Wafangdian Bearing Company Limited 2026Midyear Report
Wafangdian Bearing Co., LTD
August 2026
Wafangdian Bearing Company Limited 2026Midyear Report
Chapter I. Important notes, contents and definitions
The board of directors, the directors and senior managers of the company shall guarantee that the
contents of the semi-annual report are true, accurate and complete without any false records, misleading
statements or major omissions, and shall bear individual and joint legal liabilities.
Wang Jiyuan, the person in charge of the company, Sun Najuan, the person in charge of the accounting
work, and Xuan Songtao, the person in charge of the accounting organization (the person in charge of the
accounting) declare that they guarantee the truthfulness, accuracy and completeness of the financial report in
the semi-annual report.
All directors have attended the meeting of the board of directors to review the semi-annual report.
In the third section of this report, "Management Discussion and Analysis", under "X. Risks Faced by the
Company and Countermeasures", the company has detailedly described the possible risks in its operations
and the countermeasures. Investors are kindly requested to pay attention to the relevant content.
The company does not plan to distribute cash dividends, do not send bonus shares, do not increase
capital stock with accumulation fund.
Wafangdian Bearing Company Limited 2026Midyear Report
Catalogue
Wafangdian Bearing Company Limited 2026Midyear Report
File directory for future reference
(1) The 2026 half-year financial statement of the Company containing the signature and seal of the
legal representative, the person in charge of accounting and the person in charge of accounting;
(2) the semi-annual report containing the signature of the legal representative of the company;
(3) Originals of all documents of the company publicly disclosed in newspapers designated by the
CSRC during the reporting period and manuscripts of announcements.
Wafangdian Bearing Company Limited 2026Midyear Report
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 period Defined as January 1,2026–June 30,2026
Liaozhou Co.,Ltd Defined as Wazhou Liaoyang Bearing Manufacture Co.,Ltd
Dalian motor Defined as Dalian motor Bearing Co.,Ltd
SRB company Defined as Wazhou spherial roller bearing company limited
Wafangdian Bearing Company Limited The Board of
The Board of Directors Defined as
Directors
Wafangdian Bearing Company Limited The
The Shareholders’ Meeting Defined as
Shareholders’ Meeting
SZSE Defined as Shen Zhen Stock Exchange
SRC Defined as China Securities Regulatory Commission
Wafangdian Bearing Company Limited 2026Midyear Report
Chapter II.Company Profile
I. Company Information
Abbreviated name of the stock Wazhou B Stock code: 200706
Listing location of the Company’s
Shenzhen Stock Exchange
stock:
Chinese name of the Company 瓦房店轴承股份有限公司
Abbreviation of Chinese name 瓦轴股份公司
English name of the Company Wafangdian Bearing Company Limited
Abbreviation of English name WBC
Legal representative of the
Wang Jiyuan
Company
II.Contacts
Secretary of the Board Representative of Stock Affairs
Name Sun Najuan Ke Xin
No. 1 Beigongji Street, Wafangdian City, No. 1 Beigongji Street, Wafangdian City,
Correspondence address
Liaoning Province, China. Liaoning Province, China.
Consulting telephone 0411-62198008 0411-62198236
Fax 0411-62198333 0411-62198333
E-mail zwz2308@126.com zwz2308＠126.com
III.Other information
The company's registered address, office address and its postal code, the company's website address, E-mail box during the reporting period
whether changes
□ Applicable ? Inapplicable
The company's registered address, office address and its postal code, company's website address and E-mail address will not change during the
reporting period. Please refer to the 2025 Annual Report for details.
Whether the location of information disclosure and storage changes during the reporting period
□ Applicable ? Inapplicable
The name of the information disclosure newspaper selected by the company, and the website designated by China Securities Regulatory
Commission to publish the semi-annual report. The reporting period of the preparation place of the semi-annual report of the company remains
unchanged, for details, please refer to the 2025 annual report.
Whether other relevant information has changed during the reporting period
□ Applicable ? Inapplicable
IV. Main accounting data and financial indicators
Whether the company needs to retroactively adjust or restate the previous year's accounting data
? Yes ? No
This reporting This report period is an increase or
the same period of last year
period decrease over the same period last year
Operating income (yuan) 1,330,615,217.48 -10.95% 1,184,970,752.18
.18
Net profit attributable to
shareholders of the listed 7,324,544.44 -20,930,911.54 134.99% 7,324,544.44
company (yuan)
Wafangdian Bearing Company Limited 2026Midyear Report
Net profit attributable to
shareholders of the listed
company after deducting non- -8,225,520.72 -31,677,626.31 74.03% -8,225,520.72
recurring gains and losses
(yuan)
Net cash flows from operating
activities (yuan)
Basic earnings per share
(yuan/share)
Diluted earnings per share
(yuan/share)
Weighted average return on
net assets
The increase or decrease at the end of
End of the
End of the previous year this reporting period compared with the
reporting period
end of the previous year
Total assets (yuan) 2,787,274,723.39 0.91% 2,812,706,446.27
.27
Net assets attributable to
shareholders of the listed 199,023,958.34 4.66% 208,292,211.07
company (yuan)
V. Differences in accounting information under IAS and domestic accounting standard
Chinese accounting standards.
□ Applicable ? Inapplicable
During the reporting period, there is no difference between the net profit and net assets in the financial reports disclosed in accordance with
international accounting standards and Chinese accounting standards.
Chinese accounting standards.
□ Applicable ? Inapplicable
During the reporting period, there is no difference between the net profit and net assets in the financial reports disclosed in accordance with
overseas accounting standards and Chinese accounting standards.
VI. Non-recurring gain/loss items and amounts
? Applicable ? Inapplicable
In RMB Yuan
item Amount Remarks
Gain or loss on disposal of illiquid assets (including the write-off of the asset impairment provision) 107,376.24
Government subsidies included in the profit and loss of the current period (except government subsidies that are
closely related to the normal operation of the company, comply with national policies and regulations, enjoy in
accordance with determined standards, and have a continuous impact on the profit and loss of the company)
In addition to the effective hedging business related to the normal operation of the company, the profit or loss of
fair value changes arising from the holding of financial assets and financial liabilities by non-financial enterprises -46,225.55
and the loss or gain arising from the disposal of financial assets and financial liabilities
Gains and losses on debt restructuring
.93
Other non-operating income and expenditure other than those mentioned above 1,547,945.
Wafangdian Bearing Company Limited 2026Midyear Report
total
.16
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
? Applicable ? Not applicable
The Company has no other specific circumstances that meet the definition of non-recurring profit or loss.
The company does not have other specific circumstances of profit and loss items that meet the definition of non-recurring profit and loss.
The non-recurring profit and loss items listed in Explanatory Announcement No. 1 -- Non-Recurring Profit and Loss of Companies with Publicly
Issued Securities are defined as recurring profit and loss items
□ Applicable ? Not applicable
The company does not define the non-recurring profit and loss items listed in Explanatory Announcement No. 1 -- Non-Recurring Profit and Loss as
recurring profit and loss items.
Wafangdian Bearing Company Limited 2026Midyear Report
Chapter III Management Discussion and analysis
I. Major business of the Company during the reporting period
The business scope of our company includes: permitted projects: inspection and testing services, import and export of goods, import and export of
technology (projects that must be approved by law can only be carried out after approval by relevant departments, and the specific business items
are subject to the approval results). General projects: Bearing manufacturing, manufacturing of bearings, gears and transmission components,
sales of high-speed precision heavy-duty bearings, sales of bearings, gears and transmission components, bearing sales, general equipment
manufacturing (excluding special equipment manufacturing), manufacturing of high-speed rail equipment and accessories, mechanical equipment
sales, sales of special equipment, key systems and components for rail transit, lubricating oil sales, sales of high-speed rail equipment and
accessories Sales of wind turbine generators and their components, sales of mechanical parts and components, manufacturing of railway
locomotive and vehicle parts, sales of railway locomotive and vehicle parts, manufacturing of auto parts and accessories, wholesale of auto parts,
retail of auto parts, repair of metal products, sales of metal materials, sales of metal products, metal surface treatment and heat treatment
processing, quenching processing Mechanical parts and components processing, land use right leasing, housing leasing, non-residential real
estate leasing, mechanical equipment leasing, computer and communication equipment leasing, transportation equipment leasing services, office
equipment leasing services, warehousing equipment leasing services, special equipment leasing, labor services (excluding labor dispatch)
Technical services, technical development, technical consultation, technical exchange, technical transfer, and technical promotion (except for
projects that require approval in accordance with the law, business activities are carried out independently based on the business license in
accordance with the law)
The company has strong production and manufacturing capabilities as well as quality assurance capabilities, and provides extensive services to
various industries and fields such as railways, metallurgy, and mining.
II. core competitiveness analysis
The Company boasts a comprehensive product and service system and round-the-clock dynamic on-site service capacity for product operation
scenarios. It has won wide recognition from customers thanks to its well-received "Ten Value-Added Services". Equipped with robust manufacturing
and quality assurance capabilities, the Company provides extensive products and services covering various industries and sectors including railway,
metallurgy and mining. The Company has established strategic cooperation partnerships with key clients in China’s domestic equipment application
sectors. By participating in customers’ value engineering projects to conduct in-depth marketing, it has firmly built up its brand image and market
influence in China’s bearing industry.
III. Analysis of main business
An overview of the
Please refer to the relevant content of "I. Main Business Engaged in by the Company during the Reporting Period".
Major financial data year-on-year changes
In RMB Yuan
the current reporting Same period last (+/-）Compared with the
Cause of change
period year same period last year
Operating income 1,184,970,752.18 1,330,615,217.48 -10.95%
Operating costs 1,011,570,681.96 1,150,818,592.31 -12.10%
Sales expenses 67,420,532.56 68,478,445.36 -1.54%
Administrative expenses 61,463,749.71 66,239,142.71 -7.21%
Financial expenses 8,013,671.18 6,823,106.07 17.45%
The main reason is a decrease in
Research and development
investment
development materials.
Wafangdian Bearing Company Limited 2026Midyear Report
Net cash flows from The main reason is a year-on-year
operating activities decline in operating inflows.
The main reason is a year-on-year
Net cash flows from
investing activities
investment activities.
The main reason is a year-on-year
Net cash flows from
financing activities
financing activities.
The main reason is a significant
Net increase in cash and year-on-year increase in the net
cash equivalents cash flow generated from financing
activities.
The composition or source of profit of the company during the reporting period has undergone major changes
□ Applicable ? Not applicable
There was no significant change in the composition or source of profits during the reporting period.
