Wafangdian Bearing Company Limited
2015 Annual Report
2016-09
April 22, 2016
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
Chapter I. Important Prompts, Table of Contents, and Definitions
The Board of Directors, board of supervisors, directors, supervisors, and top management of the
Company hereby guarantee that there are no false record, misleading statements and important
omission of the material in this report, and assume the individual and associated responsibilities for the
truth, accuracy and completeness of the contents.
Besides the following directors, all the other directors attended the Board meeting and discussed
the report.
Name Post Reasons Assignee name
Tang Yurong director Busy work Fang Bo
The Company plans not to distribute cash dividends or bonus shares or turn capital reserve into
share capital.
Chairman Meng Wei , General Accountant Ms. Sun Najuan and accounting charger Ms. Yao
Chunjuan declare: guarantee the truth and completeness of the financial report in the annual report.
In line with the RULES OF SZSE stock listing rules, the net profit owned to the shareholders of
listing company after audited is losses, because the company prifit has loss for two year,the Wazhou B
will be implemented *ST risk admonition. The specified media for it is Securities Times, Hong Kong
Commercial Newspaper and the website is http://www.cninfo.com.cn. All information the company
disclosed should be subject to the above specified media. please make the cautious decision and pay
attention to the investment risk.
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Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
Table of Contents
Chapter I. Important Prompts, Table of Contents, and Definitions................................. 1
Chapter II.Company Profile and Financial Highlights ........................................................... 4
Chapter III Business Summary...................................................................................................... 6
Chapter IV Discussion and Analysis of the Management......................................................7
ChapterⅤ Significant Events......................................................................................................... 17
ChapterⅥ. Changes in Shares and Particulars about the Shareholders.......................26
Chapter Ⅶ. About the Preferred Shares.................................................................................... 29
Chapter Ⅷ. Directors, Supervisors, Senior Management and Staff................................ 29
ChapterⅨ. Corporate Governance...............................................................................................37
ChapterⅩ. Financial Report.......................................................................................................... 41
ChapterⅨ. List of Documents Available for Inspection.................................................. . 145
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Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
Glossary
Terms Defined as Description
Company,the Company Defined as Wafangdian Bearing Company Limited
Wazhou Group Defined as Wafangdian Bearing Group Company
the report period, the current
Defined as January 1,2015–December 31,2016
period, the current year
Liaozhou Co.,Ltd Defined as Wazhou Liaoyang Bearing Manufacture Co.,Ltd
Dalian motor Defined as Dalian motor Bearing Co.,Ltd
Wafangdian Bearing Company Limited The Board
The Board of Directors Defined as
of Directors
Wafangdian Bearing Company Limited The
The Supervisory Committee Defined as
Supervisory Committee
Wafangdian Bearing Company Wafangdian Bearing Company Limited The
Defined as
Limited Shareholders’Meeting
Shen Jiao Suo Defined as Shen Zhen Stock Exchange
SRC Defined as China Securities Regulatory Commission
Important Risk Notice
The company has described detailed description of the possible risks in this
report , please refer to the fourth section of the management discussion and analysis
of the risks and Countermeasures part of the content. This part of the content does
not constitute a substantial commitment to investors, investors should maintain
sufficient risk awareness, and understand the differences between planning,
forecasting and commitment.
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Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
Chapter II. Company Profile and Financial Highlights
I. Company Information
Abbreviated nameof the stock Wazhou B Stock code: 200706
Listing location of the
ShenzhenStockExchange
Company’s stock:
Chinese name of the
瓦房店轴承股份有限公司
Company
Abbreviation of Chinese
瓦轴股份公司
name
English name of the
Wafangdian Bearing Company Limited
Company
Abbreviation of English
WBC
name
Legal representative of the
Wang Lushun
Company
Registered address No. 1 Beigongji Street, Wafangdian City, Liaoning Province, China.
P.C 116300
office address No. 1 Beigongji Street, Wafangdian City, Liaoning Province, China.
office P.C 116300
Website http//www.zwz-200706.com
E-mail zwz2308＠126.com
II.Contacts
Secretary of the Board Representative of StockA ffairs
Name Sun Najuan Ke Xin
No. 1 Beigongji Street, Wafangdian No. 1 Beigongji Street, Wafangdian
Correspondence address
City, Liaoning Province, China. City, Liaoning Province, China.
Consulting telephone 0411-39116369 0411-39116732
Fax 0411-39116738 0411-39116738
E-mail zwz2308＠126.com zwz2308＠126.com
III.Place for information disclosure
Information disclosure newspapers Securities Times and Hong Kong Commercial Newspaper
Web address for the annual report as
http://www.cninfo.com.cn
assigned byCSRC.
Place for inquiry of the annual report Investment and Securities Department of the Company
IV.Change of Business Registration
No. of Taxation Registration 24239971-2
manufacture and sales of bearings, bearing components mechanical
equipment, bearing maintenance and technology service,automobile parts
Change of main business since listed and fittings and other related products, lease of mechanical equipment and
buildings, and inspection of bearings and other related mechanical
equipment and measure instruments.
Change of controlling shareholder all
previous(if any) None
V.Miscellaneous information
CPA hired by the Company
Name of the CPA Shine wing Certified Public Accountants
Floor 9 of A section of Fu Hua mantion, No. 8, North Street of ChaoYang door, Dong
Address of the CPA
Cheng area, Bei Jing.
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Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
The name of accountants Wang Yang, Wang Dong
Sponsoring institution hired by the Company, which is responsible to overseeing the Company’s
operation on a continuous basis:
[ ] Applicable [V] Not applicable
Financial consultancy institution hired by the Company, which is responsible to overseeing the
Company’s operation on a continuous basis:
[ ] Applicable [V] Not applicable
VI.Financial Highlights
Are there any retrospective adjustments or restatement of financial information of previous year due to
change of accounting policies or correcting of accounting errors?
[ ] Yes [V] No
In RMB Yuan
2015 2014 % 2013
Turnover(RMB) 2,300,161,296.48 3,007,578,581.96 -23.52% 3,079,780,183.34
Net profit attributable to shareholders
-33,380,013.39 -103,902,948.89 -67.87% 2,021,789.87
of the listed company(Yuan)
et profit attributable to the
shareholders of the
-66,446,677.65 -190,819,385.15 -65.18% -4,484,031.91
listed company after deducting of
non-recurring gain/loss(RMB)
Net Cash flow generated by business
operation -51,528,028.21 70,472,166.86 -173.12% 70,234,137.22
(RMB)
Basic earnings per
-0.08 -0.26 -69.23% 0.01
share(Yuan/share)
Diluted earnings per
-0.08 -0.26 -69.23% 0.01
share(Yuan/share)
Net return on equity(%) -2.45% -7.18% -65.88% 0.13%
End of 2015 End of 2014 % End of 2013
Total Assets (RMB) 3,523,969,203.48 3,935,819,231.85 -10.46% 3,717,797,889.26
Owner’s Equity Attributed to
Shareholders of Listed 1,348,464,975.33 1,381,844,988.72 -2.42% 1,504,966,435.50
Company(RMB)
VII. Differences in accounting information under IAS and domestic accounting standard
1. Differences in net profit and net asset under domestic and international accounting standards
Inapplicable
2. Differences in net profit and net asset under domestic and overseas accounting standards
Inapplicable
VIII. Financial Data Summary based on Quarters
In RMB Yuan
1s Quarter 2nd Quarter 3rd Quarter 4th Quarter
Operating revenue 582,509,508.85 585,584,170.49 558,567,387.61 573,500,229.53
Net profit attributable to the
-39,057,333.13 -20,529,921.03 -4,050,974.19 30,258,214.96
Company’s shareholders
Net profit attributable to the
Company’s shareholders less -41,560,197.87 -23,844,625.50 -8,192,531.71 7,150,677.48
the non-recurring profit and loss
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Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
Net cash flows arising from
-62,129,152.74 76,863,998.40 164,861,186.88 -231,124,060.70
operating activities
Does there exist significant difference in the foregoing financial data or their total sum from the relevant
financial data as
disclosed in the quarterly reports and/or semi-annual report.
No
IX. Non-recurring gain/loss items and amounts
In RMB Yuan
Amount of Amount of Amount of
Items Remarks
2015 2014 2013
Gain/loss of non-current assets Detial in
(includes the neutralized part of the asset impairment 1,299,449.10 5,443,243.06 370,165.65
attachment 69、70
provision drawn already)
Gains and losses included in the current period of
government subsidies, excluding those government
Detial in
grants which are closely related to normal business and 4,867,966.82 6,969,137.88 4,446,901.27
attachment 69
in line with national policy, or in accordance with fixed
standards or quantities
Gains from acquisition of subsidiary when initial cost less
74,049,202.70
than the fair value of invested company
Detial in
Debt restructuring gains and losses 32,072,692.54 190,661.21 -1,815,469.90
attachment 69、70
Other non-business income and expenditures other than Detial in
1,760,549.53 2,312,880.63 4,059,088.68
the above attachment 69、70
Influenced amount of income tax 6,933,993.73 2,048,689.22 554,863.92
Total 33,066,664.26 86,916,436.26 6,505,821.78 --
For the Company‘s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on Information
Disclosure for Companies Offering their Securities to the Public–Non-recurring Gains and Losses and its non-recurring
gain/loss items as illustrated in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering
their Securities to the Public–Non-recurring Gains and Losses which have been defined as recurring gains and losses, it is
necessary to explain the reason.
□Applicable√Inapplicable
Chapter III Business Summary
I Principal Businesses in the Reporting Period
The scope of operation is:manufacture and sales of bearings, bearing components mechanical
equipment, bearing maintenance and technology service,automobile parts and fittings and other related
products, lease of mechanical equipment and buildings, and inspection of bearings and other related
mechanical equipment and measure instruments.
Company has strong manufacturing capability and quality assurance capabilities, extensive services in
railway, automobile, metallurgy, mining and other industries and fields.
II.Significant Changes in the Prime Assets
2. Main Assets Overseas
Inapplicable
III.Analysis on Core Competitiveness
As the country's largest bearing technology and product r&d and manufacturing base, company has
accumulated more than seventy years practice experience in the field of bearings and related areas, set
up perfect bearing technology innovation system, maintain close cooperation with domestic scientific
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Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
research institutes, colleges and universities. As the main drafter of bearing industry a number of
standard, company control the latest technology development trend in the industry. In technology
research and development, product manufacturing, marketing , customer services and other aspects
have established a significant advantage.
Company improve responsiveness to the market and customer personalized demand, in line with
customer's personalized design and needs of manufacturing processes balancing cost, delivery time
and customer,
The company has complete product service system and 24-hour dynamic service ability product
operating site. And was praised with a good image of the "ten value-added services" by the majority
customers. Company has strong manufacturing capability and quality assurance capabilities, extensive
services in railway, automobile, metallurgy, mining, and other industries and fields.
Company has established strategic cooperative relations with key customers in domestic equipment
applications, carry out the depth of marketing through involvement in customer value engineer, set firmly
up the company's brand and influence in the domestic bearing market, the company has won the
certification qualification of important target markets in the international market , the international
popularity established preliminary.
Chapter IV Discussion and Analysis of the Management
I General
2015 is the extraordinary year in history of the company. Facing downward pressure on the economy,
overcapacity, orders insufficient demand, falling prices exacerbated by the severe difficulties and
challenges, the full implementation of the strategic high ground, vigorously promote the reform and
technological innovation, to carry out a comprehensive quality and lowering the efficiency of activities,
better cope with and resolve the market risk and operational risk, won the production and operation of
the smooth operation and development. Although the 2015 failed to achieve the turnaround of the
situation, but has been greatly reduced, a solid foundation for future development.
1.Difficulties faced
(1)Bearing industry into a new stage of development
Under the new normal, China's economy is still in a deep adjustment period, the development of the
scale to the quality and efficiency of the transformation, the bearing industry has entered a new stage of
adjustment, restructuring, upgrading and development. Main features: first, the market will not have a
significant growth in the overall. In the situation of investment, demand is sluggish, with the country's
investment slowdown, to the production capacity, to the inventory of the trend, the bearing market is still
in a weak demand situation; two is to accelerate the structural adjustment of bearing products. With the
adjustment of industrial structure and the transformation and upgrading, "45" during a high-end product
of industry of our country will still high-speed development, low-end products decreased year by year,
under the situation of low excess capacity, bearing industry will accelerate the upgrading of products; the
third is bearing business integration and restructuring efforts to increase. Due to the low threshold of the
bearing industry, enterprises and more dispersed, coupled with the vicious competition intensified
homogenization, as well as severe economic downturn situation, the situation will continue to expand the
survival of the fittest.
(2)Bearing market, external competition further intensified
The world eight cross bearings company investment in China Construction of the factories, which
occupy the advantage of capital, technology and have advanced and efficient organization and
management system, development is swift and violent, to step in to control the upstream and
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Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
downstream production factors, to snatch the domestic bearing industry market space, exacerbated by
the all aspects of competition; the main shaft sleeve in China has completed the technical transformation,
began a new round of development, the company is facing more and more fierce competition and
challenge.
2. Development opportunities
In analysis and judge the economic situation at home and abroad and internal and external environment
of the bearing industry at the same time, we must see an unprecedented opportunity for development
and a rare favorable factors and conditions.
(1) Market demand will present structural growth
Global sourcing and group centralized purchasing, bidding price of procurement and OEM customers in
Transition Upgrade and improve efficiency, will enable replace imported products on the market, in the
high-end product market with greater demand, high technology content, high added value products
market potential is larger, which prompted us to customers to sell products to customers to provide a
complete solution change, which is the direction of our potential strengths and strive to. The second is
consumption, people's livelihood, energy saving and emission reduction, efficiency savings are closely
related, such as the large and medium horsepower tractors and agricultural products processing
equipment, environmental protection equipment, wind power equipment, high-voltage power
transmission equipment market remained with the growth. Three is the traditional stock market
adjustment increase, mainly is the upgrade of the existing equipment maintenance, such as the
automotive industry will resume growth, engineering machinery and agricultural machinery industry
supporting the internal combustion engine industry down the rate is expected to slow down and so on.
(2) The development of bearing industry is strongly supported by the state
The 13th Five-Year period, will be the basis of the bearing industry as a major development
opportunities. The State Council issued the construction of manufacturing industry powerful nation is a
programmatic document of the "made in China 2025", which will strengthen the industrial base capability
"listed as one of the nine strategic task, bearings and other components listed as" strong industrial base
project, one of five large projects, support enterprises to carry out quality brand promotion activities,
identify the peer benchmarking, promote technological improvement, the implementation of a series of
policy not only for bearing industry transformation and upgrading opportunities, but also the stability of
market and development space for the sustainable development of bearing industry. ZWZ as the
industry leading enterprises will cherish and seize this rare opportunity for development.
(3) National macroeconomic policies favorable for enterprises to create a good condition
Measures of national macro economy will remain while maintaining stability of the tone, cut industrial
capacity, deleveraging and to inventory, reduce the cost of enterprise implemented in the adjustment of
economic structure will focus on, reduce Sheqi tax, social insurance, financial cost, electricity prices, fuel
and power, steel, non-ferrous metal prices fell consistently below the host cuts, which can reduce the
manufacturing cost of a business entity, enhance market competition ability and development ability.
(4) The company has strong self advantage and development potential.
Companies can revitalize the use of non operating net assets in fall this synergism, repairing and
reusing, energy saving, material substitution, improve material utilization rate, improve production
efficiency and product delivery ability, strengthen the capital chain management there is still a great
potential. Over the years the technical transformation has laid the foundation for development and
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Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
conditions, technological progress and independent innovation to enhance the core competitiveness of
enterprises and the ability to resist risks.
3. Operating principles and main tasks in 2016
Overall business policy in 2016 is "steady growth, structural adjustment, to inventory, pressure
receivable, cost reduction, security benefits"
(1)To speed up the product structure and market structure adjustment, to achieve market growth target.
(2) To promote lean production management as an opportunity to establish a manufacturing system to
meet the market
(3) The implementation of quality first strategy, follow the path of development quality
(4) Implementation of the cost reduction and efficiency, improve the capital turnover rate, to improve the
quality of operation
(5) Strengthen basic management, the establishment of the responsibility of the results oriented
management system, lay a solid foundation for development.
II Analysis on Principal Businesses
1. General
Refer to “I. General” of “Discussion and Analysis of the Management”
2. Revenue and Costs
(1)Revenue
In RMB Yuan
2015 2014
Year-on-year
Proportion in the Proportion in the
Amount Amount increase/decrease
operating revenue operating revenue
Total operating
2,300,161,296.48 100% 3,007,578,581.96 100% -23.52%
revenue
Classified based on sectors
export 353,230,102.39 15.36% 285,923,237.04 9.51% 23.54%
Civil
Including: Traffic
556,417,955.42 24.19% 966,465,387.04 32.13% -42.43%
Bearing
Special Bearing 595,546,617.11 25.89% 580,622,061.86 19.31% 2.57%
Common Bearing 537,228,097.35 23.36% 704,286,310.53 23.42% -23.72%
Industrial income 30,836,333.22 1.34% 98,055,631.37 3.26% -68.55%
others 226,902,190.99 9.86% 372,225,954.12 12.38% -39.04%
Classified based on product
Bearing 2,042,422,772.27 88.79% 2,537,296,996.47 84.36% -19.50%
Componment 30,836,333.22 1.34% 98,055,631.37 3.26% -68.55%
others 226,902,190.99 9.86% 372,225,954.12 12.38% -39.04%
Classified based on regions
Civil 1,946,931,194.09 84.64% 2,721,655,344.92 90.49% -28.47%
export 353,230,102.39 15.36% 285,923,237.04 9.51% 23.54%
(2) Sector(s), Product(s) or Region(s) Taking over 10% of the Operating Revenue or Operating
Profit
In RMB Yuan
Operating Operating costs Gross Year-on-year ear-on-year Year-on-year
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Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
revenue profit increase/decrea increase/decrea increase/decrea
rate se of operating se of operating se of gross
revenue over costs over the profit rate over
the previous year previous year the previous
year
Classified based on sectors
export 353,230,102.39 331,205,551.30 6.24% 23.54% 20.60% 2.29%
Civil
Including: Traffic
556,417,955.42 496,110,751.32 10.84% -42.43% -43.79% 2.17%
Bearing
Special Bearing 595,546,617.11 566,838,486.10 4.82% 2.57% -0.40% 2.84%
Common
537,228,097.35 439,192,840.60 18.25% -23.72% -28.44% 5.39%
Bearing
Classified based on product
Bearing 2,042,422,772.27 1,833,347,629.32 10.24% -19.50% -21.66% 2.47%
Classified based on regions
Civil 1,946,931,194.09 1,748,271,555.90 10.20% -28.47% -31.40% 1.80%
export 353,230,102.39 331,205,551.30 6.24% 23.54% 20.60% 2.29%
While adjustment of the statistical caliber for the principal business data took place in the reporting
period, the principal
business data with the statistical caliber adjusted at the end of the reporting period.
Inapplicable
Whether physical sales revenue is greater than the labor income
[V]Yes [ ] No
In RMB Yuan
Business categories Items 2015 2014 Changed by %YoY
Sales 23,024,098 25,662,162 -10.28%
Bearing Output 20,897,439 24,714,237 -15.44%
Inventory 14,577,181 15,019,459 -2.94%
Causes of the change in the year-on-year data by over 30%
Inapplicable
(4) Implementation of Important Sale Contracts Concluded at the End of the Reporting Period
Inapplicable
(5) Composition of Operating Costs
Classified based on sectors and products
In RMB Yuan
2015 2014
Classified
Proportion in Proportion in Year-on-year
based on Items
Amount operating Amount operating increase/decease
sectors
costs costs
export 331,205,551.30 15.93% 274,637,094.05 9.92% 20.60%
Civil
Including:
496,110,751.32 23.86% 882,656,346.90 31.89% -43.79%
Traffic Bearing
Special
566,838,486.10 27.26% 569,127,159.48 20.56% -0.40%
Bearing
Common
439,192,840.60 21.12% 613,746,684.06 22.18% -28.44%
Bearing
Industrial
39,025,926.57 1.88% 110,774,289.09 4.00% -64.77%
income
others 207,103,551.31 9.96% 372,225,954.12 12.38% -44.36%
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Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
In RMB Yuan
2015 2014
Classified
Proportion in Proportion in Year-on-year
based on Item
Amount operating Amount operating increase/decease
products
costs costs
Bearing Materials 1,272,424,140.51 61.19% 1,744,360,693.86 74.54% -27.05%
Artificial
Bearing 201,709,279.40 9.70% 234,550,839.86 10.02% -14.00%
compensation
Bearing Depreciation 86,893,604.73 4.18% 75,813,460.85 3.24% 14.62%
Bearing Energy 66,848,510.49 3.21% 71,433,373.13 3.05% -6.42%
Bearing Transport 12,185,022.67 0.59% 18,253,304.82 0.78% -33.24%
(6) Is there any change in the consolidation scope in the reporting period
No
(7) Is there any significant change or adjustment related situation take place in the Company’s
business, products or services in the reporting period
Inapplicable
(8) Major trade debtors and major suppliers
Note: The units of above date is Tao
Main Clients
Total Sales Revenue of Top 5 Clients(RMB) 501,875,135.88
Ratio of sales revenue in 2015(%) 21.81%
Information of Top 5 Clients
No. Client Name Sales Revenue(RMB) Ratio of sales revenue(%)
1 Frst 188,951,369.10 8.21%
Second（Other2 Companies controlled by the
2
same controlling share holders） 160,169,539.48 6.96%
3 Third 64,425,857.83 2.80%
4 Fourth 46,463,464.99 2.02%
5 Fifth 41,864,904.48 1.82%
Total —— 501,875,135.88 21.81%
Main Clients
Total purchase from top 5 suppliers(RMB) 731,417,251.58
Percentage of purchases from top 5 suppliers on
20.48%
annual total of purchases (%)
Profiles of top 5 suppliers
Percentage in total purchase of
No. Name of suppliers Amount of purchase(RMB)
year(%)
Frst （sum of three Other Companies
1 controlled by the same controlling 438,912,886.57 12.29%
share holders）
2 Second(other related party) 87,672,622.48 2.45%
3 Third(other related party) 87,942,288.16 2.46%
4 Fourth 68,499,349.26 1.92%
5 Fifth 48,390,105.11 1.35%
Total —— 731,417,251.58 20.48%
3. Expenses
In RMB Yuan
Year-on-year
2015 2014 Note to significant changes
increase/decrease
Sales expenses 190,816,461.26 265,596,410.65 -28.16%
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Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
Administrative
78,658,955.34 74,513,227.16 5.56%
expenses
Financial expenses 30,608,445.51 38,439,180.50 -20.37%
4. Investment in R & D
Through the research and development of different areas bearing the project, the company in a host of ancillary areas
made breakthrough progress, to achieve a number of bearing domestic alternative, more research and development in
the field of the supporting bearing products technology level is reached or exceeded the international level of similar
products product also gradually to the international market, achieve high-end enterprise market instead of the increase in
demand for imports. Through the integration of the company's technical strength, for the enterprise to provide the
opportunity to quickly break through the key technology. With technical project work to further promote and realize the
rapid transformation of enterprise development mode and the adjustment of product structure, developed a number of
high-end products, formation of a number of high-end manufacturing, to seize a number of high-end market, cultivate a
number of high-end customer strategy, comprehensive inventory of enterprise resources, effectively enhance the core
competitiveness of enterprises.
Information of Investment in R & D
2015 年 2014 年 Variable proportion
Number of R & D staff
415 442 -6.11%
(persons)
Proportion of R & D staff in
10.09% 10.11% -0.02%
total employees
Amount of investment in R &
96,770,702.60 108,886,795.01 -11.13%
D, in CNY
Proportion of investment in R
4.21% 3.62% 0.59%
& D in operating revenue
Amount of capitalized
0.00 0.00 0.00%
investment in R & D (in CNY)
Proportion of capitalized
investment in R & D in the 0.00% 0.00% 0.00%
total investment in R & D
5.Cash flow
In RMB Yuan
Year-on-year
项目 2015 2014
increase/decrease
Sub-total of cash flow
received from operation 1,149,952,689.66 2,085,708,163.76 -44.87%
activities
Subtotal of cash flow paid for
1,201,480,717.87 2,015,235,996.90 -40.38%
operating activities
Net cash flow arising from
-51,528,028.21 70,472,166.86 -173.12%
operating activities
Sub-total of cash flow-in
received from investing 304,000.00 595,841.10 -48.98%
activities
Sub-total of cash flow paid
24,763,544.26 79,627,148.24 -68.90%
for investment activities
Net cash flow arising from
-24,459,544.26 -79,031,307.14 -69.05%
investment activities
Sub-total cash flow received
1,244,225,082.23 948,053,500.00 31.24%
from financing activities
Sub-total cash flow paid for
1,235,379,045.94 858,288,245.08 43.94%
financing activities
Net cash flow arising from
8,846,036.29 89,765,254.92 -90.15%
financing activities
Net increase in cash and
-64,843,134.10 82,782,405.53 -178.33%
cash equivalents
Note to the major influence factors for the significant change in the relevant year-on-year data
12
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
Sub-total of cash flow received from operation activities:
(1)Cash received from the sale of goods and services decrease 925.52million Yuan, decle rate 44.7%, Mainly through
the settlement of the amount of the amount of the reverse flow into the form of the principle of the principle of elimination
from the project, while the same period did not eliminate.
Operating cash outflowsubtotal:
(1) Cash paid from the sale of goods and services decrease 779.84 million Yuan, decle rate 54.0%, Mainly through the
settlement of the amount of the amount of the reverse flow into the form of the principle of the principle of elimination from
the project, while the same period did not eliminate.
Net cash flows from operating activities: mainly cash inflow from operating activities fell more than the amount of cash
outflow from operating activities decreased the amount of 122.1 million yuan
Cash outflow for investment activities
（1）The purchase and construction of fixed assets in cash to pay a decrease of 32. 37 million yuan, a decline of 70.6%.
（2）Cash paid in cash fell 22 million 500 thousand yuan, a decline of 66.7%
Net cash flow from investment activities, investment activities cash inflows fell significantly, reduced losses 54.33
million yuan.
Cash inflow from financing activities subtotal: received other and financing activities cash year-on-year rise 30717 million
yuan, an increase of 101.7%, concrete is: orders received this period monetary financing funds an increase, in addition to
generations of forging some discount collection here project last year over the same period separately to the sales of
goods and services received in cash.
Sub total of cash outflows from financing activities: mainly other payment and financing activities cash year-on-year rise
38657 million yuan, an increase of 257.7101.7%, in particular the repayment order under monetary financing funds an
increase.
Net increase in cash and cash equivalents: mainly the current exchange rate is rising, the RMB devaluation, so that
foreign exchange gains increased.
Note to the significant difference between cash flow from operating activities and net profit in the
report period.
□Applicable√Inapplicable
During the report period the company generated from operating activities net cash flow is mainly operating money cash
balances and the net profit for the year is also affected by fixed assets depreciation, inventory and operating receivables
reduced, business payable project to increase the impact of changes.
iii . Analysis on Non-Principal Businesses
Inapplicable
IV. Situation of assets and liabilities
1. Major change in asset items
In RMB Yuan
End of 2015 End of 2014
Percentage of Statement on major
Percent in Percent in
Amount Amount change(%) change
total asset total asset
Monetary
116,316,020.57 3.30% 180,569,164.66 4.59% -1.29%
capital
Account
993,933,326.37 28.20% 1,098,566,178.20 27.91% 0.29%
receivable
13
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
Inventories 1,075,275,456.02 30.51% 1,166,347,866.35 29.63% 0.88%
Fixed assets 695,125,451.81 19.73% 695,819,839.43 17.68% 2.05%
Construction in
329,632,219.42 9.35% 363,404,435.51 9.23% 0.12%
process
Short term loan 385,000,000.00 10.93% 498,000,000.00 12.65% -1.72%
Long term loan 180,000,000.00 5.11% 50,000,000.00 1.27% 3.84%
V. Investment
1. Significant non-equity investment in process in the reporting period
In RMB Yuan
Invesm
Fix Total Reasons
ent Accumu
asset The Anticipa income of the
Investm amount lated Capital Progres Disclose Disclose
Item investm item’s ted at the dfiirence
ent way in the investm source s Date index
ent or industry income end of between
report ent
not 2015 plan and
peirod
actual
Grinding
Bearing Self-rais
transformation 11,000, 16,900, 30,000, Not yet in
other Yes manufa ed/bank 80.00% 0.00
of railway 000.00 000.00 000.00 place
ctory loan
bearing
ultra-precison Bearing Self-rais
6,000,0 6,800,0 30,000, Not yet in
machines of other Yes manufa ed/bank 80.00% 0.00
00.00 00.00 000.00 place
heavry bearing ctory loan
Heat treatment Bearing Self-rais
7,500,0 10,800, 30,000, Not yet in
modification of other Yes manufa ed/bank 80.00% 0.00
00.00 000.00 000.00 place
railway bearing ctory loan
Matched
Bearing Self-rais
product line 8,930,0 15,130, 30,000, Not yet in
other Yes manufa ed/bank 80.00% 0.00
and Assembly 00.00 000.00 000.00 place
ctory loan
test
Grinding Bearing Self-rais Produce
18,700, 26,700, 100.00 28,000, 12,000,
transformation other Yes manufa ed/bank less than
000.00 000.00 % 000.00 000.00
of auto bearing ctory loan one year
Matched
product line Bearing Self-rais Produce
9,820,0 15,400, 100.00 16,000, 10,000,
and Assembly other Yes manufa ed/bank less than
00.00 000.00 % 000.00 000.00
test of auto ctory loan one year
bearing
Heatt
treatment and Bearing Self-rais
7,850,0 14,450, 8,000,0 Not yet in
other matched other Yes manufa ed/bank 55.00% 0.00
00.00 000.00 00.00 place
renovation ctory loan
project
69,800, 106,180 172,000 22,000,
合计 -- -- -- -- -- -- -- --
000.00 ,000.00 ,000.00 000.00
VI. Sales of Significant Assets and Equity
1. Sales of Significant Assets
Inapplicable
2. Sales of Significant Equity
Inapplicable
VII. Analysis on Principal Subsidiaries and Mutual Shareholding Companies
Particulars about the principal subsidiaries and mutual shareholding companies which may affect the
Company’s net profit
by over 10%.
