance of the obligation is likely to result in the outflow of economic benefits from the Company;
(3) The amount of the obligation can be measured reliably.
Projected liabilities are initially measured at the best estimate of the expenditure required to meet the relevant current obligations.
60Wafangdian Bearing Co. LTD 2025 Midyear Report
In determining the best estimate factors such as risks uncertainties and the time value of money associated with contingencies are taken into
account. Where the time value of money is significant the best estimate is determined by discounting the relevant future cash outflows.Where there is a continuous range of required expenditures within which outcomes are equally likely to occur the best estimate is determined at
the midpoint of the range; In other cases the best estimates are treated as follows:
* Contingencies involving a single item are determined according to the amount most likely to occur.Contingencies involving multiple items shall be determined according to the calculation of various possible outcomes and relevant probabilities.Where all or part of the expenditure required to satisfy the projected liability is expected to be compensated by a third party the amount of
compensation is recognized separately as an asset when it is basically certain that it will be received and the amount of compensation
recognized does not exceed the carrying value of the projected liability.The Company reviews the carrying value of the projected liabilities at the balance sheet date and adjusts the carrying value according to the
current best estimate if there is solid evidence that the carrying value does not reflect the current best estimate.
35. Payment in shares
36. Preferred stock perpetual bond and other financial instruments
37. income
Disclose accounting policies used to recognize and measure revenue by business type
Merchandise sales revenue: When the Group has transferred the principal risks and rewards of ownership of the goods to the purchaser the
Group has not retained the continuing management rights normally associated with ownership nor has it exercised effective control over the
goods sold the amount of revenue can be measured reliably the related economic benefits are likely to flow to the business and the related
costs incurred or to be incurred can be measured reliably Recognize the realization of sales revenue.Income from transferred assets: The realization of income from the right to use transferred assets is recognized when the economic benefits
associated with the transaction are likely to flow to the Group and the amount of revenue can be measured reliably.The use of different business models involving different revenue recognition methods and measurement methods of similar businesses
38. Contract cost
Contract cost includes contract performance cost and contract acquisition cost.The cost incurred by the Company for the performance of the contract which does not fall within the scope of relevant standards such as
inventory fixed assets or intangible assets shall be recognized as an asset as the performance cost of the contract when the following
conditions are met:
* The cost is directly related to a current or expected contract.* This cost increases the Company's resources to meet performance obligations in the future.* This cost is expected to be recovered.The incremental cost incurred by the Company to obtain a contract is recognized as an asset if it is expected to be recovered as a contract
acquisition cost.Assets related to contract costs are amortized on the same basis as the recognition of revenue of goods or services related to that asset;
However if the amortization period of contract acquisition costs does not exceed one year the Company will recognize it in the profit and loss of
the current period when it occurs.If the carrying value of an asset related to the contract cost is higher than the difference between the following two items the Company shall
make an impairment provision for the excess and recognize it as an asset impairment loss:
(a) the remaining consideration expected to be obtained as a result of the transfer of goods or services related to the asset;
2. Estimate the costs to be incurred for the transfer of the relevant goods or services.
61Wafangdian Bearing Co. LTD 2025 Midyear Report
If the factors of impairment in previous periods change later making the aforementioned difference higher than the carrying value of the asset
the Company shall revert to the original provision for impairment and record it in the profit or loss of the current period provided that the carrying
value of the asset after the reversal shall not exceed the carrying value of the asset on the date of reversal if no provision for impairment is
assumed.
39. Government subsidies
1.type
Government subsidies refer to monetary assets or non-monetary assets obtained free of charge by the Company from the government which
are divided into government subsidies related to assets and government subsidies related to income.Government subsidies related to assets refer to government subsidies obtained by the Company for the purchase and construction or other
forms of long-term assets. Revenue-related government subsidies refer to government subsidies other than those related to assets.The Company's specific criteria for classifying government grants as asset-related are government grants obtained by the Group for the
acquisition construction or otherwise formation of long-term assets
The Company's specific criteria for classifying government grants as income-related are: government grants other than government grants
related to assets
If the government documents do not clearly specify the object of the subsidy the Company will classify the government subsidy as asset-related
or revenue-related based on the following judgment: The Group will make a judgment according to the above distinction principle and if it is
difficult to distinguish the whole government subsidy is classified as revenue-related.
2.Confirmation time
Government grants are recognized when the Company is able to meet the conditions attached to them and can receive them.
3.Accounting treatment
Government subsidies related to assets write-down of the book value of related assets or recognized as deferred income. If it is recognized as
deferred income it shall be included in the profit or loss of the current period in a reasonable and systematic way during the service life of the
relevant assets (if it is related to the daily activities of the Company it shall be included in other income; If it is not related to the daily activities of
the Company it is included in non-operating income);
Government grants related to revenue that are used to compensate the Company for related costs or losses in subsequent periods are
recognized as deferred revenue and are recognized in current profit or loss during the period in which the related costs or losses are recognized
(other income if related to the Company's daily activities; If it is not related to the daily activities of the Company it is included in non-operating
income) or written off the related costs or losses; If it is used to compensate the relevant costs or losses incurred by the Company it is directly
included in the current profit and loss (if it is related to the daily activities of the Company it is included in other income; If it is not related to the
daily activities of the Company it is included in non-operating income) or written off related costs or losses.
40. Deferred tax assets/deferred tax liabilities
Income tax includes current income tax and deferred income tax. In addition to income tax arising from business mergers and transactions or
events that are directly included in owners' equity (including other comprehensive income) the Company recognizes current income tax and
deferred income tax in current profit or loss.Deferred income tax assets and deferred income tax liabilities are calculated and recognized based on the difference (temporary difference)
between the tax basis of assets and liabilities and their carrying value.Deferred income tax assets are recognized for deductible temporary differences to the extent that taxable income is likely to be obtained in
future periods to offset deductible temporary differences. For deductible losses and tax credits that can be carried forward to subsequent years
the corresponding deferred tax assets are recognized to the extent that future taxable income is likely to be obtained to offset the deductible
losses and tax credits.
62Wafangdian Bearing Co. LTD 2025 Midyear Report
For taxable temporary differences deferred income tax liabilities are recognized except in exceptional circumstances.Exceptional circumstances in which deferred tax assets or deferred tax liabilities are not recognized include:
* Initial recognition of goodwill;
* Transactions or events that are neither a business combination nor affect accounting profit and taxable income (or deductible losses) at the
time of occurrence and where the assets and liabilities initially recognized do not result in an equal amount of taxable temporary differences and
deductible temporary differences.Deferred tax liabilities are recognized for taxable temporary differences related to investments in subsidiaries associates and joint ventures
unless the Company is able to control the timing of the reversal of the temporary difference and it is likely that the temporary difference will not
be reversed in the foreseeable future. Deferred tax assets are recognized for deductible temporary differences related to investments in
subsidiaries associates and joint ventures when the temporary difference is likely to be reversed in the foreseeable future and taxable income to
offset the deductible temporary differences is likely to be obtained in the future.At the balance sheet date deferred income tax assets and deferred income tax liabilities are measured at the tax rates applicable to the period
during which the underlying asset is expected to be recovered or the underlying liability is settled in accordance with the tax laws.On the balance sheet date the Company reviews the carrying value of the deferred tax assets. If it is likely that it will not be possible to obtain
sufficient taxable income to offset the benefit of the deferred tax asset in future periods write down the carrying value of the deferred tax asset.When sufficient taxable income is likely to be obtained the amount reduced is reversed.Current income tax assets and current income tax liabilities are presented as the net offset when there is a statutory right to net settlement and
the intention is to net settlement or to acquire assets and settle liabilities simultaneously.At the balance sheet date deferred income tax assets and deferred income tax liabilities are shown as net offsets when both of the following
conditions are met:
* The taxpayer has the legal right to net settlement of current income tax assets and current income tax liabilities;
* Deferred income tax assets and deferred income tax liabilities are related to income tax levied by the same tax administration on the same
taxpayer or to different tax entities but within the period in which each future material deferred income tax asset and liability is repatriated The
taxpayer involved intends to net the current income tax assets and liabilities or to acquire assets and pay off liabilities at the same time.
41. lease
(1) Accounting for the lease as a lessee
Lease refers to a contract in which the lessor transfers the right to use the asset to the lessee for consideration within a certain period of time.On the commencement date of the contract the Company assesses whether the contract is a lease or includes a lease. A contract is a lease or
includes a lease if one party cedes the right to control the use of one or more identified assets for a certain period of time in exchange for
consideration.If the contract contains multiple separate leases at the same time the Company will split the contract and conduct accounting treatment for each
separate lease. If the contract contains both lease and non-lease parts the lessee and lessor shall split the lease and non-lease parts.
1. The Company as lessee
(1) Right to use assets
On the commencement date of the lease term the Company recognizes the right of use assets for leases other than short-term leases and low
value asset leases. Use rights assets are initially measured at cost. This cost includes:
The initial measurement of the lease liability;
The lease payment amount paid on or before the commencement date of the lease term if there is a lease incentive less the amount related
to the lease incentive already enjoyed;
initial direct expenses incurred by the Company;
63Wafangdian Bearing Co. LTD 2025 Midyear Report
costs expected to be incurred by the Company for the demolition and removal of the leased asset the restoration of the premises where the
leased asset is located or the restoration of the leased asset to its condition as agreed in the lease terms excluding costs incurred for the
production of inventory.The Company subsequently adopts the straight-line method to depreciate the right of use assets. If the ownership of the leased asset can be
reasonably determined at the end of the lease term the Company shall calculate depreciation during the remaining service life of the leased
asset; Otherwise the leased asset shall be depreciated during the shorter of the lease term and the remaining useful life of the leased asset.The Company shall in accordance with the principles set out in "3 (17) Impairment of Long-term Assets" of this note determine whether the
assets with the right of use have been impaired and accounting for the identified impairment losses.
(2) Lease liabilities
At the commencement date of the lease term the Company recognizes lease liabilities for leases other than short-term leases and leases of
low-value assets. Lease liabilities are initially measured at the present value of outstanding lease payments. Lease payments include:
fixed payment amount (including actual fixed payment amount) if there is lease incentive less the amount related to lease incentive;
Variable lease payments depending on the index or ratio;
the amount expected to be paid based on the remaining value of the guarantee provided by the Company;
The exercise price of the purchase option if the Company is reasonably certain that it will exercise the option;
The amount payable to exercise the option to terminate the lease provided that the lease term reflects that the Company will exercise the
option to terminate the lease.The Company uses the inherent lease rate as the discount rate but if the inherent lease rate cannot be reasonably determined the Company's
incremental borrowing rate will be used as the discount rate.The Company calculates the interest expense of the lease liability during each period of the lease term at a fixed cyclical interest rate and
includes it in the profit or loss of the current period or the related asset cost.Variable lease payments that are not included in the measurement of lease liabilities are recognised in profit or loss or related asset costs when
actually incurred.After the commencement of the lease term if the following circumstances occur the Company will re-measure the lease liability and adjust the
corresponding right of use assets. If the book value of the right of use assets has been reduced to zero but the lease liability still needs to be
further reduced the difference will be recorded in the current profit or loss:
When the evaluation results of the purchase option renewal option or termination option change or the actual exercise of the said option is
inconsistent with the original evaluation results the Company remeasures the lease liability at the present value of the changed lease payment
and the revised discount rate;
When there is a change in the actual fixed payment amount a change in the estimated amount payable on the guarantee balance or a
change in the index or ratio used to determine the lease payment amount the Company remeasures the lease liability at the present value
calculated at the changed lease payment amount and the original discount rate. However where changes in lease payments result from
changes in floating interest rates the present value is calculated using the revised discount rate.