Composition of operating revenue
In RMB Yuan
the current reporting period Same period last year (+/-）Compared
Proportion of Proportion of with the same period
Amount Amount
operating income operating income last year
Total operating
Revenue
Industry-classified
exit 13,337,105.05 1.13% 34,048,195.13 2.56% -60.83%
Traffic bearing 199,344,967.80 16.82% 241,794,048.99 18.17% -17.56%
Special bearing 443,003,278.07 37.39% 507,244,225.22 38.12% -12.66%
Universal bearing 471,279,946.17 39.77% 474,756,237.71 35.68% -0.73%
Industrial work and
semi-finished products
Other business 31,353,344.82 2.65% 33,090,322.02 2.49% -5.25%
Products-classified
bearing 1,126,965,297.09 95.10% 1,257,842,707.05 94.53% -10.40%
Industrial work and
semi-finished products
Other business 31,353,344.82 2.65% 33,090,322.02 2.49% -5.25%
Region-classified
home 1,171,633,647.13 98.87% 1,296,567,022.35 97.44% -9.64%
abroad 13,337,105.05 1.13% 34,048,195.13 2.56% -60.83%
The industry, product or region that accounts for more than 10% of the company's operating revenue or profit
? Applicable □ Not applicable
In RMB Yuan
Operating Operating costs Gross profit margin
Gross income increased or increased or
Operating income Operating cost profit compared with decreased compared decreased compared
margin the same to the same period of to the same period of
period last year the previous year the previous year
Industry-classified
exit 13,337,105.05 9,336,615.10 30.00% -60.83% -67.68% 14.85%
Wafangdian Bearing Company Limited 2026Midyear Report
Among them: 199,344,967.8 178,620,681.7
traffic bearings 0 1
Special bearing 16.90% -12.66% -14.14% 1.42%
Universal bearing 9.63% -0.73% -1.76% 0.95%
Industrial work and
semi-finished 26,652,110.27 13,069,783.04 50.96% -32.84% -47.36% 13.53%
products
Other business 31,353,344.82 16,541,339.14 47.24% -5.25% -15.28% 6.25%
Points products
bearing 12.87% -10.40% -11.25% 0.84%
.09 8
Industrial work and
semi-finished 26,652,110.27 13,069,783.04 50.96% -32.84% -47.36% 13.53%
products
Other business 31,353,344.82 16,541,339.14 47.24% -5.25% -15.28% 6.25%
Classification by region
domestic 14.46% -9.64% -10.67% 0.99%
.13 .86
foreign 13,337,105.05 9,336,615.10 30.00% -60.83% -67.68% 14.85%
In case of any adjustment of the statistical caliber of the company's main business data during the reporting period, the company's main business
data in the latest period shall be adjusted according to the caliber of the end of the reporting period
□ Applicable ? Not applicable
IV. Analysis of non-main business
□ Applicable ? Not applicable
V. Analysis of assets and liabilities
In RMB Yuan
the current reporting period Same period last year
The proportion
Proportion of Note on Major
Proportion of of increase and
Amount operating Amount Changes
operating income decrease
income
Monetary funds 111,531,042.25 3.97% 65,287,519.84 2.34% 1.63%
Accounts
receivable
Contract assets 5,258,761.24 0.19% 5,258,761.24 0.19% 0.00%
Inventory 551,851,868.43 19.62% 636,325,993.85 22.83% -3.21%
Investment
property
Long-term equity
investment
Fixed assets 382,146,917.75 13.59% 406,111,493.56 14.57% -0.98%
Construction in
progress
Right-of-use
assets
Short-term
borrowing
Contract liabilities 36,573,801.46 1.30% 31,776,246.33 1.14% 0.16%
Long-term loan 0.00% 0.00% 0.00%
Lease liability 0.00% 0.00%
? Applicable ? Inapplicable
? Applicable ? Inapplicable
Wafangdian Bearing Company Limited 2026Midyear Report
In RMB Yuan
Changes in Changes Impairment
Current Current
Opening fair value for in the of the Other
item purchase sale item
balance the current accumulated fair current changes
amount amount
period value of an equity period
Financial assets
financial assets
(excluding 366,722.63
derivative
financial assets)
instrument
investments
Total financial 8,951,92 - 8,905,703
assets 9.36 46,225.55 .81
The above total 366,722.63 0.00 0.00 0.00 0.00
financial
liabilities
Other changes
none
Whether the measurement attributes of the company's main assets have changed significantly during the reporting period
□ Yes ? No
terminal The end of last year
Project
Restricted Restrictive Limited
book balance book value "Restricted situation book balance book value
type types circumstances
Other Margin/SDN
Margin/SDN Other monetary
Monetary monetary sanctions freeze
funds funds / bank or litigation
litigation involved deposits
deposits involved
Accounts
See Section Expired See Section 6, Expired
Receivable 439,887,711.54 439,887,711.54 405,338,560.48 405,338,560.48
Bills
Accounts Supply Expired Supply chain Expired
Receivable chain bills endorsement bills endorsement
In total 499,588,075.01 499,588.075.01 466,527,980.49 466,527,980.49
VI. Analysis of investment status
? Applicable ? Inapplicable
? Applicable ? Inapplicable
? Applicable ? Inapplicable
(1) Securities investment
In RMB Yuan
Varieti The Initial Accou Openi Chang Chang Curren Curren Report Ending Accou Source
Stock
es of securiti invest nting ng e in es in t t sale ing book nting s of
code
securiti es ment measu book fair the purcha amoun period value subject fundin
Wafangdian Bearing Company Limited 2026Midyear Report
es referre cost rement value value cumul se t profit g
d to model for the ative amoun and
as" current fair t loss
period value
of
equity
Chong Transa
Domes Fair
qing - - ctional debt-
tic and 60100 567,03 value 246,53 200,31
iron 46,225 366,72 0.00 0.00 0.00 financi for-
foreign 5 3.30 measu 6.22 0.67
and .55 2.63 al equity
stocks rement
steel assets
- -
Total -- 46,225 366,72 0.00 0.00 0.00 -- --
.55 2.63
(2) Derivative investment
? Applicable ? Inapplicable
There were no derivatives investments during the reporting period.
□ Applicable ? Not applicable
There is no use of raised funds during the reporting period.
VII Sale of major assets and shares
? Applicable ? Inapplicable
No significant assets were sold during the reporting period.
? Applicable ? Inapplicable
VII.Analysis of major holding companies
? Applicable ? Inapplicable
During the reporting period, the company has no important information about the holding and shareholding company that should be disclosed.
The main subsidiaries and the shareholding companies that have more than 10% impact on the company's net profit
In RMB Yuan
The The
The name of the The main Total Operating Operating
company registered Net worth Net profit
company business assets income profit
type capital
Wazhou Production and
liaoyang bearing subsidiar sales of bearings 19,350,00 225,685, 54,795,394. 3,025,151.1 3,177,391.2
manufacturing y and mechanical 0.00 626.23 31 4 7
co., LTD manufacturing
Dalian wazhou
precision motor subsidiar Production and 10,000,00 118,770, 39,546,789.
car bearing co., y sales of bearings 0.00 162.25 74
LTD
Wazhou
precision
Produce and sell
spherical roller subsidiar 194,000,0 212,364, 115,257,012 79,876,455.
spherical roller 355,761.58 355,761.58
bearings y 00.00 037.37 .12 70
bearings
(wafangdian)
co., LTD
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable □ Not applicable
Description of main holding companies
Wafangdian Bearing Company Limited 2026Midyear Report
IX. Structured subjects controlled by the company
? Applicable ? Inapplicable
X. Risks faced by the Company and countermeasures
On January 15,2025, the company was added to the SDN List (Special Designated Nationals and Blocked Persons List) by the U.S. Treasury
Department's Office of Foreign Assets Control (OFAC). Entities on this list will face restrictions in transactions with U.S. entities, overseas asset
transfers, foreign exchange settlements, partnerships, financing, and other related activities.
Affected by relevant sanctions, the company has faced intensified financing difficulties. Both domestic and overseas clients have experienced
declining procurement volumes or even halted purchases, leading to mounting survival pressures. To alleviate operational strain, the company has
implemented multiple effective measures: With support from stakeholders, it has focused on acquiring new customers and boosting product gross
margins. Meanwhile, active applications for working capital financing have been submitted to ensure stable business operations.
XI. The formulation and implementation of the market value management system and the valuation
enhancement plan
Whether the company has established a market value management system.
□ Yes ? No
Whether the company has disclosed plans to raise its valuation.
□ Yes ? No
XII. Implementation of the "Quality Return Double Improvement" action plan
Whether the company disclosed the "quality return double improvement" action plan announcement.
□ Yes ? No
Chapter IV Corporate governance, environment and society
I. Changes of directors and senior managers of the company
? Applicable ? Inapplicable
The company's directors and senior management personnel did not undergo any changes during the reporting period. For details, please refer to
the 2025 annual report.
II.Profit distribution and capital reserve conversion into share capital during the reporting period
? Applicable ? Inapplicable
The company plans not to distribute cash dividends, not to send bonus shares, and not to convert the capital reserve into share capital every six
months.
III. The implementation of the company's equity incentive plan, employee stock ownership plan or other
employee incentive measures
? Applicable ? Inapplicable
During the reporting period, the company had no equity incentive plans, employee stock ownership plans or other employee incentive measures
and their implementation status.
Iv. Environmental Information Disclosure Situation
Whether the listed company and its major subsidiaries are included in the list of enterprises that disclose environmental information in accordance
with the law
? Applicable ? Inapplicable
V. Social Responsibility Situation
The company earnestly fulfills its due social responsibilities. While pursuing economic benefits for the enterprise, it actively assumes the
responsibilities that should be borne for the all-round development of the country and society, the natural environment and resources, as well as for
shareholders, employees, customers, consumers, suppliers, communities and other stakeholders. It has realized the social value of the enterprise
Wafangdian Bearing Company Limited 2026Midyear Report
and achieved a good win-win situation for the country, society and stakeholders. Strengthening environmental protection, enhancing resource
efficiency, and influencing and driving local economic development through project construction and other means have effectively promoted the
coordinated development of the company with society, nature, and other stakeholders.
The company strictly adheres to the relevant national and local laws, regulations and document requirements to handle endowment insurance,
unemployment insurance, medical insurance, work-related injury insurance, maternity insurance, housing provident fund and large medical mutual
aid insurance for its employees. Provide timely assistance and support to employees in difficulty. We have established and improved the
employment system, including the salary system and incentive mechanism, to ensure that employees enjoy their labor rights and fulfill their labor
obligations in accordance with the law. We have established and improved the labor safety and health system, strictly implemented the national
labor safety and health regulations and standards, provided labor safety and health education, occupational protection and health check-ups for
employees, offered them a healthy and safe working and living environment, and prevented accidents during the labor process to the greatest
extent and reduced the hazards of occupational diseases.
In its business operations, the company adheres to the principles of voluntariness, fairness, equivalent compensation and good faith, strictly
controls quality targets and ensures the provision of qualified products. The company's technical department is actively engaged in the
development of new products and new materials. The company guarantees that all the products or services it provides comply with relevant
national quality standards or have been certified by relevant national quality inspection departments, and is actively applying for various third-party
certifications at home and abroad. The company attaches great importance to after-sales service for customers and properly handles complaints
and suggestions raised by customers and consumers. We strictly conducted third-party qualification reviews and on-site inspections of suppliers,
selected qualified ones, carefully understood their demands, and actively created a favorable cooperative atmosphere.