14
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
Leading
Total Operating
Company Company Principal products Net assets Turnover in Net profit (in
assets, in profit (in
name type business and (CNY) CNY CNY)
CNY CNY)
services
Product and
Sale
Liaoyang
Bearing and 19,350,000. 122,074,34 -44,572,258 137,312,34 -25,442,272 -21,421,446
Bearing Subsidiary
machine-ele 00 6.10 .80 4.24 .53 .55
company
ctrical
equipment
Dalian Product and
10,000,000. 124,667,14 18,889,453. 139,588,34 1,340,009.9
Electrical Subsidiary Sale -21,895.29
00 7.11 33 1.90 9
Equipment Bearing
Wzhou
precision Product and
spherical Sales
194,000,00 238,180,22 227,474,25 117,255,649 3,363,088.5 2,051,850.7
roller Subsidiary Spherical
0.00 4.55 3.24 .22 6 5
bearing(Waf Roller
angdian) Bearing
Co.,Ltd.
Viii. Structurized Entities Controlled by the Company
Inapplicable
IX. Development Prospect
1、Difficulties faced
(1)Bearing industry into a new stage of development
Under the new normal, China's economy is still in a deep adjustment period, the development of the scale to the
quality and efficiency of the transformation, the bearing industry has entered a new stage of adjustment, restructuring,
upgrading and development. Main features: first, the market will not have a significant growth in the overall. In the
situation of investment, demand is sluggish, with the country's investment slowdown, to the production capacity, to the
inventory of the trend, the bearing market is still in a weak demand situation; two is to accelerate the structural adjustment
of bearing products. With the adjustment of industrial structure and the transformation and upgrading, "45" during a
high-end product of industry of our country will still high-speed development, low-end products decreased year by year,
under the situation of low excess capacity, bearing industry will accelerate the upgrading of products; the third is bearing
business integration and restructuring efforts to increase. Due to the low threshold of the bearing industry, enterprises and
more dispersed, coupled with the vicious competition intensified homogenization, as well as severe economic downturn
situation, the situation will continue to expand the survival of the fittest.
(2)Bearing market, external competition further intensified
The world eight cross bearings company investment in China Construction of the factories, which occupy the
advantage of capital, technology and have advanced and efficient organization and management system, development is
swift and violent, to step in to control the upstream and downstream production factors, to snatch the domestic bearing
industry market space, exacerbated by the all aspects of competition; the main shaft sleeve in China has completed the
technical transformation, began a new round of development, the company is facing more and more fierce competition
and challenge.
2. Development opportunities
In analysis and judge the economic situation at home and abroad and internal and external environment of the bearing
industry at the same time, we must see an unprecedented opportunity for development and a rare favorable factors and
conditions.
(1) Market demand will present structural growth
Global sourcing and group centralized purchasing, bidding price of procurement and OEM customers in Transition
Upgrade and improve efficiency, will enable replace imported products on the market, in the high-end product market with
greater demand, high technology content, high added value products market potential is larger, which prompted us to
15
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
customers to sell products to customers to provide a complete solution change, which is the direction of our potential
strengths and strive to. The second is consumption, people's livelihood, energy saving and emission reduction, efficiency
savings are closely related, such as the large and medium horsepower tractors and agricultural products processing
equipment, environmental protection equipment, wind power equipment, high-voltage power transmission equipment
market remained with the growth. Three is the traditional stock market adjustment increase, mainly is the upgrade of the
existing equipment maintenance, such as the automotive industry will resume growth, engineering machinery and
agricultural machinery industry supporting the internal combustion engine industry down the rate is expected to slow down
and so on.
(2) The development of bearing industry is strongly supported by the state
The 13th Five-Year period, will be the basis of the bearing industry as a major development opportunities. The State
Council issued the construction of manufacturing industry powerful nation is a programmatic document of the "made in
China 2025", which will strengthen the industrial base capability "listed as one of the nine strategic task, bearings and
other components listed as" strong industrial base project, one of five large projects, support enterprises to carry out
quality brand promotion activities, identify the peer benchmarking, promote technological improvement, the
implementation of a series of policy not only for bearing industry transformation and upgrading opportunities, but also the
stability of market and development space for the sustainable development of bearing industry. ZWZ as the industry
leading enterprises will cherish and seize this rare opportunity for development.
(3) National macroeconomic policies favorable for enterprises to create a good condition
Measures of national macro economy will remain while maintaining stability of the tone, cut industrial capacity,
deleveraging and to inventory, reduce the cost of enterprise implemented in the adjustment of economic structure will
focus on, reduce Sheqi tax, social insurance, financial cost, electricity prices, fuel and power, steel, non-ferrous metal
prices fell consistently below the host cuts, which can reduce the manufacturing cost of a business entity, enhance market
competition ability and development ability.
(4) The company has strong self advantage and development potential.
Companies can revitalize the use of non operating net assets in fall this synergism, repairing and reusing, energy
saving, material substitution, improve material utilization rate, improve production efficiency and product delivery ability,
strengthen the capital chain management there is still a great potential. Over the years the technical transformation has
laid the foundation for development and conditions, technological progress and independent innovation to enhance the
core competitiveness of enterprises and the ability to resist risks.
3. Operating principles and main tasks in 2016
Overall business policy in 2016 is "steady growth, structural adjustment, to inventory, pressure receivable, cost reduction,
security benefits"
(1)To speed up the product structure and market structure adjustment, to achieve market growth target.
(2) To promote lean production management as an opportunity to establish a manufacturing system to meet the market
(3) The implementation of quality first strategy, follow the path of development quality
(4) Implementation of the cost reduction and efficiency, improve the capital turnover rate, to improve the quality of
operation
(5) Strengthen basic management, the establishment of the responsibility of the results oriented management system, lay
a solid foundation for development.
X. Statement of Such Activities as Reception of Survey, Communications, Interview,etc.
1. Registration Form of the Activities, such as Reception of Survey, Communications,
16
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
Interviews,
etc. in the Reporting Period
Type of Main content involved and material
Time/date Place Way Visitors
visitors provided
Telephone Private Private The general information of the
2015.05.14 Office
communication investor investor company
Telephone Private Private The general information of the
2015.09.16 Office
communication investor investor company
Telephone Private Private The general information of the
2015.11.10 Office
communication investor investor company
Telephone Private Private The general information of the
2015.12.25 Office
communication investor investor company
times 4
Times for organization investor 0
Times for private investor 4
Times for other investor 0
Whether disclose or reveal any un-publish news No.
ChapterⅤ Significant Events
I. Profit Distribution for Common Stock and Conversion of Capital Reserve into Share Capital
Preparation, Implementation or Adjustment of the Policy for Common Stock Profit Distribution, Especially the Policy for
Cash Dividend Distribution
1.Profit after tax will be rationed among the shareholders upon their shareholding portion after making up
of previous losses and providing of common reserves.2.The Company adopts a continuous and stable
dividend policy.The dividend accumulated in latest three years shall not be lower than 30%of the
distributable profit in the same three years. 3.The Company distribute dividends once a year except for
otherwise decided by the shareholders’meetings.Dividends are distributed upon finanal settlement of
each year.The dividend plan shall be announced within 4 months upon completion of each fiscal
year,and implemented in the 2nd quarter of the current year.
Cash dividend policy of special statement
Whether compliance with the provisions of the company's articles of association or
yes
resolutions of the shareholders' general meeting requirements:
Whethert he standard of share out bonus and the proportion are clear r: yes
Whether related decision-making process and mechanism are completeness: yes
Whether the independent director takes office responsible and play a proper role: yes
Whether the small and medium-sized shareholders the chance to fully express their
yes
views and demands;Whether the legitimate rights and interests were protected fully:
Cash dividend policy to adjust or change，whether Conditions and the program are Companies cash dividend policy
transparent: is not to adjust or change.
Profit distribution or common reserve capitalization in the latest 3 years(including the report year)
Year of Amount of Net profit to the Company’s shareholders in Proportion of the
Amount of cash
Dividen Cash attributable the cash
dividend
d Dividend to the Company’s consolidated statements of the dividend
distributed in
Distribut (including shareholders in year distributed in
other way(s)
ion tax) the of dividend distribution Ratio of the other way(s)
17
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
consolidated net profit attributable to the
statements of the Company’s
year shareholders taken in the
of dividend consolidated
distribution statements
2015 0.00 -33,380,013.39 0.00% 0.00 0.00%
2014 0.00 -103,902,948.89 0.00% 0.00 0.00%
2013 16,104,000.00 2,021,789.87 796.52% 0.00 0.00%
The dividend distribution scheme in the report period complied with the Articles of
Association.
Dividend distribution scheme in last 3 years.
Net profit attributable to the Proportion in the net profit attributable to the owners
Dividend Cashdividend
owners of the PLC in the of the PLC in the consolidated
year (tax included)
consolidated statement financial statement(%)
2014 0.00 -103,902,948.89 0.00%
2013 16,104,000.00 2,021,789.87 796.52%
2012 16,104,000.00 42,278,508.87 38.09%
II. Preplan for Profit Distribution and Conversion of Capital Reserve into Share Capital in the
Reporting Period
Inapplicable
III. Implementation of Commitments
1. Commitments finished in implementation by the Company, shareholders, actual
controller,acquirer, directors, supervisors, senior executives or other related parties in the
reporting period and commitments unfinished in implementation at the end of the reporting
period
Inapplicable
2. There existed profit anticipation for the Company’s assets or projects while the reporting
period was still within the duration of the profit anticipation. The Company made explanation
on whether the assets or projects reached the anticipated profit and the cause
Inapplicable
IV. Non-operational Occupancy of the Company’s Capital by the Controlling Shareholder and
its Related Parties
Inapplicable
V. Explanation of the Board of Directors, the Supervisory Committee and Independent
Directors (if any) on the “Qualified Auditor’s Report” issued by the CPAs in the Reporting
Period
Inapplicable
VI. Explanation on the Changes in the Accounting Policy, Accounting Estimate, and
Accounting Method in Comparison with the Financial Report of the Previous Year
Inapplicable
18
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
VII. Explanation on Serious Accounting Errors Occurred in the Reporting Period Necessary to
be Restated Retrospectively
Inapplicable
VIII. Explanation on the Changes in the Scope of the Consolidated Statements in Comparison
with the Financial Report of the Previous Year.
Inapplicable
IX. Engagement/Disengagement of CPAs
CPAs currently engaged
Names of the Domestic Certified Public
Shine wing Certified Public Accountants
Accountants
Reward for of accountants of the Domestic
48
Certified Public Accountants（RMB’0000）
Successive Years Offering Auditing Services 11 Years
Names of accountants of the Domestic Certified
Wang Yang, Wang Dong
Public Accountants
Has the CPAs been changed in the current period?
No
X. Listing Suspension or Delisting Possibly to be Confronted with after Disclosure of
the Annual Report
Inapplicable
XI. Matters concerning Bankruptcy Reorganization
Inapplicable
XII. Significant Lawsuits and Arbitrations
Inapplicable
XIII. Penalty and Rectification
Inapplicable
XIV. Integrity of the Company and its Controlling Shareholder and Actual Controller
Inapplicab
XV. Implementation of the Company’s Equit Incentive Plan, Employee Stock Ownership Plan or
other Employee Incentive Measures
Inapplicab
19
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
VII. Important Related Transactions
1、The relate transactions related to the day-to-day operations.
Transacti Has the
The
on quota approve
Percentage
Relati Relative as d quota The Way
Relative Principle Relative of Market Disclosure
Relationship ve Content Amount(R approve been Of Disclosur
parties of price Price accounted price Date
type MB’0000) d (in exceede Account
for similar
CNY10,0 d?
deals(%)
00)
Merch Cash
andise Installation Justice and Market Payment http://www.c
245 0.07% 650 No 2016.04.26
Procur Kit Equity price or The ninfo.com.c
ement Knot n
Cash
Other
House House Justice and Market Payment http://www.c
Companies 45 0.01% 22 Yes 2016.04.26
tenant tenant Equity price or The ninfo.com.c
Wazhou controlled by the
Knot n
Steel Ball same controlling
Cash
Company share holders Sales http://www.c
Goods and Justice and Market Payment
and the ultimate of 56 0.02% 300 No 2016.04.26 ninfo.com.c
Materials Equity price or The
controlling party goods n
Knot
Rende Justice and Market Cash
Heat http://www.c
r Equity price Payment
atareatmen 20 0.01% 20 No 2016.04.26 ninfo.com.c
Servic or The
t n
e Knot
Merch Cash
andise Installation Justice and Market Payment http://www.c
18,132 5.08% 25,000 No 2016.04.26
Procur Kit Equity price or The ninfo.com.c
ement Knot n
Cash
Other Sales http://www.c
Goods and Justice and Market Payment
Companies of 19,266 8.38% 32,000 No 2016.04.26 ninfo.com.c
Materials Equity price or The
Wazhou controlled by the goods n
Knot
Exact Forge same controlling
Cash
Ltd., share holders http://www.c
Lease of Justice and Market Payment
and the ultimate 46 0.02% 35 Yes 2016.04.26 ninfo.com.c
Plants Equity price or The
controlling party n
Knot
Cash
http://www.c
Lease of Justice and Market Payment
43 0.02% 84 No 2016.04.26 ninfo.com.c
land Equity price or The
n
Knot
Dalian Other Merch Cash
Justice and Market
Wazhou Companies andise Production 2,864 0.80% 2,000 Yes Payment 2016.04.26 http://www.c
Equity price
Manufacturi controlled by the Procur or The ninfo.com.c
20
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
ng same controlling ement Knot n
Equipment share holders Cash
Sales http://www.c
Co., Ltd and the ultimate Goods and Justice and Market Payment
of 132 0.06% 196 No 2016.04.26 ninfo.com.c
controlling party Materials Equity price or The
goods n
Knot
Merch Cash
Other
andise Bearing Justice and Market Payment http://www.c
Companies 11,478 3.21% 10,958 Yes 2016.04.26
Wazhou Procur Product Equity price or The ninfo.com.c
controlled by the
Group ement Knot n
same controlling
Turnplate Cash
share holders Sales http://www.c
Bearing Ltd Goods and Justice and Market Payment
and the ultimate of 76 0.03% 80 No 2016.04.26 ninfo.com.c
Materials Equity price or The
controlling party goods n
Knot
Merch Cash
andise Bearing Justice and Market Payment http://www.c
8,577 2.40% 10,300 No 2016.04.26
Procur Product Equity price or The ninfo.com.c
Other
Wazhou ement Knot n
Companies
Group Cash
controlled by the Sales http://www.c
Exact Goods and Justice and Market Payment
same controlling of 2,905 1.26% 2,300 Yes 2016.04.26 ninfo.com.c
Transmissio Materials Equity price or The
share holders goods n
n Bearing Knot
and the ultimate
Co., Ltd Rende Cash
controlling party Heat http://www.c
r Justice and Market Payment
atareatmen 134 0.06% 210 No 2016.04.26 ninfo.com.c
Servic Equity price or The
t n
e Knot
Merch Cash
andise Bearing Justice and Market Payment http://www.c
47 0.01% 0 Yes 2016.04.26
Procur Product Equity price or The ninfo.com.c
ement Knot n
Cash
Sales http://www.c
Goods and Justice and Market Payment
of 477 0.21% 450 Yes 2016.04.26 ninfo.com.c
Materials Equity price or The
Wazhou Other goods n
Knot
Group Companies
Cash
Precision controlled by the http://www.c
Lease of Justice and Market Payment
special same controlling 51 0.02% 51 No 2016.04.26 ninfo.com.c
Plants Equity price or The
Bearing share holders n
Knot
Company and the ultimate
Cash
Limited controlling party http://www.c
Lease of Justice and Market Payment
9 9 No 2016.04.26 ninfo.com.c
land Equity price or The
n
Knot
Rende Cash
Heat http://www.c
r Justice and Market Payment
atareatmen 45 0.02% 70 No 2016.04.26 ninfo.com.c
Servic Equity price or The
t n
e Knot
21
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
Other
Companies
Equipment Merch Cash
controlled by the http://www.c
technical andise Equipment Justice and Market Payment
same controlling 2,724 0.76% 4,500 No 2016.04.26 ninfo.com.c
engineering Procur and service Equity price or The
share holders n
ement Knot
and the ultimate
controlling party
Merch
http://www.c
andise Justice and Market
product 3,985 1.12% 7,000 No 2016.04.26 ninfo.com.c
Procur Equity price
Other n
ement
Companies
Tong Da Cash
controlled by the http://www.c
bearing Privide Heat Justice and Market Payment
same controlling 7 50 No 2016.04.26 ninfo.com.c
manufactor service treatment Equity price or The
share holders n
y company Knot
and the ultimate
Cash
controlling party http://www.c
Sale Justice and Market Payment
product 49 0.02% 0 Yes 2016.04.26 ninfo.com.c
goods Equity price or The
n
Knot
Merch Cash
Da Lian http://www.c
Other Related andise Justice and Market Payment
KOYO Co., Goods 3,782 1.06% 5,000 No 2016.04.26 ninfo.com.c
party Procur Equity price or The
Ltd n
ement Knot
Merch Cash
andise Bearing Justice and Market Payment http://www.c
8,767 2.45% 16,000 No 2016.04.26
Procur Product Equity price or The ninfo.com.c
ement Knot n
Da Lian
Cash
Wazhou Other Related Sales http://www.c
Goods and Justice and Market Payment
Fengyuan party of 11 0.00% 11 No 2016.04.26 ninfo.com.c
Materials Equity price or The
Machine goods n
Knot
Co.,Ltd
Cash
Provid http://www.c
Heat Justice and Market Payment
e 3 0.00% 0 No 2016.04.26 ninfo.com.c
treatment Equity price or The
service n
Knot
Merch Cash
andise componme Justice and Market Payment http://www.c
8,794 2.46% 14,500 No 2016.04.26
Procur nt Equity price or The ninfo.com.c
Da Lian
ement Knot n
Wazhou Jin Other Related
Cash
Zhou party Sales http://www.c
Goods and Justice and Market Payment
Machine of 50 0.02% 30 Yes 2016.04.26 ninfo.com.c
Materials Equity price or The
Co.,Ltd goods n
Knot
Lease of Justice and Market Cash http://www.c
80 0.03% 80 No 2016.04.26
Plants Equity price Payment ninfo.com.c
22
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
or The n
Knot
Rende Cash
Heat http://www.c
r Justice and Market Payment
atareatmen 64 0.03% 50 Yes 2016.04.26 ninfo.com.c
Servic Equity price or The
t n
e Knot
Merch Cash
Other http://www.c
andise Justice and Market Payment
Wazhou Companies Product 2,341 0.66% 0 Yes 2016.04.26 ninfo.com.c
Procur Equity price or The
group controlled by the n
ement Knot
(USA) same controlling
Cash
bearing co., share holders Sales http://www.c
Bearing Justice and Market Payment
LTD and the ultimate of 10,517 4.57% 14,439 No 2016.04.26 ninfo.com.c
Product Equity price or The
controlling party goods n
Knot
Other
Da Lian Companies
Cash
North metal controlled by the Sales http://www.c
Goods and Justice and Market Payment
material same controlling of 1,751 0.76% 0 Yes 2016.04.26 ninfo.com.c
Materials Equity price or The
trading share holders goods n
Knot
center and the ultimate
controlling party
Merch Cash
http://www.c
andise Bearing Justice and Market Payment
10,297 2.88% 14,950 No 2016.04.26 ninfo.com.c
Procur Product Equity price or The
n
ement Knot
Cash
Security
Justice and Market Payment http://www.c
and Fire 329 0.09% 329 No 2016.04.26
Equity price or The ninfo.com.c
Service
Knot n
Cash
Announce http://www.c
Justice and Market Payment
ment 80 0.02% 80 No 2016.04.26 ninfo.com.c
The controlling Equity price or The
Service n
Wazhou share holders Knot
Group and the ultimate Technolog Cash
Acceot http://www.c
controlling party y Justice and Market Payment
Servic 540 0.15% 0 Yes 2016.04.26 ninfo.com.c
Developme Equity price or The
e n
nt Service Knot
Cash
http://www.c
Use of Justice and Market Payment
458 0.11% 900 No 2016.04.26 ninfo.com.c
Trademark Equity price or The
n
Knot
House
767 0.21% 1,900 No
tenant
Lease of Justice and Market Cash http://www.c
219 0.06% 460 No 2016.04.26
Houses Equity price Payment ninfo.com.c
23
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
or The n
Knot
Cash
http://www.c
machimes Justice and Market Payment
806 0.23% 950 No 2016.04.26 ninfo.com.c
rent Equity price or The
n
Knot
Cash
Sales http://www.c
Justice and Market Payment
of Goods 5,602 2.44% 130 Yes 2016.04.26 ninfo.com.c
Equity price or The
goods n
Knot
Total 126,843 -- 166,264
Details of the rejection of the goods
Inapplicable
already sold in big amount
In case the total amount of the regularrelated
transaction incurred in thereporting period has
been predicted basedon categories, state the
actual
implementation of the in the reportingperiod (if
any)
The 17th meeting of the Seventh Board of
Directors and 2014 Annual General Meeting
reviewed and
approved the Proposal on Implementation of the
Regular Related Transactions in 2014 and
Announcement about the excess ratify of implementation of daily related party transactions of 2015 and daily related
Prediction of the Regular Related Transactions in
transactions estimated of 2016
2015. It is predicted that the total amount of the
related transactions between the Company and
the Related Parties would not exceed CNY 440.20
million in Year 2015 while the amount of the
related transactions actually incurred in the
reporting
year was CNY 120.6703 million, which has not
exceeded the predicted amount. Where the
advancespaid to CATIC Property by the Company
for the property management fee did not exceed
CNY
Cause of the big difference between the
transaction price and the market reference Inapplicable
price. (if applicable)
24
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
2. Related transactions concerning acquisition and sales of assets or equity
Inapplicable
3. Related transactions concerning joint investment in foreign countries
Inapplicable
4. Current Associated Rights of Credit and Liabilities
Inapplicable
5. Other Major Related Transactions
Inapplicable
XVII. Important Contracts and Implementation
1. Custody, Contacting and Leases
(1) Custody
Inapplicable
(2) Contracting
Inapplicable
(3) Leases
1. Non Associated Lease: the lessee for the Dalian Economic Development Zone, Li Feng Transportation Co., Ltd., to
confirm the current income of 4800 yuan.
2.Related lease: this part of the contents of the twelve, related party transactions and related party transactions 5 (3)
related to the lease"
2. Significant Guarantees
Inapplicable
3. Entrusting other Person to Manage the Cash Assets
(1) Finance Management on Commission
Inapplicable
(2) Entrusted Loan
Inapplicable
4. Other Major Contracts
Inapplicable
XVIII. Notes to Other Signficiant Events
Inapplicable
XIX. Significant Events of the Company’s Subsidiaries
Inapplicable
XX. Social Responsibility
Inapplicable
XXI. Company Bond Related Information
Is there any company bond which was issued in public and got listed with the stock exchange but has
not been honored
from the date of approval of the annual report to the expiry of the bond.
No.
25
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
Chapter Ⅵ Change of Shares and Particulars about Shareholders
I. Changes in Capital Stock
Before Changes Changes in Shares After Changes
Shares Ratio New Conversi Ratio
Bonus
Shares on of Others Subtotal Shares
Shares
Issued Reserves
to Share
244,000, 244,000,
1.Non-tradable Shares 60.61% 60.61%
000 000
244,000, 244,000,
a. Promoters’ Shares 60.61% 60.61%
000 000
Including：State-owned 244,000, 244,000,
60.61% 60.61%
share 000 000
158,600, 158,600,
2.Tradable shares 39.39% 39.39%
000 000
158,600, 158,600,
b.B shares 39.39% 39.39%
000 000
402,600, 402,600,
3.Total 100% 100%
000 000
Reason of Changes of Shares
□Applicable √ Inapplicable
The basic situation of stock change.
□Applicable √ Inapplicable
The transfer of shares of
□Applicable √ Inapplicable
Influence from the shareholding movements upon such financial indicators as earnings per share, net
asset per
share of the latest year and the latest accounting period
□Applicable √ Inapplicable
Other information as the Company considers necessary to be disclosed or demanded by the securities
regulatory
authority for disclosing:
□Applicable √ Inapplicable
II. Issuing and Listing
III. Shareholders and Actual Controlling Shareholder
1. Number of Shareholders and Shares
Unit: Share
Total common Total Total preference
shareholders at preference shareholders with
Total common the end of the shareholders the voting power
shareholders in month before withthe voting not recovered at the
7,580 7,500 0 0
the reporting before the date powerrecovere end of the month
period of disclosing d at theend of before the day of
the annual the reporting disclosingthe annual
report period (if any) report
26
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
Shares held by the shareholders holding over 5% shares or the top ten shareholders
the end of Pledging or freezing
Shares the
Quantity
held by reporting Number Number
at
Shares held by the the period ofthe ofthe
the end of Status
Shareholder names top ten top ten Increase/d restricte non-restric
the of the Quantity
shareholders sharehold ecrease in dshares ted shares
reporting shares
ers the held held
period
(%) reporting
period
Wafangdian Bearing State-owned 244,000,0 244,000
60.61%
Group Corporation shareholder 00 ,000
79,300,00 79,300,00
AKTIEBOLAGET SKF Foreign shareholder 19.7% Frozen 79,300,000
0 0
Domestic
Huang Junyue 0.89% 3,582,000 3,582,000
shareholder
BOCI SECURITIES
Foreign shareholder 0.65% 2,620,000 2,620,000
LIMITED
GUOTAI JUNAN
SECURITIES(HONGK Foreign shareholder 0.59% 2,393,240 2,393,240
ONG) LIMITED
Domestic
Jin Yunhua 0.50% 2,017,729 2,017,729
shareholder
Domestic
Hu Xiaofeng 0.47% 1,879,277 1,879,277
shareholder
KGI ASIA LIMITED Foreign shareholder 0.25% 1,018,410 1,018,410
Foreign private
MAN,KWAI WING 0.18% 713,101 713,101
shareholder
Domestic
Liao Jun 0.13% 511,000 511,000
shareholder
About the fact that a strategic investor or In the report period, the frozen period of the shares purchased by the company’s
ordinary corporate became one of the top
strategic investor AKTIEBOLAGET SKF expired in 1999, and has not dealt with the
ten shareholders due to placement of new
shares (if any) (Refer to Note 3) releasing-procedure in this report period.
There was no relationship and consistent activities between the first big shareholder
Explanation on associated relationship or and other shareholders or the top ten common stock holders; The relationship among
consistent action of the above shareholders other shareholders, top ten circulation shareholders, top ten circulation shareholders
and other shareholders was not clear.
Shareholding of top 10 shareholders of unrestricted shares
Quantity of Share type
unrestricted shares
Shareholder’s Name
held at the end of Share type Quantity
thereporting period
AKTIEBOLAGET SKF 79,300,000 B-shares 79,300,000
Huang Junyue 3,582,000 B-shares 3,582,000
BOCI SECURITIES LIMITED 2,620,000 B-shares 2,620,000
GUOTAI JUNAN
2,393,240 B-shares 2,393,240
SECURITIES(HONGKONG) LIMITED
Jin Yunhua 2,017,729 B-shares 2,017,729
Hu Xiaofeng 1,879,277 B-shares 1,879,277
KGI ASIA LIMITED 1,018,410 B-shares 1,018,410
MAN,KWAI WING 713,101 B-shares 713,101
Liao Yun 511,000 B-shares 511,000
Zhou Junlin 503,100 B-shares 511,000
Explanation to the associated relationship
or consistent action among the top 10 There was no relationship and consistent activities between the first big shareholder and
shareholders of non-restricted negotiable other shareholders or the top ten common stock holders; The relationship among other
shares and that between the top 10 shareholders, top ten circulation shareholders, top ten circulation shareholders and
shareholders of non-restricted negotiable other shareholders was not clear.
shares and top 10 shareholders.
Note to the top 10 shareholders involved in
margin financing & securities lending (if
any)
27
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
2. Controlling Shareholder
Nature of the controlling shareholder: State-owned holding directly under the Dalian government
Type of the controlling shareholder: corporate Legal Person
Name of the Legal Date of
Organization
Controlling Representati incorpora code
Principal business activities
Shareholder ve/Leader tion
Bearing and bearing parts, bearing special tools, tooling, equipment,
machinery and equipment, abrasive, abrasive, casting, auto parts,
Wafangdian
Cong 1995.10 motorcycle parts and related industrial products manufacturing and
Bearing Group 24238666-3
Corporation Hong .22 sales; bearing design, repair, maintenance and technical services;
bearing raw materials and auxiliary materials procurement and sales;
housing rental, equipment leasing.