(3) Short-term leases and leases of low-value assets
If the Company chooses not to recognize the right of use assets and lease liabilities for short-term leases and low-value asset leases the
relevant lease payments are included in the current profit or loss or the cost of the related assets on a straight-line basis during each period of
the lease term. Short-term lease means a lease for a period not exceeding 12 months on the commencement date of the lease term and does
not include a purchase option. Low-value asset lease refers to the lease with a lower value when the single leased asset is a brand-new asset.Where the company subleases or intends to sublease leased assets the original lease is not a low-value asset lease.
(4) Lease change
If the lease changes and the following conditions are met the Company will account for the lease change as a separate lease:
64Wafangdian Bearing Co. LTD 2025 Midyear Report
The lease variation expands the scope of the lease by adding the right to use one or more of the leased assets;
The increased consideration is equivalent to the separate price for the extension of the lease adjusted for the circumstances of the contract.If the lease change is not accounted for as a separate lease on the effective date of the lease change the Company reappoints the
consideration of the changed contract redetermines the lease term and remeasures the lease liability according to the present value calculated
by the changed lease payment amount and the revised discount rate.If the lease change causes the lease scope to be reduced or the lease term to be shortened the Company shall adjust the book value of the
right of use assets accordingly and record the gains or losses related to the partial or complete termination of the lease into the current profit or
loss. If other lease changes result in the remeasurement of lease liabilities the Company shall adjust the book value of the right to use assets
accordingly.
(2) Accounting treatment of the lease as a lessor
On the commencement date of the lease the Company divides the lease into finance lease and operating lease. A financial lease is a lease that
essentially transfers almost all of the risks and rewards associated with the ownership of the leased asset regardless of whether ownership is
ultimately transferred. Operating leases refer to leases other than financial leases. When the Company acts as a sublease subleases are
classified based on the right of use assets generated by the original lease.
(1) Accounting for operating leases
Lease receipts from operating leases are recognised as rental income on a straight-line basis during each period of the lease term. The
Company capitalises the initial direct expenses incurred in relation to the operating lease and apportionments them to profit or loss during the
lease period on the same basis as rental income is recognised. Variable lease payments that are not included in lease collections are
recognised in current profit or loss when actually incurred. If an operating lease is changed the Company will account for it as a new lease from
the effective date of the change and the amount received in advance or receivable from the lease before the change will be regarded as the
amount received from the new lease.
(2) Accounting treatment of finance lease
On the commencement date of the lease the Company recognizes the financial lease receivable for the financial lease and terminates the
recognition of the financial lease assets. When the Company makes the initial measurement of the financial lease receivable the net lease
investment is taken as the recorded value of the financial lease receivable. The net lease investment is the sum of the unsecured balance and
the present value of the lease proceeds not yet received at the commencement date of the lease term discounted at the intrinsic interest rate of
the lease.The Company calculates and recognises interest income for each period of the lease term at a fixed cyclical rate. The termination recognition
and impairment of financial lease receivables are accounted for in accordance with "III. (IX) Financial Instruments" of this note.Variable lease payments that are not included in the net lease investment measurement are recognised in current profit or loss when actually
incurred.If a financial lease changes and the following conditions are met the Company will account for the change as a separate lease:
The change expands the scope of the lease by adding the right to use one or more of the leased assets;
The increased consideration is equivalent to the separate price for the extension of the lease adjusted for the circumstances of the contract.If the change of the finance lease is not accounted for as a separate lease the Company shall deal with the changed lease under the following
circumstances:
If the change takes effect on the commencement date of the lease the lease will be classified as an operating lease and the Company will
account for it as a new lease from the effective date of the lease change and the net lease investment before the effective date of the lease
change will be used as the carrying value of the lease asset;
65Wafangdian Bearing Co. LTD 2025 Midyear Report
If the change takes effect on the commencement date of the lease the lease will be classified as a finance lease and the Company will
account for it in accordance with the Company's policy on modification or renegotiation of the contract under "III (IX) Financial Instruments" in
this note.43. Other important accounting policies and estimates
42. Other important accounting policies and accounting estimates
43. Significant changes in accounting policies and estimates
(1) Changes in important accounting policies
□ Applicable□ Not applicable
(2) Changes in important accounting estimates
□ Applicable□ Not applicable
(3) The first implementation of the new accounting standards from 2025 to adjust the financial statements related to the first implementation of
the year
□ Applicable□ Not applicable
44.other
VI.Taxation
1. The main applicable tax and rate to the Group as follows:
tax Plan tax basis Tax rate
Output tax shall be calculated on the basis of the income from the sale of goods and
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 shall be calculated according to the actual VAT and consumption tax paid 7%
Corporate income tax The tax shall be paid on the basis of taxable income 15%、25%
Education fee surcharge The tax shall be calculated according to the actual VAT and consumption tax paid 3%
Local education surcharge The tax shall be calculated according to the actual VAT and consumption tax paid 2%
The property tax 70% of the original value of the property for self-use or rental income from therented property 1.2%or12%
Land use tax Area of land use right 6yuan/Square meter
If there are different subjects of enterprise income tax rates the disclosure shall be explained
Name of taxpayer rate
Wafangdian Bearing Co. LTD 15%
Wazhou Liaoyang Bearing Manufacturing Co. LTD 15%
Dalian Wazhou Precision Motor Automotive Bearing Co. LTD 25%
Wazhou precision ball bearing (Wafangdian) Co. LTD 25%
2. Tax incentives
The Company obtained the qualification of high-tech enterprise identification on December 12 2023 and the certificate number of high-tech
enterprise identification is GR202321200183 which is valid for 3 years. According to the tax law the company can enjoy the preferential tax
policy of levying enterprise income tax at the rate of 15% within 3 years.The subsidiary Waxiang Liaoyang Bearing Manufacturing Co. Ltd. obtained the qualification of high-tech enterprise identification on December
20 2023 and the high-tech enterprise identification certificate number is GR202321002020 valid for 3 years and can enjoy the preferential tax
policy of levying enterprise income tax at a tax rate of 15% within 3 years according to the tax law.
3.other
VII. Notes to consolidated financial statements
66Wafangdian Bearing Co. LTD 2025 Midyear Report
1. Monetary fund
In RMB Yuan
project The ending balance Beginning balance
Bank deposits 71654748.26 160907298.24
Other monetary funds 16394431.87 78491624.86
A combined 88049180.13 239398923.10
2.Trading financial assets
In RMB Yuan
project The ending balance Beginning balance
Financial assets measured at fair value and whose
changes are recorded in current profit or loss 217260.04 221882.59
A combined 217260.04 221882.59
3. Derivative financial assets
4.Notes receivable
（1）Category of notes receivable
In RMB Yuan
Items Closing Balance Opening Balance
Banker's acceptance 304736222.33 402220507.99
Commercial acceptance 222910495.31 196993155.22
Finance company acceptance bill 2413831.61 7832575.73
Bad debt reserve -9940551.09 -9849657.75
total 520119998.16 597196581.19
(2) Disclosure by classification according to bad debt provision method
In RMB Yuan
Ending balance Opening balance
Book balance Bad debtcategory reserve Book balance Bad debt reserve
amou Book value Book value
nt scale
amo Provisio
unt n ratio amount scale amount
Provision
ratio
Among them:
Notes receivable
for provision for 5300 100.0 994doubtful 6054 0% 055 0.70% 520119998.16
6070462389849657.597196581
accounts on a 9.25 1.09 .94
100.00%751.62%.19
combined basis
Among them:
Banker's 3047
acceptance 3622
57.49402220507402220507
2.33%
236462078.36.9966.26%.99
Finance 2413
company 831.6 0.46% 2413831.61
7832575.7
acceptance bill 1 3
1.29%
Commercial 2229 994
acceptance 1049
42.050554.46%281244088.1919699315532.45%9849657.5.00%187143497
5.31%1.09.2275.47
5300994
total 6054 100.0 055 520119998.16 6070462380% .94 100.00%
9849657.597196581
9.251.0975.19
67Wafangdian Bearing Co. LTD 2025 Midyear Report
Category name of combined bad debt provision: credit risk characteristic combination
In RMB Yuan
name ending balance
bank acceptance book balance bad debt provision Provision ratio
Financial company acceptance bill 304736222.33
trade acceptance draft 2413831.61
amount to 222910495.31 9940551.09 4.46%
name 530060549.25 9940551.09
Explanation of the basis for determining this combination:
Provision is made based on a combination of credit risk characteristics
If the bad debt provision for notes receivable is made in accordance with the general model of expected credit losses:
□ Applicable□Not applicable
(3) Bad debt provision of notes receivable accrued collected and reversed
Bad debt provision of notes receivable：
In RMB Yuan
Change during the year
Category Opening balance Accrued Collected/reversed Closing BalanceWritten-off others
Bad debt
provision 9849657.75 300000.00 209106.66
9940551.09
Total 9849657.75 300000.00 209106.66 9940551.09
Among them the amount of the recovery or reversal of the current bad debt reserve is important:
□ Applicable□Not applicable
(4) Pledged notes receivable up to the end of year.
item The amount pledged at the end of the period
bank acceptance
a trade acceptance 4545045.09
total 4545045.09
(5)Notes receivable endorsed or discounted but not mature at the end of year
In RMB Yuan
Item Closing amount no more recognized Closing amount still recognized
Bank acceptance notes 236462078.36
Trade acceptance notes 174720337.82
Financial company acceptance bill 2413831.61
Total 413596247.79
(6) The actual write-off of notes receivable in the current period
5.Accounts receivable
(1) Age disclosure
In RMB Yuan
aging Ending book balance Opening book balance
Within 1 year (inclusive) 963579705.81 957607035.33
1 to 2 years 116402680.23 110054134.18
2 to 3 years 30370017.89 28806314.47
More than 3 years 79675427.26 74909200.31
3 to 4 years 18995307.73 17819751.52
Four to five years 22479322.19 20453597.77
More than 5 years 38200797.34 36635851.02
total 1190027831.19 1171376684.29
68Wafangdian Bearing Co. LTD 2025 Midyear Report
(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 reserve Book
amount scale amount Provision ratio value amount scale amount
Provision
ratio value
Accounts
receivable that
are set aside for 748983 6.29% 748983 100.00 7497537 6.40% 7497537 100.00%
bad debts on an 00.34 00.34 % 5.60 5.60
individual basis
Among them:
Accounts
receivable that 1045
are provided for 1115129530.85 93.71%
695791
97.616.24%55033
1096401
308.6993.60%
7017432
2.246.40%
1026226
bad debts on a 3.24 986.45
combined basis
Among them:
91938
Aging portfolio 986440 82.89% 670562 8942817 6498447 8292972929.76 40.64 6.80% 4689.12 61.39
76.34%9.657.27%81.74
Combination of 128688 10.81% 252295
12616
related parties 601.09 6.97 1.96% 5644.