The company has dispatched village cadres to the surrounding areas of Dalian City to support rural construction, assume social responsibilities,
continuously strengthen village Party organizations, and enhance Party building work. Promote the work of strengthening villages and enriching the
people, implement projects benefiting farmers, and increase the income of village collectives. Carry out village appearance improvement, enhance
governance levels, do a good job in publicity and supervision, promptly organize the clearance of garbage sites, improve the living environment,
and build beautiful villages.
.
Wafangdian Bearing Company Limited 2026Midyear Report
Chapter V Important Matters
I. Commitments made by the actual controller, shareholders, related parties, acquirers and the company and other relevant parties to be fulfilled during the
reporting period and those that have not been fulfilled by the end of the reporting period
? Applicable ? Inapplicable
Reasons for Committing Commitment Commitment Commitment Performance
Commitment content
commitment party type time period status
(I) Commitment on maintaining the independence of listed companies
I. Ensure the independence of personnel in listed companies:
manager, deputy general manager, financial officer, and secretary of the board of directors, do
The
not hold positions other than directors and supervisors in the company and other enterprises
commitment
controlled by the company (excluding the listed company and the enterprises controlled by it,
regarding
the same below), and do not receive salaries in other enterprises controlled by the company;
maintaining
Ensure that the financial personnel of the listed company do not hold concurrent positions or
the
receive salaries in other enterprises controlled by the company. 2. Ensure that the labor,
independenc
personnel relations and salary management system of the listed company are independent
e of the
from the company and other enterprises controlled by the company; 3. The nomination of
listed
The candidates for directors, supervisors, general managers and other senior management
company;
commitments Dalian personnel by the Company and other enterprises controlled by the Company to the listed
made in the Heavy company shall be carried out through legal procedures, and personnel appointment and
Commitment
acquisition Industry removal decisions shall not be made beyond the board of directors and shareholders' meeting Long-term Strictly
on reducing 2024/08/26
report or the Equipment of the listed company. effectiveness implement
and
report on Group Co., II. Ensuring the independence of assets of listed companies:
regulating
changes in LTD 1. Ensure that the listed company has an independent business system related to its operations
related-party
equity and related independent and complete assets; 2. Ensure that the funds, assets and other
transactions;
resources of listed companies are not illegally occupied; 3. Ensure that the assets of the listed
company are not used to provide illegal guarantees for the debts of the company and other
Commitment
enterprises controlled by the company.
on avoiding
III. Ensuring the financial independence of listed companies:
competition
within the
independent financial accounting system, and has a standardized and independent financial
same
accounting system; 2. Ensure that the listed company independently opens bank accounts and
industry.
does not share bank accounts with the company and other enterprises controlled by the
company; 3. Ensure that listed companies pay taxes independently in accordance with the law;
does not illegally interfere in the use of funds by listed companies.
Wafangdian Bearing Company Limited 2026Midyear Report
IV. Ensuring the institutional independence of listed companies:
has an independent and complete organizational structure, and there is no situation of
institutional confusion between this company and other enterprises controlled by this
company; 2. Ensure that the shareholders' meeting, board of directors, board of supervisors,
independent directors, senior management personnel, etc. of the listed company independently
exercise their powers in accordance with laws, regulations and the company's articles of
association.
V. Ensuring the business Independence of Listed Companies:
capabilities to carry out business activities independently, and has the ability to operate
independently and continuously for the market; 2. Ensure that the Company and other
enterprises controlled by the Company avoid engaging in businesses that have substantive
competition with the main business of the listed company. If there is already competition in
the same industry, commit to resolving it within a limited time. 3. Ensure that the related-party
transactions between the Company and other enterprises controlled by the company and the
listed company are minimized as much as possible; When conducting truly necessary and
unavoidable related-party transactions, agreements will be signed in accordance with the law,
and the necessary legal procedures will be fulfilled in accordance with relevant laws,
regulations, and the articles of association of the listed company.
(II) Commitment on avoiding competition within the same industry
company, the Company will take necessary and possible measures in accordance with the law
to prevent the Company and other enterprises controlled by the Company from engaging in
business or activities that constitute the same industry competition with the main business of
the listed company.
opportunities that constitute substantial competition in the same industry with the main
products of the listed company, the Company will notify the listed company in writing and
make every effort to ensure that such new business opportunities are first provided to the
listed company or its holding enterprises on reasonable and fair terms and conditions. If the
listed company decides not to accept such new business opportunities, the Company or other
enterprises controlled by the Company may accept such new business opportunities on their
own and engage in and operate such new businesses independently. If the regulatory authority
believes that the above-mentioned business conducted by the company or other enterprises
controlled by the company constitutes competition in the same industry with the main
business of the listed company, or that the listed company and the enterprises controlled by it
intend to engage in the above-mentioned business, Our company will adopt the methods
permitted by laws and regulations (including but not limited to asset injection, trusteeship,
Wafangdian Bearing Company Limited 2026Midyear Report
asset transfer, one party's cessation of related business, adjustment of product structure,
establishment of joint ventures, etc.) to solve the problem.
industry are also applicable to other enterprises directly or indirectly controlled by our
Company. Our Company is obligated to supervise and ensure that such other enterprises
implement all the arrangements stated in the commitment letter and strictly abide by the
relevant commitments.
(III) Commitment on reducing and regulating related-party transactions
subsidiaries will strive to minimize and standardize related-party transactions with the listed
company and its holding enterprises.
acquirer and its other holding and participating subsidiaries will follow the principles of
market openness, fairness and impartiality, conduct them at fair and reasonable market prices,
fulfill the decision-making procedures for related-party transactions in accordance with
relevant laws, regulations and normative documents, fulfill the obligation of information
disclosure in accordance with the law and handle the relevant approval procedures. It will not
take advantage of its position as an indirect controlling shareholder to infringe upon the
legitimate rights and interests of listed companies and other small and medium-sized
shareholders.
the completion of this transaction and during the period when the acquirer is the indirect
controlling shareholder of the listed company. In the event of any violation of the above
commitments, the acquirer shall bear the losses caused to the listed company as a result.
Whether the
commitment
YES
is fulfilled on
time
.
Wafangdian Bearing Co., LTD 2025 Midyear Report
II.Non-operational occupation of funds by controlling shareholders and other related parties of the
listed company
? Applicable ? Inapplicable
During the reporting period, there is no non-operational appropriation of funds by controlling shareholders and other related parties to the listed
company.
III. Foreign guarantee in violation of regulations
? Applicable ? Inapplicable
No violation of the company's external guarantee during the reporting period.
IV.Employment and dismissal of accounting firms
Whether the semi-annual financial report has been audited
□ Yes ? No
The company's semi-annual report is unaudited.
V. Explanations by the board of directors on the "non-standard audit Report" of the accounting firm
during the reporting period
? Applicable ? Inapplicable
VI. Explanations by the Board of directors on the "non-standard audit Report" of the previous year
? Applicable ? Inapplicable
VII. Bankruptcy reorganization related matters
? Applicable ? Inapplicable
No bankruptcy reorganization related matters occurred during the company's reporting period.
VIII. Litigation Matters
Major litigation and arbitration matters
? Applicable ? Inapplicable
During the reporting period, the company has no major litigation or arbitration matters.
Other Litigation matters
? Applicable ? Inapplicable
Whether
Amount Litigation Enforcement
projected Progress of Disclo
Basic information of litigation involved (ten (arbitration) of litigation Disclosure
liabilities litigation sure
(arbitration) thousand hearing results (arbitration) date
are (arbitration) index
Yuan) and impact judgments
formed
As of the
Summary of other lawsuits that
end of the
occurred during the reporting
reporting
period, which have been settled Has been Has been July 21,
by the end of this reporting period completed completed 2026
cases have
and do not reach the standard for
been
disclosure of major lawsuits.
closed.
As of the
Summary of other lawsuits that
end of the Cases remain
occurred during the reporting
reporting Cases remain unresolved
period, which have not been
period, unresolved as of as of the end July 21,
settled by the end of this reporting 795.78 Open /
there are the end of the of the 2026
period and do not reach the
still reporting period reporting
standard for disclosure of major
outstanding period
lawsuits.
cases.
IX. Punishment and rectification
? Applicable ? Inapplicable
There is no punishment or rectification in the reporting period.
X.The integrity status of the company and its controlling shareholders and actual controllers?
Wafangdian Bearing Co., LTD 2025 Midyear Report
Applicable ? Inapplicable
XI. Major related Party Transactions
? Applicable ? Inapplicable
? Applicable ? Inapplicable
During the reporting period of the company, no related transactions of asset or equity acquisition or sale occurred.
? Applicable ? Inapplicable
During the reporting period, the company has no related party transaction of joint foreign investment.
? Applicable ? Inapplicable
There was no related creditor-debtor transactions during the reporting period of the company.
? Applicable ? Inapplicable
There is no deposit, loan, credit or other financial business between the company and its affiliated financial companies or related parties.
? Applicable ? Inapplicable
There is no deposit, loan, credit or other financial business between the finance company controlled by the company and the related parties.
? Applicable ? Inapplicable
For details on the routine related-party transactions, please refer to the "Announcement on the Company's 2026 Routine Related-Party
Transactions Forecast" disclosed by the company on the Juchao Information Network on April 28, 2026, as well as Section 8, Part 14 of this
report, "Related Parties and Related Transactions", under "5. Transaction Details".
For inquiries about the temporary report on major related-party transactions, please visit the relevant website.
Website name disclosed in the temporary
Temporary Announcement Title Temporary announcement disclosure date
announcement
Announcement on the Company's Estimated
April 28, 2026 CNINFO (cninfo.com.cn)
Daily Transactions for 2026
XII. Major contracts and their performance
(1) Trusteeship
? Applicable ? Inapplicable
There is no trusteeship situation during the reporting period of the company.
(2) Contracting situation
? Applicable ? Inapplicable
There is no contract situation in the company's reporting period.
(3) Leasing situation
? Applicable ? Inapplicable
Lease Situation Explanation
Our company has no significant lease contracts.
Wafangdian Bearing Co., LTD 2025 Midyear Report
Projects that bring profits and losses to the company to reach more than 10% of the total profit of the company during the reporting period
□ Applicable ? Not applicable
During the reporting period, there is no leasing project whose profit or loss for the company reaches more than 10% of the total profit of the
company.
□ Applicable ? Not applicable
There is no major guarantee during the reporting period.
□ Applicable ? Not applicable
There is no entrusted financial management during the reporting period.
□ Applicable ? Not applicable
There are no other major contracts in the reporting period.