Change of Controlling Shareholder in the Report Period
□ Applicable √ Inapplicable
3. Actual Controller
Nature of the actual controller: State-owned assets regulatory agency directly under the Dalian government
Type of the actual controller: corporate
Establishing Organization Register
Legal Representative
Date Code Capital
Dalian Municipal Government State-owned
Yi Jun 76443809-6 无
Assets Supervising and Managing committee
Equity in other domestic and foreign listed
companies held by the actual controler by
Not clear
means of control and mutual shareholding in
the reporting period
Change of the actual controller in the reporting period
Inapplicable
Block Diagram of the Ownership and Control Relations between the Company and the Actual Controller
Actual Controller controlled the Company by trust or other asset management method.
□ Applicable √ Inapplicable
4. Other shareholders with more than 10% shares
Name
Legal Representative Date of Capital Main Business
establishment
Bearings, seals and relative
AKTIEBOLAGET SKF Alrik Danielson 1907.01.01 1，138，000，000(SKR)
products, and relative services
28
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
5. Shareholding Reduction Restriction on the Controlling Shareholder, the Actual Controller, the
Reorganizing Party and other Commiting Party
Inapplicable
Chapter Ⅶ. About the Preferred Shares
Inapplicable
Chapter Ⅷ Directors, Supervisors, Senior Executives and Staff
I. Changes of Shares held by Directors, Supervisors and Senior Management
Name Position Office Shares Name Position
Office Status Starting Date Status Gend Starting Date Expiry Date SharesH Held on Office Status
Gender Age er Age of Tenure of Tenure eld on Increas Decreas Dec 31, Gender Age
Jan e e 2015
1,2015
Meng Wei Chairman Incumbent Male 48 2015.08.25 0 0 0 0
Zhang Xinghai Director Incumbent Male 48 2015.08.25 0 0 0 0 0
Chen Jiajun Director Incumbent Male 49 2013.06.26 0 0 0 0 0
Li Shi Director Incumbent Male 51 2013.06.26 0 0 0 0 0
General
Sun Maolin Manager, Incumbent Male 52 2015.08.25 0 0 0 0 0
Director
General
Fema
Sun Najuan accountant,sec Incumbent
le
48 2013.06.26 0 0 0 0 0
rtory of board
Tang Yurong
Director Incumbent Male 54 2015.08.25 0 0 0 0 0
Fema
FangBo Director Incumbent
le
44 2013.06.26 1,500 0 0 0 1,500
Independent Fema
Zhang li Incumbent
le
56 2013.06.26 0 0 0 0 0
Director
Independent
Wu Chunyou Incumbent Male 71 2013.06.26 0 0 0 0 0
Director
Independent
Wan Shouyi Incumbent Male 61 2015.04.23 0 0 0 0 0
Director
Independent
WenBo Incumbent Male 53 2015.04.23 0 0 0 0 0
Director
President of
Sun Shicheng Supervisory Incumbent Male 52 2015.08.25 0 0 0 0 0
Committee
Wu Zuoxian Supervisory Incumbent Male 61 2014.02.27 0 0 0 0 0
Fema
Li Xiumin Supervisory Incumbent
le
54 2014.04.01 0 0 0 0 0
Fema
Wang Lin Supervisory Incumbent
le
35 2013.06.26 0 0 0 0 0
Sun
Yongsheng
Supervisory Incumbent Male 54 2015.03.10 0 0 0 0 0
Tan Jianguang Vice-G.M. Incumbent Male 52 2015.01.06 0 0 0 0 0
Wang Longjie Vice-G.M. Incumbent Male 54 0013.04.19 0 0 0 0 0
Resignatio
Cong Hong Chairman
n
Male 57 2013.06.26 2015.08.14 0 0 0 0 0
General
Resignatio
Shao Yang Manager,
n
Male 50 2013.04.19 2015.07.14 0 0 0 0 0
Director
29
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
President of
Resignatio
Zhang Xinghai Supervisory
n
Male 48 2013.06.26 2015.08.21 0 0 0 0 0
Committee
Resignatio
Zhu Jiming Director
n
Male 55 2013.06.26 2015.06.11 0 0 0 0 0
Independent Resignatio
Liu Yuping
n
Male 60 2013.06.26 2015.04.23 0 0 0 0 0
Director
Sun Independent Resignatio
Guangguo n
Male 45 2013.06.26 2015.04.23 0 0 0 0 0
Director
Resignatio
Tan Jianguang Supervisory Male 52 2013.06.26 2015.01.05
n
合计 -- -- -- -- -- -- 1,500 0 0 0 1,500
II. Change of Directors, Supervisors and/or Senior Executives
Names Office Taken Type Date Cause
Cong Hong Chairman Resignment 2015.08.14 Work change
General
Shao Yang Manager, Resignment 2015.07.14 Work change
Director
President of
New
Zhang Xinghai Supervisory 2015.08.21 Position change
appointment
Committee
Zhu Jiming Director Resignment 2015.06.11 Work change
New
Tan Jianguang Supervisory 2015.01.05 Position change
appointment
Independent
Liu Yuping Resignment 2015.04.23 Work change
Director
Independent
Sun Guangguo Resignment 2015.04.23 Work change
Director
III. Posts Holding
Work Experience in the Past Five Years of Directors, Supervisors and Senior Management in Current
Office.
(1) Director
Mr.Meng Wei, was born in April 1968, Master Degree Candidate, Bachelor's degree of the university, the
master of management, Senior Administration, engineer joined in the work in August, 1990. He has
successively held the posts of deputy general manager of WBC, the general manager, the labor Union
chairman, secretary of the commission for discipline inspection, the deputy secretary of the party committee
and the director of WBC. Now he work as the secretary of the party committee and the chairman of the board
of WBGC, the chairman of WBC from August, 2015.
Mr. Zhang Xinghai, was born in October 1968, university culture, professor senior accountant. Since joining
Wazhou in 1991, he has successively held the posts of deputy chief accountant and board secretary of WBC,
director, chief accountant and board secretary of WBC, now he is held the post of the chief accountant of
WBGC.
Mr. Sun Maolin, was born in December 1964, university culture, researcher professor level senior engineer.
Joined in work in August, 1988, he has assumed as minister of manufacturing department, minister of Sales &
Marketing Department of WBC, minister of Planning and Development Department, general-manager assistant
and deputy director of the Technology Center of WBGC, deputy general-manager of WBGC. Now he work as
the general manager of WBC.
Mr. Lishi was born in April 1965, Master degree, senior engineer, joined in work in July, 1988. He worked as
technicians, shop manager, factory vice-manager, factory manager, d vice-general manager and director of the
government. He worked in WBGC since September, 2010. Now he works as vice-general manager of WBGC.
Mr. Chen Jiajun, was born in December, 1967, university culture, economic manager and statistician, joined
30
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
in work from August, 1990. He worked as section chief, assistant minister and deputy minister of operation and
managing department, assistant general manager of WBGC. Now he works as charger of Operation and
managing department and deputy general manager.
Mrs. Sun Najuan, was born in October 1968, professor senior accountant, master degree. joined in work from
September, 1990, she worked as accountant in Financial Division, section leader of Checking Division of
WBGC, general manager assistant of Material Providing Company of WBC, and the general manager
assistant of Sales Company of WBC, the deputy chief accountant of WBGC . Now she works as chief
accountant and the secretary of board of directors of WBC.
Mr. Tang Yurong was born in 1962, junior college degree, electrical engineer. He hold the post of Dealer
network development manager in SKF since 1989, director and general manager from 1996 to 2004 in SKF
China, global marketing director of industry department in SKF from 2004 to 2007, the chairman of arcelor
auto in SKF China from 2007 to 2008, the global chairman of one bearing brand in SKF, the senior deputy
chairman in SKF Group and the chairman of special enterprise department from January of 2015 to now, the
chairman of SKF China and industry market from May of 2015 to now,from Febarury 2016,he takes his job as
chairman of SKF in Asian industry market
Mrs. Fang Bo, was born in June, 1972, bachelor degree. She has served as auditor in PWC Accountant Firm
since 1994. She joined the SKF(China) Co.Ltd in 1997, used to be finance manager in its subsidiary company,
finance director in the SKF(China) Investment Co.Ltd. Now she occupies the finance manager of SKF (China)
Co.Ltd, and capital deparment manager in SKF China region.
(2)Independent director
Mr.Wu Chunyou, was born in December 1945,master, Professor.Now work as the dean of Management
Academy of Dalian Science & Engineering University, the Committeeman of Management Teaching
Guiding committee of national education Department, chairman of University Value Researching
committee of China, DaLian Enterprise Management Consulting and Researching Committee, the
concurrent post of independent director of Liaohe Jinma Oil Field Company Limited.
Mrs.Zhangli, was born in March 16,1960, economic bachelor, Professor of Accountant, Master Guider,
work as a teacher in Jiang Su university of science and engineering management department since
August 1983, currently holds the post of Professor at Dalian Communication university, specially
engaged professor at Dalian enterpriser market and Dalian manager united association. Hold part-time job
as vice economist of Dalian Shantai Technology company limited, financial consultant of Dalian first clothes
factory, associate professor in Dalian enterprise manage cadre training leading team, teacher at Dalian
Profession & Technology College.Currently holds the post of independent director Dahua Co., Ltd.
Mr.Wen Bo, was born in 1963, granulated the law major in CUPL, he has hold a post in Dalian Justice
Bureau, now he is the initiate partner of Liaoning Huaicheng Law Firm, the local legislation expert
advisor of Dalian municipal people's congress standing committee, the committee member in expert
advisory committee of major issues of the state-owned assets supervision and administration
commission in Dalian.
Mr. Wan Shouyi, was born in 1955, granulated in accounting institute of Dongbei University of Finance
and Economics, accounting doctor, Certified Public Accountant, he has hold a post of vice-director,
director, vice-director and director of teaching and research office, vice-president in accounting institute
of Dongbei University of Finance and Economics, now he hold the post of doctor tutor, hold concurrently
the post of chief researcher in internal control and risk management research center of Dongbei
University of Finance and Economics.
(3)Supervisor
Mr.Sun Shicheng was born in December 1964, university culture, Senior Administration, joined in work in
1987,he worked as the section chief in organization department and organizer in Party Committee of WBGC,
party branch secretary of Xibei sales company, secretary of Huabei sales company, deputy general manager,
31
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
the minister of organization department, and the chairman of the labor union. Now he work as the labor Union
chairman, secretary of the commission for discipline inspection , staff director and organization department of
WBGC.
Mr. Wu Zuoxian, born on December 1955, senior politic engineer Since September 1972, he has taken
his position as assistant to the head of office, the vice head of office in WBGC, now he takes his position
as vice secretary of Committee for Discipline Inspection, also works as the vice charger of discipline and
supervision department and charger of armed department in WBGC.
Ms. Li Xiumin, was born in May 1962, junior college degree, senior accountant. Joined in work in November
1980, she has successively held the posts of accountant in financial audit department, financial inspector,
financial section chief, assistant minister, vice minister (host) and so on, now she is held the post of minister
in financial audit department of WBGC.
Mrs. Wang Lin, was born in September 1981, university degree, assistant economist. Joined in work in July
2004, she has successively held the posts of the legal counsel，office director, minister assistant，deputy
minister and minister in credit management department of WBC. Now she is held the post of general manager
of Import and Export Corporation.
Mr. Sun Yongsheng, wad born on July 1962, university degree, engineer. Joined in work August,1987, she
has successively held the posts of minister assistant, deputy minister of manufacture engineering department,
minister of safety and equipment energy department, the factory manager of the seventh finished product
factory, now he work as the factory manager of the second finished product factory.
(4) Top management
Mr. Wang Longjie, was born in February 1962, university degree, high engineer qualification. Joined in work
since December 1987, he has undertaken the following position: the factory deputy manager, manager of the
sixth finished product factory, the factory manager of the seventh finished product factory, general manager of
super-huge type branch, general manager assistant of WBC. Now he assumes the position of deputy general
manager of WBC.
Mr. Tan Jianguang, born in December, 1964, technical secondary school, assistant engineer. Joined in work
in August 1986, he has successively held the posts of workshop director in cage branch, salesman, section
chief, deputy general manager and genera manager of Marketing Departmen, general manager assistant of
WBC, the general manager of railway department, and the general manager of railway bearing sales company.
Now he hold the post of deputy general manager of WBC.
Posts in Shareholder’s Company
√Applicable □Inapplicable
Expiry Whether receiving
Starting Date
Position Date remuneration from ther
of Tenure
Name Company Name of Tenure companies
Wafangdian Bearing Group Chairman of Board of
Meng Wei 2013.12.26 Y
Corporation Director
Wafangdian Bearing Group
Li Shi VGM 2010.09.01 Y
Corporation
Wafangdian Bearing Group
Chen Jiajun VGM 2014.03.01 Y
Corporation
Zhang Xing Wafangdian Bearing Group
General accountant 2009.08.01 Y
hai Corporation
Sun Najuan Wafangdian Bearing Group
Director 2009.08.01 N
Corporation
Sun Wafangdian Bearing Group Secretary of
Shicheng Corporation Commission,the union
2014.03.01 Y
president,minister of
prganization
Wafangdian Bearing Group Vice charger of
Wu Zuoxian 2012.05.01 Y
Corporation discipline and
32
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
supervision department
Wafangdian Bearing Group minister of financial
Li Xiumin 2014.04.01 Y
Corporation supervisor department
Tang SKF (China) Co,. Ltd.Rgion
President 2015.05.01 Y
Yurong
Fang Bo SKF (China) Co,. Ltd.Rgion Financial Charger 2009.04.01 Y
Sun Maolin Wafangdian Bearing Group
Director 2016.03.22 N
Corporation
Other Posts
√Applicable □Inapplicable
Whether receiving
Starting Date Expiry Date remuneration
Position
Name Other Company Name of Tenure of Tenure from ther
companies
Da Lian North metal material trading Chairman of Board
Meng Wei 2015.12.17 N
center of Director
Wazhou group (USA) bearing co., Chairman of Board
Meng Wei 2015.06.01 N
LTD of Director
Zhang Equipment technical engineering Chairman of Board
2012.08.01 N
Xinghai of Director
Whether
receiving
Name Other Company Name Starting Date Expiry Date
Position remuneration
of Tenure of Tenure
from ther
companies
Chairman of
Meng Wei Da Lian North metal material trading center 2015.12.17 N
Board of Director
Chairman of
Meng Wei Wazhou group (USA) bearing co., LTD 2015.09.29 N
Board of Director
Wazhou Exact Forge Ltd., Chairman of
Meng Wei 2015.12.17 否
Board of Director
Wazhou Group Turnplate Bearing Ltd Chairman of
Meng We 2015.09.29 否
Board of Director
Zhang Equipment technical engineering Chairman of
2012.08.01 N
Xinghai Board of Director
Zhang Chairman of
Da Lian Wazhou Jin Zhou Machine Co.,Ltd 2015.09.29 否
Xinghai Board of Director
Zhang Da Lian Wazhou Fengyuan Machine Co.,Ltd Chairman of
2015.09.29 否
Xinghai Board of Director
Dalian Wazhou Manufacturing Equipment
Chen Chairman of
Co., Ltd 否
Jiajun Board of Director
Sun Tong Da bearing manufactory company Chairman of
2015.09.29 否
Maolin Board of Director
III. The Remuneration of Directors, Supervisors and Senior Management
Decision-making procedures, basis for determination and actual payment of the remuneration to
directors,
supervisors and senior management
Unit:0000'Yuan
Remuneration
Total remuneration
Name Position Gender Age Office actually received at
received from the
Status Company the end of the
reporting period
Meng Wei Chairman Male 48 Incumbent Y
33
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
Zhang Xinghai Director Male 48 Incumbent Y
Chen Jiajun Director Male 49 Incumbent Y
Li Shi Director Male 51 Incumbent Y
General
Sun Maolin Manager, Male 52 Incumbent 3.6 N
Director
General
Sun Najuan accountant,se Female 48 Incumbent 8.16 N
crtory of board
Tang Yurong Director Male 54 Incumbent Y
FangBo Director Female 44 Incumbent Y
Independent
Zhang li Female 56 Incumbent 3.6 N
Director
Independent
Wu Chunyou Male 71 Incumbent 3.6 N
Director
Independent
Wan Shouyi Male 61 Incumbent N
Director
Independent
WenBo Male 53 Incumbent N
Director
President of
Sun Shicheng Supervisory Male 52 Incumbent N
Committee
Wu Zuoxian Supervisory Male 61 Incumbent Y
Li Xiumin Supervisory Female 54 Incumbent Y
Wang Lin Supervisory Female 35 Incumbent 4.68 N
Sun Yongsheng Supervisory Male 54 Incumbent 5.4 N
Tan Jianguang Vice-G.M. Male 52 Incumbent 8.16 N
Wang Longjie Vice-G.M. Male 54 Incumbent 8.16 N
Cong Hong Chairman Male 57 Resignation Y
General
Shao Yang Manager, Male 50 Resignation 5.6 N
Director
President of
Zhang Xinghai Supervisory Male 48 Resignation Y
Committee
Zhu Jiming Director Male 55 Resignation N
Independent
Liu Yuping Male 60 Resignation 3.6 N
Director
Independent
Sun Guangguo Male 45 Resignation 3.6 N
Director
Tan Jianguang Supervisory Male 52 Resignation N
Total -- -- -- -- 58.16
VI. About Employees
1. Age Structure
The subject of share 4,074
Sub-company Precision Motor Company 1,281
Total 5,355
Total staff the company shall pay to 5,355
The number of retired workers need company pay the cost
2,994
is
professional composition of staff
type Member
Production staff 4,185
Sale staff 268
Technology staff 233
34
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
Financial staff 67
Administrative staf 602
Total 5,355
education
type Member
Master’s degree 17
University graduation 517
Junior college graduation 800
below junior college 4,021
合计 5,355
2.Remuneration Policy for Staff
Company based on relevant laws and regulations of the state and the government labor department a
series of related policies, combined with the actual situation of the company, the company developed the
company's salary evaluation system. Bingzhe "adhere to the fair, give consideration to efficiency, quality
of work, the performance of priority" principle, and constantly improve the salary system, strengthen
incentive mechanism, and fully mobilize the enthusiasm of the staff of the company.
3. Training Program
Clases number Cost （RMB）
Item Percentage Percentage Percentage
Plan Actual Plan Actual Plan Actual
complete complete complete
1-layer 4 6 150.00% 567 381 67.20% 264920 198920 75.09%
training
2-layer 108 120 111.11% 14969 14272 95.34% 204580 2600 ——
training
System 18 15 83.33% 1330 1936 145.56% 118260 200 ——
training
Sent out 17 14 82.35% 312 104 33.33% 384300 43512 11.32%
training
Total 147 154 104.76% 17178 16693 97.18% 972060 245232 25.23%
2015, to carry out training activities, training support the leadership of the company, the Ministry of human resources
organization, scientific planning, and achieved good results.
This year, the training project 184, 93.78% completed the program, an increase of 12.38%. Participating in the training of
19892 passengers, 101.68% completed the program, down 3.5%. The training of 384 flights, 83.78% completed the
program, an increase of 9.16%. A total of 3222 hours, 70.88% completed the program, an increase of 16.24%.
Occurrence of training costs 1045872 yuan, 37.79% completed the program, an increase of 22.56%.
Key training programs for the year:
1) the quality of management and management to enhance the series of training. Since March this year, the
implementation of the 9 phase, the main topics include: total quality management, supply chain management, lean
production management, integrated product development and management, production and maintenance management,
etc.. Participate in training more than 1800 people, a total of 60 hours, training costs 10 yuan.
2) marketing system to enhance the quality of the series of training. A total of 2 phase, respectively, for the marketing
project management training and bearing manufacturing based knowledge intensive training. Participating in the training
of 82 passengers, a total of 48 hours, the cost of training occurred 25 thousand yuan.
3) school graduate student class project. After years of planning, the implementation of this year, the selection and
admission of outstanding engineering and technical personnel 40 people (33 people, 7 class class mechanical materials)
participating in the training, has completed 240 hours of training.
35
Wa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Repor
4) railway related products manufacturing unit job instruction training. According to the requirements of the Ministry of
railway project, led by the Ministry of human resources and the related production unit plans to take training form, through
a variety of training methods, combined with training records for the team to carry out, as of now, each unit to carry out
training 138 flights, the cumulative 324 class, participating in the training 2308 people (data contains some of its
subsidiaries).
In addition, quality assurance department, overhaul bearing branch, precision bearing branch company, precision rolling
body is divided into companies, auto bearing factory, heat treatment plant and large branch and other units of the second
level training, leadership attention, in various forms, complete materials, training effect is good.
36
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Chapter Ⅷ. Corporate Governance
I. General
During the report period, the Company had continuously observed Company Law, Securities Law, and
Guidelines of Corporate Governance for Listed Company and relevant regulations to improve and
enhance its corporate governance.
1.1 The holding of the shareholders, board of directors and board of supervisors, the voting procedures
and the formation of the resolutions were totally subject to these regulations.
1.2 The Company has made its internal management systems and regulations for restriction of
budgeting, purchasing, logistics and sale, etc, and executed them strictly.
1.3 The company has separated business, personnel, assets, interior organization and finance from its
holding shareholder:
(1) The Company had independent operations itself, with its business separated from its holding
shareholders;
(2)The Company was independent in terms of its personnel, labor and salary management, and had its
own independent labor and personnel management systems. Except the Chairman of Board of Directors
of the parent company Wafangdian Bearing Group Corporation who occupies as the Chairman of the
Company, the General Manager, Deputy-General Managers and the Finance Controller of the Company
were all independent from the controlling shareholder.
(3)The production system, auxiliary production system and supplementary facilities of the Company
were independent from the controlling shareholder.
(4)The Company has separated the accounting from the controlling shareholder. The Company carried
out independent finance and accounting on its own and paid taxes independently.
(5)The Company has established the organizations independent on the holding shareholder
Does there exist any difference in compliance with the corporate governance, the PRC Company Law
and the relevant provisions of CSRC.
Yes √No
II. Independence in Business, Personnel, Assets, Organization, Finance, etc. from the Controlling
Shareholders
The company has separated business, personnel, assets, interior organization and finance from its
holding shareholder with independent operation ability:(1) The Company had independent operations
itself, with its business separated from its holding shareholders;(2)The Company was independent in
terms of its personnel, labor and salary management, and had its own independent labor and personnel
management systems. Except the Chairman of Board of Directors of the parent company Wafangdian
Bearing Group Corporation who occupies as the Chairman of the Company, the General Manager,
Deputy-General Managers and the Finance Controller of the Company were all independent from the
controlling shareholder. (3)The production system, auxiliary production system and supplementary
facilities of the Company were independent from the controlling shareholder. (4)The Company has
separated the accounting from the controlling shareholder. The Company carried out independent
finance and accounting on its own and paid taxes independently. (5)The Company has established the
organizations independent on the holding shareholder.
37
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
III. Horizontal Competitions
Inapplicable
IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Report Period
1. Annual General Meeting in the Report Period
Proportion of
Sessions Meeting Types investors in total Meeting date Disclosure date Disclosure index
participants
2014 Annual Annual General
0.05% 2015.06.18 2015.06.19. http://www.cninfo.com.cn
General Meeting Meeting
Extraordinary
2015 1st Extraordinary
shareholders’ 0.00% 2015.09.16 2015.09.17 http://www.cninfo.com.cn
shareholders’ meeting
meeting
Extraordinary
2015 2nd Extraordinary
shareholders’ 0.00% 2015.11.19 2015.11.20 http://www.cninfo.com.cn
shareholders’ meeting
meeting
2. Request by the Preference Shareholders with the Vote Recovered for an Extraordinary General
Meeting
Inapplicable
V. Duty Performance of Independent Directors in the Reporting Period
1. Attendance of Board Meeting and Shareholders’ Meeting
Attendance of Board Meeting
Non-attendance in
Meetings
Attendance in Attendance by Attendance by Absence person fortwo
Name required to be
person facsimile proxy rate consecutive
present
times
Wu Chunyou 4 3 1 0 0 N
Zhang Li 4 2 1 1 0 N
Wen Bo 2 2 0 0 0 N
Wan Shouyi 2 2 0 0 0 N
Liu Yuping 2 2 0 0 0 N
Sun Guangguo 2 2 0 0 0 N
Number of Shareholders’ Meeting
2
Attended
Notes to Failure to Personally Attend Board Meetings Successively Twice
Inapplicable
2. Objection of independent directors on some relevant issues
Did any of independent directors put forth any objection on some relevant issues
No
3. Other Note to Duty Performance of Independent Directors
Explanation on acceptance of or failure to accept an independent director‘s advice to the
Company
According to the relevant regulations and requirements of Company Law and Guideline on Establishing
Independent Director System in Listed Company, Articles of Association, earnestly fulfilled the
obligations of laws and regulations, articles of
38
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
association and independent director system, actively attended the board meetings and
shareholders‘ general meetings, examined and guided the production and operation of the Company,
proposed independent opinions on significant events, put forward many valuable and expert advices
about internal control and daily operation decisions, fulfilled the duties diligently, faithfully, brought their
roles into full play and effectively safeguarded the interests of listed companies and general
shareholders.IV. Performance of Special Committees under the Board of Directors in the Report Period
VI Duty Performance of Special Committees under the Board of Directors in the Reporting Period
The board of directors of the company under the nomination, remuneration and appraisal, auditing and
strategic committee, the professional committee, according to their respective functions and duties to the
development of the company proposed relevant professional opinions and suggestions, to promote the
normative development of the company. Especially the Board Audit Committee full participation in the
company's annual audit work, including participation in the formulation of the annual audit plan, audit
annual audit report draft and eventually formed the draft. Board of directors of the audit committee of the
company audit reports, periodic reports for special consideration; the board Nomination Committee for
consideration by the company on the election of chairman of the board, board of directors and the
general manager bill, and recommended to the board.
VII. Work Summary of the Supervisory Committee
Did the Supervisory Committee find any risk existing in performing the supervision activities in the
reporting period
No
VIII. Assessment and Incentive Mechanism for Senior Executives
Company implement "releasing" management approach in which base annual salary plus benefit
annual salary for salary of director (not including the independent director), senior management
personnel (including supervisor). The remuneration and appraisal committee carry out comprehensive
evaluation assessment for performance of the board directors and senior management personnel,
determine the assessment principles according to assessment and procedures, carry out individually
score, evaluation, summary for the directors and senior managers. Directors, executive officers personal
advance monthly salary according to the basic salary, cash out after annual appraisal. Company's
performance assessment and incentive mechanism has played a positive role in supervision, spur and
motivate for directors, senior management.
IX. Internal Control
1. No particular case found involving material defects in the internal control during the reporting period
No
2. Self-assessment Report of the Internal Control
Date of disclosing the full text of the
internal control assessment report
2016.04.26
Index of disclosure of the full text of the
internal control assessment report
http：//www.cninfo.com.cn
Proportion of the total assets of the
organizations involved in the
assessment in the total assets of the 96.11%
Company’s consolidated financial
statements
Proportion of the operation revenue of
the entitied involved in the assessment 103.62%
in the total operation revenue of the
39
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Company’s consolidated financial
statements
Criteria for affirming the defects
Categories Financial Report Non-financial Report
1.did not achieve the required control 1.did not achieve the required control
objectives; 2, the implementation of the objectives; 2, the implementation of
provisions of the control activities; 3, the provisions of the control activities;
Qualitative criteria
breaking the provisions of the provisions of 3, breaking the provisions of the
the 4, can not provide timely control of the provisions of the 4, can not provide
relevant evidence.
timely control of the relevant evidence.
1, control the execution frequency of
1, control the execution frequency of daily daily or at any time, the amount of test
or at any time, the amount of test samples samples shall not be less than 24, if
shall not be less than 24, if there are 4 or there are 4 or more samples of the
more samples of the problem, the need to problem, the need to add a test of 24
add a test of 24 samples. 2, control samples. 2, control execution
execution frequency occurs once a month, frequency occurs once a month, the
the amount of test samples shall not be amount of test samples shall not be
less than 4, if there are 1 or more samples less than 4, if there are 1 or more
Quantitative criterion
of the problem, the need to add a test of 4 samples of the problem, the need to
samples. 3, control the implementation of add a test of 4 samples. 3, control the
the frequency of the occurrence of each implementation of the frequency of the
quarter, the amount of test samples shall occurrence of each quarter, the
not be less than 1, if there is a problem, the amount of test samples shall not be
other three samples should be tested. 4, less than 1, if there is a problem, the
the test sample is still a problem, should be other three samples should be tested.
identified as the defect 4, the test sample is still a problem,
should be identified as the defect
Number of material defects in the financial
statements
0
Number of material defects in the
non-financial statements
0
Number of important defects in the financial
report
0
Number of important defects in the
non-financial report
0
X. Internal Control Audit Report
Review Opinions in the Internal Control Audit Report
It is our opinion that,as of December 31,2015,the headquarter of Wafangdian Bearing Co., ltd .has
maintained efficiency of internal control on financial statements in every material aspect.
Disclosure of the internal control audit report Disclosure
Disclosure Date of Internal Control Audit
2016.04.26
Report
Disclosure Index of Internal Control Audit
http://www.cninfo.com.cn
Report
Type of the onions in the internal control audit report control audit report Standard unqualified auditor’s report
Are there any material defects in the non-financial
report
No
Has the CPAs issued a qualified auditor’s report of internal control.