202119551898421969297
1247.30
17.25%.592.57%04.71
total 119002 100.00 144477
1045
7831.19%497.9555033
1171376
684.29100.00%
14514961026226
3.2497.84986.45
Category Name of provision for Bad Debts by individual item:
In RMB Yuan
name Opening Balance Ending balance
Book balance Bad debt reserve Book balance Bad debt reserve Provision ratio Reason forprovision
Individual
accruals 74975375.60 74975375.60 74898300.34 74898300.34 100.00% non-recoverable
total 74975375.60 74975375.60 74898300.34 74898300.34
Category Name of Bad debt provision by portfolio:Combination of credit risk characteristics
In RMB Yuan
name Ending balanceBook balance Bad debt reserve Provision ratio
Within 1 year 862670489.17 43133524.46 5.00%
1 to 2 years 86500532.13 8650053.21 10.00%
2 to 3 years 20617608.31 4123521.66 20.00%
3 to 4 years 8962494.54 4481247.27 50.00%
Four to five years 5109557.84 4087646.27 80.00%
More than 5 years 2580247.77 2580247.77 100.00%
Combination of related parties 128688601.09 2522956.97
total 1115129530.85 69579197.61
69Wafangdian Bearing Co. LTD 2025 Midyear Report
Statement on the basis for determining the combination:
Provision for bad debts shall be made according to the combination of credit risk characteristics.If the bad debt provision for accounts receivable is calculated according to the general model of expected credit loss:
□ Applicable□ Not applicable
(3) the provision for bad debts accrued recovered or rolled back during the period
Provision for bad debts in the current period:
In RMB Yuan
Change during the year
category
Opening balance Ending balance
Accrued Other Collected/reversedincrease Written-off
Bad debt reserve 145149697.84 404445.65 267754.24 144477497.95
total 145149697.84 404445.65 267754.24 144477497.95
(4) Accounts receivable actually written off during the current period
In RMB Yuan
item Amount written off
Accounts receivable actually written off 267754.24
(5) The receivables and contractual assets of the top five closing balances collected by the defaulting party.
In RMB Yuan
Percentage of the Ending balance of
Ending allowance for
Ending balance of balance of Ending balance of
total balance of doubtful accounts
Unit name accounts receivable contract accounts receivable
accounts receivable
and contract assets and contract assets
receivable and
assets at the end of the allowance for
period impairment ofcontract assets
China State Railway Group 3852475.8
Co. Ltd. and its subsidiaries 216048811.82 0 219901287.62 18.31% 10995064.38
Wafangdian Bearing Group
Co. LTD and its subsidiaries 126372986.13 126372986.13 10.52%
China CRRC Group Co. Ltd.and its subsidiaries 31830198.44 31830198.44 2.65% 1591509.92
Anben Group and its
subsidiaries 26125515.91 26125515.91 2.18% 1306275.80
Baowu Group and its
subsidiaries 25735985.41 25735985.41 2.14% 1286799.27
Total 426113497.71 3852475.80 429965973.51 35.80% 15179649.37
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
Payment for
performance of 10711197.24 605182.64 10106014.60 12103652.85 605182.64 11498470.21
the contract
A combined 10711197.24 605182.64 10106014.60 12103652.85 605182.64 11498470.21
(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
Items Closing Balance Opening Balance
70Wafangdian Bearing Co. LTD 2025 Midyear Report
Booking balance Provision Booking Booking balance Provision Booking
Amount % Amount % value Amount % Amount % value
Among them:
Provision for
bad debts on a 107111 100. 605182.6 1010697.24 00% 4 5.65% 014.60 12103652.85 100.00% 605182.64 5.00%
1149847
portfolio basis 0.21
Among them:
Performance 107111 100. 605182.6 5.65% 10106contract money 97.24 00% 4 014.60 12103652.85 100.00% 605182.64 5.00%
1149847
0.21
total 107111 100. 605182.6 1010697.24 00% 4 014.60 12103652.85 100.00% 605182.64 5.00%
1149847
0.21
Category name of bad debt provision for combined collection: contract performance payment
In RMB Yuan
name ending balance
Performance contract payments book balance bad debt provision Provision ratio
amount to 10711197.24 605182.64 5.65%
name 10711197.24 605182.64
Statement on the basis for determining the combination:
Provision for bad debts is made according to the general model of expected credit losses
□ Applicable□ Not applicable
(4) Provision for bad debts accrued recovered or rolled back in the current period
(5) The actual write-off of contract assets in the current period
7. Receivables financing
(1) Classification and listing of receivables financing
In RMB Yuan
item Ending balance Opening balance
Banker's acceptance 42502064.44 48925906.07
total 42502064.44 48925906.07
8. Other receivables
In RMB Yuan
item Ending balance Opening balance
Other receivables 10485149.04 7962213.75
total 10485149.04 7962213.75
(1) Interest receivable
(2) Dividends receivable
(3) Other receivables
1) Classification of other receivables by nature of amounts
In RMB Yuan
Nature of money Ending book balance Opening book balance
Security deposits and pledges 7658436.20 6973511.88
Personal cash reserves 2099974.16 1365292.16
Other amounts 9176298.53 8072969.56
total 18934708.89 16411773.60
2) Aging disclosure
71Wafangdian Bearing Co. LTD 2025 Midyear Report
In RMB Yuan
aging Ending book balance Opening book balance
Within 1 year (inclusive) 9128337.42 6359374.16
1 to 2 years 1083146.99 889646.99
2 to 3 years 1838308.31 2409108.18
More than 3 years 6884916.17 6753644.27
3 to 4 years 1189981.53 1203245.68
Four to five years 186222.09 196403.88
More than 5 years 5508712.55 5353994.71
total 18934708.89 16411773.60
3) Classified disclosure according to bad debt provision method
□Applicable□ Not applicable
In RMB Yuan
Ending balance Opening Balance
Items Booking balance Provision Booking Booking balance Provision Booking
Amount % Amount % value Amount % Amount % value
Accounts
receivabl
e with 6079333 32.11% 6079333.5 100.00 6079333.5 37.04 6079333.5individual .51 1 % 1 % 1 100.00%
bad debt
provision
Among them:
Provision
for bad
debts on 1285537 67.89% 2370226.3 18.44 1048514 10332440. 62.96 2370226.3 22.94% 79622
a portfolio 5.38 4 % 9.04 09 % 4 13.75
basis
Among them:
Account
age 1240252 65.50% 2370226.3 19.11 1003230 10173479. 61.99 2370226.39.92 4 % 3.58 37 % 4 25.25%
10173
portfolio 479.37
Back-up
cash 0.00% 0.00 123960.72 0.76% 123960
reserves .72
Combinat
ion of 452845.4 2.39% 452845.4related 6 6 35000.00 0.21%
35000.
00
parties
total 1893470 100.00% 8449559.8 1048514 16411773. 100.00 8449559.8 796228.89 5 9.04 60 % 5 13.75
Category Name of provision for Bad Debts by individual item:Individual accruals
In RMB Yuan
name Opening balance Ending balance
72Wafangdian Bearing Co. LTD 2025 Midyear Report
Book balance Bad debt reserve Book balance Bad debt reserve Provision ratio Reason forprovision
Provide bad debt
provision on a
case-by-case 6079333.51 6079333.51 6079333.51 6079333.51 100.00% non-recoverable
basis
total 6079333.51 6079333.51 6079333.51 6079333.51
Category Name of Bad debt provision by portfolio:Credit risk portfolio
In RMB Yuan
name Ending balance
Book balance Bad debt reserve Provision ratio
Within 1 year 8097550.28 404877.51 5.00%
1 to 2 years 935646.99 93564.70 10.00%
2 to 3 years 1519141.67 303828.33 20.00%
3 to 4 years 489981.53 244990.77 50.00%
Four to five years 186222.09 148977.67 80.00%
More than 5 years 1173987.36 1173987.36 100.00%
Combination of related parties 452845.46
total 12855375.38 2370226.34
Loss Provision Prepare for significant changes in book balances during the 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
Nature of Percentage of total Ending balance ofUnit name money Ending balance aging ending balance of allowance forother receivables doubtful accounts
Anhui Conch Cement Co. LTD bail 1300000.00 Two to threeyears 6.87% 260000.00
Shenyang Railway Bus Factory
China Railway Shenyang Bureau bail 1216300.00 Within 1 year 6.42%
Group Co. LTD
China Railway Logistics Co. LTD bail 1183070.00 1-2 years 6.25% 59153.50
Material Procurement Office
Daqin Railway Co. LTD bail 507400.00 1-2 years 2.68% 35520.00
China Railway Materials Co. LTD bail 500400.00 1-2 years 2.64% 15000.00
amount to 4707170.00 24.86% 369673.50
9. Advance payment
(1) Prepayments are shown according to aging
In RMB Yuan
73Wafangdian Bearing Co. LTD 2025 Midyear Report
aging Ending balance Opening balance
amount scale amount scale
Within 1 year 7607747.79 87.28% 9059242.73 82.74%
1 to 2 years 349026.14 4.00% 691092.65 6.31%
2 to 3 years 759835.41 8.72% 1142161.71 10.43%
More than 3 years 0.00% 56027.74 0.52%
total 8716609.34 10948524.83
(2) The advance payment of the top five of the closing balance collected by the prepaid object
prepayer Ending balance Percentage of total closing balance of prepayments(%)
Daye Special Steel Co. LTD 5678111.01 65.14
State Grid Liaoning Electric Power Co. LTD. Dalian
Power Supply Company 413410.68 4.74
Fushun Special Steel Co. LTD 276494.39 3.17
Quike Chemical (China) Co. LTD 201176.50 2.31
China Railway Track Rail Technology Service Group
Co. LTD 156516.12 1.80
amount to 6725708.70 77.16
10. Inventory
Whether the company is required to comply with real estate industry disclosure requirements
no
(1) Inventory classification
In RMB Yuan
Ending balance Opening balance
Reserve for Reserve for
item inventory decline inventory decline
Book balance or contract Book value Book balance or contract Book value
performance cost performance cost
impairment impairment
Raw material 61897920.41 10373535.37 51524385.04 71827818.05 10373535.37 61454282.68
Goods in process 148790569.49 11500641.54 137289927.95 149656639.78 11500641.54 138155998.24
Goods in stock 515476214.45 66049055.70 449427158.75 544114655.33 66049055.70 478065599.63
Turnover material 927491.26 185271.20 742220.06 458772.00 185271.20 273500.80
Delivery of goods 12212774.99 12212774.99 10491357.08 10491357.08
total 739304970.60 88108503.81 651196466.79 776549242.24 88108503.81 688440738.43
(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 10373535.37 10373535.37
goods in process 11500641.54 11500641.54
merchandise inventory 66049055.70 66049055.70
Turnover materials 185271.20 185271.20
amount to 88108503.81 88108503.81
11. Holding assets for sale
12. Non-current assets that mature within one year
13. Other current assets
74Wafangdian Bearing Co. LTD 2025 Midyear Report
In RMB Yuan
item Ending balance Opening balance
Input tax to be deducted 39839368.87 53298611.95
total 39839368.87 53298611.95
14. Debt investment
15. Other debt investments
16. Investment in other equity instruments
In RMB Yuan
Gains Loss Gains Reasons
recognized recognize accrued to Loss specified as
as other d in other other accrued to Dividend measured at faircomprehe other income value and for
Project name Opening comprehe comprehensi Endingbalance nsive nsive ve income at comprehensi recognize which changes
income in income in the end of ve income at d for the
balance are included in
the current the the current the end of period other
period current period the period comprehensiveperiod income
Shanghai Aimuyi
electromechanical 2000000 1000000 2000000.0
equipment chain .00 .00 0
Co. LTD
Tianjin Bogang No.
12 Enterprise
Management
Partnership (Limited 1301958 2352.64 1301958.8
Partnership) (Qian .80 0
'an Zha Yi Steel
Group Co. LTD.)
Trust Beneficiary
Rights of CCB Trust
- Caidie No.1
Property Rights 1181879 1181879.8
Trust Plan (Qian 'an .86 6
Zha Yi Iron and
Steel Group Co.LTD.)
General Technology
Group Dalian
Machine Tool Co.LTD. (Dalian 7423089 7423089.6
Longhui Industry .69 9
and Trade Co.LTD.)