XIII.Registration Form for Activities such as Research Visits, Communication, and Interviews During
the Reporting Period
? Applicable □ Not applicable
The main topics
Index of the basic
Reception Reception Type of reception The person being discussed and
Reception time situation of the
Location methods guests received the provided
research
materials
Shenzhen Stock Online Shenzhen Stock
Matters related to
January 12th, Exchange communication Individual Exchange
Individual the tender offer
acquisition
Platform platform Platform
Shenzhen Stock Online Shenzhen Stock
Matters related to
January 26th, Exchange communication Individual Exchange
Individual the tender offer
acquisition
Platform platform Platform
Shenzhen Stock Online Shenzhen Stock
Matters related to
Exchange communication Individual Exchange
March 5, 2026 Individual the tender offer
Interactive Easy via the network investor Interactive
acquisition
Platform platform Platform
Shenzhen Stock Online Shenzhen Stock
Matters related to
Exchange communication Individual Exchange
June 24, 2026 Individual the tender offer
Interactive Easy via the network investor Interactive
acquisition
Platform platform Platform
Matters related to
Telephone Individual
January 4, 2026 Office Individual the tender offer NO
communication investor
acquisition
Matters related to
January 4th, Telephone Individual
Office Individual the tender offer NO
acquisition
Matters related to
January 7th, Telephone Individual
Office Individual the tender offer NO
acquisition
Matters related to
Telephone Individual
January 8, 2026 Office Individual the tender offer NO
communication investor
acquisition
Matters related to
Telephone Individual
January 9, 2026 Office Institution the tender offer NO
communication investor
acquisition
Matters related to
Telephone Individual
January 13, 2026 Office Individual the tender offer NO
communication investor
acquisition
Matters related to
Telephone Individual
January 19, 2026 Office Individual the tender offer NO
communication investor
acquisition
Telephone Individual Matters related to
May 12, 2026 Office Individual NO
communication investor the tender offer
Wafangdian Bearing Co., LTD 2025 Midyear Report
acquisition
Matters related to
Telephone Individual
May 13, 2026 Office Individual the tender offer NO
communication investor
acquisition
Matters related to
Telephone Individual
May 14, 2026 Office Individual the tender offer NO
communication investor
acquisition
Matters related to
Telephone Individual
June 11, 2026 Office Individual the tender offer NO
communication investor
acquisition
XIV. Explanation of other major matters
□ Applicable ? Not applicable
There are no other major matters that need to be explained during the reporting period.
XV.Major matters of the company's subsidiaries
□ Applicable ? Not applicable
Wafangdian Bearing Co., LTD 2025 Midyear Report
Chapter VI Change of Shares and Particulars about Shareholders
I. Changes in shares
Unit:share
Before this change This change increases or decreases（＋,－） After this change
Issuing Reserve
Send subtot
number proportion new fund other number proportion
shares al
shares conversion
I. Unlisted and 244,000,000.
circulating shares 0
sponsors 0
Among them: the 244,000,000.
state holds shares 0
The domestic legal
entity holds shares
Overseas legal
person holding
shares
other
corporate shares
shares
or other
II. Listed and 158,600,000.
circulating shares 0
shares
stocks listed in 158,600,000.0 39.39% 39.39%
China 0
stocks listed
abroad
III. Total number of 402,600,000.
shares 0
Reasons for changes in shares
? Applicable ? Inapplicable
Approval of changes in shares
? Applicable ? Inapplicable
Changes in ownership of shares
? Applicable ? Inapplicable
Implementation progress of share repurchase
? Applicable ? Inapplicable
The implementation progress of share repurchase by means of collective bidding
? Applicable ? Inapplicable
The impact of changes in shares on financial indicators such as basic earnings per share and diluted earnings per share and net assets per
share attributable to common shareholders of the Company in the latest year and the latest period
? Applicable ? Inapplicable
Other disclosures deemed necessary by the Company or required by securities regulatory authorities
Wafangdian Bearing Co., LTD 2025 Midyear Report
? Applicable ? Inapplicable
? Applicable ? Inapplicable
II. Securities issuance and listing
? Applicable ? Inapplicable
III. The number of shareholders and stock holding of the company
Unit:share
Total number of preferred
shareholders with voting
Total number of common shareholders
at the end of reporting period
reporting End (if any)
(see Note 8)
Shares held by common shareholders holding more than 5% or the top 10 common shareholders
Number of Number of The condition of a pledge,
Number of
common Change listed and mark, or freeze
unlisted and
Nature of the shares held at s in the tradable
Shareholder's name stake tradable
shareholders the end of the reportin ordinary Shares in The number
ordinary
reporting g period shares state of
shares held
period held
Wafangdian
State-owned 298,524,55 54,524 244,000,00 54,524, Inapplica
Bearing Group 74.15% 0
legal person 5 ,555 0 555 ble
Corp., Ltd.
Dalian Youth
Inapplica
Development other 19.70% 79,300,000 0 0 0 0
ble
Foundation
Domestic Inapplica
Wang Xiao 0.19% 774,420 0 0 0 0
natural person ble
Domestic Inapplica
Chen Peng 0.18% 738,100 0 0 0 0
natural person ble
Domestic Inapplica
Jiang Guangsen 0.17% 700,000 0 0 0 0
natural person ble
Bocom
International Foreign legal Inapplica
Securities Co., person ble
LTD
Domestic Inapplica
Li Zhijun 0.14% 573,764 0 0 0 0
natural person ble
Domestic Inapplica
Zhou Yan 0.12% 463,700 0 0 0 0
natural person ble
Domestic Inapplica
Zhou Mei 0.11% 443,620 0 0 0 0
natural person ble
Domestic Inapplica
Yang Yiguang 0.11% 437,811 0 0 0 0
natural person ble
Situations in which strategic investors
or general legal persons are among the
NONE
top 10 common shareholders due to the
placement of new shares (if any) (see
Note 3)
Among the top ten shareholders of the company, there is no related relationship or concerted action
A statement of such shareholder
between the largest shareholder and other shareholders, and the top ten shareholders of tradable
association or concerted action
shares. The related relationship and concerted action between other shareholders, the top ten
Wafangdian Bearing Co., LTD 2025 Midyear Report
shareholders of tradable shares and the top ten shareholders of tradable shares and other
shareholders is unknown.
The above shareholders involved in the
trustee/trustee voting rights, waiver of There is no
voting rights of the explanation
Special description of the existence of a
repurchase account among the top 10 There is no
shareholders (if any) (see Note 11)
The shareholding of the top 10 outstanding common shareholders
Stake species
Number of listed and circulating common shares held at the end of the
Shareholder's name Stake The number
report
species of
Dalian Youth Development
Foundation
Wafangdian Bearing Group Corp.,
Ltd.
Wang Xiao 774,420 B 774,420
Chen Peng 738,100 B 738,100
Jiang Guangsen 700,000 B 700,000
Bocom International Securities Co.,
LTD
Li Zhijun 573,764 B 573,764
Zhou Yan 463,700 B 463,700
Zhou Mei 443,620 B 443,620
Yang Yiguang 437,811 B 437,811
A description of the association or
Among the top ten shareholders of the company, there is no related relationship or concerted action
concerted action between the top 10
between the largest shareholder and other shareholders, and the top ten shareholders of tradable
Unlimited-Sale common shareholders
shares. The related relationship and concerted action between other shareholders, the top ten
and the top 10 Unlimited-Sale Common
shareholders of tradable shares and the top ten shareholders of tradable shares and other
Shareholders and the top 10 Common
shareholders is unknown.
Shareholders
Description of Top 10 Common
Shareholders Participating in Margin There is no
Trading (if any) (see Note 4)
The situation of shareholders holding more than 5% of the shares, the top 10 shareholders and the top 10 shareholders with unrestricted
tradable shares participating in the margin lending business by lending shares
□ Applicable □ Not applicable
The top 10 shareholders and the top 10 unrestricted tradable shareholders of the company have changed due to reasons related to margin
lending and return in the previous period
□ Applicable □ Not applicable
Did the top 10 ordinary shareholders and the top 10 unrestricted tradable ordinary shareholders of the company conduct agreed repurchase
transactions during the reporting period
□ Yes □ No
The top 10 ordinary shareholders and the top 10 unrestricted tradable ordinary shareholders of the company did not conduct agreed repurchase
transactions during the reporting period.
IV.Changes in shareholding of directors and senior management personnel
? Applicable ? Inapplicable
Initial The The Final The initial The The
Employme number of number of number of holding number of number of number of
Name Position
nt status shares additional shares quantity restricted restricted restricted
held shares reduced (shares) stocks stocks stocks
Wafangdian Bearing Co., LTD 2025 Midyear Report
(shares) issued this this period granted awarded in awarded at
period (shares) (shares) this period the end of
(shares) (shares) the term
(shares)
Resignatio
Fang Bo Director 1,500 0 1,500 0 0 0 0
n
Total -- -- 1,500 0 1,500 0 0 0 0
V.Change of controlling shareholder or actual controller
The company has previously disclosed that the actual controller was planning to change the control rights but the process had not yet been
completed. Please provide an update on the progress of the control rights change.
? Applicable ? Inapplicable
Change of controlling shareholder during reporting period
? Applicable ? Inapplicable
The controlling shareholder of the company has not changed during the reporting period.
Actual controller changes during the reporting period
? Applicable ? Inapplicable
The actual controller of the company has not changed during the reporting period.
VI. Relevant Information about preferred Shares
? Applicable ? Inapplicable
No preferred stock existed at the reporting period.
Chapter VII Related Situation of bonds
? Applicable ? Inapplicable
Wafangdian Bearing Co., LTD 2025 Midyear Report
Chapter VIII Financial Reports
I. Audit report
Whether the semiannual report is audited
□ Yes ? No
The company's semi-annual financial report is unaudited.