No
Does the internal control audit report issued by the CPAs agree with the self-assessment report
of the Board of Directors
Yes
ChapterⅩ. Financial Report (Attachment)
40
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
I.Audit Report
Opinion Type of Audit Report Standard unqualified audit opinion
Date of Audit Report April22,2016
ShineWing Certified Public Accountants Dalian
Name of Audit Organization
Branch
No. of Audit Report XYZH/2016DLA10283
Name of the auditor Wang Yang Wang Dong
To the Shareholders of Wa Fang Dian Bearing Company Limited
We have audited the accompanying financial statements of Wa Fang Dian Bearing Company Limited (“the Company”), which comprises the
consolidated and parent company balance sheet as at 31 December. 2015, the consolidated and parent company income statement for the year of
2015, the consolidated and parent company cash flow statement for the year 2015, and the statement of changes in shareholders’ equity and
parent company for the year then ended, as well as notes to the financial statements.
Management's Responsibility for the Financial Statements
The Company’s management is responsible for the preparation and fair presentation of these financial statements. This responsibility includes: (1)
preparing these financial statements in accordance with Accounting Standards for Business Enterprises issued by the Ministry of Finance of the
People‘s Republic of China, and fairly presenting them; (2) designing, implementing and maintaining internal control which is necessary to enable
that the financial statements are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with China
Standards on Auditing for Certified Public Accountants. Those standards require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due
to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of
the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements comply with the requirements of the Accounting Standards for Business Enterprises issued by the Ministry
of Finance of the People’s Republic of China and present fairly, in all material respects, the financial position of the consolidated and parent
company of the Company as at 31 December 2015, and financial performance and cash flows of the consolidated and parent company of the
Company for the year then ended.
II. Financial Statement
1. Consolidated Balance Sheet.
41
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Unit: RMB Yuan
Item Opening Balance Closing Balance
Current assets ：
Monetary fund 116,316,020.57 180,569,164.66
Financial assets held-for-trading
Bills receivable 100,506,003.70 188,117,975.71
Account receivable 993,933,326.37 1,098,566,178.20
Account paid in advance 32,673,623.77 44,031,201.66
Interest receivable
Dividend reciivable 240,000.00 240,000.00
Other receivables 21,462,837.65 19,211,927.22
Inventory 1,075,275,456.02 1,166,347,866.35
Non-current assets due within 1 year
Other current assets 8,973,032.78 24,534,185.32
Total current assets 2,349,380,300.86 2,721,618,499.12
Non-current assets
Financial assets available-for-sale 2,000,000.00 2,000,000.00
Investments held-to-maturity
Long-term receivable
Long-term equity investment
Investment property
Fixed assets 695,125,451.81 695,819,839.43
Construction in progress 329,632,219.42 363,404,435.51
Construction materials
Fixed assets disposal
Biological assets
Gas and petrol assets
Intangible assets 135,366,608.09 140,355,336.13
Development expenditure
Goodwill
Long-term prepaid expense 611,356.03 767,854.39
Deferred tax assets 11,853,267.27 11,853,267.27
Other non-current assets
Total non-current assets 1,174,588,902.62 1,214,200,732.73
Total assets 3,523,969,203.48 3,935,819,231.85
Current liabilities
Short-term loan 385,000,000.00 498,000,000.00
Note payable 327,466,550.20 206,867,023.86
Accounts payable 973,485,937.22 1,388,424,650.70
Accounts received in advance 44,835,510.10 48,558,339.92
Commission charge payable
Accrued payroll 19,440,701.80 20,275,364.44
Tax payable 6,074,347.23 3,676,987.88
Interest payable 1,400,000.00 5,942,500.00
42
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Dividends payable
Other payables 133,832,447.67 183,285,758.81
Non-current liabilities due within I year 50,000,000.00 90,000,000.00
Other current liabilities 4,411,103.83 4,761,103.83
Total current liabilities 1,945,946,598.05 2,449,791,729.44
Non-current liabilities
Long-term loan 180,000,000.00 50,000,000.00
Debenture payable
Long-term payables 1,597,305.72 1,597,305.72
Special payables 321,698.98 321,698.98
Contingent liabilities
Deferred income 46,650,196.82 51,122,513.64
Deferred tax liabilities 988,428.58 1,140,995.35
Other non-current liabilities
Total non-current liabilities 229,557,630.10 104,182,513.69
Total liabilities 2,175,504,228.15 2,553,974,243.13
Owner’s equity (shareholders’ equity)
Capital stock 402,600,000.00 402,600,000.00
Capital public reserves 485,691,050.47 485,691,050.47
Less: treasury share
Surplus reserve 131,442,909.11 131,442,909.11
Undistributed profit 328,731,015.75 362,111,029.14
Difference of foreign currency translation
Equity attributable to parent company 1,348,464,975.33 1,381,844,988.72
Minority interest
Total owner’s equity 1,348,464,975.33 1,381,844,988.72
Total owner’s equity and liabilities 3,523,969,203.48 3,935,819,231.85
Chairman: Meng Wei General Accountant : Sun Najuan Accounting charger: Yao Chunjuan
2. Balance Sheet Of Parent Company
Unit: RMB Yuan
Item Opening Balance Closing Balance
Current assets ：
Monetary fund 108,582,231.28 172,688,792.14
Financial assets held-for-trading
Bills receivable 89,099,697.82 181,824,053.86
Account receivable 1,020,633,783.54 1,106,322,532.09
Account paid in advance 23,489,543.17 40,549,347.10
Interest receivable
Dividend receivable 240,000.00 240,000.00
Other receivables 19,679,695.34 15,661,424.30
Inventory 998,035,803.15 1,079,876,029.63
Non-current assets due within 1 year
43
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Other current assets 4,828,826.85 15,143,422.57
Total current assets 2,264,589,581.15 2,612,305,601.69
Non-current assets
Financial assets available-for-sale 2,000,000.00 2,000,000.00
Investments held-to-maturity
Long-term receivable
Long-term equity investment 211,583,897.67 211,583,897.67
Investment property
Fixed assets 577,635,433.51 565,949,871.82
Construction in progress 204,617,819.76 243,881,508.42
Construction materials
Fixed assets disposal
Biological assets 115,105,064.38 119,333,165.54
Gas and petrol assets
Intangible assets
Development expenditure
Goodwill
Long-term prepaid expense 611,356.03 767,854.39
Deferred tax assets 10,580,100.02 10,580,100.02
Other non-current assets
Total non-current assets 1,122,133,671.37 1,154,096,397.86
Total assets 3,386,723,252.52 3,766,401,999.55
Current liabilities
Short-term loan 385,000,000.00 498,000,000.00
Note payable 327,466,550.20 206,867,023.86
Accounts payable 882,281,596.61 1,296,111,095.77
Accounts received in advance 44,003,546.25 48,868,818.23
Commission charge payable
Accrued payroll 11,902,749.05 12,247,600.92
Tax payable 3,381,449.54 1,092,872.50
Interest payable 1,400,000.00 5,942,500.00
Dividends payable
Other payables 94,547,419.88 135,496,360.01
Non-current liabilities due within I year 50,000,000.00 90,000,000.00
Other current liabilities 4,313,555.83 4,313,555.83
Total current liabilities 1,804,296,867.36 2,298,939,827.12
Non-current liabilities
Long-term loan 180,000,000.00 50,000,000.00
Debenture payable
Long-term payables
Special payables 321,698.98 321,698.98
Contingent liabilities
Deferred income 42,260,536.82 46,635,305.64
Deferred tax liabilities
44
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Other non-current liabilities
Total non-current liabilities 222,582,235.80 96,957,004.62
Total liabilities 2,026,879,103.16 2,395,896,831.74
Owner’s equity (shareholders’ equity)
Capital stock 402,600,000.00 402,600,000.00
Capital public reserves 485,678,443.26 485,678,443.26
Less: treasury share
Surplus reserve 131,442,909.11 131,442,909.11
Undistributed profit 340,122,796.99 350,783,815.44
Minority interest
Total owner’s equity 1,359,844,149.36 1,370,505,167.81
Total owner’s equity and liabilities 3,386,723,252.52 3,766,401,999.55
3. Consolidated Income Sheet.
Unit: RMB Yuan
Account for the current
Item Account for the prior period
period
1.Total operating income 2,300,161,296.48 3,007,578,581.96
Including: Operating revenue 2,300,161,296.48 3,007,578,581.96
Interest income
Handling charge and commission income
2.Total operating cost 2,373,202,699.87 3,217,206,301.07
Including: Operating cost 2,079,477,107.20 2,767,677,749.55
Interest expenses
Handling charge and commission income
Tax & surcharges for main operations 11,714,812.14 10,940,274.47
Selling expenses 190,816,461.26 265,596,410.65
Administrative expense 78,658,955.34 74,513,227.16
Financial expense 30,608,445.51 38,439,180.50
Loss of impairment of assets -18,073,081.58 60,039,458.74
Add: Gains of change of fair value of assets(loss
with"-")
Investment income(loss with "-") 240,000.00 18,000,875.28
Including: Income form investment on associated
4,033,452.23
enterprise and jointly enterprise
3.Operating profit (loss with"-") -72,801,403.39 -191,626,843.83
Add: Non-operating revenue 41,178,270.67 91,358,055.61
Including:income on disposal of non-current assets 1,883,903.96 6,010,809.66
Less: Non-operating cost 1,177,612.68 2,392,930.13
Including: loss on disposal of non-current assets 584,454.86 567,566.60
4.Total profit(loss with"-") -32,800,745.40 -102,661,718.35
Less: Income tax expenses 579,267.99 1,241,230.54
5. Net profit(Loss with"-") -33,380,013.39 -103,902,948.89
Net profit attributable to shareholders of parent -33,380,013.39 -103,902,948.89
45
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
company
Minority interests
6. Other comprehensive income net off tax
Total comprehensive income net off tax attributable
to parent Company
(Ⅰ)Items that may not be reclassified
subsequently to the income statement
1.Change in net asset/liability from
remeasurment on defined benefit plan
2.Under equity method, proportionate share of
other comprehensive income in invested company
that may not be reclassified subsequently to the
income statement
(Ⅱ)Items that may be reclassified
subsequently to the income statement
1.Under equity method, proportionate share of
other comprehensive income invested company
that may be reclassified subsequently to the
income statement
2.Avaliable-for-sale financial assets fair value
movements
3.Profit/loss on reclassification from held to
maturities to avaliable-for-sale financial assets
4.Cash flow hedges effective portion
5.Foreign currency translation difference
6. Others
Total comprehensive income net off tax
attributable to minority shareholders of the
Company
7. Total comprehensive returns -33,380,013.39 -103,902,948.89
Total comprehensive returns available for parent
-33,380,013.39 -103,902,948.89
company
Total comprehensive returns available for minority
shareholders
8.Earnings per share
(1) Basic earnings per share -0.08 -0.26
(2) Diluted earnings per share -0.08 -0.26
Chairman: Meng Wei General Accountant : Sun Najuan Accounting charger: Yao Chunjuan
4. Income Sheet of Parent Company.
Unit: RMB Yuan
Account for the current
Item Account for the prior period
period
1.Total operating income 2,383,441,306.57 3,016,213,397.36
Less:Total operating cost 2,172,269,169.48 2,782,355,510.47
Tax & surcharges for main operations 10,611,641.46 9,602,213.99
Selling expenses 189,042,638.80 264,096,907.08
46
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Administrative expense 51,821,775.82 54,324,825.53
Financial expense 30,675,083.33 38,393,084.36
Loss of impairment of assets -24,584,079.09 58,109,808.03
Add: Gains of change of fair value of assets(loss
with"-")
Investment income(loss with "-") 240,000.00 4,273,452.23
Including: Income form investment on
4,033,452.23
associated enterprise and jointly enterprise
2Operating profit (loss with"-") -46,154,923.23 -186,395,499.87
Add: Non-operating revenue 36,264,354.83 13,473,027.32
Including: income on disposal of non-current
1,242,069.04 5,960,935.77
assets
Less: Non-operating cost 770,450.05 2,381,555.82
Including: loss on disposal of non-current assets 330,571.58 566,441.54
3Total profit(loss with"-") -10,661,018.45 -175,304,028.37
Less: Income tax expenses 182,783.63
4 Net profit(Loss with"-") -10,661,018.45 -175,486,812.00
Minority interests
5 Other comprehensive income net off tax
(Ⅰ)Items that may not be reclassified
subsequently to the income statement
1.Change in net asset/liability from
remeasurment on defined benefit plan
2.Under equity method, proportionate
share of other comprehensive income in
invested company that may not be reclassified
subsequently to the income statement
(Ⅱ)Items that may be reclassified
subsequently to the income statement
1.Under equity method, proportionate
share of other comprehensive income
invested company that may be reclassified
subsequently to the income statement
2.Avaliable-for-sale financial assets fair
value movements
3.Profit/loss on reclassification from held
to maturities to avaliable-for-sale financial
assets
4.Cash flow hedges effective portion
5.Foreign currency translation difference
6. Others
6 Total comprehensive returns -10,661,018.45 -175,486,812.00
7Earnings per share
(1) Basic earnings per share -0.03 -0.44
(2) Diluted earnings per share -0.03 -0.44
5. Consolidated Cash Flow Statement.
47
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Unit: RMB yuan
Account for the current
Item Account for the prior period
period
1.Cash from operating activities
Cash received from sale of goods or rendering of
1,146,160,118.07 2,071,363,724.80
services
Refund of taxes and fares 225.32
Other cash received relating to operating
3,792,571.59 14,344,213.64
activities
Sub-total of cash inflows 1,149,952,689.66 2,085,708,163.76
Cash paid for goods and services 664,895,080.25 1,444,735,484.94
Cash paid to or on behalf of the employees 331,301,935.25 323,276,555.48
Tax payments 49,499,024.78 67,826,519.88
Other cash paid relating to operating activities 155,784,677.59 179,397,436.60
Sub-total of cash outflows 1,201,480,717.87 2,015,235,996.90
Net cash flows from operating activities -51,528,028.21 70,472,166.86
2.Cash flows from investing activities
Cash received from return of investment
Cash received from investment incomes 240,000.00 240,000.00
Net cash received from disposal of fixed assets,
64,000.00 33,571.20
intangible assets and other long-term assets
Proceeds from sale of subsidiaries and other
operating units
Other cash received relating to investing
322,269.90
activities
Sub-total of cash inflows 304,000.00 595,841.10
Cash paid to acquire fixed assets, intangible
13,513,544.26 45,877,148.24
assets and other long-term assets
Cash paid to acquire investment 11,250,000.00 33,750,000.00
Net cash used in acquiring subsidiaries and other
operating units
Other cash paid relating to investing activities
Sub-total of cash outflows 24,763,544.26 79,627,148.24
Net cash flows from investment activities -24,459,544.26 -79,031,307.14
3.Cash flows from financing activities
Cash received from absorbing investment
Including: Cash received from increase in
minority interest
Proceeds from borrowings 635,000,000.00 646,000,000.00
Other proceeds relating to financing activities 609,225,082.23 302,053,500.00
Sub-total of cash inflows 1,244,225,082.23 948,053,500.00
Repayment of borrowings 658,000,000.00 666,000,000.00
Distribution of dividends or profits & interest
40,811,195.94 42,288,245.08
expenses
Including: dividends or profit paid to minority
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
interest
Cash paid for other financing activities 536,567,850.00 150,000,000.00
Sub-total of cash outflows 1,235,379,045.94 858,288,245.08
Net cash flows from financing activities 8,846,036.29 89,765,254.92
4. Effects of foreign exchange rate changes
2,298,402.08 1,576,290.89
on cash
5.Net increases in cash and cash equivalents -64,843,134.10 82,782,405.53
Add: cash and cash equivalent, at the beginning
143,399,164.66 60,616,759.13
of year
6.Cash and cash equivalent at the end of the
78,556,030.56 143,399,164.66
year
6. Cash Flow Statement Of Parent Company.
Unit: RMB yuan
Account for the current
Item Account for the prior period
period
1.Cash from operating activities
Cash received from sale of goods or rendering of
1,136,286,551.83 2,041,670,619.37
services
Refund of taxes and fares
Other cash received relating to operating activities 3,320,910.44 10,677,200.05
Sub-total of cash inflows 1,139,607,462.27 2,052,348,044.74
Cash paid for goods and services 755,866,794.52 1,490,403,930.46
Cash paid to or on behalf of the employees 258,966,526.92 274,677,523.75
Tax payments 37,102,310.53 54,033,044.11
Other cash paid relating to operating activities 145,321,650.56 167,476,922.68
Sub-total of cash outflows 1,197,257,282.53 1,986,591,421.00
Net cash flows from operating activities -57,649,820.26 65,756,623.74
2.Cash flows from investing activities
Cash received from return of investment 240,000.00 240,000.00
Cash received from investment incomes
Net cash received from disposal of fixed assets,
33,571.20
intangible assets and other long-term assets
Proceeds from sale of subsidiaries and other
operating units
Other cash received relating to investing activities
Sub-total of cash inflows 240,000.00 273,571.20
Cash paid to acquire fixed assets, intangible
7,181,783.21 44,719,832.20
assets and other long-term assets
Cash paid to acquire investment 11,250,000.00 33,750,000.00
Net cash used in acquiring subsidiaries and other
operating units
Other cash paid relating to investing activities
Sub-total of cash outflows 18,431,783.21 78,469,832.20
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Net cash flows from investment activities -18,191,783.21 -78,196,261.00
3.Cash flows from financing activities
Cash received from absorbing investment
Including: Cash received from increase in minority
interest
Proceeds from borrowings 635,000,000.00 646,000,000.00
Other proceeds relating to financing activities 635,000,000.00 646,000,000.00
Sub-total of cash inflows 635,000,000.00 646,000,000.00
Repayment of borrowings 658,000,000.00 666,000,000.00
Distribution of dividends or profits & interest
40,810,581.71 42,150,238.23
expenses
Cash paid for other financing activities 536,567,850.00 150,000,000.00
Sub-total of cash outflows 1,235,378,431.71 858,150,238.23
Net cash flows from financing activities 8,846,650.52 89,903,261.77
4. Effects of foreign exchange rate changes on
2,298,402.08 1,576,290.89
cash
5.Net increases in cash and cash equivalents -64,696,550.87 79,039,915.40
Add: cash and cash equivalent, at the
135,518,792.14 56,478,876.74
beginning of year
6.Cash and cash equivalent at the end of the
70,822,241.27 135,518,792.14
year
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
7. Consolidated Sheet Of Changes In Shareholder’s Equity
Unit: RMB yuan
Amount in current period
Owner’s equity attributable to parent company
Minority
Item less： General
Capital public Surplus public Undistributed shareholders’ Owner’s equity
Capital stock treasure provision for Others
reserves reserves profits equity
stock risk
1.Balance at the end of last 402,600,000. 485,691,050.4
131,442,909.11 362,111,029.14 1,381,844,988.7
year 00 7
Add: changes in
accounting policies
Changes in previous
errors
Others
2.Balance at the beginning 402,600,000. 485,691,050.4
131,442,909.11 362,111,029.14 1,381,844,988.72
of this year 00 7
3. The changes in this year
-33,380,013.39 -33,380,013.39
（decrease with“-”）
（1）Total of
-33,380,013.39 -33,380,013.39
comprehensive income
（2）Capital contribution
and reduction
1）Ordinary share
2）Capital contributed by
other equity instrument
holders
3）Share-based payments
charged to equity
4）Others
(4）Profits distribution
1)Provision for surplus
public reserves
2)provision for general
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
risks
3)distribution for
owner(shareholders)
4)others
(5）interior transference of
owner’s equity
1)capital (capital
stock)transferred by the
capital public reserves
2)capital (capital
stock)transferred by the
surplus public reserves
3)loss offset by the surplus
public reserves
4)others
4. Balance at the end of 402,600,000. 485,691,050.4
131,442,909.11 328,731,015.75 1,348,464,975.33
the current period 00 7
Unit: RMB yuan
Amount in previous period
Owner’s equity attributable to parent company Owner’s equity
Minority
less： General
Item Capital Capital public Surplus public shareholders’
treasure provision for Undistributed profits Others
stock reserves reserves equity
stock risk
1.Balance at the end of last 402,600, 1,504,966,435.5
488,805,548.36 131,442,909.11 482,117,978.03
year 000.00 0
Add: changes in
accounting policies
Changes in previous
errors
Others
2.Balance at the beginning 402,600, 1,504,966,435.5
488,805,548.36 131,442,909.11 482,117,978.03
of this year 000.00 0
3. The changes in this year -3,114,497.89 -120,006,948.89 -123,121,446.78
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
（decrease with“-”）
（1）Total of
-3,114,497.89 -103,902,948.89 -107,017,446.78
comprehensive income
（2）Capital contribution
and reduction
1）Ordinary share
2）Capital contributed by
other equity instrument
holders
3）Share-based payments
charged to equity
4）Others
(4）Profits distribution -16,104,000.00 -16,104,000.00
1)Provision for surplus
public reserves
2)provision for general
risks
3)distribution for
-16,104,000.00 -16,104,000.00
owner(shareholders)
4)others
(5）interior transference of
owner’s equity
1)capital (capital
stock)transferred by the
capital public reserves
2)capital (capital
stock)transferred by the
surplus public reserves
3)loss offset by the surplus
public reserves
4)others
4. Balance at the end of 402,600, 1,381,844,988.7
485,691,050.47 131,442,909.11 362,111,029.14
the current period 000.00 2
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
8. Sheet Of Changes In Shareholder’s Equity Of Parent Compamy.
Unit: RMB yuan
Amount in current period
Owner’s equity attributable to parent company
Item
less：treasure Surplus public General provision for Owner’s equity
Capital stock Capital public reserves Undistributed profits
stock reserves risk
1.Balance at the end of last year 402,600,000.00 485,678,443.26 131,442,909.11 350,783,815.44 1,370,505,167.81
Add: changes in accounting policies
Changes in previous errors
Others
2.Balance at the beginning of this year 402,600,000.00 485,678,443.26 131,442,909.11 350,783,815.44 1,370,505,167.81
3. The changes in this year（decrease with“-”） -10,661,018.45 -10,661,018.45
（1）Total of comprehensive income -10,661,018.45 -10,661,018.45
（2）Capital contribution and reduction
1）Ordinary share
2）Capital contributed by other equity
instrument holders
3）Share-based payments charged to equity
4）Others
(4）Profits distribution
1)Provision for surplus public reserves
2)provision for general risks
3)distribution for owner(shareholders)
4)others
(5）interior transference of owner’s equity
1)capital (capital stock)transferred by the
capital public reserves
2)capital (capital stock)transferred by the
surplus public reserves
3)loss offset by the surplus public reserves
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
4)others
4. Balance at the end of the current period 402,600,000.00 485,678,443.26 131,442,909.11 340,122,796.99 1,359,844,149.36
Amount in previous period
Item Owner’s equity attributable to parent company
Owner’s equity
Capital public less： Surplus public
Capital stock Undistributed profits
reserves treasure stock reserves
1.Balance at the end of last year 402,600,000.00 485,678,443.26 131,442,909.11 542,374,627.44 1,562,095,979.81
Add: changes in accounting policies
Changes in previous errors
Others
2.Balance at the beginning of this year 402,600,000.00 485,678,443.26 131,442,909.11 542,374,627.44 1,562,095,979.81
3. The changes in this year（decrease with“-”） -191,590,812.00 -191,590,812.00
（1）Total of comprehensive income -175,486,812.00 -175,486,812.00
（2）Capital contribution and reduction
1）Ordinary share
2）Capital contributed by other equity instrument holders
3）Share-based payments charged to equity
4）Others
(4）Profits distribution -16,104,000.00 -16,104,000.00
1)Provision for surplus public reserves
2)provision for general risks
3)distribution for owner(shareholders) -16,104,000.00 -16,104,000.00
4)others
(5）interior transference of owner’s equity
1)capital (capital stock)transferred by the capital public
reserves
2)capital (capital stock)transferred by the surplus public
reserves
3)loss offset by the surplus public reserves
4)others
4. Balance at the end of the current period 402,600,000.00 485,678,443.26 131,442,909.11 350,783,815.44 1,370,505,167.81
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
II. General Information
Wafangdian Bearing Company Limited (the “Company”) is a joint stock limited company
established in the People’s Republic of China (the “PRC”) on 16 July, 1997. In the opinion of
the directors, its parent and ultimate holding company is Wafangdian Bearing Group
Company Limited (“Wazhou Group”).
The Company’s B shares have been listed on the Shenzhen Stock Exchange since 19February,
1997.
The parent company is Wazhou Group. General shareholders meeting is the company’s
authority and have the resolution power over company’s business policy, financing,
investment and profit appropriation etc.significant events in accordance with relevant law.
Board of directors is responsible for general meeting and has the power over the company’s
decision making. Management is in charge of implementation of resolution made by general
meeting and board meeting and is responsible for operation management. The company has
the following functional departments including: procurement department, portfolio
investment department, operating department, HR, marketing department, manufacturing and
construction department, quality control department, financial department and logistic
department. Wholly owned subsidiaries include Wazhou Liaoyang Bearing Manufacturing
Co., Ltd(“Liaoyang Bearing”), Dalian Wazhou Precision Electric Motor Car Bearing
(“DalianElectrical Motor”),and Wazhou Precision of Spherical Roller
Bearings(Wafangdian)Co., Ltd(“Spherical Bearings”).
The addresses of the registered office and principal place of business of the Company are
No.1, Phrase 1, Gongji Street, Wafangdian North, Liaoning Province, and the PRC.Legal
representative is Meng Wei.
The Company is principally engaged in the manufacturing and sale of bearing, bearing spare
parts, engineering equipment, automobile spare parts and relating products, bearing repair,
maintenance and technology service etc and also in renting mechanical equipment and estate,
inspection of bearings, mechanical equipment, measuring instruments and meters.
III.Financial Statement Consolidation Scope
The Group’s financial statements consolidation includes Liaoyang Bearing, Dalian Wazhou
Precision Motor Car Bearing Company and Spherical Bearing three companies. There is no
change for consolidation scope by comparing to last year.
See the Note VII, ‘change in consolidation scope’ and Note VIII, ‘interest in other entities’ for
details.
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
IV. Financial Statements Preparation Basis
The Company’s financial statements are prepared on the basis of going concern assumption,
according to the actual occurred transactions and events and in accordance with ‘Accounting
Standards for Business Enterprises’ and relevant regulations, and also based on the note IV
“Significant Accounting Policies, Accounting Estimates”.
V. Significant Accounting Policies and Accounting Estimates
1. Declaration for compliance with accounting standards for business enterprises
The financial statements are prepared by the Group according to the requirements of
Accounting Standard for Business Enterprise, and reflect the relative information for the
financial position, operating performance, cash flow of the Group truly and fully.
2. Accounting period
The Group adopts the Gregorian calendar year as accounting period, i.e. from Jan 1 to Dec
31.
3.Operating cycle
Normal operating cycle refers to the duration starting from purchasing the assets for
manufactuing up to cash or cash equivelant realisation. The group sets twelve months for
one operating cycle and as the liquidity criterion for assets and liability.
4. Funcitonal currency
The Group adopts RMB as functional currency.
5. Accounting for business combination under same control and not under same control
As an acquirer, the assets and liabilities that The Group obtained in a business combination
under the same control should be measured on the basis of their carrying amount in the
consolidated financial statements on the combining date. As for the balance between the
carrying amount of the net assets obtained by the combining party and the carrying amount of
the consideration paid by it, the capital surplus shall be adjusted. If the capital surplus is not
sufficient to be offset, the retained earnings shall be adjusted.
For a business combination not under same control, the asset, liability and contingent liability
obtained from the acquirer shall be measured at the fair value on the acquisition date. The
combination cost shall be the fair value, on the acquisition date, of the assets paid, the
liabilities incurred or assumed and equity securities issued by the acquirer in exchange for the
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
control of the acquire, and sum of all direct expenses(if the combination is achieved in stages,
the combination cost shall be the sum of individual transaction). The difference when
combination cost exceeds proportionate share of the fair value of identifiable net assets of
acquiree should be recognized as goodwill. If the combination cost is less than proportionate
share of the fair value of identifiable net assets of acquiree, firstly, fair value of identifiable
asset, liability or contingent liability shall be reviewed, and so the fair value of non-monetary
assets or equity instruments issued in the combination consideration , after review, still the
combination cost is less than proportionate share of the fair value of identifiable net assets of
acquire, the difference should be recognized as non-operating income.
6. Method of preparation of consolidated financial statements
All subsidiaries controlled by the Group and structured entities are within the consolidation
scope.
If subsidiaries adopt different accounting policy or have different accounting period from the
parent company, appropriated adjustments shall be made in accordance with the Group policy
in preparation of the consolidated financial statements.
All significant intragroup transactions, outstanding balances and unrealized profit shall be
eliminated in full when preparing the consolidated financial statements. Portion of the
subsidiary’s equity not belonging to the parent, profit, loss for the current period, portion of
other comprehensive income and total comprehensive belonging to minority interest, shall
be presented separately in the consolidated financial statements under “minority interest of
equity”, ”minority interest of profit and loss”, “other comprehensive income attributed to
minority interest” and “total comprehensive income attributed to minority interest” title.
If a subsidiary is acquired under common control, its operation results and cash flow shall be
consolidated since the beginning of the consolidation period. When preparing the comparative
consolidated financial statements, adjustments shall be made to relevant items of comparative
figures as regarded that reporting entity established through consolidation has been always
there since the point when the ultimate controlling party starts to have the control.