Total 1190692 1002352 11906928.8.35 .64 35
17. Long-term receivables
18. Long-term equity investment
19. Other non-current financial assets
20. Investment real estate
(1) Investment real estate using cost measurement model
□ Applicable□ Not applicable
75Wafangdian Bearing Co. LTD 2025 Midyear Report
In RMB Yuan
item Houses and buildings Land use right Construction in progress total
I. Original book value
1. Opening balance 112228925.54 52861118.81 165090044.35
2. Increase in the current
period 13640919.06 0.00 13640919.06
(1) Outsourcing 0.00 0.00 0.00
(2) Transfer of inventory
fixed assets and construction 4465509.78 0.00 4465509.78
in progress
(3) Increase in business
combinations
(3) Other transfers 9175409.28
3. Reduction amount in the
current period 591563.84 0.00 591563.84
(1) Disposal 0.00 0.00 0.00
(2) Other transfers 591563.84 0.00 591563.84
4. End-of-period balance 125278280.76 52861118.81 178139399.57
II.Accumulated depreciation
and amortization
1. Opening balance 69524288.87 23885828.43 93410117.30
2. Increase in the current
period 8216846.33 660756.00 8877602.33
(1) Provision or amortization 2065030.57 660756.00 2725786.57
(2) Other transfers 6151815.76 6151815.76
3. Reduction amount in the
current period 337972.19 0.00 337972.19
(1) Disposal 0.00 0.00 0.00
(2) Other transfers 337972.19 0.00 337972.19
4. End-of-period balance 77403163.01 24546584.43 101949747.44
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 47875117.75 28314534.38 76189652.13
2. Initial book value 42704636.67 28975290.38 71679927.05
Recoverable amounts are determined at the net of fair value less disposal costs
□ Applicable□ Not applicable
Recoverable amounts are determined at the present value of projected future cash flows
□ Applicable□ Not applicable
The reason for the discrepancy between the foregoing information and the information used in the previous year's impairment test or external
information
Reasons for the difference between the company's previous annual impairment test information and the actual situation of the year
Other notes:
(2) Investment real estate measured at fair value
76Wafangdian Bearing Co. LTD 2025 Midyear Report
□ Applicable□ Not applicable
21. Fixed assets
item Ending balance Opening balance
Fixed assets 424356561.00 437398315.29
total 424356561.00 437398315.29
(1) Fixed assets
In RMB Yuan
Project buildings machinery delivery Electronicequipment equipment equipment Other equipment total
I. Original Book
Value:
1. Opening
balance 289536784.35 1071033507.85 17231477.41 57054270.50 234130132.63 1668986172.74
2. Increase the
amount in this 0.00 19489299.61 0.00 709813.35 8215688.49 28414801.45
period
(1) Purchase 0.00 0.00 0.00 0.00 0.00 0.00
(2) Transfer of
construction in 0.00 19489299.61 0.00 709813.35 2788423.90 22987536.86
progress
(3) The number of
business
combinations has
increased
(4) Changes in the
category of fixed 0.00 0.00 0.00 0.00 5427264.59 5427264.59
assets
(5) Transfer out to
investment real 0.00 0.00 0.00 0.00 0.00 0.00
estate
3. Reduced
amount in this 9862549.12 33354785.62 447816.77 4257756.70 4173.47 47927081.68
period
Disposal or
scrapping 591563.84 32294044.69 447816.77 578372.88 4173.47 33915971.65
(2) Transfer out to
investment real 8583845.44 0.00 0.00 0.00 0.00 8583845.44
estate
(3) Changes in the
category of fixed 687139.84 1060740.93 0.00 3679383.82 0.00 5427264.59
assets
4. Closing balance 279674235.23 1057168021.84 16783660.64 53506327.15 242341647.65 1649473892.51
Ii. Accumulated
Depreciation
1. Opening
balance 196133491.93 811729768.80 13267876.92 41526684.15 137615929.88 1200273751.68
2. Increase the
amount in this 3243620.77 23116489.28 444869.31 1180399.44 6310061.90 34295440.70
period
(1) Provision 3243620.77 23116489.28 444869.31 1180399.44 2367494.60 30352873.40
(2) Changes in the
category of fixed 0.00 0.00 0.00 0.00 3942567.30 3942567.30
assets
3. Reduced
amount in this 6738049.67 23450179.81 417737.68 3198471.47 2673.94 33807112.57
77Wafangdian Bearing Co. LTD 2025 Midyear Report
period
Disposal or
scrapping 342880.43 22802642.05 417737.68 484767.60 2673.94 24050701.70
(2) Transfer out to
investment real 5813843.57 0.00 0.00 0.00 0.00 5813843.57
estate
(3) Changes in the
category of fixed 581325.67 647537.76 0.00 2713703.87 0.00 3942567.30
assets
4. Closing balance 192639063.03 811396078.27 13295008.55 39508612.12 143923317.84 1200762079.81
Iii. Impairment
Provision
1. Opening
balance 1166765.45 29359495.02 25027.00 625936.70 136881.60 31314105.77
2. Increase the
amount in this 0.00 0.00 0.00 0.00 0.00 0.00
period
(1) Provision 0.00 0.00 0.00 0.00 0.00 0.00
(2) Changes in the
category of fixed 0.00 0.00 0.00 0.00 131370.94 0.00
assets
3. Reduced
amount in this 0.00 6862902.13 17101.18 77714.91 1135.85 6958854.07
period
Disposal or
scrapping 0.00 6862902.13 17101.18 77714.91 1135.85 6958854.07
(2) Changes in the
category of fixed 0.00 131370.94 0.00 0.00 0.00
assets
4. Closing balance 1166765.45 22496592.89 7925.82 548221.79 135745.75 24355251.70
Iv. Book Value
Book value at the
end of the period 85868406.75 223275350.68 3480726.27 13449493.24 98282584.06 424356561.00
2. Initial book value 92236526.97 229944244.03 3938573.49 14901649.65 96377321.15 437398315.29
(2) Temporarily idle fixed assets
(3) Fixed assets leased through operating leases
(4) The fixed assets that have not completed the title certificate
(5) Impairment test of fixed assets
□ Applicable□ Not applicable
(6) Liquidation of fixed assets
22. Construction in progress
In RMB Yuan
item Ending balance Opening balance
Construction in progress 16691520.90 34740635.71
total 16691520.90 34740635.71
(1) Construction in progress
In RMB Yuan
item Ending balance Opening balance
Book balance Reserve for Reserve forimpairment Book value Book balance impairment Book value
Precision bearing 1254867.25 1254867.25 794690.25 794690.25
78Wafangdian Bearing Co. LTD 2025 Midyear Report
factory renovation
Renovation of the
seventh finished
product factory 3555799.28 3453144.41 102654.87 3555799.28 3453144.41 102654.87
area
Spherical roller
bearing assembly 1198862.55 1110842.55 88020.00 1703287.33 1110842.55 592444.78
production line
Grinding and
processing
production line 741000.00 741000.00 741000.00 741000.00
maintenance and
renovation
Railway
renovation 665647.85 24854.40 640793.45 665647.85 24854.40 640793.45
Ultra precision
machine 456878.68 456878.68 456878.68 456878.68
installation project
Channel 2
construction 256249.27 222849.70 33399.57 256249.27 222849.70 33399.57
project
Precision rolling
element 13091.45 13091.45 13091.45 13091.45
modification
Grinding and
processing 38957.26 38957.26 38957.26 38957.26
production line
computer project 18000.00 18000.00 18000.00 18000.00
Dalian Industrial
Park project 5590.45 5590.45 5590.45 5590.45
Equipment to be
installed 3542332.84 1069687.13 2472645.71 18257773.90 1081752.51 17176021.39
Plant workshop
renovation project 80188.68 80188.68
Overhaul of large
equipment 5088495.58 5088495.58 5498470.80 5498470.80
Rail bearing
maintenance 683185.84 683185.84
branch project
Renovation and
upgrading project
of CNC production
lines for
components in 1628318.59 1628318.59
medium and large-
sized branch
companies
The bearing
project of the 530973.45 530973.45
bullet train
A major repair of a
joint company 1550000.00 1550000.00
Company
engineering 5707837.18 5707837.18 5707837.18 5707837.18
transformation
The company's
ball base project 543982.29 543982.29 329203.54 329203.54
79Wafangdian Bearing Co. LTD 2025 Midyear Report
Total 23770777.77 7079256.87 16691520.90 41831957.96 7091322.25 34740635.71
(2) Changes in the current period of important construction projects under construction
In RMB Yuan
Where:
Amount Otherdecre Proporti
the
Openi of fixed on of
Interest amount Current
Project Estimat ng Current assets
ases capitali of
in the Ending cumulat Project zation interest interest Source
name ed increas transferramount balanc e ed in the curre balance
ive progres accumu capitali capitali of
e project scurrent nt input to lated zation
zation funds
perio amount in the rateperiod d budget current
period
Large
special
branch
1400
pressure 4449 22893 273429
quenching 00.00 95.86 5.86 0.00 other
and heat
treatment
production
line project
Ultra
precision
machine 3300 330088.installation 88.50 50
0.00 other
project
Ball
bearing
inner race
super
precision 5044 33628 840707.24.78 3.19 97 0.00 othermachine
project of
accessory
company
Equipment
renovation
of railway 68318 68318
bearing 5.84 5.84 other
maintenan
ce branch
The
company's
three-
dimension
al library 43853 438532
renovation 21.10 1.10 0.00 other
project is a
value-
added
project
High
speed 5309 19052 243622
train axle 73.45 54.45 7.90
0.00 other
80Wafangdian Bearing Co. LTD 2025 Midyear Report
box
bearing
low
temperatur
e test
machine
renovation
project
Ball base
surface 54398 54398
grinding 2.29 2.29 other
machine
1810
Total 386.7 10143 107266422.73 41.33 0.00
12271
368.13
23. Productive biological assets
24. Oil and gas assets
□ Applicable□ Not applicable
25. Use the assets
26. Intangible assets
(1) Intangible assets
item Land use right Patent right software total
I. Original book value
1. Opening balance 124575250.35 12055595.99 136630846.34
2. Increased amount for the current
period
(1) Purchase
(2) Internal research and development
(3) Increased business mergers
3. Decrease the amount in the current
period
(1) Disposal
4. Closing balance 124575250.35 12055595.99 136630846.34
II. Cumulative amortization
1. Opening balance 57154037.24 9355749.52 66509786.76
2. Increased amount for the current
period 1560151.16 441591.30 2001742.46
(1) Provision 1560151.16 441591.30 2001742.46
3. Decrease the amount in the current
period
(1) Disposal
4. Closing balance 58714188.40 9797340.82 68511529.22
III. Reserve for impairment
1. Opening balance
2. Increased amount for the current
period
(1) Provision
3. Decrease the amount in the current
period
(1) Disposal
4. Closing balance
IV. Book value
1. Ending book value 65861061.95 2258255.17 68119317.12
2. Opening book value 67421213.11 2699846.47 70121059.58
81Wafangdian Bearing Co. LTD 2025 Midyear Report
27. Goodwill
28. Long-term deferred expenses
In RMB Yuan
item Opening balance Current increase Amortization amountfor the current period Other reduction Ending balance
Expenditure on
improvement of fixed 3932858.79 574681.32 3358177.47
assets
House maintenance
expenditure 2669554.18 161055.06 2508499.12
total 6602412.97 735736.38 5866676.59
29. Deferred tax assets/deferred tax liabilities
(1) Unoffset deferred income tax assets
(2) Unoffset deferred income tax liabilities
In RMB Yuan
project ending balance beginning balances；initial balance
Asset evaluation
appreciation in non- Taxable temporary Deferred income tax Taxable temporary Deferred income tax
controlling enterprise differences liabilities differences liabilities
mergers
amount to 3496568.07 524485.21 3496568.07 524485.21
project 3496568.07 524485.21 3496568.07 524485.21
(3) Deferred income tax assets or liabilities presented on a net basis after offsetting
In RMB Yuan
Deferred income tax 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 524485.21 524485.21
(4) The details of deferred income tax assets have not been confirmed
In RMB Yuan
project ending balance beginning balances
Deductible temporary differences 290568029.91 430976118.37
Deductible loss 856258144.28 805391478.16
Total 1146826174.19 1236367596.53
(5) The deductible losses of unrecognized deferred income tax assets will mature in the following years
In RMB Yuan
Year ending balance beginning balances Note
202414645709.83
202582495762.7982495762.79
202614116432.6314116432.63
202775136503.7975136503.79
2028103469846.02103469846.02
202982648926.0782648926.07
2030150374473.29150374473.29
2031127716833.64127716833.64
203292212084.5492212084.54
82Wafangdian Bearing Co. LTD 2025 Midyear Report
203362574905.5662574905.56
203465512375.95
total 856258144.28 805391478.16
30. Other non-current assets
31. Assets whose ownership or use rights are restricted
32. Short-term borrowing
(1) Classification of short-term loans
In RMB Yuan
item Ending balance Opening balance
Credit loan 432000000.00 570000000.00
total 432000000.00 570000000.00
33. Transactional financial liabilities