II. Financial statements
The unit of the statement in the financial notes is yuan
Establishment unit: Wafangdian Bearing Co., LTD
In RMB Yuan
Item 2026.6.30 2026.1.1
Current Assets:
Monetary funds 111,531,042.25 65,287,519.84
Settlement of provisions
Lend funds
Trading financial assets 200,310.67 246,536.22
Derivative financial assets
Notes receivable 562,259,020.05 500,110,673.70
Accounts receivable 927,360,217.84 872,114,645.31
Financing of receivables 87,938,977.52 64,928,833.08
prepayment 7,748,093.20 9,287,712.68
Premium receivable
Reinsurance accounts receivable
Reserves receivable for reinsurance contracts
Other receivables 15,389,177.53 10,631,908.31
Among them: interest receivable
Dividends receivable
Buy and sell financial assets
stock 551,851,868.43 636,325,993.85
Where: Data resources
Contract assets 5,258,761.24 5,258,761.24
Holding assets for sale
Non-current assets maturing within one year
Other current assets 2,703,270.09 50,298,808.19
Total current assets 2,272,240,738.82 2,214,491,392.42
Non-current assets:
Make loans and advances
Debt investment
Other debt investments
Long-term receivables
Wafangdian Bearing Co., LTD 2025 Midyear Report
Long-term equity investment
Investments in other equity instruments 8,705,393.14 8,705,393.14
Other non-current financial assets
Investment real estate 71,142,558.97 73,919,295.42
Fixed assets 382,146,917.75 406,111,493.56
Construction in progress 7,268,202.66 10,513,430.99
Productive biological assets
Oil and gas assets
Usufruct assets
Intangible assets 64,557,182.54 66,301,236.59
Where: Data resources
Development expenditure
Where: Data resources
goodwill
Long-term deferred expenses 6,645,452.39 6,949,581.27
Deferred tax assets
Other non-current assets 282,900.00
Total non-current assets 540,465,707.45 572,783,330.97
Total assets 2,812,706,446.27 2,787,274,723.39
Current liabilities:
Short-term loan 82,053,118.00
Borrow from the central bank
Borrowed funds
Transactional financial liabilities
Derivative financial liability
Notes payable 60,370,597.50 370,597.50
Accounts payable 1,203,331,491.03 1,261,731,806.69
Advances received
Contractual liability 36,573,801.46 31,776,246.33
Funds used to sell and repurchase financial assets
Take deposits and deposit with other banks
To buy and sell securities
Underwrite securities
Payroll payable to employees 30,565,357.79 49,061,641.96
Taxes payable 9,029,207.28 8,932,707.47
Other payables 663,791,490.44 587,079,378.98
Among them: interest payable
Dividend payable
Fees and commissions payable
Reinsurance accounts payable
Holding liabilities held for sale
Non-current liabilities due within one year
Wafangdian Bearing Co., LTD 2025 Midyear Report
Other current liabilities 503,670,221.31 469,016,692.21
Total current liabilities 2,507,332,166.81 2,490,022,189.14
Non-current liabilities:
Reserve for insurance contracts
Long-term loan
Bonds payable
Among them: Preferred stock
Perpetual bond
Lease liability
Long-term payables 344,974.84 344,974.84
Long-term employee compensation payable
Projected liabilities 63,066,105.59 62,247,622.41
Deferred income 32,882,199.12 34,847,189.82
Deferred income tax liabilities 788,788.84 788,788.84
Other non-current liabilities
Total non-current liabilities 97,082,068.39 98,228,575.91
Total liabilities 2,604,414,235.20 2,588,250,765.05
Owner's equity:
Capital stock 402,600,000.00 402,600,000.00
Other equity instruments
Among them: Preferred stock
Perpetual bond
Capital reserve 485,691,050.47 485,691,050.47
Less: Treasury shares
Other comprehensive income -3,199,157.02 -3,201,535.21
Special reserve 3,581,181.07 1,639,850.97
Surplus reserve 136,770,391.01 136,770,391.01
General risk reserve
Undistributed profit -817,151,254.46 -824,475,798.90
Total owner's equity attributable to parent company 208,292,211.07 199,023,958.34
Minority interest
Total owners' equity 208,292,211.07 199,023,958.34
Total liabilities and owners' equity 2,812,706,446.27 2,787,274,723.39
Chairman: Wang Jiyuan General Accountant : Sun Najuan Accounting charger: Xuan Songtao
In RMB Yuan
Item 2026.6.30 2026.1.1
Current Assets:
Monetary funds 109,611,661.28 62,726,188.11
Trading financial assets 200,310.67 246,536.22
Derivative financial assets
Wafangdian Bearing Co., LTD 2025 Midyear Report
Notes receivable 558,868,279.07 497,182,824.72
Accounts receivable 873,631,678.80 867,794,392.68
Financing of receivables 84,634,262.34 64,457,568.41
prepayment 7,165,340.19 8,815,214.66
Other receivables 247,045,163.58 245,164,992.88
Among them: interest receivable
Dividends receivable
stock 390,950,900.17 525,147,258.82
Where: Data resources
Contract assets 5,258,761.24 5,258,761.24
Holding assets for sale
Non-current assets maturing within one year
Other current assets 692,551.03 49,955,969.26
Total current assets 2,278,058,908.37 2,326,749,707.00
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 226,488,897.67 226,488,897.67
Investments in other equity instruments 8,705,393.14 8,705,393.14
Other non-current financial assets
Investment real estate 66,310,017.25 68,679,455.19
Fixed assets 256,159,006.97 271,405,080.88
Construction in progress 6,468,063.88 10,050,847.29
Productive biological assets
Oil and gas assets
Usufruct assets
Intangible assets 51,948,482.87 53,357,540.82
Where: Data resources
Development expenditure
Where: Data resources
goodwill
Long-term deferred expenses 6,570,052.39 6,949,581.27
Deferred tax assets
Other non-current assets 282,900.00
Total non-current assets 622,649,914.17 645,919,696.26
Total assets 2,900,708,822.54 2,972,669,403.26
Current liabilities:
Short-term loan 82,053,118.00
Transactional financial liabilities
Derivative financial liability
Notes payable 60,370,597.50 370,597.50
Wafangdian Bearing Co., LTD 2025 Midyear Report
Accounts payable 1,057,766,048.94 1,231,268,246.54
Advances received
Contractual liability 36,573,801.46 31,755,996.33
Payroll payable to employees 23,693,519.14 39,804,727.20
Taxes payable 7,307,417.88 5,817,395.80
Other payables 651,720,349.50 574,587,108.18
Among them: interest payable
Dividend payable
Holding liabilities held for sale
Non-current liabilities due within one year
Other current liabilities 517,985,320.29 466,718,720.38
Total current liabilities 2,355,417,054.71 2,432,375,909.93
Non-current liabilities:
Long-term loan
Bonds payable
Among them: Preferred stock
Perpetual bond
Lease liability
Long-term payables 244,974.84 244,974.84
Long-term employee compensation payable
Projected liabilities 62,398,311.21 61,798,365.54
Deferred income 6,854,554.80 8,229,767.64
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 69,497,840.85 70,273,108.02
Total liabilities 2,424,914,895.56 2,502,649,017.95
Owner's equity:
Capital stock 402,600,000.00 402,600,000.00
Other equity instruments
Among them: Preferred stock
Perpetual bond
Capital reserve 485,678,443.26 485,678,443.26
Less: Treasury shares
Other comprehensive income -3,199,157.02 -3,201,535.21
Special reserve 771,894.65 2,607.15
Surplus reserve 136,770,391.01 136,770,391.01
Undistributed profit -546,827,644.92 -551,829,520.90
Total owners' equity 475,793,926.98 470,020,385.31
Total liabilities and owners' equity 2,900,708,822.54 2,972,669,403.26
In RMB Yuan
project Half year 2026 Half of 2025
Wafangdian Bearing Co., LTD 2025 Midyear Report
I. Total operating income 1,184,970,752.18 1,330,615,217.48
Among them: operating income 1,184,970,752.18 1,330,615,217.48
Interest income
The premium has been made
Fee and commission income
Among them: operating cost 1,011,570,681.96 1,150,818,592.31
The interest payments
Fees and commission expenses
Surrender gold
Net payout for claims
Draw the net insurance liability reserve
Policy bonus payout
Reinsurance expenses
Taxes and surcharges 5,259,578.35 9,557,828.62
Cost of sales 67,420,532.56 68,478,445.36
Management fees 61,463,749.71 66,239,142.71
Research and development costs 40,530,503.54 65,781,912.27
Finance charges 8,013,671.18 6,823,106.07
Among them: interest expense 66,852.96 7,581,344.95
Interest income 630,239.22 450,534.54
Plus: other benefits 2,874,696.07 5,966,962.04
Investment income (loss marked with "-") 12,096,052.24 9,664,256.68
Among them: income from investment in joint ventures and joint ventures
Financial assets measured at amortized cost terminate recognition of earnings
Exchange gain (marked with "-" for loss)
Net exposure hedging gain (loss marked with "-")
Income from change in fair value (marked with "-" for loss) -46,225.55 -4,622.55
Credit impairment loss (marked with "-") 32,665.26 313,552.31
Asset impairment loss (marked with "-")
Gain on disposal of assets (loss marked with "-") 107,376.24 351,928.90
Plus: non-operating income 1,594,841.35 278,299.73
Less: non-operating expenses 46,896.05 417,478.79
Iv. Total profit (total loss marked with "-") 7,324,544.44 -20,930,911.54
Less: Income tax expense
V. Net profit (Net loss marked with "-") 7,324,544.44 -20,930,911.54
(a) classification according to business continuity
(2) Classification according to ownership
Wafangdian Bearing Co., LTD 2025 Midyear Report
VI.Net after tax of other comprehensive income
Net after tax of other comprehensive income attributable to owner of parent
company
(1) Other comprehensive income that cannot be reclassified into profit or loss
under the equity method
(2) Other comprehensive income reclassified into profit and loss
the equity method
Net after tax of other comprehensive income attributable to minority
shareholders
Total comprehensive income attributable to owner of parent company 7,324,544.44 -20,930,911.54
Total comprehensive income attributable to minority shareholders
(1) Basic earnings per share 0.0182 -0.0520
(2) Diluted earnings per share 0.0182 -0.0520
Chairman: Wang Jiyuan General Accountant : Sun Najuan Accounting charger: Xuan Songtao
In RMB Yuan
ITEM Half year 2026 Half of 2025
I. Operating income 1,173,439,856.24 1,316,908,462.25
Minus: Operating costs 1,019,973,866.05 1,151,863,836.30
Taxes and surcharges 3,779,030.89 6,381,819.99
Cost of sales 66,553,384.85 67,756,928.31
Management fees 50,194,848.70 55,461,499.94
Research and development costs 29,052,206.13 57,708,042.42
Finance charges 8,013,465.22 6,713,442.29
Including: interest expense 66,852.96 7,581,344.95
Interest income 626,569.24 448,230.47
Plus: Other benefits 2,042,365.57 4,917,025.54
Investment income (Loss marked with "-") 5,638,916.68 5,684,796.90
Wafangdian Bearing Co., LTD 2025 Midyear Report