If a business consolidation under common control is finally achieved in stages, consolidation
accounting method shall be disclosed additionally for the period in which the control is
obtained. For example, if a business consolidation under common control is finally achieved
in stages, when preparing the consolidated financial statements, adjustments shall be made for
the current consolidation status as if consolidation has always been there since the point when
the ultimate controlling party starts to control. In preparation of comparative figures, asset
and liability of the acquiree shall be consolidated into the Group’s comparative financial
statements, but to the extent no earlier than the point when the Group and acquiree are both
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
under ultimate control and relevant items under equity in comparative financial statements
shall be adjusted for net asset increased in combination. To avoid the duplicated computation
of net asset of acquiree, for long-term equity investment held by the Group before the
consolidation, relevant profit and loss, other comprehensive income and movement in other
net asset, recognized for the period between the combination date and later date when original
shareholding is obtained and when the Group and the acquiree are under common control of
same ultimate controlling party, shall be respectively used for writing down the opening
balance of retained earnings of comparative financial statements and profit and loss for the
current period.
If a subsidiary is acquired not under common control, its operation results and cash flow shall
be consolidated since the beginning of the consolidation period. In preparation of the
consolidated financial statements, adjustments shall be made to subsidiary’s financial
statements based on the fair value of its all identifiable assets, liability or contingent liability
on the acquisition date.
If a business consolidation under non-common control is finally achieved in stages,
consolidation accounting method shall be disclosed additionally for the period in which the
control is obtained. For example, if a business consolidation not under common control is
finally achieved in stages, when preparing the consolidated financial statements, the acquirer
shall remeasure its previously held equity interest in the acquiree at its acquisition-date fair
value and recognize the resulting gain or loss as investment income for the current period.
Other comprehensive income, under equity method accounting rising from the interest held in
acquiree in relation to the period before the acquisition, and changes in the value of its other
equity other than net profit or loss, other comprehensive income and profit appropriation shall
be transferred to investment gain or loss for the period in which the acquisition incurs,
excluding the other comprehensive income from the movement on the remeasurement of ne
asset or liability of defined benefit plan.
When the Group partially disposes of the long –term equity investment in subsidiary without
losing the control over it, in the consolidated financial statements, the difference, between
disposals price and respective disposed value of share of net assets in the subsidiary since the
acquisition date or combination date, shall be adjusted for capital surplus or share premium,
no enough capital surplus, then adjusted for retained earnings.
When the Group partially disposes of the long –term equity investment in subsidiary and lose
the control over it, in preparation of consolidated financial statements, remaining share of
interest in the subsidiary shall be remeasured on the date of losing control. Sum of the share
disposal consideration and fair value of remaining portion of shareholding minus the share of
the net assets in the subsidiary held based on the previous shareholding percentage since the
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
acquisition date or combination date, the balance of above is recognized as investment
gain/loss for the period and goodwill shall be written off accordingly. Other comprehensive
income relevant to share investment in subsidiary shall be transferred to investment gain /loss
for the period on the date of losing control.
When the Group partially disposes of the long –term equity investment in subsidiary and lose
the control over it by stages, if all disposing transactions are bundled, each individual
transaction shall be seen as a transaction of disposal of a subsidiary by losing control. The
difference between the disposal price and the share of the net assets in the subsidiary held
before the date of losing control, shall be recognize as other comprehensive income until the
date of losing control where it is transferred into investment gain/ loss for the current period.
7. Joint arrangement classification and joint operation accounting
The Group’s joint arrangement includes joint operation and joint venture. For joint operation,
the Group as a joint operator shall recognize its own assets and its share of any assets held
jointly, its liabilities and its share of any liabilities incurred jointly, its revenue from the sale
of its share of the output arising from the joint operation, its share of the revenue from the
sale of the output by the joint operation; and its expenses, including its share of any expenses
incurred jointly. When an entity enters into a transaction with a joint operation in which it is a
joint operator, such as a sale or contribution of assets, it is conducting the transaction with the
other parties to the joint operation and, as such, the joint operator shall recognize gains and
losses resulting from such a transaction only to the extent of the other parties’ interests in the
joint operation.
8. Cash and cash equivalent
The cash listed on the cash flow statements of the Group refers to cash on hand and bank
deposit. The cash equivalents refer to short-term (normally with original maturities of three
months or less) and liquid investments which are readily convertible to known amounts of
cash and subject to an insignificant risk of changes in value.
9. Translation of foreign currency
(1) Foreign currency transaction
Foreign currency transactions are translated at the spot exchange rate issued by People’s Bank
of China (“PBOC”) when the transaction incurs. Monetary assets and liabilities in foreign
currencies are translated into RMB at the exchange rate prevailing at the balance sheet day.
Exchange differences arising from the settlement of monetary items are charged as in profit or
loss for the period. Exchange differences of specific borrowings related to the acquisition or
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
construction of a fixed asset should be capitalized as occurred, before the relevant fixed asset
being acquired or constructed is ready for its intended uses.
(2) Translation of foreign currency financial statements
The asset and liability items in the foreign currency balance sheet should be translated at a
spot exchange rate at the balance sheet date. Among the ower’s equity items except
“undistributed profit”, others should be translated at the spot exchange rate when they are
incurred. The income and expense should be translated at spot exchange rate when the
transaction incurs. Translation difference of foreign currency financial statements should be
presented separately under the other comprehensive income title. Foreign currency cash flows
are translated at the spot exchange rate on the day when the cash flows incur. The amounts
resulted from change of exchange rate are presented separately in the cash flow statement.
10. Financial assets and financial liabilities
A financial asset or liability shall be recognised when the entity becomes a party to the
contractual provisions of a financial instrument.
(1) Financial assets
1)Classification, recognition and measurement
The Group classifies its financial assets in the following categories: at fair value through
profit or loss, loans and receivables, held-to-maturity financial assets and available-for-sale.
The classification depends on the purpose for which the financial assets were acquired.
Management determines the classification of its financial assets at initial recognition.
Receivables are non-derivative financial assets with fixed or determinable payments that are
not quoted in an active market. Receivables are subsequently measured at amortised cost
using the effective interest method.The amortisation, impairment and any gain or loss from
derecognition shall be recognized in the profit and loss for the current year.
Available-for-sale financial assets are non-derivative financial assets that are either
designated in this category or not classified as financial assets of any other class at initial
recognition. This category includes the derivative financial assets that linked to the
investments in equity instruments without a quoted price in an active market, no fair value
can be reliably measured and must be settled by delivery of such an equity instrument, and
shall be measured at cost subsequently. Others have a quoted price in an active market or fair
value can be measured reliably although no quoted price available, they shall be measured at
fair value. Any change on fair value shall be recognized in other comprehensive income and
subsequently be measured at fair value. Except impairment loss and exchange gain or loss
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
arising from foreign currency monetary financial assets, changes in fair value of
available-for-sale financial assets are directly recorded in shareholders’ equity until such
financial assets is derecognized and the accumulated fair value adjustments previously
recorded in equity are charged to profit or loss for the period. Interests for the period in
which the assets are held as investment in debt instrument is calculated using the effective
interest method and is charged to profit or loss for the period as ‘Investment income’. Cash
dividends declared by the investee company relating to available-for-sale equity instruments
are charged to profit or loss for the period as ‘Investment income’. Equity instruments that a
quoted price is not applicable in an active market and no fair value can be reliably measured,
shall be measured at cost.
2)Recognition and measurement of transfer of financial assets
Where an entity neither transfers nor retains substantially all risks and rewards of financial
asset and does not give up the control over such financial asset, then the entity recognises
such financial asset to the extent of its continuous involvement and recognises the
corresponding liabilities. The extent of the continuous involvement represents the extent to
which the entity exposes to changes in the value of such financial asset.
In the case where the financial asset as a whole qualifies for the derecognition conditions, the
difference between the carrying value of transferred financial asset and the sum of the
consideration received for transfer and the accumulated amount of changes in fair value that
was previously recorded under other comprehensive income is charged into profit or loss for
the period.
In the case where only part of the financial asset qualifies for derecognition, the carrying
amount of financial asset being transferred is allocated between the portions that to be
derecognised and the portion that continued to be recognised according to their relative fair
value. The difference between the amount of consideration received for the transfer and the
accumulated amount of changes in fair value that was previously recorded in other
comprehensive income of the part qualifies for derecognition and the above-mentioned
allocated carrying amount is charged to profit or loss for the period.
3) Impairment of financial assets
The Group assesses the carrying amount of financial assets other than financial assets at fair
value through profit or loss at each balance sheet date. If there is objective evidence that the
financial asset is impaired, the Group shall determine the amount of any impairment loss
accounts.
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
If an impairment loss on a financial asset carried at amortized cost has been incurred, the
amount of loss is measured at the difference between the asset’s carrying amount and the
present value of estimated future cash flows (excluding future credit losses that have not been
incurred). If there is objective evidence that the value of the financial asset recovered and the
recovery can be related objectively to an event occurring after the impairment was recognized,
the previously recognized impairment loss is reversed and the amount of reversal is
recognized in income statement.
Ifobjective evidence shows that impairment for available-for-sale financial assets will
occur,the cumulative loss arising from the decline in fair value that had been recognized
directly in equity is removed from equity and recognized as impairment loss. For an available
for sale debt instrument, if there is objective evidence that the value of the financial asset
recovered and the recovery can be related objectively to an event occurring after the
impairment was recognized, the previously recognized impairment loss is reversed and the
amount of reversal is recognized in income statement. For an available for sale equity
instrument, if there is objective evidence that the value recovered and the recovery can be
objectively related to an event occurring after the impairment loss recognized, the previously
recognized impairment loss is reversed and directly recognized in equity.
(2) Financial liabilities
1) Classification, basis for recognition and measurement
Financial liabilities of an entity are classified at initial recognition as “financial
liabilities at fair value through profit or loss” and “other financial liabilities” on initial
recognition
Financial liabilities at fair value through profit or loss include financial liabilities held
for trading and those designated as fair value through profit or loss on initial recognition
（relevant basis for classification shall be disclosed by reference to financial assets）.
They are subsequently measured at fair value. The net gain or loss arising from changes
in fair value, dividends and interest paid related to such financial liabilities are recorded
in profit or loss for the period in which they are incurred.
Other financial liability is measured at amortized cost by adopting the effective rate
method.
2) Financial liability derecognition
A financial liability is derecognized when the underlying present obligations or part of
it are discharged. Existing financial liability shall be derecognized and new financial
liability shall be recognized when the entity sign the agreement with creditor to
undertake the new financial liability in replacement of existing financial liability, and
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
the terms of agreement are different in substance. Any significant amendment to the
agreement as a whole or part o it is made, then the existing liabilities or part of it shall
be derecognized and financial liability after terms amendment shall be recognized as a
new financial liability. The difference between the carrying amount of the financial
liability derecognized and the consideration paid is recognized in profit or loss for the
period.
11. Provision for bad debts of receivables
The Group shall review the carrying amount of receivables fully at the balance sheet date.
The Group shall calculate the full provision for bad debts for the following receivables:
debtor has been log-out, bankruptcy, minus net asset, significant poor cash flow and
significant nature disaster leads to discontinue production and the debtors could not pay for
the debts within the foreseeable time . Other solid evidences indicates that the receivables
cound not be paid or be of a slim chance.
The allowance method is applied to the potential loss of bad debt. The Group should make the
impairment test separately or in combination and accure the bad debt provisions which shall
be recorded into current profit or loss at the end of the period. If there is defined evidence for
the receivables not to or not likely to be received, which shall be recognized as the loss of bad
debt and write off the accrued bad debts provisions after going through the approval
procedure of the Group.
(1) Individually significant amounts of accounts receivable accrued bad debt provision as per
portfolio
The receivables with more than RMB 3 million
Judgment basis or amount standards of
individual amount shall be recognized as the
individually significant amounts
significant receivables;
The accruing method of the receivables The bad debt provisions shall be accrued based on
with individually significant amounts the difference between current value of future cash
flow and the carrying amounts.
(2) Accounts receivable accrued bad debt provision by credit risk portfolio
The basis of portfolio(aging analysis, other method)
Use the accounting aging of the receivables as the
Accounting aging
credit risk characteristics to classify the portfolio
Use the amount characteristics of the receivables ,
Related parties if the transaction party is related parties
characteristics need to classify the portfolio
Use the amount characteristics of the receivables,
the credit of transaction party, the nature of the
Risk-free
amounts and the safeguard mechanism of
transaction as characteristics to classify the
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
portfolio
1) The percentage of provision for bad debts based on the age of receivables as followings:
Accounting aging Accrual percentage of the Accrual percentage of
receivables (%) other receivables (%)
Within 1 year 1 1
1-2 years 5 5
2-3 years 20 20
Over 3 years 50 50
2) The other methods is applied to accrualing of bad debts provision
Related parties No bad debt provision is needed, unless the related party is
unable to pay back
Risk-free No bad debt provision is needed
(3) Individually insignificant amount accounts receivable but accrued bad debt provision as
per portfolio
The individual amount is not significant, but the
Accrual reason accrued bad debt provision on the basis of portfolio
can not reflect its risk characteristic
The bad debt provisions should be accrued based on
Accrual method the difference between current value of future cash
flow and the carrying amount.
12. Inventories
Classification of inventory: Inventories are classified as raw material, wrappage, low-valuable
consumable, working-in-progress, and finished goods etc.
The inventories are processed on perpetual inventory system, and are measured at their
budgeted cost on acquistion. The raw materials are accounted daily on their bedgeted costs.
The differences between the budget and actual costs is recorded into the costs of materials
purchased and cost of materials dispatched according to proportion of inventory in stock and
dispatched, and adjust the budgeted costs of raw material into actual costs. The
working-in-progress and finished goods are accounted on their budgeted costs; the differences
between the budgeted costs and actual costs are recorded into the costs of
working-in-progress and finished goods according to the receiving and sending out proportion,
and finaly adjust the budgetedcosts into actual costs.Inventory usage and dispatch is measured
65
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
at average cost as actual cost.Low value consumables and packaging materials is recognized
in the income statement by one-off method.
At the balance sheet date inventory should be measured at the lower of the cost and net
realizable value. For the inventories which are damaged, fully or partly obsoleted and selling
price below cost, the Group should calculate the provision for impairment of inventories
according to the estimated nonrecoverable part of cost. Finished goods and a large amount
raw materials should be calculated provision for impairment based on the difference of the
cost exceed the realizable value of single item. For raw and accessorial materials with a large
quantities and lower unit price should be calculated provison for impairment according to
classify of inventory.
For the finished goods, working in progress and raw material held for sale etc which shall be
sold directly, the net realizable value should be confirmed at the estimated selling price less
estimated selling expenses and related tax and expenses. The raw material held for production,
its realizable value should be confirmed at the estimated selling price of finished goods less
estimated cost of completion, estimated selling expenses and related tax. The net realizable
value of inventories held for execution of sale contracts or labor contracts shall be calculated
based on the contract price. If the quantities of inventories in the Group are more than
quantities if inventories subscribed in the sales contracts, the net realizable value of the
excessive part of the inventories should be calculated based on the general selling price.
13. Long-term equity investment
Long term equity investments are the investment in subsidiary, in associated company and in
joint venture.
Joint control is the contractual agreement sharing of control over an economic activity by all
participants or participants’ combination and decisions or policies relating to the operating
activity of the entity require the unanimous consent of the parties sharing the control.
Significant influence exists when the entity directly or indirectly owned 20% or more but less
than 50% shares with voting rights in the investee company.If holding less than 20% voting
rights, the entity shall also take other facts or circumstances into accounts when judging any
significant influences. Factors and circumstances include: representation on the board of
directors or equivalent governing body ofthe investee, participation in financial or operating
activities policy-making processes,material transactions between the investor and the investee,
interchange of managerial personnel or provision of essential technical information.
When control exists over an investee, the investee is a subsidiary of an entity. The initial
investment cost for long-term equity investment acquired through business combination
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
under common control, is the carrying amount presented in the consolidated financial
statements of the share of net assets at the combination date in the acquired company. If the
carrying amount of net assets at the combination date in the acquired company is negative,
investment shall be recognized at zero.
If the equity of investee under common control is acquired by stages and business
combination incursin the end, an entity shall disclose the accounting method for long-term
equity investment in the parent financial statement as a supplemental. For example, if the
equity of investee under common control is acquired by stages and business combination
incursin the end, and it’s a bundled transaction, the entity shall regard all transactions as a one
for accounting. If it’s not a bundled transaction, the carrying amount presented in the
consolidated financial statements of the share of net assets at the combination date in the
acquired company since acquisition is determined as for the initial cost of long-term equity
investment. The difference between the cost initially recognized and carrying amount of
long-term equity investment prior to the business combination plus the newly paid
consideration for further share acquired, and capital reserve shall be adjusted accordingly. If
no enough capital reserve is available for adjustment, retain earnings shall be adjusted.
If long-term equity investment is acquired through business combination not under common
control, initial investment cost shall be the combination cost.
If the equity of investee not under common control is acquired by stages and business
combination incursin the end, an entity shall disclose the accounting method for long-term
equity investment in the parent financial statement as a supplemental. If the equity investment
of investee not under common control is acquired by stages and business combination
incursin the end, and it’s a bundled transaction, the entity shall regard all transactions as a one
for accounting. If it’s not a bundled transaction, the carrying amount of the equity investment
held previously plus newly increased investment cost are taken as the initial investment cost
under cost model. If equity investment is held under equity method before the acquisition date,
other comprehensive income under equity method previously shall not be adjusted
accordingly. When disposing of the investment, the entity shall adopt the same basis as the
investee directly disposing of related assets or liability for accounting treatment. Equity held
prior to acquisition date as available for sale financial assets under fair value model,
accumulated change on fair value previously recorded in other comprehensive shall be
transferred into investment gain/loss for the period.
Apart from the long-term equity investments acquired through business combination
mentioned above, the cost of investment for the long-term equity investments acquired by
cash payment is the amount of cash paid. For long-term equity investment acquired by issuing
equity instruments, the cost of investment is the fair value of the equity instrument issued. For
67
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
long-term equity investment injected to the entity by the investor, the investment cost is the
consideration as specified in the relevant contract or agreement.
The Group adopts cost method to account for investment in subsidiary and equity method for
investment in joint venture and affiliate.
Long-term equity investment subsequently measured under cost model shall increase the
carrying amount of investment by adjusting the fair value of additional investment and
relevant transaction expenses. Cash dividend or profit declared by investee shall be
recognized as investment gain/loss for the period based on the proportion share in the
investee.
Long-term equity investment subsequently measured under equity method shall be adjusted
for its carrying amount according to the share of equity increase or decrease in the investee.
The entity shall recognize its share of the investee’s net profits or losses based on the fair
value of the investee’s individual identifiable assets at the acquisition date, after making
appropriate adjustments thereto in conformity with the accounting policies and accounting
period, and offsetting the unrealized profit or loss from internal transactions entered into
between the entity and its associates and joint ventures according to the shareholding
attributable to the entity and accounted for as investment income and loss based on such
basis.
On disposal of a long-term equity investment, the difference between the carrying value and
the consideration actually received is recognised as investment income for the period. For
long-term investments accounted for under equity method, the movements of shareholder’s
equity, other than the net profit or loss, of the investee company, previously recorded in the
shareholder’s equity of the Company are recycled to investment income for the period on
disposal.
Where the entity has no longer joint control or significant influence in the investee company
as a result of partially disposal of the investment, the remaining investment will be changed to
be accounted for as available for sale financial assets, and the difference between the fair
value of remaining investment at the date of losing joint control or significant influence and
its carrying amount shall be recognized in the profit or loss for the year. Other comprehensive
income recognized from previous equity investment under equity model shall be accounted
for on the same basis as the investee directly disposing of related assets or liability when
stopping using under equity model.
Where the entity has no longer control over the investee company as a result of partially
disposal of the investment, the remaining investment will be changed to be accounted for
using equity method providing remaining joint control or significant influence over the
investee company. The difference between carrying amount of disposed investment and
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
consideration received actually shall be recognised in the profit and loss for the period as
investment gain or loss, and investment shall be adjusted accordingly as if it was accounted
for under equity model since acquisition. Where the entity has on longer joint control or
significant influence in the investee as a result of disposal, the investment shall be changed to
be accounted for as available for sale financial assets, and difference between the carrying
amount and disposal consideration shall be recognized in profit and loss for the period, and
the difference between the fair value of remaining investment at the date of losing control and
its carrying amount shall be recognized in the profit or loss for the year as investment gain or
loss.
If the entity loses its control through partially disposal of investment by stages and it’s not a
bundled transaction, the entity shall account for all transactions separately. If it’s a bundled
transaction, the entity shall regard all transactions as one disposal of subsidiary by losing
control, but the difference between disposal consideration and carrying amount of the equity
investment disposed prior to losing control, which arises from each individual transaction
shall be recognized as other comprehensive income until being transferred into profit and loss
for the period by the time of losing control.
14. Fixed assets
Recognition criteria of fixed assets: Fixed assets are defined as the tangible assets which are
held for the purpose of producing goods, rendering services, leasing or for operation &
management, and have more than one year of useful life, and whose unit price is over
RMB2,000.
Fixed assets shall be recognized when the economic benefit probably flows into the Group
and its cost can be measured reliably. Fixed assets include: building, machinery,
transportation equipment, electronic equipment and others.
All fixed assets shall be depreciated unless the fixed assets had been fully depreciated and are
still being used and land is separately measuered. Straight-line depreciation method is
adopted by the Group. Estimated net residual value rate, useful life, depreciation rate as
follows:
Estimated
Useful net Annual
No Category life residual depreciation
(years) value rate rate
(%)
1 Housing and Buildings
Including: Buildings 15 3 6.47%
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Housing for 30 3 3.23%
production
Housing for 35 3 2.77%
non-production
2 Machinery equipment 10-15 3 6.47%～
9.70%
3 Transportation equipment 6 3 16.17%
4 Electronic equipment
Including: Computer 4 3 24.25%
General testing instruments 7 3 13.86%
Specialized electronic equipment 8 3 12.13%
Automated controlling equipment 8 3 12.13%
Automated controlling meters 8 3 12.13%
5 Others equipment
Including: Industrial kiln 7 3 13.86%
Tools & other production tools 9 3 10.78%
Transmission equipment 15 3 6.47%
Non-operational equipment and 18 3 5.39%
tools
The Group should review the estimated useful life, estimated net residual value and
depreciation method at the end of each year. If any change has occurred, it shall be regarded
as a change in the accounting estimates.
15. Construction in progress
The criteria and time spot of constructions in progress’s being transferred to fixed assets:
Constructions in progress are carried down to fixed assets on their actual costs when
completing and achieving estimated usable status. The fixed assets that have been completed
and reached estimated usable status but have not yet been through completion and settlement
procedures are charged to an account according to their estimate values; adjustment will be
conducted upon confirmation of their actual values. The Group should withdraw depreciation
in the next month after completion.
16. Borrowing costs
The borrowing cost includes the interest expenses of the borrowing, amortization of
underflow or overflow from borrowings, additional expenses and the foreign exchange profit
and loss because of foreign currency borrowings. The borrowing costs incurred which can be
directly attribute to the fixed assets, investments properties, inventories requesting over 1 year
70
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
purchasing or manufacturing so to come into the expected condition of use or available for
sale shall start to be capitalized when expenditure for the assets is being occurred, borrowing
cost has occurred, necessary construction for bringing the assets into expected condition for
use is in progress. The borrowing costs shall stop to be capitalized when the assets come into
the expected condition of use or available for sale. The borrowing costs subsequently incurred
should be recorded into profit and loss when occurred. The borrowing costs should
temporarily stop being capitalized when there is an unusual stoppage of over consecutive 3
months during the purchase or produce of the capitalized assets, until the purchase or produce
of the asset restart.
The borrowing costs of special borrowings, deducting the interest revenue of unused
borrowings kept in the bank or the investment income from transient investment should be
capitalized. The capitalized amount of common borrowings should be calculated as follows:
average assets expenditure of the accumulated assets expenditure excess the special
borrowing, multiplied by the capital rate. The capital rate is the weighted average rate of the
common borrowings.
17. Intangible assets
The intangible assets of the Group refer to land use right, ERP system software. The cost of
outsourcing intangible assets shall include the purchase price, relevant taxes and other
necessary expenditures directly attributable to intangible assets. The cost invested into
intangible assets by investors shall be determined according to the stated value in the
investment contract or agreement, except for those of unfair value in the contract or
agreement.
Land use right shall be amortized evenly within the amortization period since the remised
date.ERP system softwareand other intangible assets are amortized over the shortest of their
estimated useful life, contractual beneficial period and useful life specified in the law.
Amortization charge is included in the cost of assets or expenses, as appropriate, for the
period according to the usage of the assets. At the end of the year, for definite life of
intangible assets, their estimated useful life and amortization method shall be assessed. Any
change shall be treated as change on accounting estimate.
18. Impairment of non-financial assets
The Group checks the long-term equity investment, fixed asset, construction-in-progress,
intangible asset and others on each balance sheet date. When impairment indicators occur, the
Group shall perform impairments test. For goodwill andindefinite life of intangible assets,
impairment test shall be performed irrelevant to any impairment indicators, if any at the end
of every year.
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
After impairment test, if the book value exceeds the recoverable amount of the asset, the
difference should be recognized as impairment loss. Once any loss of impairment is
recognized, it shall not be reversed in the future accounting periods.
19. Long-term deferred expenses
Long-term deferred expenses of the Group refer to expenses which are paid and should be
deferred over the future period. The amortization period shall be more than one year (no
including 1 year). The expenses should be amortized evenly over the beneficial period. If the
deferred expense cannot take benefit for the future accounting period, the unamortized
balance of the deferred expenses should be transferred into the current profit or loss.
20. Employee benefits
Employee compensation comprises short-term benefit, post-employment benefit, termination
benefit and other long-term employee’s benefit.
Employee’s payables include salary, bonus, allowance, welfare, social insurance, housing
funds, labour union expense, staff training expense, during the period in which the service
rendered by the employees, the actually incurred short term employee benefits shall be
recognized as liability and shall be recognized in P&L or related cost of assets based on
benefit objective allocated from the service rendered by employees.
Post-employment benefits include the basic pension scheme and unemployment insurance etc.
Based on the risk and obligation borne by the Group, post-employment benefits are classified
into defined contribution plan and defined benefit plan. For defined contribution plan, liability
shall be recognized based on the contributed amount made by the Group to separate entity at
the balance sheet date in exchange of employee service for the period and it shall be recorded
into current profit and loss account or relevant cost of assets in accordance with beneficial
objective.
Termination benefits are employee benefits payable as a result of either an entity’s decision to
terminate an employee’s employment before the contract due date or an employee’s decision
to accept voluntary redundancy in exchange for those benefits. An entity shall recognize the
termination benefits as a liability and an expense at the earlier date when the entity cannot
unilateral withdraw the termination benefits due to employment termination plan or due to
redundancy suggestion, or when the entity can recognize the restricting cost or expense
arising from paying termination benefits. For the termination benefits that will not be
expected to be fully paid within twelve months after the end of the reporting period, it shall be
accounted as other long-term employee benefit. For employee internally retired informally,
termination benefits accounting shall be applied. The Group shall recognized the planned
72
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
wages and social insurance of retired employee in the current profit and loss account when
provision conditions are met, for the period since the termination of employee service
rendered until the formal retirement date.(termination benefit).
Other long-term employee benefit provided by the Group, shall be accounted for as defined
contribution plan if the defined contribution plan are met, otherwise shall be accounted for as
defined benefit plan.
21. Contingent liabilities
When the company has transactions such as commitment to externals, discounting the trade
acceptance, unsettled litigation or arbitration which meets the following criterion, provision
should be recognized: It is the Company's present obligation; carrying out the obligation will
probably cause the Company's economic benefit outflow; the obligation can be reliably
measured.
Provision is originally measured on the best estimate of outflow for paying off the present
obligations, and to consider the risk, uncertainty, time value of monetary relevant to
contingent items. If the time value of monetary is significant, the best estimate will be
determined by discounted cash outflow in the future. At each balance sheet date, the book
value of provision is reviewed and adjustment will be made on the book value if there is any
change, in order to reflect the current best estimate.
22. Principle of recognition of revenue
The revenue of the Group is mainly from selling goods, providing labour services and
abalienating the right of use assets. Recognition standards for revenue are as below:
1) Company has transferred all the significant risks and rewards of the ownership of the goods
to the buyers, and retains neither continuing managerial involvement to the degree
usually associated with ownership nor effective control over the goods sold. The relative
sale proceeds have been reliably measured, respective economic benefit probably inflow
to the company, and the incurred or incurring cost can be reliably measured, and then the
revenue can be recognized.
2) The service revenue should be recognized when the total revenue and outcome of the
services can be estimated reliably, and the economic benefits associated with the
transaction are likely to flow to the company, the stage of completion of the service can
be estimated reliably. At the balance sheet date, revenue is recognised using the
percentage of completion method when the outcome of the services rendered are
estimated reliably. The percentage of completion method is determined as the proportion
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
of completed work measured/ services rendered to date over the total contracted services/
(the proportion of costs incurred to date over the total estimated cost). When the outcome
of the services cannot be estimated reliably, costs incurred may be probably recovered,
revenue is recognized only to the extent of costs incurred that are expected to be
recoverable, and costs shall be recognized as an expense in the period in which they are
incurred. When the outcome of the services cannot be estimated reliably and costs
incurred are not probable of being recovered, then these cost incurred are recognized as
an expense immediately, no revenue shall be recognized.
3) Revenue from transfer of asset use rights is recognised when the economic benefits in
connection with the transaction are probably flow to the Group and the amount of
revenue can be reliably measured.
.23. Government grants
A government grant is a monetary asset or non-monetary asset granted by government
without consideration. It shall be recognized when the company complies with the
conditions attaching to the grant and when the company is able to receive the grant.