34. Derivative financial liabilities
35. Notes payable
In RMB Yuan
species Ending balance Opening balance
Commercial acceptance 26625291.30 20472638.17
Banker's acceptance 21000000.00 175309107.43
Letter of credit 65348156.00 205348156.00
total 112973447.30 401129901.60
36. Accounts payable
(1) Accounts payable are listed
In RMB Yuan
item Ending balance Opening balance
Payment for goods 1705181082.52 1607501304.61
Project fund 53129692.62 56314734.85
other 8875442.34
total 1767186217.48 1663816039.46
(2) Important accounts payable with a maturity of more than one year or overdue
37. Other payables
In RMB Yuan
item Ending balance Opening balance
Other payables 287629191.45 135258184.75
total 287629191.45 135258184.75
(1) Interest payable
(2) Dividends payable
(3) Other payables
1) List other payables by the nature of the payment
In RMB Yuan
item Ending balance Opening balance
Tender bond and deposit 1265698.75 300922.14
Rent trademark royalties and land payments payable to the Group 139103.42
Authorized dealer margin 92193581.47 87359076.36
other 194030807.81 47598186.25
total 287629191.45 135258184.75
38. Advance payment
83Wafangdian Bearing Co. LTD 2025 Midyear Report
39. Contract liabilities
In RMB Yuan
item Ending balance Opening balance
Contract pending business 32755051.06 34098145.99
total 32755051.06 34098145.99
40. Pay employees
(1) Salaries payable to employees shall be listed
In RMB Yuan
item Opening balance Current increase Current decrease Ending balance
I short-term
compensation 37348348.42 169007559.70 171993951.53 34361956.59
II. Post-employment
benefits - Set up a 4705119.59 18099993.38 18146359.55 4658753.42
savings plan
III. Dismissal welfare 35886.00 888451.75 836451.75 87886.00
total 42089354.01 187996004.83 190976762.83 39108596.01
(2) Short-term salary is listed
In RMB Yuan
item Opening balance Current increase Current decrease Ending balance
1. Salaries bonuses
allowances and subsidies 32947366.87 134291705.70 135733650.91 31505421.66
2. Employee welfare expenses 1750136.60 9350600.79 10861365.59 239371.80
3. Social insurance premiums 17037.30 11542330.51 11559367.81 0.00
Among them: health insurance
premiums 16542.64 9263797.41 9280340.05 0.00
Industrial injury insurance
premium 494.66 1216551.21 1217045.87 0.00
Maternity insurance premium 1061981.89 1061981.89 0.00
4. Housing fund 2506210.43 12482442.68 12437040.32 2551612.79
(5) Union funds and staff
education funds 127597.22 1340480.02 1402526.90 65550.34
total 37348348.42 169007559.70 171993951.53 34361956.59
(3) Set up deposit plan list
In RMB Yuan
item Opening balance Current increase Current decrease Ending balance
1. Basic endowment
insurance 4634392.14 17551476.02 17596973.56 4588894.60
2. Unemployment
insurance 70727.45 548517.36 549385.99 69858.82
total 4705119.59 18099993.38 18146359.55 4658753.42
41. Taxes should be paid
In RMB Yuan
item Ending balance Opening balance
Value-added tax 5967726.63 9626068.98
Individual income tax 89993.03 168808.45
City maintenance and construction tax 297692.73 120272.26
Vehicle and vessel tax 523.35 523.35
House tax 775735.80 758803.28
Water taxes 1267.30
Education surcharge 133454.11 45825.66
Land use tax 613163.82 613163.82
Local education fees surcharge 77390.63 30088.25
84Wafangdian Bearing Co. LTD 2025 Midyear Report
Stamp duty 685504.87 700665.55
total 8642452.27 12064219.60
42. Holding liabilities held for sale
43. Non-current liabilities due within one year
In RMB Yuan
project Ending balance Opening balance
Long-term loans due within one year 98350000.00
amount to 98350000.00
44. Other current liabilities
In RMB Yuan
item Ending balance Opening balance
Pending resale tax 4254711.05 4417479.62
total 4254711.05 4417479.62
45. Long-term borrowing
46. Bonds payable
47. Lease liabilities
48. Long-term payables
In RMB Yuan
item Ending balance Opening balance
Long-term payables 100000.00 100000.00
Special payables 244974.84 244974.84
total 344974.84 344974.84
(1) List long-term payables according to the nature of the payments
In RMB Yuan
item Ending balance Opening balance
Payment for equipment 100000.00 100000.00
(2) Special payables
In RMB Yuan
item Opening Current Current Endingbalance increase decrease balance Formation reason
Special pollution
control 169974.84 169974.84
Information
construction 75000.00 75000.00
total 244974.84 244974.84
49. Long-term employee compensation payable
50. Projected liabilities
In RMB Yuan
item Ending balance Opening balance Formation reason
Product quality assurance 9640631.73 7651644.80 Advance product quality compensation
Wind power product quality claims 31966946.32 32761252.54 The product has quality problems and thecustomer is seeking compensation
Rail bearing maintenance business to 15358774.52 15358774.52 Bearings are repaired to compensatecompensate customers for losses customers for losses
Total 56966352.57 55771671.86
51. Deferred income
85Wafangdian Bearing Co. LTD 2025 Midyear Report
In RMB Yuan
item Opening Currentbalance increase Current decrease Ending balance Formation reason
Government subsidy 15074718.66 1260000.00 1498218.84 14836499.82 Receive government subsidies
Old factory relocation The plant and land cost of the new
compensation 22645138.69 569457.93 22075680.76 plant due to the demolition of the oldplant of Liao Axis
total 37719857.35 1260000.00 2067676.77 36912180.58
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
58. Special reserve
In RMB Yuan
item Opening balance Current increase Current decrease Ending balance
Safety cost 2305094.24 3831389.92 3268840.69 2867643.47
total 2305094.24 3831389.92 3268840.69 2867643.47
59. Surplus reserve
In RMB Yuan
item Opening balance 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 -766382732.49 -656170250.96
Adjust the undistributed profit at the beginning of the later period -766382732.49 -656170250.96
Plus: Net profit attributable to the owner of the parent company for the period -20930911.54 -110212481.53
Undistributed profit at the end of the period -787313644.03 -766382732.49
61. Operating income and operating costs
In RMB Yuan
item Current amount Amount incurred in the previous period
86Wafangdian Bearing Co. LTD 2025 Midyear Report
income cost income cost
Main business 1297524895.46 1131292818.53 1061536514.37 967457579.92
Other business 33090322.02 19525773.78 60829937.46 32939846.56
total 1330615217.48 1150818592.31 1122366451.83 1000397426.48
62. Taxes and surcharges
In RMB Yuan
item Current amount Amount incurred in the previous period
City maintenance and construction tax 2970002.57 1248903.51
Education surcharge 2121114.97 892395.21
House tax 1647231.77 1682859.35
Land use tax 1382431.64 1396322.33
Stamp duty 1420212.63 1382431.64
other 16835.04 98376.15
total 9557828.62 6701288.19
63. Administrative expenses
In RMB Yuan
item Current amount Amount incurred in the previous period
Employee compensation 51992583.25 46369150.19
Amortization of intangible assets 2001742.46 2330909.06
Guard and fire cost 1609068.09 1392699.83
Depreciation cost 1985814.69 1937298.41
Business entertainment 165316.91 150005.48
Travel expense 1109040.96 1545759.45
Other expenses 7375576.35 5671788.17
total 66239142.71 59397610.59
64. Sales expenses
In RMB Yuan
item Current amount Amount incurred in the previous period
Employee compensation 37698149.82 35618809.35
Quality compensation 817987.23 2485770.67
freight 604876.90 1526973.95
Travel expense 6690045.12 8224272.03
Trademark royalty 9731454.38 9734456.39
Business activity expense 3782163.92 4902384.98
Rental fee 400807.50 325207.50
Conference expense 523403.45 125291.49
Other expenses 8229557.04 13132549.04
total 68478445.36 76075715.40
65. Research and development costs
In RMB Yuan
item Current amount Amount incurred in the previous period
Material input 43582392.71 19065794.72
Technical service fee design fee new
process specification setting fee (equipment
debugging fee - new product tooling)
Labor cost 5459731.85 2818090.92
Amortization of depreciation expense and
long-term expense 2232237.46 335857.29
Fuel power 782504.74 414503.22
Research and development equipment repair
and rental costs 184681.90 97828.47
Processing cost 18352.96 9721.81
Test fee
87Wafangdian Bearing Co. LTD 2025 Midyear Report
Other expenses 13522010.65 12103761.78
total 65781912.27 34845558.21
66. Financial expenses
In RMB Yuan
item Current amount Amount incurred in the previous period
Interest expense 7581344.95 12349659.00
Less: Interest income 450534.54 1159618.61
Plus: exchange loss -1148506.78 -1564763.50
Other expenditure 840802.44 6831063.51
total 6823106.07 16456340.40
67. Other income
In RMB Yuan
Other sources of income Current amount Amount incurred in the previous period
Government subsidy 2780427.53 3983557.69
Input tax plus credit 3108617.20 11104357.26
Personal income tax withholding fee 77916.34 74677.18
Direct VAT relief 0.97
total 5966962.04 15162592.13
68. Net exposure hedging income
69 fair value change income
In RMB Yuan
Source of income from changes in fair value Current amount Amount incurred in the previous period
Trading financial assets -4622.55 -58552.35
total -4622.55 -58552.35
70. Investment income
In RMB Yuan
item current period Last period
Dividend income from investments in other equity
instruments during the holding period 1002352.64 1000000.00
Proceeds from debt restructuring 8661904.04 5737445.76
total 9664256.68 6737445.76
71. Credit impairment loss
In RMB Yuan
project current period Last period
Bad debt loss on notes receivable -300000.00
Bad debt losses on accounts receivable 613552.31 9166.55
amount to 313552.31 9166.55
72. Impairment loss on assets
73. Gain on disposal of assets
In RMB Yuan
Source of asset disposal proceeds current period Last period
Gain on disposal of non-current assets 351928.90 69219.93
total 351928.90 69219.93
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
88Wafangdian Bearing Co. LTD 2025 Midyear Report
Fine income -53003.46 1544031.29 -53003.46
Write-off of payments that cannot be made 230350.08 2410441.77 230350.08
other 100953.11 229848.06 100953.11
total 278299.73 4184321.12 278299.73
75. Non-operating expenses
In RMB Yuan
The amount included in the non-
project current period Last period recurring profit and loss of the
current period
Loss of non-current assets destroyed and scrapped 249003.22 524378.09 249003.22
A fine spending 54500.00 104438.18 54500.00
other 113975.57 1021.10 113975.57
total 417478.79 629837.37 417478.79
76. Income tax expenses
77. Other comprehensive income
See notes for details
78. Cash flow statement items
(1) Cash related to operating activities
Other cash received in connection with operating activities
In RMB Yuan
project current period Last period
Interest income 432887.16 1090640.70
Government subsidies 1430244.51 1106572.40
Come-and-go money 18202032.93 21252337.79
Return the deposit 5500.00 5000.00
other 4195845.05 123266.18
A combined 24266509.65 23577817.07
Other cash payments in connection with operating activities
In RMB Yuan
project current period Last period
Cost of sales 17356439.08 18671887.05
Management fees 4392810.03 3326608.47
Finance charges 496368.60 1228045.09
other 22268873.14 48864634.12
A combined 44514490.85 72091174.73
(2) Cash related to investment activities
(3) Cash related to fund-raising activities
Other cash received in connection with fund-raising activities
In RMB Yuan
project current period Last period
Bill discount 71721936.89 326425473.31
Borrowing from related parties 150000000.00
The deposit will be recovered upon maturity. 14191213.55 18663394.30
Total 235913150.44 345088867.61
Other cash disbursements in connection with fund-raising activities
In RMB Yuan
project current period Last period
Bill payable at maturity 299744866.45 246605895.28
deposit 30879433.46 78568067.54
total 330624299.91 325173962.82
89Wafangdian Bearing Co. LTD 2025 Midyear Report
Changes in liabilities arising from financing activities
□ Applicable□ Not applicable
79. Supplementary information to cash flow statement
(1) Supplementary information to the statement of cash flows
In RMB Yuan
Supplementary information current period Last period
1. Reconciliation of net profit to cash flow from operating activities:
Net profit -20930911.54 -46033131.67