Among them: income from investment in joint ventures and joint ventures
Income from termination of recognition of financial assets measured at
amortized cost (loss is marked with "-")
Net exposure hedging gain (loss marked with "-")
Gains from changes in fair value (loss marked with "-") -46,225.55 -4,622.55
Credit impairment loss (marked with "-") 9,002.79 280,891.43
Asset impairment loss (marked with "-")
Income from asset disposal (marked with "-" for loss) 91,622.26 351,928.90
II. Operating profit (Loss marked with "-") 3,608,736.15 -17,747,086.78
Add: non-operating income 1,440,035.88 262,711.31
Less: non-operating expenses 46,896.05 355,539.03
III. Total profit (Total loss marked with "-") 5,001,875.98 -17,839,914.50
Less: income tax expense
IV. Net Profit (Net loss marked with "-") 5,001,875.98 -17,839,914.50
(1) Net profit from continuing operations (net loss marked with "-") 5,001,875.98 -17,839,914.50
(2) Net profit from discontinued operations (net loss marked with "-")
V.Net after-tax income of other comprehensive income
(1) other comprehensive income that cannot be reclassified into profit or loss
the equity method
(2) other comprehensive income that is reclassified into profit and loss
equity method
VI Total comprehensive income 5,001,875.98 -17,839,914.50
VII. Earnings per Share:
(1) Basic earnings per share 0.0124 -0.0443
Diluted earnings per share 0.0124 -0.0443
In RMB Yuan
project Half year 2026 Half of 2025
I. Cash flow generated by operating activities:
Cash received from selling goods and providing services 385,860,182.98 595,884,749.15
Wafangdian Bearing Co., LTD 2025 Midyear Report
Net increase in customer deposits and interbank deposits
Net increase in borrowing from central banks
Net increase in funds borrowed from other financial institutions
Cash obtained by receipt of premiums from the original insurance contract
Net cash received for reinsurance operations
Net increase in deposit and investment funds
Cash that receives interest, charges and commissions
Net increase in borrowed funds
Net increase in funds for repurchase operations
Net cash received from agents buying and selling securities
Refund of taxes received 1,967,533.59 8,110,763.01
Other cash received in connection with operating activities 13,050,380.95 24,266,509.65
Subtotal of cash inflow from operating activities 400,878,097.52 628,262,021.81
Cash paid for goods and services 78,711,574.93 107,379,481.28
Net increase in customer loans and advances
Net increase in deposits with central banks and interbank funds
Cash for payment of claims under the original insurance contract
Net increase in divestment funds
Cash to pay interest, fees and commissions
Cash to pay policy dividends
Cash paid to and for employees 195,093,827.74 189,692,671.34
All taxes and fees paid 15,445,307.76 47,018,926.61
Other cash payments related to operating activities 66,770,001.70 44,514,490.85
Subtotal of cash outflow from operating activities 356,020,712.13 388,605,570.08
Net cash flow from operating activities 44,857,385.39 239,656,451.73
II. Cash flow generated by investing activities:
Recoup cash received on investment
Cash received for investment income 1,003,528.31 1,000,000.00
Net cash recovered from the disposal of fixed assets, intangible assets and
other long-term assets
Net cash received from disposal of subsidiaries and other business units
Other cash received in connection with investing activities
Subtotal of cash inflow from investing activities 1,003,528.31 2,049,200.00
Cash paid for the purchase and construction of fixed assets, intangible assets
and other long-term assets
Cash paid for investment
Net increase in pledged loans
Obtain net cash paid by subsidiaries and other business units
Other cash payments related to investment activities
Subtotal of cash outflow from investing activities 5,950.00 374,172.33
Net cash flow from investing activities 997,578.31 1,675,027.67
III. Cash flow generated by financing activities:
Absorb cash received from investment
Wafangdian Bearing Co., LTD 2025 Midyear Report
Among them: the subsidiary absorbs the cash received from the investment of
minority shareholders
Obtain the cash received from the loan 162,000,000.00
Other cash received in connection with financing activities 83,501,517.61 235,913,150.44
Subtotal of cash inflow from financing activities 83,501,517.61 397,913,150.44
Cash paid to repay debts 82,000,000.00 390,350,000.00
Cash used to distribute dividends, profits, or repay interest payments 106,235.56 7,909,812.20
Among them: dividends and profits paid by subsidiaries to minority shareholders
Payment of other cash in connection with financing activities 330,624,299.91
Subtotal of cash outflows from financing activities 82,106,235.56 728,884,112.11
Net cash flow from financing activities 1,395,282.05 -330,970,961.67
IV. Effect of exchange rate changes on cash and cash equivalents -5,693.99 384,579.65
V.Net increase in cash and cash equivalents 47,244,551.76 -89,254,902.62
Plus: Cash and cash equivalents balance at the beginning of the period 63,915,460.74 160,907,298.24
VI.Cash and cash equivalents balance at the end of the period 111,160,012.50 71,652,395.62
In RMB Yuan
Project Half year 2026 Half of 2025
I. Cash flow from operating activities:
Cash received from the sale of goods and services 378,200,428.06 584,495,164.23
The tax refund received 1,964,940.95 8,108,228.78
Received other cash related to operating activities 11,958,763.98 21,408,546.18
Total cash inflow from operating activities 392,124,132.99 614,011,939.19
Cash paid for goods and services 120,232,052.86 161,531,936.52
Cash paid to and on behalf of employees 157,465,271.42 153,211,544.87
All taxes and fees paid 7,741,325.21 26,098,493.06
Pay other cash related to operating activities 61,185,736.75 33,660,492.23
Total cash outflow from operating activities 346,624,386.24 374,502,466.68
Net cash flow from operating activities 45,499,746.75 239,509,472.51
Ii. Cash flow from investing activities:
Cash received from the recovery of investments
Cash received from investment income 1,003,528.31 1,000,000.00
Net cash received from the disposal of fixed assets, intangible assets and
other long-term assets
Net cash received from disposal of subsidiaries and other operating units
Received other cash related to investing activities
Total cash inflow from investing activities 1,003,528.31 2,046,400.00
Cash paid for the acquisition of fixed assets, intangible assets and other long-
term assets
Cash paid for investments
Net cash received from subsidiaries and other operating units
Pay other cash related to investing activities
Wafangdian Bearing Co., LTD 2025 Midyear Report
Total cash outflow from investing activities 5,950.00 374,172.33
Net cash flow from investing activities 997,578.31 1,672,227.67
Iii. Cash flow from financing activities:
Cash received from investment absorption
Cash received for the acquisition of loans 162,000,000.00
Other cash received in connection with financing activities 83,501,517.61 235,913,150.44
Total cash inflow from financing activities 83,501,517.61 397,913,150.44
Cash paid to repay debt 82,000,000.00 390,350,000.00
Cash paid out in dividends, profits or interest payments 106,235.56 7,909,812.20
Pay other cash related to financing activities 330,624,299.91
Total small cash outflow from financing activities 82,106,235.56 728,884,112.11
Net cash flow from financing activities 1,395,282.05 -330,970,961.67
IV. Impact of exchange rate fluctuations on cash and cash equivalents -5,693.99 384,579.65
V. Net increase in cash and cash equivalents 47,886,913.12 -89,404,681.84
Plus: the opening balance of cash and cash equivalents 61,354,122.97 159,111,730.38
Vi. Balance of cash and cash equivalents at the end of the period 109,241,036.09 69,707,048.54
Wafangdian Bearing Co., LTD 2025 Midyear Report
This amount
In RMB Yuan
Half year 2026
Owner's equity in the parent company
Other equity instruments
ITEM other Minority
Perpetu Capital less： appropria Surplus General Owner’s
Capital Prefe comprehen Undistributed sharehold
al public treasure tive public provision for Others total equity
stock rred Oth sive profits ers’ equity
Capital reserves stock reserve reserves risk
shar er
Securitie income
es
s
I. Ending balance of 402,600, 485,691,0 1,639,85 136,770,391 199,023,9 199,023,958
the previous year 000.00 50.47 0.97 .01 58.34 .34
Plus: Accounting
policy change
Early error correction
other
II, the beginning 402,600, 485,691,0 1,639,85 136,770,391 199,023,9 199,023,958
balance of this year 000.00 50.47 0.97 .01 58.34 .34
III. Amount of
increase or decrease
in the current period 2,378.19 7,324,544.44
(marked with "-" for
decrease)
(1) Total
comprehensive 7,324,544.44
.44 4
income
(2) Owner investment
and capital reduction
Wafangdian Bearing Co., LTD 2025 Midyear Report
invested by the
owner
instrument holders 2,378.19 2,378.19 2,378.19
invested capital
share-based
payment included in
the owner's equity
(3) Profit distribution
reserves
provision
owners (or
shareholders)
(4) Internal carry-
over of owners'
equity
increase capital (or
equity)
into increased capital
(or equity)
cover losses
defined benefit plan
is transferred to
retained earnings
Wafangdian Bearing Co., LTD 2025 Midyear Report
comprehensive
income carried
forward retained
earnings
(5) Special reserves
extraction 5.94 .94 4
(6) Others
IV. Ending balance of 402,600, 485,691,0 3,581,18 136,770,391 208,292,2 208,292,211
the current period 000.00 50.47 1.07 .01 11.07 .07
The amount of the previous period
In RMB Yuan
Half year 2025
Owner's equity in the parent company
Other equity instruments
ITEM Perpetu other Minority
Prefe Capital less： appropria Surplus General Owner’s
Capital al comprehen Undistributed sharehold
rred Oth public treasure tive public provision for Others total equity
stock Capital sive profits ers’ equity
shar er reserves stock reserve reserves risk
Securitie income
es
s
I. Ending balance of 402,600, 485,691,0 2,305,09 136,770,391 260,983,8 260,983,803
-766,382,732.49
the previous year 000.00 50.47 4.24 .01 03.23 .23
Plus: Accounting
policy change
Early error correction
other
II, the beginning 402,600, 485,691,0 2,305,09 136,770,391 -766,382,732.49 260,983,8 260,983,803
Wafangdian Bearing Co., LTD 2025 Midyear Report
balance of this year 000.00 50.47 4.24 .01 03.23 .23
III. Amount of
increase or decrease - -
in the current period -20,930,911.54 20,368,36 20,368,362.