Where a government grant is in the form of a transfer of monetary asset, it is measured at the
amount received. Where a government grant is made on the basis of fixed amount or
conclusive evidence indicates relevant conditions for financial support are met and expect to
probably receive the fund, it is measured at the amount receivable. Where a government
grant is in the form of a transfer of non-monetary asset, it is measured at fair value. If fair
value cannot be determined reliably, it is measured at a nominal amount of RMB1 Yuan.
Assets-related government grants are recognized as deferred income, and evenly amortized
to profit or loss over the useful life of the related asset. Income-related government grants
that is a compensation for related expenses or losses to be incurred in subsequent periods are
recognized as deferred income and credited to the relevant period when the related expense
are incurred. Government grants relating to compensation for related expenses or losses
already incurred are charged directly to the profit or loss for the period.
24. Deferred tax assets and deferred tax liabilities
The deferred income tax assets or the deferred income tax liabilities should be recognized
according to the differences (temporary difference) between the carrying amount of the assets
or liabilities and its tax base. Deferred tax assets shall be respectively recognised for
deductible tax losses that can be carried forward in accordance with tax law requirements for
deduction of taxable income in subsequent years. No deferred tax liabilities shall be
recognized forany temporary difference arising from goodwill initially recognition. No
74
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
deferred tax assets or liabilities shall be recognized for any difference arising from assets or
liabilities initial recognition on non-business combination with no effect on either accounting
profit or taxable profit (or deductible tax loss). At the balance sheet date, deferred tax assets
and deferred tax liabilities are measured at the tax rates that are expected to apply to the
period when the asset is realised or liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future taxable profit
will be available to offset the deductible temporary difference, deductible loss and tax
reduction.
25.Lease
The leases of the Group refer to operating lease.
The rents paid for operating leases shall be recorded into the relevant asset costs or the profits
and losses for the current period by using the straight-line method over each period of the
lease term.Rents received, if the Group as a leaser shall be recognised as income under
straight line method.
26.Changes in Accounting Policies, Accounting Estimates
(1) Change in significant accounting policies
None
(2) Changes in accounting estimate
None
VI. Taxation
1. The main applicable tax and rate to the Group as follows:
Tax Tax base Tax rate
Value-added tax (VAT) Sales revenue or Purchase 17%,13%,11%,6%,3%
Business tax Revenue from property lease, 5%
examination fee, surcharge
City construction tax Value-added tax payables, business tax 7%
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Education surcharge Value-added tax payables, business tax 3%
Value-added tax payables, business tax
Local education surcharge 2%
Current period taxable profit
Enterprise income 15%
tax(EIT)
70% of cost of own property or
Real estate tax 1.2% or 12%
revenue from leasing property
Land use tax Land using right area RMB 6 per square
meter
Notes for tax principles with different EIT rate
Tax principles EIT rate
Wazhou Liaoyang Bearing construction Co.,Ltd 25%
Dalian Wazhou Precision Motor Car Bearing 25%
Company Limited
Wazhou Precision of Spherical Roller 25%
Bearings(Wafangdian)Co., Ltd
2. Tax preference
The company obtained the qualification of high and new technology enterprises at
29September, 2014.The Certificate No is GF201421200004, and the validity duration is three
years. According to the tax law, the company can be granted for the preferential tax policy of
enterprise income tax rate of 15% in three years.
VII. Notes to Consolidated Financial Statements
The following disclosure date on this financial statement without special indication, “opening”
refers to January 1, 2015; “closing” refers to December 31, 2015; “current period” refers to the
period from January 1, 2015to December 31, 2015; and “last period” refers to the period from
January 1, 2014 to December 31, 2014; with the currency unit RMB.
1. Cash and cash in bank
Item Closing Balance Opening Balance
Cash on hand
372,523.88 243,292.16
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Item Closing Balance Opening Balance
Cash in bank
78,183,506.68 143,155,872.50
Other cash and cash equivalents
37,759,990.01 37,170,000.00
Total 180,569,164.66
116,316,020.57
Including: sum of deposits - -
overseas
Notes: the closing balance of other cash and cash equivalents are all security deposits for
bank acceptance notes. Because of the liquidity limitation, this will be deducted from the
closing balance.
2. Notes receivable
(1) Category of notes receivable
Items Closing Balance Opening Balance
Bank acceptance notes
74,843,528.50 153,691,174.47
Commercial acceptance notes
25,662,475.20 34,426,801.24
Total 188,117,975.71
100,506,003.70
(2) No pledged notes receivable up to December 31, 2015.
(3) Notes receivable endorsed or discounted but not mature at the end of year
Item Closing amount no more Closing amount still
recognized recognized
Bank acceptance notes 280,154,387.39
Commercial acceptance
39,872,775.27
notes
Total 320,027,162.66
(4) Notes receivable transferred to accounts receivable due to defaulting at the end of year
Item Transferred at the end of year
Commercial acceptance notes 2,000,000.00
Total 2,000,000.00
3. Accounts receivable
(1) Category of accounts receivable
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Closing Balance
Items Booking balance Provision
Booking balance
Amount % Amount %
Accounts receivable
with significant
individual amount 12,810,943.69 1.18 12,810,943.69 100.00 -
and separate bad
debt provision
Accounts receivable
with bad debt
provision based on 974,324,743.89 90.06 44,102,673.09 4.53 930,222,070.80
the characters of
credit risk portfolio
Related party 63,711,255.57 5.89 - - 63,711,255.57
Risk-free portfolio - - - - -
Accounts receivable
with insignificant
individual amount 30,991,469.16 2.85 30,991,469.16 100.00 -
and separate bad
debt provision
Total 1,081,838,412.31 100.00 87,905,085.94 — 993,933,326.37
(Continued)
Opening balance
Items Booking balance Provision
Booking balance
Amount % Amount %
Accounts
receivable with
significant
9,002,676.43 0.77 9,002,676.43 100.00 -
individual amount
and separate bad
debt provision
Accounts
receivable with bad
debt provision
1,121,255,143.72 95.54 51,607,095.89 4.60 1,069,648,047.83
based on the
characters of credit
risk portfolio
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Related party 28,918,130.37 2.46 - - 28,918,130.37
Risk-free portfolio - - - -
Accounts
receivable with
insignificant
14,393,660.23 1.23 14,393,660.23 100.00 -
individual amount
and separate bad
debt provision
Total 1,173,569,610.75 100.00 75,003,432.55 — 1,098,566,178.20
1) Accounts receivable with significant individual amount and separate bad debt provision at
the end of year
Closing Balance
Debtors name Accounts Provision for Proportion Reasons for
receivable bad debts (%) provision
Company A 5,092,669.00 5,092,669.00 100.00 Bankrupt
A/R with over 5
years aging,
Company B 3,910,007.43 3,910,007.43 100.00
unlikely to be
collected
A/R with over 5
years aging,
Company C 3,808,267.26 3,808,267.26 100.00
unlikely to be
collected
Total 12,810,943.69 12,810,943.69 — —
2) Accounts receivable with the bad debt provisions under accounting aging analysis method
Closing Balance
Aging Accounts Provision for Proportion
receivable bad debts (%)
Within1 year 761,957,848.26 7,619,578.49 1.00
1 to 2 years 122,304,055.30 6,115,202.76 5.00
2 to 3 years 48,878,427.77 9,775,685.56 20.00
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Closing Balance
Aging Accounts Provision for Proportion
receivable bad debts (%)
Over 3 years 41,184,412.56 20,592,206.28 50.00
Total 974,324,743.89 44,102,673.09 —
3) Receivables from the related parties are disclosed on this note XI.3.(1)
(2)Bad debt provision accrued and written-off (withdraw)
Bad debt is written off at the amount of 107,366.81 and the bad debt provision has been
accrued at the amount of 13,009,020.20 Yuan during the report period. No bad debt reversal
or withdrawn incurred during the year.
(3) Accounts receivable written off in current period
Item Written-off Amount
Accounts receivable written off 107,366.81
(4) The top five significant accounts receivable categorized by debtors
The total amount of top five significant accounts receivable categorized by debtors is
196,451,103.33 Yuan, representing18.16% of the closing balance of accounts receivable. The
bad debt provision of 3,009,518.73 Yuan is provided respectively.
4. Advances to suppliers
(1) Aging of advances to suppliers
Closing Balance Opening Balance
Items Amount Percentage Amount Percentage
(%) (%)
Within 1 year 21,395,885.05 65.48 33,178,587.95 75.35
1 to 2 years 1,883,664.93 5.77 6,035,528.97 13.71
2 to 3 years 5,206,158.32 15.93 1,013,168.29 2.30
Over 3 years 4,187,915.47 12.82 3,803,916.45 8.64
Total 32,673,623.77 100.00 44,031,201.66 100.00
(2) The top five significant advances to suppliers categorized by debtors
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
The total amount of top five significant advances to suppliers categorized by debtors is
14,147,434.86 Yuan, representing 43.30% of the closing balance of advances to suppliers.
5. Dividends receivable
(1) Dividends receivable
Company Closing Balance Opening Balance
Shanghai ME Mechanical &
Electrical Equipment Chain Co., 240,000.00 240,000.00
Ltd
Total 240,000.00 240,000.00
6. Other receivables
(1) The categories of other receivable
Closing Balance
Items
Booking balance Provision
Booking balance
Amount % Amount %
Other receivables with
significant individual
- - - - -
amount and separate
bad debt provision
Other receivables
identified bad debt
provision based on the 17,843,354.32 73.09% 1,264,644.60 8.31 13,951,517.70
characters of credit risk
portfolio
Related party - - - - -
Risk-free portfolio 4,884,127.93 20.00% - - 7,511,319.95
Other receivables with
significant individual
1,687,122.13 6.91 1,687,122.13 100.00 -
amount and separate
bad debt provision
Total 24,414,604.38 100.00 2,951,766.73 — 21,462,837.65
(Continued)
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Opening Balance
Items Booking balance Provision
Booking balance
Amount % Amount %
Other receivables
with significant
individual amount - - - - -
and separate bad
debt provision
Other receivables
identified bad debt
provision based on 14,351,723.39 68.61 1,705,933.04 11.89 12,645,790.35
the characters of
credit risk portfolio
Related party - - - - -
Risk-free portfolio 6,566,136.87 31.39 - - 6,566,136.87
Other receivables
with significant
individual amount - - - - -
and separate bad
debt provision
Total 20,917,860.26 100.00 1,705,933.04 — 19,211,927.22
1) Other receivables accrued the bad debt provisions under accounting aging analysis method
Closing Balance
Aging Provision for Proportion
Other receivables
bad debts (%)
Within 1 year 13,751,817.82 137,518.18 1.00
1-2 years 1,743,875.00 87,193.75 5.00
2-3 years 446,326.91 89,265.38 20.00
Over 3 years 1,901,334.59 950,667.29 50.00
Total 17,843,354.32 1,264,644.60 —
2) Risk –free portfolio of other receivable has not been accrued for bad debts
Closing Balance
Aging Provision for Proportion
Other receivables
bad debts (%)
Prepaid electricity bill 3,981,531.40
Deposit 473,663.01
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Closing Balance
Aging Provision for Proportion
Other receivables
bad debts (%)
Others 428,933.52
Total 4,884,127.93
(2) Bad debt provision accrued or reversed
The bad debt provision has been accrued at the amount of 1,245,833.69 Yuan during the
report period. No bad debt reversal or withdrawn incurred during the year
(3) Other receivables categorized by nature
Nature Closing Balance Opening Balance
Security deposit 4,343,508.37 2,178,077.92
Deposit 473,663.01 802,403.72
Personal petty cash 1,208,060.35 4,009,007.49
Others 18,389,372.65 13,928,371.13
Total 24,414,604.38 20,917,860.26
(4)Other receivables from the top 5 debtors
% of Closing
Closing
Name Category Aging the total Balance of
Balance
OR Provision
Insurance
Company A 5,016,153.85 1-2 years 20.55 50,161.54
compensation
Company B Electricity bill 3,726,684.67 within 1 year 15.26 -
CompanyC Bid deposit 1,854,996.25 within 1 year 7.60 18,549.96
Materials 1-2 years
Company D 490,288.89 2.01 37,421.16
payments
2-3 years
Materials
Company E 350,000.00 within 1 year 1.43 3,500.00
payments
Total —— 11,438,123.66 —— —— 109,632.66
7. Inventories
(1) Categories of inventories
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Closing Balance
Item
Book value Provision for decline Net book value
Raw materials 136,420,995.34 2,654,008.58 133,766,986.76
Finished goods 821,542,628.29 67,782,949.02 753,759,679.27
Working in
184,481,338.87 602,496.86 183,878,842.01
progress
Low-value
3,869,947.98 - 3,869,947.98
consumable
Total 1,146,314,910.48 71,039,454.46 1,075,275,456.02
(Continue)
Opening Balance
Item
Book value Provision for decline Net book value
Raw materials 161,777,520.87 2,721,438.13 159,056,082.74
Finished goods 904,774,320.44 104,787,136.46 799,987,183.98
Working in
203,865,748.23 602,496.86 203,263,251.37
progress
Low-value
4,041,348.26 - 4,041,348.26
consumable
Total 1,274,458,937.80 108,111,071.45 1,166,347,866.35
(2) Provision for decline in the value of inventories
Increase Decrease
Opening Reverse/ Closing
Item Others
Balance Accrual Other Written- Balance
transferred
off
Raw
2,721,438.13 - - 67,429.56 - 2,654,008.57
materials
Finished
104,787,136.46 2,061,384.57 - 39,065,572.00 - 67,782,949.03
goods
Working
in 602,496.86 - - - - 602,496.86
progress
Total 108,111,071.45 2,061,384.57 - 39,133,001.56 - 71,039,454.46
(3) Accrual for provision for decline in the value of inventories
Basis for net realizable value
Item Reason for reverse/write-off
recognition
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Materials market price at the Market price falling
Raw materials
end of period
Average sale price of similar Falling product unit cost and
Finished goods
product promote backlogged stock
8. Other current assets
Item Closing Balance Opening Balance Nature
VAT to be deducted 6,999,716.88 21,777,741.91 Input Tax
Rental - 892,113.04 Unamortized rent
Prepaid income tax 1,973,315.90 1,864,330.37 Income Tax
Total 8,973,032.78 24,534,185.32 —
9. Available-for-sale financial assets
(1) Available-for-sale financial assets
Item Closing Balance Opening Balance
Booking Booking
Provision Book value Provision Book value
balance balance
Available-for-
sale equity 2,000,000.00 - 2,000,000.00 2,000,000.00 - 2,000,000.00
instruments
Measured as
2,000,000.00 - 2,000,000.00 2,000,000.00 - 2,000,000.00
cost method
Total 2,000,000.00 - 2,000,000.00 2,000,000.00 - 2,000,000.00
(2) Available-for-sale financial assets measured at cost method
Proportion Cash
Booking Balance Provision
(%) dividend
Name
Opening Closing Opening Closing
Increase Decrease Increase Decrease
Balance Balance Balance Balance
Shanghai
ME
Mechanical
& Electrical 2,000,000.00 - 2,000,000.00 - - - - 4.76 240,000.00
Equipment
Chain Co.,
Ltd
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Proportion Cash
Booking Balance Provision
(%) dividend
Name
Opening Closing Opening Closing
Increase Decrease Increase Decrease
Balance Balance Balance Balance
Total 2,000,000.00 - 2,000,000.00 - - - - 4.76 240,000.00
10. Fixed assets
(1) Fixed assets detail
Machinery Transportation Electronic Other
Item Property Device Equipment Total
Equipment Equipment
I. Initial Cost —— —— —— —— —— ——
1. Opening
431,429,106.06 1,053,930,386.30 22,131,123.52 66,357,172.40 176,996,473.48 1,750,844,261.76
Balance
2. Increase 5,749,090.07 76,231,421.51 395,450.08 2,866,605.92 4,505,584.78 89,748,152.36
(1) Purchase 5,749,090.07 76,231,421.51 395,450.08 2,866,605.92 4,505,584.78 89,748,152.36
(2) Transferred
from
- - - - - -
construction-in-p
rogress
(3) Acquired
from business - - - - - -
combination
3. Decrease - 12,238,456.48 2,500,600.64 4,110,278.90 210,000.00 19,059,336.02
(1) Disposal - 12,238,456.48 2,500,600.64 4,110,278.90 210,000.00 19,059,336.02
4. Closing
437,178,196.13 1,117,923,351.33 20,025,972.96 65,113,499.42 181,292,058.26 1,821,533,078.10
Balance
II. Accumulated
—— —— —— —— —— ——
Depreciation
1. Opening
199,412,319.52 635,511,992.94 15,784,448.29 51,541,999.32 151,252,942.74 1,053,503,702.81
Balance
2. Increase 14,150,821.33 61,561,101.84 1,543,594.05 4,249,201.07 5,388,886.44 86,893,604.73
(1)Accrued 14,150,821.33 61,561,101.84 1,543,594.05 4,249,201.07 5,388,886.44 86,893,604.73
(2) Other transfer - - - - - -
3. Decrease - 9,592,065.49 1,552,701.48 4,070,505.68 210,000.00 15,425,272.65
(1) Disposal - 9,592,065.49 1,552,701.48 4,070,505.68 210,000.00 15,425,272.65
4. Closing
213,563,140.85 687,481,029.29 15,775,340.86 51,720,694.71 156,431,829.18 1,124,972,034.89
Balance
III. Impairment —— —— —— —— —— ——
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Machinery Transportation Electronic Other
Item Property Device Equipment Total
Equipment Equipment
Reserve
1. Opening
- 1,319,560.01 200,000.00 - 1,159.51 1,520,719.52
Balance
2. Increase - 313,681.52 - - - 313,681.52
3. Decrease - 398,809.64 - - - 398,809.64
(1) Disposal - 398,809.64 - - - 398,809.64
4. Closing
- 1,234,431.89 200,000.00 - 1,159.51 1,435,591.40
Balance
IV. Book Value —— —— —— —— —— ——
1. Closing book
223,615,055.28 429,207,890.15 4,050,632.10 13,392,804.71 24,859,069.57 695,125,451.81
value
2. Opening book
232,016,786.54 417,098,833.35 6,146,675.23 14,815,173.08 25,742,371.23 695,819,839.43
value
(2) Temporary idle fixed assets
Accumulated
Item Initial Cost Provision Book Value Note
Deprecation
Property 9,190,525.68 6,445,722.43 - 2,744,803.25 -
Machinery
16,559,354.62 13,478,911.00 876,309.58 2,204,134.04 -
Equipment
Transportation 605,992.53 587,812.75 - 18,179.78 -
Electronic
- - - - -
Device
Other
13,146,290.32 12,850,128.14 1,159.51 295,002.67 -
Equipment
Total 39,502,163.15 33,362,574.32 877,469.09 5,262,119.74 —
(3) Fixed assets leases out under operating lease
Item Book Value
Property 35,285,907.66
Total 35,285,907.66
(4) Fixed assets as pending certificate of ownership
Book value Reason for Pending
Item
Land certificate pending
Liaoyang Bearing’s Main workshop 16,853,651.83
Land certificate pending
Liaoyang Bearing’s Office building 4,594,252.78
Land certificate pending
Liaoyang Bearing’s Processing 1,631,937.07
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Book value Reason for Pending
Item
workshop
Land certificate pending
Liaoyang Bearing’s Staff canteen 1,066,114.21
Auto Bearing Western Industrial
42,590,399.28 Land certificate pending
Zone workshop (cone)
Auto Bearing Western Industrial
21,959,189.06 Land certificate pending
Zone workshop (column)
Dalian machine industry area
36,952,258.74 Land certificate pending
bearing factory
11. Construction-in-progress
(1) Construction in progress details
Closing Balance Opening Balance
Item Book Book
Provision Book Value Provision Book Value
Balance Balance
Spherical
surface
124,994,399.66 - 124,994,399.66 119,522,927.09 - 119,522,927.09
bearings
new plant
Improvement
of
42,161,475.27 - 42,161,475.27 45,761,958.46 - 45,761,958.46
seven-finished
products
Improvement
of
39,589,942.44 - 39,589,942.44 37,988,266.40 - 37,988,266.40
one-finished
products
Improvement
of precision 24,819,080.90 - 24,819,080.90 57,715,726.04 - 57,715,726.04
roller branch
Dalian
industry park 20,650,648.09 - 20,650,648.09 19,885,742.72 - 19,885,742.72
project
Improvement
8,827,390.94 - 8,827,390.94 5,061,298.12 - 5,061,298.12
of Amerauto
Improvement
of grinding 8,677,462.24 - 8,677,462.24 9,045,850.67 - 9,045,850.67
machine
Grinding
7,534,651.82 - 7,534,651.82 10,566,935.30 - 10,566,935.30
product line
Heat treatment
5,166,367.38 - 5,166,367.38 2,723,139.00 - 2,723,139.00
product line
Improvement 4,470,874.95 - 4,470,874.95 3,455,196.16 - 3,455,196.16
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Closing Balance Opening Balance
Item Book Book
Provision Book Value Provision Book Value
Balance Balance
of
second-finishe
d products
Improvement
of liaoyang 3,982,724.88 - 3,982,724.88 9,682,989.93 - 9,682,989.93
bearing
Improvement
3,734,829.95 - 3,734,829.95 6,836,609.99 - 6,836,609.99
of plant
Improvement
of special 3,448,969.98 - 3,448,969.98 7,565,073.68 - 7,565,073.68
large branch
Crane Project 2,861,762.32 - 2,861,762.32 2,861,157.05 - 2,861,157.05
Computer
2,646,148.77 - 2,646,148.77 875,831.49 - 875,831.49
Project
Overhaul
factory 2,195,185.79 - 2,195,185.79
reconstruction
Others 23,870,304.04 - 23,870,304.04 23,855,733.41 - 23,855,733.41
Total 329,632,219.42 - 329,632,219.42 363,404,435.51 - 363,404,435.51
(2) Change in the significant construction in progress
Decrease
Opening Transfer Closing
Name Increase Other
Balance to fixed Balance
decrease
assets
Spherical surface
bearings new 119,522,927.09 5,471,472.57 - - 124,994,399.66
plant
Improvement of
seven-finished 45,761,958.46 16,055,006.84 19,483,697.58 171,792.45 42,161,475.27
products
Improvement of
one-finished 37,988,266.40 3,140,975.99 1,539,299.95 - 39,589,942.44
products
Improvement of
precision roller 57,715,726.04 5,864,004.90 38,760,650.05 - 24,819,080.89
branch
Dalian industry park
19,885,742.72 764,905.37 - - 20,650,648.09
project
Improvement of
5,061,298.12 3,766,092.82 - - 8,827,390.94
Amerauto
Improvement of
9,045,850.67 534,325.76 902,714.19 - 8,677,462.24
grinding machine
Grinding product 10,566,935.30 - 3,032,283.48 - 7,534,651.82
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Decrease
Opening Transfer Closing
Name Increase Other
Balance to fixed Balance
decrease
assets
line
Heat treatment
2,723,139.00 2,583,228.38 140,000.00 - 5,166,367.38
product line
Improvement of
two-finished 3,455,196.16 1,015,678.79 - - 4,470,874.95
products
Improvement of
9,682,989.93 177,208.67 5,877,473.72 - 3,982,724.88
Liaoyang bearing
Improvement of
6,836,609.99 24,930.49 3,126,710.52 - 3,734,829.96
plant
Improvement of
7,565,073.68 1,087,646.93 5,203,750.63 - 3,448,969.98
special large branch
Crane Project 2,861,157.05 605.28 - - 2,861,762.33
Computer Project 875,831.49 1,770,317.28 - - 2,646,148.77
Overhaul factory
2,195,185.79 - - 2,195,185.79
reconstruction
Others 7,806,754.94 2,297,560.56 782,722.80 - 9,321,592.70
Total 347,355,457.04 46,749,146.42 78,849,302.92 171,792.45 315,083,508.09
(Continued)
Percent of Including: Interest
Accumulated
investment Accumulated capitaliz Source of
Name Budget capitalized
against capitalized ation funds
interest
budget(%) interest rate (%)
Spherical surface
Loan/Self
bearings new 123,000,000.00 102 - - -
plant financing
Improvement of
Loan/Self
seven-finished 69,102,889.00 61 513,221.98 219,861.41 4.8
products financing
Improvement of
Loan/Self
one-finished 46,439,419.00 85 3,207,768.31 68,813.40 4.8
products financing
Improvement of
Loan/Self
precision roller 27,129,511.00 84 2,576,913.72 1,988,658.11 4.8
branch financing
Dalian industry Loan/Self
40,114,352.61 51 376,653.11 943.26 4.8
park project financing
Improvement of Loan/Self
11,084,341.04 79 92,495.72 17,793.31 4.8
Amerauto financing
Improvement of Loan/Self
12,942,000.00 67 331,338.45 2,242.64 4.8
grinding machine financing
Grinding product Loan/Self
13,332,000.00 57 368,952.53 1,069.84 4.8
line financing
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Percent of Including: Interest
Accumulated
investment Accumulated capitaliz Source of
Name Budget capitalized
against capitalized ation funds
interest
budget(%) interest rate (%)
Heat treatment Loan/Self
9,047,300.00 57 14,986.39 427.89 4.8
product line financing
Improvement of
Loan/Self
two-finished 5,087,772.00 88 126,774.56 208.71 4.8
products financing
Improvement of Loan/Self
5,971,399.00 67 126,446.38 6,388.68 4.8
Liaoyang bearing financing
Improvement of Loan/Self
3,181,742.00 116 375,857.06 30,160.03 4.8
plant financing
Improvement of
Loan/Self
special large 3,233,570.00 107 38,141.78 3,362.54 4.8
branch financing
Loan/Self
Crane Project 3,021,136.00 95 150,635.54 605.27 4.8
financing
Loan/Self
Computer Project 3,286,898.00 80 19,999.90 9,633.52 4.8
financing
Overhaul
Loan/Self
factory 2,953,500.00 74 - - -
reconstruction financing
Loan/Self
Others 10,477,073.33 89 447,840.35 23,169.14 4.8
financing
Total 389,404,902.98 —— 8,768,025.78 2,373,337.75 —— —
12. Intangible assets
(1) Intangible assets list
Item Land use right ERP software Total
1.Initial cost —— ——
1). Opening balance 176,189,727.74 6,135,356.44 182,325,084.18
2).Increase - - -
(1) Purchase - - -
(2) Internal development - - -
(3) Acquired by company
- - -
combination
3). Decrease - - -
4). Closing balance 176,189,727.74 6,135,356.44 182,325,084.18
2. Amortization —— —— ——
1). Opening balance 36,599,751.53 5,369,996.52 41,969,748.05
2).Increase 4,437,473.08 551,254.96 4,988,728.04
(1)Accrual 4,437,473.08 551,254.96 4,988,728.04
(2)Transfer into - - -
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Item Land use right ERP software Total
3). Decrease - - -
4). Closing balance 41,037,224.61 5,921,251.48 46,958,476.09
3. Provision —— —— ——
for impairment
1). Opening balance - - -
2).Increase - - -
3). Decrease - - -
4). Closing balance - - -
4. Book value —— —— ——
1.Closing Book value 135,152,503.13 214,104.96 135,366,608.09
2.Opening Book value 139,589,976.21 765,359.92 140,355,336.13
(2) At the end of reporting period, there is no intangible asset established by internal
development.
13. Long-term repayments
Item Opening Other Closing
Increase Amortization
Balance Decrease Balance
Shanghai
657,022.39 67,830.36 - 589,192.03
sales office
Decoration
110,832.00 88,668.00 - 22,164.00
fees
Total 767,854.39 156,498.36 - 611,356.03
14. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets without deduction
Item Closing Balance Opening Balance
Deductible Deferredtax Deductible Deferredtax
temporary assets temporary assets
difference difference
Provision for
63,685,949.07 10,062,159.26 63,685,949.07 10,062,159.26
impairment of assets
Difference due to
depreciation of fixed 11,940,720.07 1,791,108.01 11,940,720.07 1,791,108.01
assets
Total 75,626,669.14 11,853,267.27 75,626,669.14 11,853,267.27
(2) Deferred tax liabilities without deduction
Item Closing Balance Opening Balance
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Taxable Deferred tax Taxable Deferred tax
temporary liabilities temporary liabilities
difference difference
Asset evaluation
increment in business
6,589,523.85 988,428.58 7,606,635.67 1,140,995.35
combination without the
same control
Total 6,589,523.85 988,428.58 7,606,635.67 1,140,995.35
(3) The net value of deferred tax assets and deferred tax liabilities with deduction
Closing Closing Opening Opening Balance
Balance of Balance of Balance of of deferred tax
deferred tax deferred tax deferred tax assets/deferred
Item
assets and assets/deferred assets and tax liabilities
liabilities with tax liabilities liabilities with
deduction deduction
Deferred tax assets 988,428.58 10,864,838.69 1,140,995.35 10,712,271.92
(4) Unrecognized deferred tax assets details
Item Closing Balance Opening Balance
Deductible temporary difference 39,005,808.79 57,426,417.68
Deductible loss 271,715,626.48 187,793,926.49
Total 310,721,435.27 245,220,344.17
(5) Unrecognized deductible loss of deferred tax assets expired next period
Year Closing Balance Opening Balance Notes
2018 21,053,716.07 21,053,716.07
2019 166,740,210.42 166,740,210.42
2020 83,921,699.99 -
Total 271,715,626.48 187,793,926.49
15. Short-term loan
(1) Category of short term loan
Loan category Closing Balance Opening Balance
Credit loan 385,000,000.00 498,000,000.00
Total 385,000,000.00 498,000,000.00
16. Notes payable
Notes category Closing Balance Opening Balance
93
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Bank acceptance notes 324,380,000.00 195,850,000.00
Commercial acceptance
3,086,550.20 11,017,023.86
notes
Total 327,466,550.20 206,867,023.86
There is no unpaid expired notes payable by the end of the accounting period.