Plus: Provision for asset impairment
Depreciation of fixed assets depletion of oil and gas assets
depreciation of productive biological assets 34295440.70 32677433.51
Depreciation of tenure assets
Amortization of intangible assets 2001742.46 2857979.24
Amortization of long-term deferred expenses 735736.38 643963.77
Loss on disposal of fixed assets intangible assets and other long-
term assets (gain marked with "-") 351928.90 69219.93
Loss on retirement of fixed assets (income marked with "-") 414054.00 524378.09
Loss on changes in fair value (gain marked with "-") 4622.55 58552.35
Financial expenses (income marked with "-") 7581344.95 16456340.40
Investment loss (income marked with "-") -9664256.68 -6737445.76
Decrease in deferred tax assets (increase marked with "-")
Increase in deferred tax liabilities (decrease marked with "-")
Decrease in inventory (increase marked with "-") 37244271.64 61498623.78
Decrease in operating receivables (increase marked with "-") -63886058.07 -128846469.42
Increase in operating payables (decrease marked with "-") 251194984.13 96286752.46
other 313552.31 9166.55
Net cash flow from operating activities 239656451.73 29465363.23
2. Major investments and financing activities that do not involve
cash payments:
debt-to-capital
Convertible bonds maturing within one year
Financing leases into fixed assets
3. Net changes in cash and cash equivalents:
The ending balance of cash 71652395.62 140345907.67
Less: Opening balance of cash 160907298.24 110664560.63
Plus: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -89254902.62 29681347.04
(2) Net cash received from subsidiaries paid during the period
(3) Net cash received from disposal of subsidiaries during the period
(4) Composition of cash and cash equivalents
In RMB Yuan
item Ending balance Opening balance
I. Cash 71652395.62 160907298.24
A bank deposit that can be used to pay at any time 71654748.26 110664560.63
III.Balance of cash and cash equivalents at the end of the period 71652395.62 160907298.24
80. Note to the statement of changes in owners' equity
81. Foreign currency monetary items
(1) Foreign currency monetary items
project Ending foreign currency balance Equivalent exchange rates Ending translation of RMB balance
monetary resources 102436.08
90Wafangdian Bearing Co. LTD 2025 Midyear Report
Including: US dollars 90.67 7.1586 649.07
Euro 12114.04 8.4024 101787.01
Hong Kong currency
accounts receivable 23203982.65
Including: US dollars 2854717.76 7.1586 20435782.56
Euro 329453.50 8.4024 2768200.09
Hong Kong currency
money borrowed for long term
Including: US dollars
Euro
Hong Kong currency
(2) Explanation of overseas business entities including for significant overseas business entities the main overseas place of operation the
functional currency and the basis for selection should be disclosed. If the functional currency changes the reasons should also be disclosed.□Applicable□ Not applicable
82. Leasing
(1) The Company as the lessee
□Applicable□ Not applicable
Variable lease payments not included in the measurement of lease liabilities
□Applicable□ Not applicable
item current period Last period
Interest expense on lease liabilities
Short-term lease expenses that are factored into the cost of the underlying asset or the
simplified treatment of current profit or loss 10168752.76 9854282.76
Lease expenses for short-term leases or low-value assets with simplified processing
□Applicable□ Not applicable
Project current period Last period
Interest expense on lease liabilities
Simplified short-term lease expenses included in the cost of relevant assets or current profit or loss 9620386.74 10168752.76
(2) The Company shall be the lessor
Operating lease as lessor
□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 9818676.55
total 9818676.55
Finance lease as lessor
□ Applicable□ Not applicable
Undiscounted lease receipts for each of the next five years
□ Applicable□ Not applicable
Reconciliation of undiscounted lease receipts to net lease investments
91Wafangdian Bearing Co. LTD 2025 Midyear Report
(3) Recognize profit or loss on finance lease sales as a producer or distributor
□ Applicable□ Not applicable
83. Data resources
84. Others
VIII. R&d expenditure
In RMB Yuan
item current period Last period
research and development expenditure 65781912.27 34845558.21
total 65781912.27 34845558.21
Among them: expensed research and
development expenditure 65781912.27 34845558.21
IX. Changes in the scope of consolidation
X.Rights and interests in other entities
1. Interests in subsidiaries
(1) The composition of enterprise group
In RMB Yuan
Subsidiary name Registered Principal place Place of Business nature Shareholding ratio Acquisitioncapital of operation registration direct indirect mode
Wazhou
Liaoyang 19350000. Liaoyang City
Wangshuitai Production and
Bearing 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 CityLiaoning Zone 13 Li sales of bearing
Investment
Bearing Co.Ltd 00 Yongsheng Street and machinery 100.00% 0.00% andProvince No. 12 manufacturing establishment
No. 1 Beigongji
Wazhou spherial Wafangdian Street Production and
roller bearing 194000000 Liaoning Wafangdian City sales of bearing Business
company limited .00 Province Liaoning and machinery
100.00% 0.00% combination
Province China. manufacturing
2. Transactions where the share of the owner's equity in a subsidiary changes but the owner still controls the subsidiary
3. Interests in joint ventures or associated enterprises
4. Important joint operation
5. Equity in structured entities not included in the consolidated financial statements
6. Others
XI. Government subsidies
1. Government subsidies recognized at the end of the reporting period according to the receivable amount
□ Applicable□ Not applicable
Reasons for not receiving the expected amount of government subsidy at the expected time
□ Applicable□Not applicable
2. Liabilities involving government subsidies
□Applicable□ Not applicable
In RMB Yuan
Accounting Opening balance The Amount Amount transferred to Other Ending Related toaccount amount of included in other income in the change balance assets/earning
92Wafangdian Bearing Co. LTD 2025 Midyear Report
subsidy non-operating current period s in s
added in income in the current
this period current period period
Deferred 37719857.35 807676.77 36912180.58 Related toincome assets
total 37719857.35 807676.77 36912180.58
3. Government subsidies included in current profit and loss
□Applicable□ Not applicable
In RMB Yuan
Accounting account Current amount Amount incurred in the previous period
Deferred income/other income 807676.77 2677390.11
Bank deposits/other income 1972750.76 1380750.18
total 2780427.53 4058140.29
XII. Risks associated with financial instruments
1. Various risks arising from financial instruments
Our company is confronted with various financial risks in the course of its operation: credit risk liquidity risk and market risk (including exchange
rate risk interest rate risk and other price risks).
(1) Credit risk
Credit risk refers to the risk that a counterparty fails to fulfill its contractual obligations resulting in financial losses for the company.The carrying amount of financial assets recognized in the consolidated balance sheet; For financial instruments measured at fair value the book
value reflects their risk exposure but it is not the maximum risk exposure. The maximum risk exposure will change with future changes in fair
value. To reduce credit risks the Group has established a dedicated department to determine credit limits conduct credit approvals and
implement other monitoring procedures to ensure that necessary measures are taken to recover overdue claims. In addition the Group reviews
the recovery status of each individual receivables on each balance sheet date to ensure that adequate bad debt provisions are made for
amounts that cannot be recovered. Therefore the management of the Group believes that the credit risk borne by the Group has been
significantly reduced.The working capital of this group is deposited in banks with high credit ratings so the credit risk of the working capital is relatively low.The group has adopted necessary policies to ensure that all sales customers have a good credit record. Except for the top five in terms of
accounts receivable amount the Group has no other significant credit concentration risks.
(2) Liquidity risk
Liquidity risk refers to the risk that an enterprise experiences a shortage of funds when fulfilling its obligation to settle accounts by delivering cash
or other financial assets.The approach of this group to managing liquidity risk is to ensure that there is sufficient capital liquidity to fulfill due debts without causing
unacceptable losses or damage to the corporate reputation. The Group regularly analyzes the structure and maturity of liabilities to ensure there
is sufficient capital. The management of this group monitors the use of bank borrowings and ensures compliance with borrowing agreements. At
the same time conduct financing negotiations with financial institutions to maintain a certain credit line and reduce liquidity risks.The various financial liabilities of the Company are presented in undiscounted contractual cash flows by maturity date as follows:
ending balance
Project
Immediate
repayment Within 1 year 1-2 years 2-5 years
More than 5 The total undiscounted
years contract amount book value
Short-term
borrowing 432000000.00 432000000.00 432000000.00
Notes payable 112973447.30 112973447.30 112973447.30
Long-term
borrowing
Total 544973447.30 544973447.30 544973447.30
93Wafangdian Bearing Co. LTD 2025 Midyear Report
ending balance
Project
Immediate
repayment Within 1 year 1-2 years 2-5 years
More than 5 The total undiscounted
years contract amount book value
Short-term
borrowing 570000000.00 570000000.00 570000000.00
Notes payable 401129901.60 401129901.60 401129901.60
Long-term
borrowing
Total 971129901.60 971129901.60 971129901.60
(3) Market risk
Market risk of financial instruments refers to the risk that the fair value or future cash flows of financial instruments fluctuate due to changes in
market prices including exchange rate risk interest rate risk and other price risks.
1) Interest rate risk
Interest rate risk refers to the risk that the fair value or future cash flows of financial instruments fluctuate due to changes in market interest rates.The risk of changes in cash flows of financial instruments caused by interest rate fluctuations of the Group is mainly related to floating-rate bank
borrowings. The policy of this group is to maintain the floating interest rates of these borrowings.
2) Exchange rate risk
Exchange rate risk refers to the risk that the fair value or future cash flows of financial instruments fluctuate due to changes in foreign exchange
rates.The Group's exposure to foreign exchange risks is mainly related to the US dollar and the Group's main export business is denominated and
settled in US dollars. As of June 30 2025 except for the balance of foreign currency monetary items in Note 5 (54) of this note the assets and
liabilities of the Group were all in RMB balance. The foreign exchange risks arising from the assets and liabilities of such foreign currency
balances may have an impact on the operating results of the Group.The exchange rate risk faced by our company mainly stems from financial assets and financial liabilities denominated in US dollars. The
amounts of foreign currency financial assets and foreign currency financial liabilities converted into RMB are presented as follows:
ending balance Balance at the end of the previous year
Project
dollar Other foreign Other foreigncurrencies Total dollar currencies Total
Monetary funds 649.07 101787.01 102436.08 17634717.37 3687718.23 21322435.60
Accounts
receivable 20435782.56 2768200.09 23203982.65 12321831.39 2207814.76 14529646.15
Total 20436431.63 2869987.10 23306418.73 29956548.76 5895532.99 35852081.75
3) Other price risks
As of June 30 2025 the Group's purchased bearing assemblies may be affected by price fluctuations.Other price risks refer to the risks that the fair value or future cash flows of financial instruments fluctuate due to changes in market prices other
than exchange rate risk and interest rate risk.