(marked with "-" for 2.31 31
decrease)
(1) Total - -
comprehensive -20,930,911.54 20,930,91 20,930,911.
income 1.54 54
(2) Owner investment
and capital reduction
invested by the
owner
instrument holders
invested capital
share-based
payment included in
the owner's equity
(3) Profit distribution
reserves
provision
owners (or
shareholders)
(4) Internal carry-
over of owners'
equity
Wafangdian Bearing Co., LTD 2025 Midyear Report
increase capital (or
equity)
into increased capital
(or equity)
cover losses
defined benefit plan
is transferred to
retained earnings
comprehensive
income carried
forward retained
earnings
(5) Special reserves 562,549.23
extraction 9.92 .92 2
(6) Others
IV. Ending balance of 402,600, 485,691,0 2,867,64 136,770,391 240,615,4 240,615,440
-787,313,644.03
the current period 000.00 50.47 3.47 .01 40.92 .92
This amount
In RMB Yuan
Semiannual of 2026 period
Item
Capital stock Other equity instruments Capital public less： Other appropria Surplus public reserves General provision for Undistri Owner’s equity
Wafangdian Bearing Co., LTD 2025 Midyear Report
Preferr Perpetual reserves treasure stock comprehensive tive risk buted
ed Capital Other income reserve profits
stock Securities
I. Balance at the end of last
year
Plus: Change in accounting
policy
Previous error correction
other
II.The beginning balance of the
current year
III. Amount of increase or
decrease in the current period 2,378.19 5,001,875.98 5,773,541.67
(marked with "-" for decrease)
(1) Total comprehensive
income
(2) The owner invests and
reduces the capital
the owner
holders invested capital
payment included in the
owner's equity
(3) Profit distribution
shareholders)
(4) Internal carry-over of
Wafangdian Bearing Co., LTD 2025 Midyear Report
owners' equity
reserves into increased capital
(or equity)
increased capital (or equity)
losses
carried forward to retained
earnings
carried forward to retained
earnings
(5)Special reserves 769,287.50
(6) Others
IV. Ending balance 402,600,000.00 485,678,443.26 -3,199,157.02 136,770,391.01 -546,827,644.92 475,793,926.98
The amount of the previous period
In RMB Yuan
Semiannual of 2025 period
Other equity instruments
Item Other appropria Undistri
Preferr Perpetual Capital public less： General provision for
Capital stock comprehensive tive Surplus public reserves buted Owner’s equity
ed Capital Other reserves treasure stock
income reserve
risk
profits
stock Securities
I. Balance at the end of last
year
Wafangdian Bearing Co., LTD 2025 Midyear Report
Plus: Change in accounting
policy
Previous error correction
other
II.The beginning balance of the
current year
III. Amount of increase or
decrease in the current period -17,839,914.50 -17,305,253.10
(marked with "-" for decrease)
(1) Total comprehensive
-17,839,914.50 -17,839,914.50
income
(2) The owner invests and
reduces the capital
the owner
holders invested capital
payment included in the
owner's equity
(3) Profit distribution
shareholders)
(4) Internal carry-over of
owners' equity
reserves into increased capital
(or equity)
Wafangdian Bearing Co., LTD 2025 Midyear Report
increased capital (or equity)
losses
carried forward to retained
earnings
carried forward to retained
earnings
(5)Special reserves 534,661.40
(6) Others
IV. Ending balance 402,600,000.00 485,678,443.26 136,770,391.01 -513,019,472.97 512,564,022.70
Wafangdian Bearing Co., LTD 2026 Midyear Report
III. Basic information of the company
Wafangdian bearing co., LTD. (hereinafter referred to as the company) on July 16, 1996, the dalian economic reform committee general reform
commission approved hair [1996] no. 64, by wafangdian bearing group co., LTD. (hereinafter referred to as wazhou group) as the sole sponsor
of the company, The main production and operation assets (and their related liabilities) authorized by the state to be held at a discounted price
shall be invested in and established by means of social collection.
On February 19, 1997, the State Securities Commission issued Document No.9 [1997] and approved the company to publicly issue domestic
listed foreign capital shares (B shares) to the public and listed them for trading.
On March 19, 1997, the founding meeting of the Company and the first meeting of the Board of Directors decided that the effective date of the
reorganization of the company's accounting system (that is, the date of the establishment of the company's accounts) was determined as April 1,
On March 20, 1997, THE COMPANY GOT THE BUSINESS LICENSE OF ENTERPRISE LEGAL PERSON, THE registration NUMBER IS
On March 25, 1997, the Company's domestic listed foreign capital shares (B shares) were officially listed and traded in Shenzhen Stock
Exchange, raising 406.58 million yuan, and the company's registered capital was 330 million yuan after the issue.
According to the shenzhen stock exchange on August 30, 2006 issued "on the shenzhen stock exchange stock listing rules > supplementary
notice on the problem of distribution of equity of listed companies (hereinafter referred to as the" notice "), on September 30, the company in
total share capital increased from 333 million shares to 402.6 million shares, among which the legal person shares owned by Waxhuan Group
increased from 20 million shares to 244.0 million shares, accounting for 60.6% of the total share capital; SKF of Sweden increased from 65
million shares to 79.3 million shares, accounting for 19.7% of the total capital; Public shares increased from 65 million to 79.3 million, accounting
for 19.7% of the total share capital. After the implementation of this plan, the company's equity structure will meet the provisions of the
Supplementary Notice of the Shenzhen Stock Exchange.
The parent company of the company is Wafangdian Bearing Group Co., LTD. The general meeting of shareholders is the power organ of the
Company, exercising the power to make decisions on major matters such as the company's business policy, financing, investment and profit
distribution in accordance with law. The board of directors shall be responsible to the general meeting of shareholders and exercise the decision-
making power of the company according to law; The management shall be responsible for organizing the implementation of the resolutions of
the general meeting of shareholders and the Board of directors, and shall preside over the production and operation management of the
enterprise.
This company and its various subsidiaries (collectively referred to as "the Group") belong to the bearing manufacturing industry and mainly
engage in the production and sales of various types of bearings.Business Scope: Permitted items: inspection and testing services, import and
export of goods, import and export of technologies (for items subject to approval according to law, business activities can only be carried out
after approval by relevant departments, and the specific business items shall be subject to the approval results) Bearing manufacturing, bearings,
gears and transmission components manufacturing, high speed precision heavy-duty bearing sales, sales bearings, gears and transmission
parts, bearing sales, general equipment manufacturing (excluding special equipment manufacturing), high-speed rail equipment, parts
manufacturing, machinery and equipment sales, rail transportation equipment, key system and parts sales, sales of lubricating oil, high-speed
rail equipment and accessories sales, Wind generators and spare parts sales, machinery parts, spare parts sales, railway locomotive vehicle
accessories manufacturing, railway locomotive vehicle accessories sales, auto parts and accessories manufacturing, auto parts wholesale and
retail auto parts, metal products repair, sales metal materials, metal products sales, metal surface treatment and heat treatment processing,
Wafangdian Bearing Co., LTD 2026 Midyear Report
quenching process, Machinery parts, parts processing, Land use right leasing, Housing leasing, Non-residential real estate leasing, Machinery
and equipment leasing, Computer and communication equipment leasing, Transportation equipment leasing services, Office Equipment leasing
services, Storage equipment leasing services, Special equipment leasing, Labor Services (excluding labor dispatch), Technical services,
technology development, technology consultation, technology exchange, technology transfer and technology promotion (except for the projects
subject to approval according to law, independently carry out business activities according to law with the business license).
The registered address of this company: No. 1, Section 1, Beigongji Street, Wafangdian City, Liaoning Province. The legal representative: Wang
Jiyuan.
This financial statement has been approved and presented by the company's board of directors on August 21, 2026.
IV. Basis for the preparation of financial statements
The financial statements of this group are prepared on the basis of the going concern assumption, based on the actual transactions and events,
in accordance with the "Enterprise Accounting Standards - General Standards" (issued by the Ministry of Finance under Order No. 33 and
revised by Order No. 76), the specific accounting standards promulgated and revised by the Ministry of Finance on February 15, 2006 and
thereafter, enterprise accounting standards interpretations and other relevant regulations (collectively referred to as "enterprise accounting
standards"), and the disclosure requirements of the "Rule 15 of the Securities Issuance Information Compilation Rules of the China Securities
Regulatory Commission - General Provisions on Financial Reports (Revised in 2023)"). According to the relevant provisions of enterprise
accounting standards, the accounting of this group is based on the accrual basis. Except for certain financial instruments, all of this financial
statement is based on historical cost for measurement. If an asset is impaired, corresponding impairment provisions shall be made in
accordance with the relevant regulations.
The financial statements have been prepared on the basis of the going concern assumption.
V.Important Accounting policies and estimates
Specific accounting policies and accounting estimates tips:
Based on the actual production and operation characteristics of the group, in accordance with the relevant accounting standards for enterprises,
specific accounting policies and estimates have been formulated for various transactions and matters such as the determination and
measurement of the bad debt provision for receivables, the measurement of issued inventory, the classification and depreciation method of fixed
assets, the amortization of intangible assets, the conditions for capitalization of research and development expenses, and the recognition and
measurement of revenue. Please refer to the descriptions in Section IV of this note for details.
The financial statements prepared by this group comply with the requirements of the enterprise accounting standards, and truly and completely
reflect the financial position of the company and the group as of December 31, 2025, as well as the operating results and cash flows and other
relevant information for the year 2025. Moreover, the financial statements of the company and the group are in all significant aspects in
compliance with the disclosure requirements for financial statements and their notes as stipulated in the "Rule 15 - General Provisions on
Financial Reporting for Publicly Issued Securities Companies" revised by the China Securities Regulatory Commission in 2023.
Wafangdian Bearing Co., LTD 2026 Midyear Report
The accounting periods of this group are divided into annual and interim periods. An interim period refers to a reporting period shorter than a
complete accounting year. The accounting year of this group adopts the Gregorian calendar year, which starts from January 1st and ends on
December 31st each year.
The normal operating cycle refers to the period during which the Group acquires assets for processing and then realizes cash or cash
equivalents. The Group considers a 12-month period as its operating cycle and uses it as the standard for classifying the liquidity of assets and
liabilities.
The Renminbi is the main currency in the economic environment where the Company and its domestic subsidiaries operate. The Company and
its domestic subsidiaries use the Renminbi as their bookkeeping base currency. When preparing this financial statement, the Renminbi is the
currency adopted by the Group.
? Applicable ?Not applicable
Project Importance criteria
Important individual accounts for which bad debt provisions The amount of individual provision exceeds 3% of the bad debt reserve of
have been made accounts receivable and is over 100,000 yuan.
The amount of bad debt provisions recovered or reversed for The amount recovered or reversed exceeds 3% of the bad debt reserve of
accounts receivable in the current period is significant accounts receivable and is over 100,000 yuan.
The amount written off exceeds 3% of the bad debt reserve of accounts
Important write-offs of receivables in the current period
receivable and is over 100,000 yuan.
Business combination under the same control: the assets and liabilities acquired by the merging party in the business combination (including the
goodwill formed by the acquisition of the merged party by the ultimate controlling party) are measured on the basis of the carrying value of the
assets and liabilities of the merged party in the consolidated financial statements of the ultimate controlling party at the merger date. The
difference between the book value of the net assets acquired in the merger and the book value of the merger consideration paid (or the total
nominal value of the issued shares), the capital premium in the capital reserve is adjusted, and the retained earnings are adjusted if the capital
premium in the capital reserve is insufficient to be written off.
Business combination under non-identical control: The cost of combination is the fair value of the assets paid by the purchaser, liabilities
incurred or assumed, and equity securities issued by the purchaser to acquire control of the purchaser on the purchase date. The difference
between the cost of the merger and the acquiree's share of the fair value of identifiable net assets obtained in the merger is recognized as
goodwill; The difference in the cost of the merger that is less than the acquiree's share of the fair value of identifiable net assets acquired in the
merger is recognized in profit or loss for the period. The identifiable assets, liabilities and contingent liabilities of the acquiree that are eligible for
recognition acquired in the merger are measured at fair value at the purchase date.
The expenses directly related to the business combination are recognized in the current profit or loss when incurred; Transaction costs incurred
in the issuance of equity or debt securities for the purpose of a business combination are included in the initial recognition amount of the equity
or debt securities.