17. Accounts payable
(1) Accounts payable
Item Closing Balance Opening Balance
Goods payments 755,528,200.42 1,276,204,140.97
Project payments 103,948,960.02 112,220,509.73
Others 114,008,776.78 -
Total 973,485,937.22 1,388,424,650.70
(2) Accounts payable with age over 1 year
Closing Reason of unpaid or
Name of company
Balance not carried forward
Company A 4,053,746.60 Quality dispute
Company B 15,620,134.28 Inspection and warranty
Company C 4,750,083.63 Quality security deposit
Company D 4,508,856.01 Quality security deposit
Company E 3,361,967.57 Quality security deposit
Company F 3,251,170.70 Quality security deposit
Total 35,545,958.79
18. Received in advance
(1) Received in advance
Item Closing Balance Opening Balance
Goods payment 44,835,510.10 48,558,339.92
Total 44,835,510.10 48,558,339.92
19. Employee’s payable
(1) Category of employee’s payables
Item Opening Increase Decrease Closing
Balance Balance
Short-term
10,212,114.16 265,335,748.89 265,998,906.56 9,548,956.48
employee’s
94
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Item Opening Increase Decrease Closing
Balance Balance
payable
Post-employment
benefit –defined 10,063,250.28 48,802,408.09 48,973,913.06 9,891,745.32
contribution plan
Total 20,275,364.44 314,138,156.98 314,972,819.62 19,440,701.80
(2) Short-term employee’s payables
Item Opening Increase Decrease Closing
Balance Balance
Salaries, bonus,
allowance, and 967,372.74 204,933,130.19 205,268,923.37 631,579.56
subsidy
Welfare 14,550,708.31 14,550,708.31 -
-
Social insurance 495,865.45 23,003,040.74 22,909,478.85 589,427.33
Include: Medical
207,498.96 20,264,717.33 20,180,359.02 291,857.26
insurance
On-duty
injury 218,585.45 2,146,024.99 2,138,430.10 226,180.34
insurance
Maternity
69,781.04 592,298.42 590,689.73 71,389.73
insurance
Housing funds 2,950,467.55 21,341,184.54 21,318,511.14 2,973,140.95
Labour union and
5,798,408.42 1,507,685.11 1,951,284.89 5,354,808.64
training expense
Total 10,212,114.16 265,335,748.89 265,998,906.56 9,548,956.48
(3) Defined contribution plan
Item Opening Increase Decrease Closing
Balance Balance
Pension 9,736,874.04 46,270,007.65 46,451,631.66 9,555,250.03
Unemployment
326,376.25 2,532,400.44 2,522,281.40 336,495.29
insurance
Total 10,063,250.29 48,802,408.09 48,973,913.06 9,891,745.32
20. Tax payable
95
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Item Closing Balance Opening Balance
Value-added tax 4,025,060.14 2,438,511.93
Business tax 458,152.37 213,979.71
Individual income tax 172,957.42 125,184.92
Enterprise income tax 6,153.34 284,087.56
City maintenance and construction tax 319,932.74 142,857.25
Real estate tax 310,655.78 30,992.40
Land use tax 252,121.87 4,006.25
Stamp duty 92,079.71 106,863.15
Education surcharge 230,567.80 102,825.26
River toll fee 3,768.13 222,694.43
Others 202,897.93 4,985.02
Total 6,074,347.23 3,676,987.88
21. Interest payable
(1) Category of interest payables
Item Closing Balance Opening Balance
Interest for long-term loan with 70,000.00
instalments
Interest for short-term loan 1,400,000.00 5,872,500.00
Total 1,400,000.00 5,942,500.00
22.Other accounts payable
(1) Other payables categorized by payments nature
Payments nature Closing Balance Opening Balance
Bid security deposits 5,075,575.42 5,958,511.02
Risk deposits from branch manager 22,857,703.42 24,204,458.00
Trademark fees 4,931,241.97 6,320,088.31
Others 100,967,926.86 146,802,701.48
Total 133,832,447.67 183,285,758.81
(2) Significant other payables with age over 1 year
Name of company Reason of unpaid or not
Closing Balance
carried forward
Not reach the return condition
Risk deposit from branch manager 22,752,958.00 of contract
Not due yet according to the
Bid security deposits 3,875,100.00 contract payment timeline
Liaoyang Baolin Real Estate
Development Co., Ltd 34,000,000.00 Settlement day not due yet
96
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Name of company Reason of unpaid or not
Closing Balance
carried forward
Total 60,628,058.00
23.Non-current liabilities due within one year
Item Closing Balance Opening Balance
Long-term loan due within one year 50,000,000.00 90,000,000.00
Total 50,000,000.00 90,000,000.00
24.Other current liabilities
(1) Category of other current liabilities
Item Closing Balance Opening Balance
Government subsidy
4,761,103.83
4,411,103.83
Total
4,761,103.83
4,411,103.83
(2) Government subsidy
Recorded
Related
Opening into non Other Closing
Project Increase with
Balance -operatio Change Balance
asset/equity
n income
Technology
subsidy from 737,000.00
-
737,000.00
737,000.00 737,000.00 asset
province
Dalian sub-factory
- asset
remove subsidy 2,704,235.83 2,704,235.83 2,704,235.83 2,704,235.83
Intelligent
equipment
manufacturing 400,000.00 - 400,000.00 400,000.00 400,000.00 income
development
specific subsidy
High-end bearing
improvement 472,320.00 - 472,320.00 472,320.00 asset
472,320.00
project
Amer-auto bearing
350,000.00 - - asset
project subsidy 350,000.00
97
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Recorded
Related
Opening into non Other Closing
Project Increase with
Balance -operatio Change Balance
asset/equity
n income
Liaoyang Bearing
97,548.00 - 97,548.00 97,548.00 asset
Industry subsidy 97,548.00
Total 4,761,103.83 - 4,761,103.83 4,411,103.83 4,411,103.83 ——
“Other Change”: the expected amortization occurred during the next year will be re-categorized
from deferred income to other current liabilities.
25.Long-term loan
(1) Category of long-term loan
Category Closing Balance Opening Balance
Guarantee loan 90,000,000.00 50,000,000.00
Credit loan 90,000,000.00
Total 180,000,000.00 50,000,000.00
Guarantee loan is secured by the controlling shareholder, Wazhou Group, refer to the note XI.2.
(3).
26.Long-term payables
(1) Long-term payables categorized by payments nature
Payments nature Closing Balance Opening Balance
Equipment payments 100,000.00 100,000.00
Housing subsidy 1,497,305.72 1,497,305.72
Total 1,597,305.72 1,597,305.72
27.Special payables
Items Opening Increase Decrease Closing Formation Basis
Balance Balance
Granted by Wafangdian Bureau
Special of Finance and Wafangdian
pollution 221,698.98 - - 221,698.98 Bureau of Environment
treatment Protection with approval with
“WaCaiZhi Qi No.[2004]217”
Informatiza 100,000.00 - - 100,000.00 Dalian Financial Bureau and
98
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
tion Municipal Office of Economic
Constructio and Information Technology
n Committee with approval with
“Da CaiZhi Qi No. [2012]917”
and “Da Jing Xin Fa No.
[2012]199”
Total 321,698.98 - - 321,698.98
28.Deferred income
(1) Category of deferred income
Item Opening Increase Decrease Closing Formation
Balance Balance Basis
Government 51,122,51 4,472,31 46,650,19
subsidy 3.64 6.82 6.82
Total 51,122,51 4,472,31 46,650,19 —
—
3.64 6.82 6.82
(2) Government subsidy project
Recorded Related
Opening into non Other Closing with
Government
Increase Note
subsidy item Balance -operatio Change Balance asset/equi
n income ty
Liaozhou
Industry
4,487,208.00 - - 97,548.00 4,389,660.00 asset A
development
subsidies
Technology
subsidy from 1,473,999.97 - - 737,000.00 736,999.97 asset B
province
Compensation
for plants 35,155,065.67 - - 2,704,235.83 32,450,829.84 asset C
moving
Development
of intelligent
manufacturing 3,600,000.00 - - 400,000.00 3,200,000.00 asset D
equipment
subsidies
99
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Recorded Related
Opening into non Other Closing with
Government
Increase Note
subsidy item Balance -operatio Change Balance asset/equi
n income ty
Improvement
of high-end
bearing 3,306,240.00 - - 472,320.00 2,833,920.00 asset E
production
subsidies
Interest
subsidy of
2,400,000.00 - - - 2,400,000.00 asset F
grand axle
load
Construction
of workshop
for technology 700,000.00 - 61,212.99 - 638,787.01 asset G
masters
subsidy
Total 51,122,513.64 - 61,212.99 4,411,103.83 46,650,196.82 -
“Other change”: carried forward the non-operation income occurred in 2015 from the subsidy
and re-categorized to other current liabilities.
(1) A: Deferred income: the RMB 4,877,400.00 of “Industry development subsidies” is
distributed by the Liaoyang Economic and Development district Bureau of Finance in
2013. The grant is related to land and amortized over 50 years in accordance with land
amortization criteria.
(2) B: Deferred income: the improvement subsidy is the railway transportation bearing
technologic improvement subsidy with total amount of RMB 7,370,000.00 granted by
Bureau of Finance Liaoning province in 2008. The subsidy related to asset should be
deferred over the useful life of 10 years.
(3) C: Deferred income: the compensation for plants moving is RMB 59,820,000.00 granted
from Dalian government-owned assets investment and operating Co., Ltd in 2011. And
the amount of making up for the removal loss of the current period is RMB
11,143,755.05；The rest of 48,676,244.95 are recognized as the removal compensation
100
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
related with assets, which is amortized 18 years, according to the new fixed assets
formed after the Dalian branch removal.
(4) D: Deferred income: the RMB 4,000,000.00 of development of intelligent manufacturing
equipment subsidy is distributed by Dalian City Finance Bureau in 2012.The subsidies
are used in the project “Grinding vehicle integration and processing digitalization”.
Currently, the equipment has been used for production manufacturing and grant is
amortized over 10 years.
(5) E: Deferred income: the RMB 4,723,200 interest subsidy of “Improvement of bearing
base in high-end equipment sector” is distributed by Wafangdian Finance Bureau in
2013 for the year of 2011. The subsidy is specially used to improve the project of
improvement of bearing base in high-end equipment sector. The item is amortized within
10 years.
(6) F: Deferred income: the RMB 2,400,000.00 interest subsidy of “Axle box and bearing
technology improvement of grand axle load railway carriages” is granted by Wafangdian
Finance Bureau in 2014. The subsidy is now in processing the project “Axle box and
bearing technology improvement of grand axle load railway carriages”. This project is
still in the progress and is expected to be completed for inspection in 2016.
(7) G: Deferred income: the 700,000.00 RMB of the construction of workshop for
technology masters subsidy is granted by Dalian Finance Bureau in 2014 according to
“Da Cai She (Zhuan) No. [2013]26”, “Da Cai She (Zhuan) No. [2013]37”, “Da Cai She
(Zhuan) No. [2013]45”, “Da Cai She (Zhuan) No. [2014]27”, and “Da Cai She (Zhuan)
No. [2014]32”. No assets are established yet so far, the grant has been booked into
non-operating income.
29.Share capital
OpeningBalance Changeforcurrentperiod ClosingBalance
Shareholders’ Issuing Transferring
Distributing
name/category Amounts % new capitalreserves Others Subtotal Amounts %
shares
shares tosharecapital
Shares under
restriction for - - - - - - - - -
sale
101
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Domestically
legal person 244,000,000.00 60.61 - - - - - 244,000,000.00 60.61
shares
Total shares
under
244,000,000.00 60.61 — — — — — 244,000,000.00 60.61
restriction for
sale
Shares without
restriction for - - - - - - - - -
sale
Domestically
listed foreign 158,600,000.00 39.39 - - - - - 158,600,000.00 39.39
shares
Total shares
without
158,600,000.00 39.39 — — — — — 158,600,000.00 39.39
restriction for
sale
Totalshares 402,600,000.00 100.00 — — — — — 402,600,000.00 100.00
30.Capital reserves
Items Opening Balance Increase Decrease Closing Balance
Share premium 201,956,446.52 - - 201,956,446.52
Other
283,734,603.95 - - 283,734,603.95
capital reserves
Total 485,691,050.47 - - 485,691,050.47
31.Surplus reserves
Item Opening Increase Decrease Closing
Balance Balance
Statutory - -
110,852,290.20 110,852,290.20
surplus reserve
Discretionary - -
20,590,618.91 20,590,618.91
surplus reserve
Total 131,442,909.11 - - 131,442,909.11
32.Undistributed profits
Item 2015 2014
Closing balance of 2014 362,111,029.14 482,117,978.03
Add: Adjustments to the opening balance of - -
102
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
undistributed profits
Including: additional retrospective
adjustments according to the new accounting - -
standards
Change on accounting policy - -
Correction of prior period significant errors - -
Change on combination scope under same
- -
control
Other factors - -
Opening balance of 2015 362,111,029.14 482,117,978.03
Add: net profit attributable to shareholders of
-33,380,013.39 -103,902,948.89
parent company in the year
Less: Provision for statutory surplus reserves - -
Provision for any surplus reserves - -
Provision of general risk - -
Dividends payable for common shares - 16,104,000.00
Share dividends - -
Closing balance of 2015 328,731,015.75 362,111,029.14
33.Operating revenue and cost
Items 2015 2014
Sales revenue Cost of sales Sales revenue Cost of sales
Revenue from
principle 2,073,259,105.49 1,872,373,555.89 2,635,352,627.84 2,450,941,573.58
operation
Revenue from
other 226,902,190.99 207,103,551.31
372,225,954.12 316,736,175.97
operation
Total 2,300,161,296.48 2,079,477,107.20 3,007,578,581.96 2,767,677,749.55
(1) Principle operation - classified according to products or operation
2015 2014
Items
Sales revenue Cost of sales Sales revenue Cost of sales
Export 353,230,102.39 285,923,237.04 274,637,094.05
331,205,551.30
Domestic 1,689,192,669.88 1,502,142,078.02 2,251,373,759.43 2,065,530,190.44
103
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Including:
Transportation
556,417,955.42 496,110,751.32 966,465,387.04 882,656,346.90
vehicle
bearings
Special use
595,546,617.11 566,838,486.10 580,622,061.86 569,127,159.48
bearings
General use
537,228,097.35 704,286,310.53 613,746,684.06
bearings 439,192,840.60
Industrial
30,836,333.22 98,055,631.37 110,774,289.09
Operations 39,025,926.57
Total 2,073,259,105.49 1,872,373,555.89 2,635,352,627.84 2,450,941,573.58
34.Operating taxes and surcharges
Items 2015 2014
Business tax 1,518,770.40 884,464.00
City construction tax 5,928,564.29 5,832,614.82
Education surcharge 4,234,717.06 4,172,882.02
Other 32,760.39 50,313.63
Total 10,940,274.47
11,714,812.14
35.Selling expenses
Items 2015 2014
Transportation expense 78,571,050.56 86,008,634.37
Employee benefit 44,243,570.98 38,164,205.27
Travel expense 20,927,121.64 25,514,504.31
Conference expense 8,246,362.99 25,581,519.55
Trademark use fee 4,579,774.48
8,256,840.09
Other expense 34,248,580.61
82,070,707.06
Total 265,596,410.65
190,816,461.26
104
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
36.Administrative expenses
Items 2015 2014
Employee benefit 35,150,237.58 29,624,491.92
Tax expense 7,986,509.60 7,714,041.45
Technology development expense 5,743,653.45 6,653,443.72
Intangible assets amortization 4,988,728.04 4,623,973.61
Guide and firefighting expense 3,290,900.00 3,290,900.00
Depreciation expense 3,832,977.51 3,353,649.21
Business entertaining expense 785,228.40 862,283.00
Travel expense 1,143,180.63 1,206,130.48
Other expense 15,737,540.13 17,184,313.77
Total 74,513,227.16
78,658,955.34
37.Financial expenses
Items 2015 2014
Interest expenses
37,988,953.46 38,200,459.38
Less: Interest income
730,953.57 933,679.01
Add: Exchange loss
-7,931,075.89 -1,239,282.04
Add: Others expenditure
1,281,521.51 2,411,682.17
Total
30,608,445.51 38,439,180.50
38.Assets impairment losses
Items 2015 2014
Loss of bad debts 11,893,610.83
14,254,853.89
Provision for inventory impairment -32,641,616.99 48,145,847.91
105
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Provision for fixed assets impairment -
313,681.52
Total 60,039,458.74
-18,073,081.58
39.Investment income
Items 2015 2014
Long-term equity investment income under
- 4,033,452.23
equity method
Available-for-sale financial assets in
240,000.00 240,000.00
holding
Gain on fair value remeasurement of share
- 10,612,925.16
equity held before the acquisition date
Income transferred into investment income
from other comprehensive income in
- 3,114,497.89
relation to share equity held before the
acquisition date
Total 240,000.00 18,000,875.28
40.Non-operating income
(1) Non-operating income list
Amounts recognized
into current
Item 2015 2014
non-recurring profit or
loss
Gains on disposal of non-current
1,883,903.96 6,010,809.66 1,883,903.96
assets
Including: gains on disposal of
1,883,903.96 6,010,809.66 1,883,903.96
fixed assets
Income from debt restructuring 32,454,287.65 1,916,930.56 32,454,287.65
Government grants 4,867,966.82 6,969,137.88 4,867,966.82
Gains from acquisition of
subsidiary when initial cost less
- 74,049,202.70 -
than the fair value of invested
company
Penalty income 76,249.26 - 76,249.26
Others 1,895,862.98 2,411,974.81 1,895,862.98
Total 41,178,270.67 91,358,055.61 41,178,270.67
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
(2) Government subsidy list
2015 2014 With
Item Resource and basis
asset/equity
No.57 (2007) Bureau
Improvement subsidy 737,000.00 737,000.00 of Finance Liaoning asset
Province
Compensation deal of
Compensation for plants Dalian state-owned
2,704,235.83 2,704,235.88 property investment asset
moving and operating group
Co., LTD
Wacaijian[119] ( notice
about distributing 6th
Improvement of high-end
472,320.00 472,320.00 interest subsidy fund asset
bearing production subsidies
for the year of 2100 to
the company)
Granted by Liaoning
Exhibition subsidy 20,050.00 20,034.00 foreign economic income
operation office
The reward for economic
Da CaiZhi Qi No.
increments in 2014 by - 2,393,000.00 income
[2014] 1177
Bureau of Finance of Dalian
Subsidy for overseas market Granted by Liaoning
development by foreign trade - 145,000.00 foreign economic income
operation office
operation office
Industry development fund Liao Tai CaiYuzhi No.
97,548.00 97,548.00 asset
[2014] 656
Technology research and Liao Shi Cai Zhi
400,000.00 income
development fund Qi[2013] 497
Technology research and Liao Shi Cai Zhi
350,000.00 income
development fund Qi[2014] 978
Special project subsidy for Dalian Municipal
intelligent manufacture 400,000.00 - Finance Bureau[2012] income
1163
equipment development
Dalian Municipal
Skill master studio subsidy 61,212.99 Finance Bureau[2013] income
26
Development foster fund in Forster fund for
25,600.00 development given by income
2014 Chinese ECI company
Total 4,867,966.82 6,969,137.88
41.Non-operating expenses
107
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Amounts
recognized into
Item 2015 2014 non-recurring
profit or loss
for the year
Loss on disposal of non-current assets 584,454.86
584,454.86 567,566.60
Including: Loss on disposal of fixed
584,454.86
assets 584,454.86 567,566.60
Loss from debt restructuring 1,726,269.35 381,595.11
381,595.11
Penalty loss 10,852.00 117,284.91
117,284.91
Shortage on physical count - - -
Others 88,242.18 94,277.80
94,277.80
Total 2,392,930.13 1,177,612.68
1,177,612.68
42.Income tax expenses
(1) Income tax expenses
Items 2015 2014
Current income tax expenses 731,834.76 -82,548.44
Deferred income tax expenses -152,566.77 1,323,778.98
Total 579,267.99 1,241,230.54
43.Notes to cash flow statement
(1) Cash receipt/payment of other operating/investing/financing activities
1) Other cash received relating to operating activities
Items 2015 2014
Interest income 652,081.18 412,285.34
Government subsidy 6,058,034.00
-
AC or AP 881,296.88 5,966,522.72
Return of reserve fund, deposit etc. 1,186,141.08 235,200.57
Others 1,073,052.45 1,672,171.01
108
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Total 3,792,571.59 14,344,213.64
2) Other cash paid relating to operating activities
Items 2015 2014
Travel expenses 23,315,843.57
28,055,861.49
Conference expense 9,235,960.84
19,674,256.03
Advertising expense 532,652.34
775,185.62
Trademark use fee 579,774.48
-
Rent expense 10,997,373.48
8,373,369.16
Business promotion expense 8,635,200.46
12,705,777.55
Freight service expense 17,649,146.02
25,456,167.41
Security and fire-fighting 103,583.15 -
Office expense 6,668,429.82
5,931,684.35
Collection and payment for others 11,793,902.51
8,581,025.95
Other expense 54,344,161.07
52,744,436.83
Security deposit transfer 11,928,649.85
17,099,672.21
Total 155,784,677.59 179,397,436.60
3) Others cash received relating to financing activities
Items 2015 2014
Financing accepted notes 191,645,382.23
Borrowings by presenting received order 417,579,700.00 302,053,500.00
302,053,500.00
Total 609,225,082.23
4) Others cash paid relating to financing activities
Items 2015 2014
Repayment of borrowings 536,567,850.00 150,000,000.00
Total 536,567,850.00 150,000,000.00
(2) Supplementary information of consolidated cash flow statement
Items 2015 2014
1. Adjusting net profit into cash flows of operating —— ——
activities:
109
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Net profit -33,380,013.39 -103,902,948.89
Add: Provision for impairment of assets -18,073,081.58 60,039,458.74
Depreciation of fixed assets,Amortization ofmineral
86,893,604.73 75,813,460.85
resources, and biological assets
Amortization of intangible assets 4,988,728.04 4,623,973.61
Amortization of long-term deferred expenses 156,498.36 67,830.36
Losses on disposal of fixed assets, intangible assets, and
-1,299,449.10 -5,443,243.06
long-term assets (income listed with”-”)
Losses on write-off of fixed assets (income listed
- -
with”-”)
Change of fair value profit or loss - -
Financial expense (income listed with”-”) 37,988,953.46 38,083,783.17
Investment loss (income listed with”-”) -240,000.00 -18,000,875.28
Decrease of deferred tax assets(increase listed
- 182,783.63
with”-”)
Increase of deferred tax liabilities(decrease
-152,566.77 1,140,995.35
listed with”-”)
Decrease of inventories (increase listed with”-”) 129,810,005.29 -37,912,089.70
Decrease of operating receivables (increase listed
115,564,845.60 -330,556,953.05
with”-”)
Increase of operating payables (decrease listed
-373,785,552.85 460,385,193.83
with”-”)
Others - -74,049,202.70
Net cash flows arising from operating activities -51,528,028.21 70,472,166.86
2. Significant investment and financing activities —— ——
unrelated to cash income and expenses
Liabilities transferred to capital - -
Convertible bonds within 1 year - -
Financing leased fixed assets - -
3. Net increase (decrease) of cash and cash equivalent —— ——
Closing balance of cash 78,556,030.56 143,399,164.66
Less: Opening balance of cash 143,399,164.66 60,616,759.13
Add: Closing balance of cash equivalent
Less: Opening balance of cash equivalent
Net increase of cash and cash equivalent -64,843,134.10 82,782,240.53
(3) Cash and cash equivalents
Items 2015 2014
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Cash 78,556,030.56 143,399,164.66
Including: Cash on hand 372,523.88 243,292.16
Bank deposit used for paying at any moment 78,183,506.68 143,155,872.50
Closing balance of cash and cash equivalents 78,556,030.56 143,399,164.66
Note: The difference between cash and cash equivalent and cash at the end of this year refers to
notesVI.1.
44. Monetary category of foreign currency
(1) Monetary category of foreign currency
Item Closing Balance Exchange Closing Balance
(foreign currency) Rate (RMB)
Cash
Including：USD 4,866,080.81 6.4936 31,598,382.35
EURO 50,173.26 7.0952 355,989.31
HKD 60.03 0.8034 48.23
GBP 110.00 9.6159 1,057.75
Accounts receivable
Including: USD 15,956,843.52 6.4936 103,617,359.08
EURO 1,159,721.30 7.0952 8,228,454.57
Received in advance
Including: USD 702,839.25 6.4936 4,563,956.95
EURO 506,007.08 7.0952 3,590,221.43
Accounts payable
Including: USD 94,530.73 6.4936 613,844.75
EURO
Advances to supplier
Including: USD 66,930.00 6.4936 434,616.65
EURO 14,008.07 7.0952 99,390.06
Other receivables
Including: USD 247,379.85 6.4936 1,606,385.79
Other payables
Including: USD 108,890.24 6.4936 707,089.66
EURO
VIII.Change of Consolidation Scope
No change
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
IX. Interest in other entity
1. Equity of subsidiaries
(1) Organization structure of group company
Name of Nature of Share（%）
Location Registered Location Method
subsidiary operation Direct Indirect
Wazhou Liaoyang Manufacturing
Liaoyang Baita
Bearing and selling
Wafangdian District Weiguo Rd 100 acquisition
construction bearing and
No.61
Co.,Ltd machines
Dalian Wazhou Dalian Free Trade Manufacturing
Precision Motor Zone and selling
Wafangdian 100 investment
Car Bearing SanshiliYongsheng Rd bearing and
Company Limited No.12 machines
Wazhou Precision
Manufacturing
of Spherical
Wafangdian Beigongji and selling
Roller Wafangdian 100 acquisition
St No.1 bearing and
Bearings(Wafangd
machines
ian)Co., Ltd
X. Risk Related to Financial Instruments
The main financial instruments held by the group company are including investment in share
equity, borrowing, accounts receivable, and accounts payable. The details introduction about
each financial instrument is referred to this notes No.VI above. The related risks of these
financial instruments and the risk management policy conducted to reduce these risks by the
group company are introduced as below. The Group management conducts to manage and
monitor these risks exposure and control these risks under certain risk level.
1. Objectives and policies of each risk management
The objectives of risk management conducted by the group company are to reach the balance
between risk and profit return by reducing the negative influence to operating performance
to the minimum level as well as maximising the shareholders’ and other investors’ profits.
Based on these objectives, the basic risk management policy is to recognize and analyse all
sorts of risk that the group company faced with, to set up the proper risk tolerance bottom
line conducting risk management, as well as to monitor these risks in a timely and effective
manner, and to ensure these risks under the limit level.
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
(1) Market risk
1) Currency risk
The currency risk is referred as the risk caused by the fluctuation of exchange rate. The main
currency risk that the company faced with is related to the USD since the main export
business is settled by USD. Other than the balance of foreign currency presented in Note VI.
44, all assets and liabilities of company are presented in RMB On December 31, 2015.The
balance in foreign currency of assets and liabilities may cause currency risk with influence to
operating performance.
2) Interest risk
The main potential interest risk which is caused by the fluctuation of the cash flow of
financial instruments is related to the floating rate of bank loan (Note VI. 15). The policy that
adopted by the Group is to maintain the floating rate of loan.
(2) Credit risk
On 31 December, 2015, the Group’s most probable credit risk exposure is from the financial
loss primarily due to the failure of fulfilling the obligation by one party of the contract. The
impairment losses of company’s financial assets are including:
Among the book value of recognized financial assets in the consolidated statement of
financial position, for the financial instruments measured at fair value, their book values
reflect the risk exposure, however, not maximum risk level; the level is changing along with
the fair value.
As the aim to reduce the credit risk, the Group sets up the credit department to ensure the
credit limit, to examine and approve the credit application, and to carry out monitor
procedures to claim expired creditor’s right. In addition, at each of balance sheet date, the
Group checks with every single process of receipt of receivable to ensure the sufficiency of
provision of bad debt. Therefore, the management of the Group believed the credit risk had
been minimized significantly.
The working capital has low level of credit risk since the cash is deposited in the banks with
high credit reputation.
(3) Liquidity risk
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
As the management of liquidity risk, the Group’s policy is to regularly monitor the
sufficiency of cash and cash equivalent, the liquidity requirements to ensure the normal
operations, and the fluctuation of cash flow. The bank loan activities are under monitoring by
management to make sure to comply with the loan agreement.
The liquidity risk is referred as the Group failed to fulfil its financial obligations by the due
date. The Group manages the liquidity risk by the maintain sufficiency of working capital to
cover the expired debt to avoid the unacceptable losses or the damage of Group’s reputation.
The Group analyses the debt structure and due time periodically to ensure the sufficiency of
available cash flow. The bank loan activities are under monitoring by management to make
sure to comply with the loan agreement. At the same, the Group has consultation with
financial organizations about the financing activities to maintain the credit level and to
reduce the credit risk.
The Group’s main financial resources come from bank loan. By the date of 31 December,
2015, the unencumbered bank loan credit is 2.14 billion Yuan.
XI. Disclosure of Fair Value
There is no asset or liability measured by fair value at the end of report period.