2. Hedging
3. Financial assets
(1) Classification of transfer modes
□Applicable□ Not applicable
In RMB Yuan
The nature of the
Transfer mode transferred financial Amount of financial Termination recognition
The judgment basis of the
assets transferred condition termination ofassets confirmation
The bill is endorsed and Banker's acceptance 236462078.36 Unterminated
94Wafangdian Bearing Co. LTD 2025 Midyear Report
not due acknowledgement
The bill is endorsed and Commercial acceptance 174720337.82 Unterminatednot due acknowledgement
The bill is endorsed and Finance company Unterminated
not due acceptance bill 2413831.61 acknowledgement
Total 413596247.79
(2) Financial assets that are derecognized due to transfer
□Applicable□ Not applicable
In RMB Yuan
Project The way financial assets are The amount of financial assets Gains or losses related to thetransferred terminated and recognized termination of recognition
Receivables financing 59015814.28
Total 59015814.28
(3) Continue to be involved in the transfer of financial assets
□Applicable□ Not applicable
XIII. Disclosure of fair value
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
◆Tradable financial asset 217260.04 217260.04
1.Financial assets at fair value through profit or loss 217260.04 217260.04
（1）Equity instrument investment 217260.04 217260.04
◆Receivables financing 42502064.44 42502064.44
Total assets measured at fair value on an ongoing
basis 217260.04 42502064.44 42719324.48
XIV. Related parties and related transactions
1. The parent company of the enterprise
The parent
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）
A description of the parent company of the enterprise
The ultimate control party of the enterprise is the State-owned Assets Supervision and Administration Commission of Dalian Municipal People's
Government.
2. The Company's subsidiaries
For details of the Company's subsidiaries see the interests in other entities in Note 8.
3. The situation of the company's joint venture and associated enterprises
4. Other related parties
Names of other related parties Relationships between other related parties and the enterprise
The subsidiaries of Wafangdian Bearing Group Co. Ltd. The enterprises controlled by the same controlling shareholderand ultimate controller
Dalian Heavy Industry Equipment Group Co. Ltd. and its subsidiaries Other related parties
The affiliated companies Wafangdian Bearing Group Co. Ltd. Other related parties
95Wafangdian Bearing Co. LTD 2025 Midyear Report
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 348781805.35
850000000.0
0 no 475723888.16
Wafangdian Bearing Group Co.LTD. and its subsidiaries Product 328733809.64
600000000.0
0 no 665060.58
Wafangdian Bearing Group Co.LTD. and its subsidiaries Kinetic energy 26993189.50 65000000.00 no 30880253.06
Wafangdian Bearing Group Co.LTD. and its subsidiaries Equipment 23.25 9000000.00 no 1232078.39
Dalian Heavy Industry Equipment
Group Co. Ltd. and its Maintenance 26378.73 1500000.00 no 119943.15
subsidiaries
Security fire protection services
trademark usage public facility
sharing publicity vehicle usage
Wafangdian Bearing Group Co. technical development services
LTD. and its subsidiaries interest on capital occupation 32265488.35
110000000.0
0 no 35905829.23maintenance/greening
engineering labor labor fees
cover cleaning training physical
examination etc
Table of Goods Sold/Services Provided
In RMB Yuan
The affiliated party Related party transactioncontent Current amount Amount of previous period
Dalian Heavy Industry Equipment Group Co. Ltd. and its
subsidiaries product 31980393.79 44816945.78
Wafangdian Bearing Group Co. LTD. and its subsidiaries product 141903271.76 115798584.63
Wafangdian Bearing Group Co. LTD. and its subsidiaries Materials 11287363.03 8646838.96
Wafangdian Bearing Group Co. LTD. and its subsidiaries Semi-finished productsand spare parts 139558.98 19960.86
Wafangdian Bearing Group Co. LTD. and its subsidiaries Services such as heattreatment 32083674.21 57735725.83
Wafangdian Bearing Group Co. LTD. and its subsidiaries Equipment 58229.88 397789.72
(2) Associated entrusted management/contracting and entrusted management/contracting
(3) Related leases
The Company as the lessor:
In RMB Yuan
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 3638571.24 2735824.74
Wafangdian Bearing Group Co. Ltd. and its subsidiaries Equipment 4851898.45 5194021.04
Wafangdian Bearing Group Co. Ltd. and its subsidiaries Land 1101097.50 1111671.30
Wafangdian Bearing Group Co. Ltd. and its subsidiaries House 3638571.24 2735824.74
The Company as lessee:
96Wafangdian Bearing Co. LTD 2025 Midyear Report
In RMB Yuan
Simplified treatment of Variable lease
rental costs for short- payments not
Types term leases and leases included in the
Interest expense
Rent paid incurred on lease Increased access to
of of low value assets (if measurement of liabilities assets
Name of lessor leaseh applicable)
lease liabilities (if
old applicable)
assets Amount Amount Amount Amount Amount
Current incurred
Curren
t incurred
Curren
Current incurred Current incurred t incurred
amount in the in the in theprevious amoun previous amount previous amount
in the in the
t previous
amoun previous
period period period period t period
Wafangdian
Bearing Group Land 1581552. 1484546 158155 1484546Co. Ltd. and 54 .34 2.54 .34
its subsidiaries
Wafangdian
Bearing Group House 6777336. 6292882 677733 6292882Co. Ltd. and 00 .74 6.00 .74
its subsidiaries
Wafangdian
Bearing Group Equipm 1128501. 1268164 112850 1268164
Co. Ltd. and ent 24 .03 1.24 .03
its subsidiaries
(4) Related guarantee situation
(5) Fund lending by related parties
(6) Asset transfer and debt restructuring of related parties
(7) Remuneration for key management personnel
In RMB Yuan
item Current amount Amount incurred in the previous period
Key management compensation 855695.64 725344.26
6. Receivable and payables of related parties
(1) Receivable items
In RMB Yuan
Project name Affiliated party Ending balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Wafangdian Bearing Group Co. Ltd. and its
subsidiaries 126372986.13 2407853.62 52695347.62 0.00Accounts
receivable Dalian Heavy Industry Equipment Group Co.Ltd. and its subsidiaries 2315614.96 115103.35 103543860.93 5189842.60
Advance Wafangdian Bearing Group Co. Ltd. and its
payment subsidiaries 1773006.38
Other Wafangdian Bearing Group Co. Ltd. and its
receivables subsidiaries 457845.46 20000.00
(2) Payable items
In RMB Yuan
Project name Affiliated party Ending book balance Opening book balance
Wafangdian Bearing Group Co. Ltd. and its subsidiaries 482870334.51 315999255.48
payable account
Dalian Heavy Industry Equipment Group Co. Ltd. and its subsidiaries 145547.84 455434.39
97Wafangdian Bearing Co. LTD 2025 Midyear Report
Wafangdian Bearing Group Co. Ltd. and its subsidiaries 152634633.17 2415350.75
Other payables
Dalian Heavy Industry Equipment Group Co. Ltd. and its subsidiaries 0.00 32502.00
XV. Share payment
1. Overall situation of share-based payment
□Applicable□ Not applicable
2. The situation of share-based payments settled in equity
□Applicable□ Not applicable
3. The situation of share-based payments settled in cash
□Applicable□ Not applicable
4. Share-based payment expenses for this period
□Applicable□ Not applicable
5. The modification and termination of share-based payment
6. Others
XVI. Commitments and contingencies
1. Important commitments
Important commitments of the Group that do not need to be disclosed as of June 30 2025.
2. Contingencies
(1) Significant contingencies existing at the balance sheet date
Important contingent matters that the Group does not need to disclose as of June 30 2025.
(2) If the company has no important contingencies that need to be disclosed it should also be explained
The company has no material contingent matters that need to be disclosed.
3. Others
XVII. Matters after the balance sheet date
XVIII.Other important matters
XIX. Notes on major items of the parent company's financial statements
1. Accounts receivable
(1) Age disclosure
In RMB Yuan
aging Ending book balance Opening book balance
Within 1 year (inclusive) 951185445.96 923943439.94
1 to 2 years 116167190.29 108743236.61
2 to 3 years 30370017.89 28591618.31
More than 3 years 47261490.88 70573274.55
3 to 4 years 10186255.50 17461725.43
Four to five years 2596572.20 20435133.89
More than 5 years 34478663.18 32676415.23
total 1144984145.02 1131851569.41
(2) Disclosure by classification according to bad debt provision method
In RMB Yuan
category Ending balance Opening balanceBook balance Bad debt reserve Book Book balance Bad debt reserve Book
amount scale amount Provisi Provisionon ratio value amount scale amount ratio value
98Wafangdian Bearing Co. LTD 2025 Midyear Report
Accounts
receivable that are
set aside for bad 71334371.53 6.00%
71334100.007133436.30%71334371.100.00%
debts on an 371.53 % 71.53 53
individual basis
Among them:
Accounts
receivable that are
provided for bad 107364 93.77 69415
1004299071
9773.49%880.606.47%33892.
10605193.70%69801116.
debts on a 89 7197.88 22
6.58%6081.6
6
combined basis
Among them:
Aging portfolio 979559 85.55 66892 912666 893147 64611273.
82853
216.34%923.636.83%292.71194.6478.91%637.23%5921.01
Combination of 940905 25229 16218
related parties 57.15 8.22% 56.97 2.68%
91567167370
600.18003.2414.79%
5189842.5
93.10%0160.65
total 114498 100.00 140750
10042
12.29%33892.113185100.00%14113548
99071
4145.02%252.13891569.417.75
12.47%6081.6
6
Category Name of provision for Bad Debts by individual item:Individual provision
In RMB Yuan
name Opening balance Ending balance
Book balance Bad debt reserve Book balance Bad debt reserve Provision ratio Reason forprovision
Individual
provision 71334371.53 71334371.53 71334371.53 71334371.53 100.00% non-recoverable
total 71334371.53 71334371.53 71334371.53 71334371.53
Category name of bad debt provision by combination: By credit risk characteristics
In RMB Yuan
Name ending balance
book balance bad debt provision Provision ratio
Within one year 836090981.53 41804549.08 5.00%
One to two years 98742111.75 9874211.17 10.00%
Two to three years 30066317.71 6013263.54 20.00%
Three to four years 9889568.45 4944784.22 50.00%
Four to five years 2570606.48 2056485.18 80.00%
More than 5 years 2199630.43 2199630.43 100.00%
Portfolio of related parties 94090557.15 2522956.97
Total 1073649773.49 69415880.60
Explanation of the basis for determining this combination:
It is determined based on the characteristics of credit risk
If the bad debt provision for accounts receivable is made in accordance with the general model of expected credit losses:
□Applicable□ Not applicable
(3) the provision for bad debts accrued recovered or rolled back during the period
Provision for bad debts in the current period:
In RMB Yuan
category Current variationOpening balance accrual Take back or turn Cancel after Ending balanceback verification other
Bad debt reserve 141135487.75 384230.75 1004.87 140750252.13
total 141135487.75 384230.75 1004.87 140750252.13
(4) Accounts receivable actually written off during the current period
99Wafangdian Bearing Co. LTD 2025 Midyear Report
In RMB Yuan
item Amount written off
Accounts receivable actually written off 1004.87
(5) The receivables and contractual assets of the top five closing balances collected by the defaulting party
In RMB Yuan
Percentage of the Ending balance of
Ending balance of Ending
allowance for
balance of Ending balance of
total balance of
accounts receivable doubtful accountsUnit name accounts 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. 3852475.Ltd. and its affiliated companies 216048811.82 80 219901287.62 18.35% 10995064.38
Wafangdian Bearing Group
Co. Ltd. and its affiliated 91774942.19 91774942.19 7.66%
companies
CRRC Corporation Limited and
its affiliated companies 31830198.44 31830198.44 2.66% 1591509.92
Anben Group and its affiliated
companies 26125515.91 26125515.91 2.18% 1306275.80
Baowu Group and its affiliated
companies 25735985.41 25735985.41 2.15% 1286799.27
Total 391515453.77 3852475.80 395367929.57 33.00% 15179649.37
2. Other receivables
In RMB Yuan
item Ending balance Opening balance
Dividends receivable 253637816.14 265704686.03
Other receivables 253637816.14 265704686.03
total 253637816.14 265704686.03
(1) Interest receivable
(2) Dividends receivable
(3) Other receivables
1) Classification of other receivables by nature of amounts
In RMB Yuan
Nature of money Ending book balance Opening book balance
Other receivables 260972948.77 273039818.66
total 260972948.77 273039818.66
2) Aging disclosure
In RMB Yuan
aging Ending book balance Opening book balance
Within 1 year (inclusive) 252515786.43 263191579.22
1 to 2 years 694205.08 889646.99
2 to 3 years 1838308.31 2399108.18
More than 3 years 5924648.95 6559484.27
3 to 4 years 1189981.53 1203245.68
Four to five years 186222.09 186403.88
More than 5 years 4548445.33 5169834.71
total 260972948.77 273039818.66
3) Classified disclosure according to bad debt provision method
100Wafangdian Bearing Co. LTD 2025 Midyear Report
In RMB Yuan
category Ending balance Opening balanceBook balance Bad debt reserve Book Book balance Bad debt reserve
amount scale amount Provision value amount scale amount Provision
Book
ratio ratio value
Provision
for bad
debts on 5144066 1.97% 5144066 100.00% 0.00 5144066an .29 .29 .29 1.88%
5144066.29100.00%
individual
basis
Among
them:
Provision
for bad
debts on 2558288 98.03% 2191066 0.86% 2536378 2678957 98.12% 2191066 0.82% 2657046
a portfolio 82.48 .34 16.14 52.37 .34 86.03
basis
Among
them:
Aging 1111020 2191066
portfolio 9.77 4.26% .34 19.72%
780325399943193.66%219106621.92%7803253.03.37.34.03
Reserve
fund 0.00% 20000.00 0.01% 20000.00
portfolio
Combinat
ion of 2447186 93.77% 2458145 2578814 94.45% 2578814related 72.71 63.11 33.00 33.00
parties
total 2609729 7335132 2536378 2730398 7335132 265704648.77 100.00% .63 16.14 18.66 100.00% .63 86.03
Category Name of provision for Bad Debts by individual item:Individual provision
In RMB Yuan
name Opening balance Ending balance
Book balance Bad debt reserve Book balance Bad debt reserve Provision ratio Reason forprovision
Individual
provision 5144066.29 5144066.29 5144066.29 5144066.29 100.00%
It is expected to be
unrecoverable.total 5144066.29 5144066.29 5144066.29 5144066.29
Name of bad debt provision category by portfolio: Credit Risk portfolio
In RMB Yuan
Name ending balance
book balance bad debt provision Provision ratio
Within one year 7414787.95 370739.40 5.00%
One to two years 546705.08 54670.51 10.00%
Two to three years 1376031.41 275206.28 20.00%
Three to four years 489981.53 244990.77 50.00%
Four to five years 186222.09 148977.67 80.00%
More than 5 years 1096481.71 1096481.71 100.00%
Portfolio of related parties 244718672.71
Total 255828882.48 2191066.34
Explanation of the basis for determining this combination:
Provisions are made based on the characteristics of credit risk
Bad debt provisions are made based on the general model of expected credit losses:
101Wafangdian Bearing Co. LTD 2025 Midyear Report
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
for the next 12 months credit impairment entire duration (credit
Total
occurred) impairment has occurred)
Balance as of January 1
20257335132.637335132.63
The balance as of January 1
2025 is in the current period
Balance as of June 30 2025 7335132.63 7335132.63
The basis for the division of each stage and the proportion of bad debt provisions
The significant changes in the book balance of the loss provision for the current period
□Applicable□ Not applicable
4) Provision for bad debts accrued recovered or rolled back in the current period
Provision for bad debts in the current period:
In RMB Yuan
category Current variationOpening balance accrual Take back or turnback Resell or write off other
Ending balance
Bad debt reserve 7335132.63 7335132.63
total 7335132.63 7335132.63
5) Other receivables actually written off during the current period
6) Other receivables in the top five of the closing balances collected by the defaulting party
In RMB Yuan
Percentage of total Ending balance of
Unit name Nature of money Ending balance aging ending balance of allowance for
other receivables doubtful accounts
Wazhou liaoyang bearing Borrowing from
manufacturing co. LTD related parties 98611156.58 Within four years 37.79%
Dalian wazhou precision
motor car bearing co. Borrowing fromrelated parties 126015640.28 Within four years 48.29%LTD
Wazhou Precision
Spherical Roller Bearing Borrowing from 19639030.39 Within four years 7.53%
(Wafangdian) Co. LTD related parties
Anhui Conch Cement
Co. LTD Deposit 1300000.00 Within three years 0.50% 260000.00
Shenyang Railway
Passenger Car Works
China Railway Shenyang Deposit 1216300.00 Within one year 0.47% 60815.00
Group Co. LTD
Total Borrowing fromrelated parties 246782127.25 94.58% 320815.00
7) Other receivables are presented due to centralized fund management
3. Long-term equity investment
In RMB Yuan
item Ending balance Opening balance
Book balance Reserve forimpairment Book value Book balance
Reserve for
impairment Book value
Invest in
subsidiaries 226488897.67 226488897.67 226488897.67 226488897.67
102Wafangdian Bearing Co. LTD 2025 Midyear Report
total 226488897.67 226488897.67 226488897.67 226488897.67
(1) Investment in subsidiaries
In RMB Yuan
Opening Impairment Changes in the current periodinvestee reserve Closing
Impairment
balance (book Additional Reduce Provision balance reserve
value) beginningbalance investment investment
for other
impairment (book value)
ending
balance
Wazhou
Liaoyang bearing
manufacturing Co. 32242259.95
32242259.
95
LTD
Dalian Wazhou
precision motor 45478956.automobile bearing 45478956.37 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 1286564016.29 1135892058.76 1057439468.53 984316313.48
Other business 30344445.96 15971777.54 82194228.44 31265661.36
total 1316908462.25 1151863836.30 1139633696.97 1015581974.84
5. Investment income
In RMB Yuan
item Current amount Amount incurred in the previous period
Dividend income from investments in other
equity instruments during the holding period 1002352.64 1000000.00
Proceeds from debt restructuring 4682444.26 4417269.14
Total 5684796.90 5417269.14
6. Others
XX.Supplementary information
1. Non-recurring profit and loss statement for the current period
□Applicable□ Not applicable
In RMB Yuan
item amount Instructions
Gain or loss on disposal of illiquid assets 106350.47
Government subsidies included in the profit and loss of the current period (except government
subsidies that are closely related to the normal operation of the company comply with national
policies and regulations enjoy in accordance with determined standards and have a continuous 2780427.53
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 -4622.55
assets and financial liabilities
Gains and losses on debt restructuring 8661904.04
Other non-operating income and expenditure other than those mentioned above 106399.37
Other items of profit or loss that meet the definition of non-recurring profit or loss 1002352.64
103Wafangdian Bearing Co. LTD 2025 Midyear Report
Less: Income tax impact 1906096.73
total 10746714.77 --
Details of other items of profit or loss that meet the definition of non-recurring profit or loss:
□ Applicable□Not applicable
The Company has no other specific circumstances that meet the definition of non-recurring profit or loss.The non-recurring profit and loss items listed in Explanatory Announcement No. 1 on Information Disclosure of Publicly Issued Securities
Companies - Non-recurring Profit and Loss are defined as the fact sheet of the regular profit and loss items
□ Applicable□Not applicable
2. Return on equity and earnings per share
Reporting period profit Weighted average 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 -8.35% -0.0520 -0.0520
Net profit attributable to the company's
common shareholders after deducting -11.17% -0.0787 -0.0787
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
Chapter IX Other Submitted Data
I. Information on other major social Security Issues
Are there any other major social security issues with the listed company and its subsidiaries
□YES□ NO□ Not applicable
Whether administrative penalties were imposed during the reporting period
Ii. Registration Form for Receiving research communication interviews and Other Activities during the Reporting
Period
□ Applicable□ Not applicable
Reception Types of Reception The main content of the Index of basicReception hours location Reception method reception guests discussion and the information aboutrecipients provided materials the survey
Shenzhen Stock Online The company's Shenzhen Stock
January 2 2025 ExchangeInteractive Easy communication on Personal
Individual production and Exchange
Platform the network platform
investor operation situation Interactive EasyPlatform
Shenzhen Stock Online The company's Shenzhen Stock
March 5 2025 Exchange communication on Personal Individualinvestor production and ExchangeInteractive Easy the network platform operation situation Interactive Easy
104Wafangdian Bearing Co. LTD 2025 Midyear Report
Platform Platform
Shenzhen Stock Online The company's Shenzhen Stock
March 10 2025 ExchangeInteractive Easy communication on Personal
Individual production and Exchange
the network platform investor operation situation Interactive EasyPlatform Platform
Shenzhen Stock Online The company's Shenzhen Stock
March 16 2025 Exchange communication on Personal Individual ExchangeInteractive Easy investor production and Interactive Easy
Platform the network platform operation situation Platform
Shenzhen Stock Shenzhen Stock
March 17 2025 Exchange
Online The company's
Interactive Easy communication on Personal
Individual
investor production and
Exchange
Interactive Easy
Platform the network platform operation situation Platform
Shenzhen Stock
Exchange Online The company's
Shenzhen Stock
March 26 2025 Interactive Easy communication on Personal
Individual
investor production and
Exchange
Interactive Easy
Platform the network platform operation situation Platform
Shenzhen Stock
Exchange Online
Shenzhen Stock
April 1 2025 communication on Personal Individual
The company's
Interactive Easy investor production and
Exchange
Platform the network platform operation situation
Interactive Easy
Platform
Shenzhen Stock Shenzhen Stock
April 1 2025 Exchange
Online
communication on Personal Individual
The company's
production and ExchangeInteractive Easy the network platform investor operation situation Interactive EasyPlatform Platform
Shenzhen Stock Shenzhen Stock
June 24 2025 Exchange
Online The company's
Interactive Easy communication on Personal
Individual production and Exchangeinvestor Interactive Easy
Platform the network platform operation situation Platform
Iii. Capital transactions between listed companies and their controlling shareholders and other related parties
□ Applicable□ Not applicable
Unit: ten thousand yuan
The amount Repayment
Name of the counterparty Nature of beginning
incurred
during the amount for the Closing interest interestcorrespondence balances reporting reporting balance revenue expense
period period
Major shareholders and their Business
affiliated enterprises transactions 5448.83 30220.26 22986.01 12683.08 0.00 0.00
Subsidiaries and affiliated Non-business
enterprises of listed companies transactions 25788.15 0.00 1361.57 24426.58 0.00 0.00
Total -- 31236.98 30220.26 24347.58 37109.66 0.00 0.00
Relevant decision-making
procedures
Measures for ensuring the security
of funds
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