XII.Related Parties Relationship and Transactions
1. Related parties relationship
(1) Parent company and ultimate controller
1) Parent company and ultimate controller
Parent Registered Business Registered Shareholding Voting
company address nature capital percentage power
(%) percentage
(%)
Manufacture
No. 1 North
and sales of
Wazhou Gongji Street,
bearing and 413,793,100.00 60.61 60.61
Group Wafangdian
other
City, Dalian
equipments
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
2) Registered capital and its movement of parent company
Parent Opening Balance Increase Decrease Closing Balance
company
Wazhou Group 413,793,100.00 — — 413,793,100.00
3) Share held and its movement of parent company
Parent company Amount Share holding
(%)
Closing Balance Opening Balance Closing Opening
Balance Balance
Wazhou Group 244,000,000.00 244,000,000.00 60.61 60.61
(2). Subsidiaries
(1) Referring to the content in Note VIII. 1. (1) Organization structure of group
company
(3).Other related parties
Name of related party Related party relationship
Dalian Wazhou Bearing Manufacturing Other entity controlled by the same parent
Equipment Co., Ltd company and ultimate controlling party
Other entity controlled by the same parent
Wazhou Precision Steel Ball Company
company and ultimate controlling party
Other entity controlled by the same parent
Wazhou Exact Forge Ltd.,
company and ultimate controlling party
Other entity controlled by the same parent
Wazhou Group Precision Turnplate Bearing Ltd
company and ultimate controlling party
Wazhou Group Exact Transmission Bearing Other entity controlled by the same parent
Co., Ltd company and ultimate controlling party
Wazhou Group Equipment Technology Project Other entity controlled by the same parent
Co., Ltd. company and ultimate controlling party
Wazhou Group Special Precision Bearing Co., Other entity controlled by the same parent
Ltd. company and ultimate controlling party
Wazhou Group National Bearings Engineering Other entity controlled by the same parent
Research Centre Co., Ltd company and ultimate controlling party
Dalian North Metal Materials Trade Centre Co., Other entity controlled by the same parent
Ltd company and ultimate controlling party
Other entity controlled by the same parent
Wazhou Group (USA) Bearing CO., Ltd.
company and ultimate controlling party
Dalian GONA Wazhou Auto Bearings Co., Ltd Other related party
Dalian Wazhou Jinzhou Machinery Co., Ltd Other related party
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Dalian WazhouFengyuan Machinery Co., Ltd Other related party
2. Related party transactions
(1) Purchase of goods, provide, and receive labour services
1) Purchase of goods/receive labour services
Related party Content 2015 2014
WazhouPrecision Steel Ball Purchase of
2,447,586.39 6,183,163.07
Company goods
Purchase of
Wazhou Exact Forge Ltd., 181,319,845.46 279,989,617.78
goods
Dalian Wazhou Bearing Purchase of
28,640,645.96 19,948,287.07
Manufacturing Equipment Co., Ltd goods
Wazhou Group Precision Turnplate Purchase of
114,778,082.50 246,255,677.00
Bearing Ltd goods
Wazhou Group Exact Transmission Purchase of
85,767,947.90 104,544,089.32
Bearing Co., Ltd goods
Wafangdian Tongda Bearing Purchase of
39,849,495.82 -
Manufacturing Co., Ltd. goods
Wazhou Group Equipment Purchase of
- 34,987,895.70
Technology Project Co., Ltd. goods
Wazhou Group Equipment Purchase of
27,238,416.71 -
Technology Project Co., Ltd. equipments
Purchase of
Dalian SKF Wazhou Bearings Co., Ltd. - 171,107,515.76
goods
Dalian GONA Wazhou Auto Bearings Purchase of
goods 37,816,125.17 48,846,137.88
Co., Ltd
Dalian WazhouFengyuan Machinery Purchase of
87,672,622.48 146,106,031.41
Co., Ltd goods
Dalian Wazhou Jinzhou Machinery Purchase of
87,942,288.16 112,469,655.13
Co., Ltd goods
Purchase of
Wazhou Group 102,965,462.79 -
goods
Dalian Wazhou Manufacturing Purchase of
16,718,495.72 -
Equipment Co., Ltd equipments
Wazhou Group Special Precision Purchase of
goods 473,889.00 -
Bearing Co., Ltd.
Wazhou Group (USA) Bearing CO., Purchase of
goods 23,409,777.81 -
Ltd.
Total 820,322,186.15 1,170,438,070.12
2) Sales of goods/provide labour services
Related party Content 2015 2014
Wazhou Group Sales of goods 56,017,310.64 1,271,818.79
Dalian SKF Wazhou Bearings Co., Ltd. Sales of goods - 62,885,527.32
WazhouPrecision Steel Ball Company Sales of goods 563,694.87 5,252,101.33
Wazhou Exact Forge Ltd., Sales of goods 192,664,350.35 328,726,014.43
Dalian Wazhou Bearing Manufacturing Sales of goods
1,321,714.03 1,405,274.78
Equipment Co., Ltd
116
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Wazhou Group Precision Turnplate Sales of goods
764,491.84 806,448.91
Bearing Ltd
Wazhou Group Exact Transmission Sales of goods
29,053,894.69 22,998,475.35
Bearing Co., Ltd
Wazhou Group Special Precision Sales of goods
4,769,271.76 4,426,915.56
Bearing Co., Ltd.
Dalian North Metal Materials Trade Sales of goods
17,512,466.00 -
Centre Co., Ltd
Dalian Wazhou Jinzhou Machinery Co., Sales of goods
496,012.46 310,425.96
Ltd
Wazhou Group (USA) Bearing CO., Ltd. Sales of goods 105,169,678.68 21,734,280.64
Wafangdian Tongda Bearing
Sales of goods 485,664.95 -
Manufacturing Co., Ltd.
provide labour
Dalian SKF Wazhou Bearings Co., Ltd. - 4,358,305.71
services
provide labour
Wazhou Precision Steel Ball Company 1,720,779.29 1,272,089.15
services
Wazhou Group Exact Transmission provide labour
1,342,679.19 2,108,441.03
Bearing Co., Ltd services
Wazhou Group Special Precision provide labour
451,703.91 412,008.52
Bearing Co., Ltd. services
Dalian Wazhou Jinzhou Machinery Co., provide labour
642,918.49 323,849.51
Ltd services
Wafangdian Tongda Bearing provide labour
69,676.23 -
Manufacturing Co., Ltd. services
Dalian WazhouFengyuan Machinery provide labour
33,168.16 -
Co., Ltd services
Total 413,079,475.54 458,291,976.99
(2) Assets rent
1) Assets rent out
Category of assets
Lessor Lessee 2015 Profits 2014 Profits
rent out
Land (located in
No.1, Phrase1,
The Wazhou Exact Forge
North Gongji Street, - 126,096.00
Company Ltd.
with area of 7,881
m).
Land (located in
No.1, Phrase1,
The Wazhou Exact Forge
North Gongji Street, 434,000.00 -
Company Ltd.
with area of
48,220.82 m).
Land (located in
No.1, Phrase1,
The Wazhou Special Steel
North Gongji Street, 197,565.00 105,368.00
Company Ball Company
with area of 13,171
m).
The Wazhou Group Special Land (located in
88,000.00 46,915.20
Company Precision Bearing Co., No.1, Phrase1,
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Category of assets
Lessor Lessee 2015 Profits 2014 Profits
rent out
Ltd North Gongji Street,
with area of
5,864 .40m).
The Wazhou Exact Forge
Buildings 463,700.00 345,515.00
Company Ltd.
Wazhou Group Special
The
Precision Bearing Co., Buildings 514,300.00 514,303.17
Company
Ltd
Dalian
The
WazhouFengyuan Buildings 107,460.00 107,460.00
Company
Machinery Co., Ltd
Dalian Wazhou
The
Jinzhou Machinery Buildings 803,160.00 803,160.00
Company
Co., Ltd
2) Assets under lease
Category of 2015 Lease 2014 Lease
Lessor Lessee
assets rent in fees fees
Land (located in
Wazhou Group
Two finished branch
WazhouGroup industrial park, - 115,300.00
of the Company
with area of
14,418.00 m).
Land (located in
Wazhou Group
Two finished branch
WazhouGroup industrial park, 211,700.00 -
of the Company
with area of
14,112.57 m).
Land (located in
No.1, Phrase1,
Wazhou Group The Company North Gongji - 5,700.00
Street, with area
of 715.20 m).
Land (located in
The Wazhou Group
Wazhou Group company(logistic industrial park, - 142,600.00
department ) with area of
17,829.00 m).
Land (located in
The Wazhou Group
Wazhou Group company(logistic industrial park, 253,900.00
department ) with area of
16,921.42 m).
Land (located in
Wazhou Group The Company No.1, Phrase1, - 130,152.36
North Gongji
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Category of 2015 Lease 2014 Lease
Lessor Lessee
assets rent in fees fees
Street, with area
of 21,692.06 m).
Land (located in
west industrial
Wazhou Group The Company 351,000.00 351,000.00
park, with area of
58,500 m).
Land (located in
Precision bearing Wazhou Group
Wazhou Group branch of the industrial park, 455,700.00 243,000.00
Company with area of
30,380 m).
Land (located in
Wazhou Group
Special large branch
Wazhou Group industrial park, - 161,700.00
of the Company
with area of
20,207 m).
Land (located in
Wazhou Group
Special large branch
Wazhou Group industrial park, 291,000.00
of the Company
with area of
19,401.24 m).
Land (located in
Wazhou Group
Special large branch
Wazhou Group industrial park, - 131,100.00
of the Company
with area of
16,388.00 m).
Land (located in
Wazhou Group
Special large branch
Wazhou Group industrial park, 184,300.00
of the Company
with area of
12,286.33 m).
Land (located in
Wazhou The precision rolling Wazhou Group
company of the industrial park, - 57,600.00
Group Company with area of
7,199.00 m).
Land (located in
Wazhou The precision rolling Wazhou Group
company of the industrial park, 100,000.00
Group Company with area of
6,663.86 m).
Land (located in
Wazhou The precision rolling Pulandian
company of the Fengrong office, 339,900.00
Group Company with area of
37,768.00 m).
Wazhou Group The Company Buildings - 213,200.00
Precision bearing
Wazhou Group branch of the Buildings 2,339,300.00 3,244,200.00
Company
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Category of 2015 Lease 2014 Lease
Lessor Lessee
assets rent in fees fees
Two finished branch
Wazhou Group Buildings 1,118,000.00 1,771,800.00
of the Company
Special large branch
Wazhou Group Buildings 1,653,800.00 2,773,500.00
of the Company
The precision rolling
Wazhou Group company of the Buildings 528,700.00 892,000.00
Company
The (logistic
Wazhou Group department ) of the Buildings 571,000.00 557,600.00
company
Special large branch
Wazhou Group Buildings 1,006,800.00 2,604,000.00
of the Company
Wazhou Steel The precision rolling
company of the Buildings 448,416.00 224,208.00
Ball Company Company
Two finished branch
Wazhou Group Equipment - 180,117.65
of the Company
The precision rolling
Wazhou Group company of the Equipment 3,113,527.18 5,783,102.24
Company
The auto bearing
Wazhou Group company of the Equipment 113,861.70 126,000.00
Company
The railway bearing
Wazhou Group company of the Equipment 1,936.17
Company
Special large branch
Wazhou Group Equipment 4,830,268.91 4,927,233.58
of the Company
(3) Warranty provided by related parties
Whether the
Amounts Inception of Maturity of warranty
Warrantor Warrantee
warranted warranty warranty finished
(Y or N)
Wazhou
The Company 50,000,000.00 15 Dec. 2014 15 Mar. 2016 N(Note 1)
Group
Note1: The warranty is Wazhou Group guarantying for the Company’s loan from Import and
Export Bank with the amount of RMB 50 million. As at the end of Dec 31, 2015, the ending
balance of the loan is RMB 50 million.
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
(4) Related party assets transfer and debt structure reconstruction
Type of
Related party 2015 2014
transaction
Dalian SKF Wazhou Bearings Co., Ltd. Assets transfer 1,216,000.00
Wazhou Group Turnplate Bearing Ltd Assets transfer 1,508,000.00
Dalian WazhouFengyuan Machinery
Assets transfer 404,000.00
Co., Ltd
Wazhou Group Exact Transmission
Assets transfer 1,900,315.73 507,000.00
Bearing Co., Ltd
Wazhou Exact Forge Ltd., Assets transfer 774,000.00
Dalian Wazhou Bearing Manufacturing
Assets transfer 1,972,353.78
Equipment Co., Ltd
Dalian Wazhou Precision Motor Auto
Assets transfer 929,113.68
Bearing Co., Ltd
Non-operating
Wazhou Exact Forge Ltd., income 2,600,000.00
Non-operating
Wafangdian Bearing Co., Ltd income 3,900,000.00
Non-operating
Wazhou Group Turnplate Bearing Ltd income 1,770,000.00
Dalian Wazhou Bearing Manufacturing Non-operating
Equipment Co., Ltd income 937,500.00
Wazhou Group Exact Transmission Non-operating
income 1,250,000.00
Bearing Co., Ltd
Non-operating
Wazhou Precision Steel Ball Company income 350,000.00
Wafangdian Tongda Bearing Non-operating
Manufacturing Co., Ltd. income 1,056,500.00
Dalian WazhouFengyuan Machinery Non-operating
Co., Ltd income 315,000.00
Dalian Wazhou Jinzhou Machinery Non-operating
Co., Ltd income 653,002.74
(5) Management remuneration
Item 2015 2014
Total 401,600.00 392,000.00
(6) Use of trademark
According to the ‘Trade Mark License contract’ signed between the Company and the
Group on January 1, 2015, within the valid period up to December 31, 2015, the Company
shall pay license fees to the Group at 0.5% of net sales by using the trade mark of Wazhou
Group for self-manufactured stock. In 2015, the Company shall pay license fees of
4,579,774.48Yuan (inc VAT) which is not settled during the year.
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
(7) Acceptance of comprehensive service
Other expenses paid to the Group during the year
Item 2015 2014
Firefight and security 3,290,900.00 3,290,900.00
Technology development 5,400,000.00 5,400,000.00
Advertising 800,700.00 800,700.00
Total 9,491,600.00 9,491,600.00
3. Balances with related parties
(1) Accounts receivable due from related parties
Closing Balance Opening Balance
Item Related party
Book Balance Provision Book Balance Provision
Accounts
Wazhou Group 6,903,361.61 - 6,903,361.61 -
receivable
Wazhou Group Special
Accounts
Precision Bearing Co., 8,421,176.40 - 9,399,082.68 -
receivable
Ltd
Accounts Wazhou Group (USA)
48,281,914.32 - 12,344,182.91 -
receivable Bearing CO., Ltd.
Wazhou Group Exact
Accounts
Transmission Bearing 104,803.24 - 104,803.24 -
receivable
Co., Ltd
Accounts Wazhou Exact Forge
receivable - - 154,404.30 -
Ltd.,
Dalian Wazhou
Accounts
receivable Fengyuan Machinery - - 12,295.63 -
Co., Ltd
Wafangdian Bearing
Prepaid Manufacturing 40,853.62 - - -
Equipment Co., Ltd
(2) Accounts payable due from related parties
Item Related party Closing Balance Opening Balance
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Dalian Wazhou Bearing
Accounts payable Manufacturing 37,230,732.63 5,464,593.44
Equipment Co., Ltd
Wazhou precisionSteel Ball
Accounts payable 4,099,619.68 8,324,811.37
Company
Accounts payable Wazhou Group 5,723,806.00 -
Accounts payable Wazhou Exact Forge Ltd. 30,763,439.55 85,227,380.13
Wazhou Group Turnplate Bearing
Accounts payable 9,451,169.77 152,988,835.67
Ltd
Wazhou Group Exact
Accounts payable 73,147,036.86 104,433,713.52
Transmission Bearing Co., Ltd
Dalian Wazhou Jinzhou
Accounts payable 18,007,755.48 16,305,773.72
Machinery Co., Ltd
Dalian WazhouFengyuan
Accounts payable 10,024,155.08 27,241,707.14
Machinery Co., Ltd
Wazhou Group Equipment
Accounts payable 12,482,589.73 3,829,959.81
Technology Project Co., Ltd.
Wafangdian Tongda Bearing
Accounts payable 27,932,114.26 -
Manufacturing Co., Ltd.
Wazhou Group (USA) Bearing
Accounts payable 484,765.77 -
CO., Ltd
Wazhou Group Special Precision
Accounts payable 395,708.76 -
Bearing Co., Ltd
Dalian GONA Wazhou Auto
Accounts payable 17,871,582.98
Bearings Co., Ltd
Other payables Wazhou Group 21,234,927.86 36,820,099.09
Dalian Wazhou Bearing
Other payables Manufacturing 358,588.45 286,088.45
Equipment Co., Ltd
Wazhou Group Equipment
Other payables 952,000.00 952,000.00
Technology Project Co., Ltd.
Wazhou Group (USA) Bearing
Other payables 37,444.44 -
CO., Ltd
XIII. Share-Based Payment
There is no share-based payment occurred in the report period.
XIV. Commitment
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
As at 31 December 2015, the Group does not have any other significant commitments.
XV.Events after the Balance Sheet Date
1. Financing after the balance sheet date
The Company’s the asset debt ratio is 55.22%, liquidity ratio is 1.21, and net current asset
is 0.403 billion Yuan, solvency indicator is good and the Company still has good financing
capability. The Company borrowed 0.285 billion Yuan from banks during the first quarter
in 2016.
.
2. Sales of assets and liability
On January 14, 2016, the Company held the first provisional board directors meeting, and
planned to sign the ‘selling assets agreement’ with Wafangdian Bearing Co., Ltd. The Company
planned to use January 31, 2016 as the asset valuation date, after valuation, the Company sells
the assets and liability, which involved by auto transfer case bearing as a whole to the Group
and also transfer the personnel in relation to underlying the assets. Assets being sold include
equipments and machinery, construction in progress and inventories etc.
Except matters mentioned above, up to the audit report date, there are no other significant post
balance sheet events for disclosure.
XVI.Other Significant Events
1. Debt restructuring
In 2015, the Company has signed the ‘Debt Restructuring Agreement’ with the customers,
through cash reimbursement less than the debt carrying value, and implemented the
restructuring, which results in the debt restructuring losses of RMB 381,595.11Yuan, and
were recognized as non-operating expenses.
In 2015, the Company has signed the ‘Debt Restructuring Agreement’ with the creditors,
through cash or bank notes reimbursement less than the debt carrying value, and
implemented the restructuring, which results in the debt restructuring income RMB
32,454,287.65 Yuan and were recognized as non-operating revenue.
XVII. Notes to the Main Items of the Financial Statements of Parent Company
1. Accounts receivable
(1) Accounts receivable category
Item Closing Balance
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WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Booking balance Provision
Booking balance
Amount % Amount %
Accounts
receivable with
significant
individual 7,718,274.69 0.71 7,718,274.69 100.00 -
amount and
separate bad debt
provision
Accounts
receivable with
bad debt
provision based 971,471,437.76 88.76 44,006,790.85 4.53 927,464,646.91
on the characters
of credit risk
portfolio
Related party 93,169,136.63 8.51 - - 93,169,136.63
Risk-free
portfolio - - - - -
Accounts
receivable with
insignificant
individual 22,131,211.74 2.02 22,131,211.74 100.00 -
amount and
separate bad debt
provision
Total 1,094,490,060.82 100.00 73,856,277.28 - 1,020,633,783.54
(Continued)
Opening Balance
Item Booking balance Provision
Booking balance
Amount % Amount %
Accounts
receivable with
significant
individual 3,910,007.43 0.33 3,910,007.43 100.00 -
amount and
separate bad debt
provision
125
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Opening Balance
Item Booking balance Provision
Booking balance
Amount % Amount %
Accounts
receivable with
bad debt
provision based 1,109,359,402.98 94.68 47,135,177.04 4.00 1,062,224,225.94
on the characters
of credit risk
portfolio
Related party 44,098,306.15 3.76 - - 44,098,306.15
Risk-free
portfolio - - - - -
Accounts
receivable with
insignificant
individual 14,393,660.23 1.23 14,393,660.23 100.00 -
amount and
separate bad debt
provision
Total 1,171,761,376.79 100.00 65,438,844.70 - 1,106,322,532.09
1) Significant individual amounts of accounts receivable the bad debt provision separately
accrued at the end of 2015
Closing Balance
Debtors name Accounts Provision for Proportion Reasons for
receivable bad debts (%) provision
A/R with over 5
Company A 3,910,007.43 3,910,007.43 100.00 years aging, unlikely
to be collected
A/R with over 5
Company B 3,808,267.26 3,808,267.26 100.00 years aging, unlikely
to be collected
Total 7,718,274.69 7,718,274.69 —— —
2) Accounts receivable in the portfolio as the bad debt provisions accrued under accounting
aging analysis method
Aging Closing Balance
126
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Provision for bad Proportion
Accounts receivable
debts (%)
Within 1 year 759,735,442.44 7,597,354.43 1.00
1-2 years 121,953,909.43 6,097,695.47 5.00
2-3 years 48,597,673.33 9,719,534.67 20.00
Over 3 years 41,184,412.56 20,592,206.28 50.00
Total 971,471,437.76 44,006,790.85 -
(2) Bad debt provision accrued and reversed (withdraw)
The bad debt provision has been accrued in the amount 8,524,799.39 Yuan and been written
off in the amount of 107,366.81 元, during the report period no bad debt provision is reversed
or withdrawn.
(3) Accounts receivable written off in current period
Item Written-off Amount
Accounts receivable written off 107,366.81
(4) The top five significant accounts receivable categorized by debtors
The total amount of top five significant accounts receivable categorized by debtors is
196,451,103.33 Yuan, representing 17.95% of the closing balance of accounts receivable. The
bad debt provision is accrued accordingly in the amount of 3,009,518.73 Yuan.
2. Other receivables
(1) The category of other receivables
Closing Balance
Items Booking balance Provision Booking
Amount % Amount % balance
Other receivables with
significant individual
- - - - -
amount and separate bad
debt provision
Other receivables with bad
debt provision based on the
15,851,523.01 71.31 1,037,522.18 7.85 12,186,808.81
characters of credit risk
portfolio
Related party 1,139,009.84 5.12 - - 1,139,009.84
Risk-free portfolio 3,726,684.67 16.77% - - 6,353,876.69
127
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Other receivables with
insignificant individual
1,512,562.13 6.80 1,512,562.13 100.00 -
amount and separate bad
debt provision
Total 22,229,779.65 100.00 2,550,084.31 - 19,679,695.34
(Continued)
Opening Balance
Items Booking balance Provision Booking
Amount % Amount % balance
Other receivables with
significant individual
- - - - -
amount and separate
bad debt provision
Other receivables with
bad debt provision
12,056,730.54 71.21 1,269,642.75 10.53 10,787,087.79
based on the characters
of credit risk portfolio
Related party - - - - -
Risk-free portfolio 4,874,336.51 28.79 - - 4,874,336.51
Other receivables with
insignificant individual
- - - - -
amount and separate
bad debt provision
Total 16,931,067.05 100.00 1,269,642.75 - 15,661,424.30
1) Other receivables in the portfolio with the bad debt provisions as accounting aging
analysis method
Closing Balance
Aging Provision for Proportion
Other receivables
bad debts (%)
Within 1 year 13,065,383.82 130,653.84 1.00
1-2 years 856,616.46 42,830.82 5.00
2-3 years 335,746.14 67,149.23 20.00
Over 3 years 1,593,776.59 796,888.29 50.00
Total 15,851,523.01 1,037,522.18 -
(2) Bad debt provision accrued and reversed
128
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
The bad debt provision has been provided in the amount 1,280,441.56 Yuan during the report
period and no bad debt provision is reversed or withdrawn.
(3) Other receivables categorized by nature
Nature Closing Balance Opening Balance
Security deposit 3,607,765.95 1,670,769.50
Deposit 461,163.01 727,403.72
Individual petty cash 1,122,983.35 3,910,278.09
Others 17,037,867.34 10,622,615.74
Total 22,229,779.65 16,931,067.05
(4) Other receivables from the top 5 debtors
Closing
Closing % of the
Name Category Aging Balance of
Balance total OR
Provision
PICC P&C Insurance within 1
5,016,153.85 22.57 50,161.54
Dalian Branch compensation year
Liaoning power
within 1
supply Electric bill 3,726,684.67 16.76 -
year
(Dalian)Co., Ltd
Railway bid within 1
Bid deposit 1,854,996.25 8.34 18,549.96
deposit year
Wazhou
Liaoyang Bearing within 1
Labor charge 1,139,009.84 5.12 -
construction year
Co.,Ltd
Anshan Steel
Prepayment of within 1
Supply &Sell 319,694.17 1.44 3,196.94
materials year
Company
Total 12,056,538.78 —— —— 71,908.44
129
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
3. Long-term equity investments
(1) Category of long-term equity investments
Closing Balance Opening Balance
Item
Closing Balance Provision Book Value Opening Balance Provision Book Value
Investment into
211,583,897.67 - 211,583,897.67 211,583,897.67 211,583,897.67
subsidiaries
Investment into associates - - - - -
Total 211,583,897.67 - 211,583,897.67 211,583,897.67 - 211,583,897.67
(2) Investments into subsidiaries
Opening Provision in Closing Balance
Subsidiaries names Increase Decrease Closing Balance
Balance current period of provision
Wazhou Liaoyang Bearing
17,337,259.95 - - 17,337,259.95
construction Co.,Ltd
Dalian Wazhou Precision Motor Car
45,478,956.37 - - 45,478,956.37
Bearing Company Limited
Wazhou Precision of Spherical Roller
148,767,681.35 - - 148,767,681.35
Bearings(Wafangdian)Co., Ltd
Total 211,583,897.67 211,583,897.67
130
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
4. Operating revenue and cost
Item 2015 2014
Revenue Cost Revenue Cost
Revenue
from main 2,155,351,753.13 1,963,925,859.18 2,639,675,681.68 2,460,934,438.76
operation
Revenue
from other 228,089,553.44 208,343,310.30 376,537,715.68 321,421,071.71
operation
Total 2,383,441,306.57 2,172,269,169.48 3,016,213,397.36 2,782,355,510.47
(1) Principle operation - classified according to Industries
2015 2014
Industries
Sales revenue Cost of sales Sales revenue Cost of sales
Export
353,230,102.39 285,923,237.04 275,162,393.89
321,347,866.66
Domestic 1,688,266,252.80 1,515,079,588.39 2,249,304,340.05 2,066,687,794.59
Including:
Transportation 556,417,955.42 496,110,751.32 966,465,387.04 882,656,346.90
vehicle bearings
Special use
595,546,617.11 566,838,486.10 580,622,061.86 569,127,159.48
bearings
General use
bearings 536,301,680.27 702,216,891.15 614,904,288.21
452,130,350.97
Industrial
113,855,397.94 104,448,104.59 119,084,250.28
Operations 127,498,404.13
Total 2,155,351,753.13 1,963,925,859.18 2,639,675,681.68 2,460,934,438.76
5. Investment income
Items 2015 2014
Income from long-term equity investments
4,033,452.23
under equity method
Income from disposal long-term share
-
equity investments
Income occurred since the change of value -
131
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
when holding financial assets investments
measured by fair value
Income from disposal financial assets
-
investments measured by fair value
Income from holding the held-to-maturity
-
assets
Income from the available-for-sale financial
240,000.00 240,000.00
assets held
Income from disposal of available-for-sale
-
financial assets
Income from the recalculation of remain
equity capital measured by fair value when -
losing control right
Income from long-term equity investments
-
under cost method
Total 240,000.00 4,273,452.23
132
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
XVIII.Supplementary Information to the Financial Statements
1. Non-operating profit or loss
Based on No.1 on Non-operating Profit or Loss (2008) of Explanation and Announcement of Information
Disclosure and Presentation Rules for Companies Making Public Offering issued by China Securities
Regulatory Commission, the Group’s Non-operating profit or loss in 2015 is as follows:
Items 2015 Notes
Gain or loss from disposal of non-current
1,299,449.10 See note 40. 41.
assets
Government grants recorded into profit or loss
4,867,966.82 See note 40.
during current period
Gains from acquisition of subsidiary or
associates when initial cost less than the fair -
value of invested company
Profit or loss from debts restructuring 32,072,692.54 See note 40. 41.
Others non-operating revenue and expense
1,760,549.53 See note 40. 41.
besides the above items
Other profit or loss
Subtotal 40,000,657.99
Effect on income tax 6,933,993.73
Total 33,066,664.26
2. Return on equity and earnings per share
Pursuant to Information Disclosure and Presentation Rules for Companies Making Public Offering No.9
computation and disclosure of Return on net assets and earnings per share (revised in 2010) issued by
China Securities Regulatory Commission, the weighted average return on net assets, basic earnings per
share and diluted earnings per share of the Group for the financial year of 2015 are as follows:
Weighted average Earnings per share (EPS)
Profit of report period return on net assets Basic Diluted
(%) EPS EPS
Net profit attributable to shareholders of parent company -2.45% -0.0829 -0.0829
Net profit after deducting non-recurring gains and losses
-4.87% -0.1650 -0.1650
attributable to shareholders of parent company
133
WafangWa Fangdian Bearing Co., Ltd（Wazhou B） 2015 Annual Report
Chapter Eleven. List of reference documents
1. Accounting statements with the signatures and seals of the legal representative, financial controller
and the director of the accounting department of the company;
2. The 2015annual audit report and the financial statement with the seal of the Certified Public
Accountants and the personal signature and seal of the certified public accountant.
3. The documents and notices of the company disclosed in newspapers designated by the Security
Supervisory Committee of China in the report period.
Above documents were kept in the Investment and Securities Department of the company
134
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