Wafangdian Bearing Co., LTD 2026 Midyear Report
The consolidated scope of the consolidated financial statements is determined on a control basis and includes the Company and all subsidiaries.
Control means that the company has power over the investee, enjoys variable returns by participating in related activities of the investee, and
has the ability to use its power over the investee to influence the amount of returns.
The Company regards the entire enterprise Group as one accounting entity and prepares consolidated financial statements in accordance with
unified accounting policies to reflect the overall financial position, operating results and cash flows of the enterprise Group. The effect of internal
transactions between the Company and its subsidiaries or subsidiaries shall be offset. If the internal transaction indicates that the relevant asset
has an impairment loss, the loss shall be fully recognized. If the accounting policies and accounting periods adopted by the subsidiary are
inconsistent with those of the Company, necessary adjustments shall be made in accordance with the accounting policies and accounting
periods of the Company when preparing the consolidated financial statements.
Subsidiary owners' equity, current period net profit and loss and the share of minority shareholders in the current period comprehensive income
are shown separately under owners' equity in the consolidated balance sheet, under net profit in the consolidated income statement and under
total comprehensive income, respectively. The loss shared by the minority shareholders of the subsidiary in the current period exceeds the
balance formed by the minority shareholders' share in the initial owner's equity of the subsidiary, and the shareholders' equity is reduced by
several.
(1) Add subsidiaries or businesses
During the reporting period, if a business combination under the same control increases a subsidiary or business, the operating results and cash
flows of the subsidiary or business combination from the beginning of the current period to the end of the reporting period are included in the
consolidated financial statements, while adjustments are made to the opening number of the consolidated financial statements and the relevant
items in the comparative statements, and the consolidated reporting entity is deemed to have existed since the point at which the ultimate
controlling party began to control.
If the investee under the same control can be controlled due to additional investment or other reasons, the equity investment held before the
acquisition of the control of the merged party, the relevant profit and loss, other comprehensive income and other changes in net assets have
been recognized between the date of the acquisition of the original equity and the date on which the merging party and the merged party are
under the same control and the date of the merger, Offset the opening retained earnings or current profit and loss of the comparative statement
period respectively.
During the reporting period, if a subsidiary or business is added as a result of a business combination not under the same control, it is included
in the consolidated financial statements from the purchase date on the basis of the fair value of each identifiable asset, liability and contingent
liability identified at the purchase date.
If the investee that is not under the same control can be controlled due to additional investment or other reasons, the equity held by the
purchaser before the purchase date shall be remeasured according to the fair value of the equity on the purchase date, and the difference
between the fair value and the carrying value shall be included in the current investment income. Other comprehensive income related to the
equity held by the purchaser before the purchase date, which can be reclassified into profit or loss later, and other changes in owners' equity
under the equity method are converted into investment income for the current period of the purchase date.
(2) Disposal of subsidiaries
① General treatment methods
When the control of the investee is lost due to the disposal of part of the equity investment or for other reasons, the remaining equity investment
after disposal shall be remeasured according to its fair value on the date of the loss of control. The sum of the consideration obtained from the
Wafangdian Bearing Co., LTD 2026 Midyear Report
disposal of the equity and the fair value of the remaining equity, minus the difference between the share of the original subsidiary's net assets
and the sum of goodwill that should have been continuously calculated from the purchase date or the merger date based on the original
shareholding ratio, is included in the investment income during the period of loss of control. Other comprehensive income related to the equity
investment of the original subsidiary, which can be reclassified into profit or loss later, and other changes in owner's equity under the equity
method of accounting, are converted to current investment income when the right of control is lost.
② Dispose of subsidiaries step by step
Where an equity investment in a subsidiary is disposed of progressively through multiple transactions until control is lost, the terms, conditions
and economic effects of each transaction in which the equity investment in the subsidiary is disposed of meet one or more of the following
circumstances, which generally indicate that the multiple transaction is a package transaction:
I. The transactions were entered into at the same time or with regard to their mutual effects;
ⅱ. These transactions as a whole can achieve a complete business outcome;
ⅲ. The occurrence of one transaction depends on the occurrence of at least one other transaction;
Iv.. A transaction is uneconomic in isolation, but it is economic when taken together with other transactions.
Where each transaction is a package transaction, each transaction shall be accounted for as one transaction of disposal of the subsidiary and
loss of control; The difference between the disposal price and the share of the subsidiary's net assets corresponding to the disposal investment
prior to the loss of control is recognized as other comprehensive income in the consolidated financial statements and transferred to profit or loss
in the period when control is lost.
If each transaction is not a package transaction, before the loss of the right of control, the equity investment of the subsidiary shall be disposed
of in part according to the condition that the right of control is not lost. When the right of control is lost, the accounting treatment is carried out in
accordance with the general treatment of the disposal of subsidiaries.
(3) Purchase of minority shares in subsidiaries
The difference between the newly acquired long-term equity investment due to the purchase of minority shares and the share of net assets of
the subsidiary that should be continuously calculated from the purchase date or the merger date based on the proportion of the newly acquired
shares is adjusted for the equity premium in the capital reserve in the consolidated balance sheet, and if the equity premium in the capital
reserve is insufficient to be offset, the retained earnings are adjusted.
(4) Partial disposal of the equity investment in the subsidiary without loss of control
The difference between the disposal price and the disposal of long-term equity investment and the share of net assets continuously calculated
by the subsidiary since the purchase date or the merger date shall be adjusted for the equity premium in the capital reserve in the consolidated
balance sheet, and if the equity premium in the capital reserve is insufficient to be offset, the retained earnings shall be adjusted.
Cash refers to the inventory cash of the group and the deposits that can be used for payment at any time. Cash equivalents refer to the
investments held by the group with a short maturity, strong liquidity, easy conversion into known amounts of cash, and very low risk of value
fluctuation.
For the foreign currency transactions of the Group, at the initial recognition, the spot exchange rate on the transaction date is used as the
conversion rate to convert the foreign currency amount into RMB for accounting.
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On the balance sheet date, the balance of foreign currency monetary items is converted at the spot exchange rate on that date. The resulting
exchange differences, except for those arising from foreign currency specific borrowings related to the construction of assets that meet the
capitalization criteria, which are handled in accordance with the principle of capitalization of borrowing costs, are all included in the current profit
and loss.
The assets and liabilities items in the balance sheet are converted at the spot exchange rate on the balance sheet date; other items of owner's
equity are converted at the spot exchange rate at the time of occurrence. The income and expense items in the income statement are converted
at the spot exchange rate on the transaction date.
When disposing of an overseas operation, the conversion difference of the foreign currency financial statements related to that overseas
operation shall be transferred from the owner's equity items to the current profit and loss of the disposal period.
A financial asset or financial liability is recognized when the group becomes a party to a financial instrument contract.
Classification of financial assets
Based on the business model for managing financial assets of the Group and the contractual cash flow characteristics of the financial assets,
financial assets are classified at initial recognition as follows: financial assets measured at amortized cost, financial assets measured at fair
value with changes recorded in other comprehensive income, and financial assets measured at fair value with changes recorded in current profit
or loss.
Financial assets measured at amortized cost
The Group classifies financial assets that simultaneously meet the following conditions and are not designated as financial assets measured at
fair value with changes recognized in current profit or loss as financial assets measured at amortized cost:
The business model is to collect contractual cash flows;
The contractual cash flows consist only of payments of principal and interest based on the outstanding principal amount.
Financial assets measured at fair value and whose changes are included in other comprehensive income
The Group classifies financial assets that simultaneously meet the following conditions and are not designated as financial assets measured at
fair value with changes recognized in current profit or loss as financial assets measured at fair value and whose changes are included in other
comprehensive income (debt instruments):
The business model is to both collect contractual cash flows and sell the financial asset;
The contractual cash flows consist only of payments of principal and interest based on the outstanding principal amount.
For non-trading equity instruments investments, the Group can irrevocably designate them as financial assets measured at fair value and whose
changes are included in other comprehensive income (equity instruments) at the initial recognition. This designation is made on an individual
investment basis and the relevant investment is in accordance with the definition of equity instruments from the issuer's perspective.
Financial assets measured at fair value and whose changes are recognized in current profit or loss
Apart from the financial assets measured at amortized cost and those measured at fair value and whose changes are recognized in other
comprehensive income, the Group classifies all the remaining financial assets as financial assets measured at fair value and whose changes are
recognized in current profit or loss. At initial recognition, if it is possible to eliminate or significantly reduce accounting mismatches, the Group
can irrevocably designate the financial assets that should be classified as those measured at amortized cost or those measured at fair value and
whose changes are recognized in other comprehensive income as financial assets measured at fair value and whose changes are recognized in
Wafangdian Bearing Co., LTD 2026 Midyear Report
current profit or loss.
Classification of financial liabilities
Financial liabilities are classified at initial recognition as: financial liabilities measured at fair value and whose changes are recognized in current
profit or loss, and financial liabilities measured at amortized cost.
Financial liabilities that meet one of the following conditions can be designated at initial measurement as financial liabilities measured at fair
value and whose changes are recognized in current profit or loss:
This designation can eliminate or significantly reduce accounting mismatches;
According to formal written documents stating the enterprise's risk management or investment strategy, the financial liability portfolio or the
combination of financial assets and financial liabilities is managed and evaluated based on fair value, and this is reported internally by the
enterprise on the basis of this to key management personnel;
The financial liability contains embedded derivatives that need to be separated.
Confirmation basis and measurement methods of financial instruments
Financial assets measured at amortized cost
The financial assets measured at amortized cost of the Group include accounts receivable notes, accounts receivable, other receivables, etc.
For such financial assets, the Group initially measure them at fair value, and related transaction costs are included in the initial recognition
amount; accounts receivable without significant financing components and those that the company decides not to consider the financing
component of no more than one year are initially measured based on the contract transaction price.
Financial assets measured at fair value and whose changes are recognized in other comprehensive income (debt instruments)
Financial assets measured at fair value and whose changes are recognized in other comprehensive income (debt instruments) include
receivables financing, etc. They are initially measured at fair value, and related transaction costs are included in the initial recognition amount.
This financial asset is subsequently measured at fair value, and changes in fair value, except for interest calculated using the actual interest rate
method, impairment losses or gains, and exchange gains or losses, are all recognized in other comprehensive income.
When derecognition occurs, the accumulated gains or losses previously recognized in other comprehensive income are transferred from other
comprehensive income to current profit or loss.
Financial assets measured at fair value and whose changes are recognized in other comprehensive income (equity instruments)
Financial assets measured at fair value and whose changes are recognized in other comprehensive income (equity instruments) include other
equity instrument investments, etc. They are initially measured at fair value, and related transaction costs are included in the initial recognition
amount. This financial asset is subsequently measured at fair value, and changes in fair value are recognized in other comprehensive income.
Dividends obtained are recognized in current profit or loss.
When derecognition occurs, the accumulated gains or losses previously recognized in other comprehensive income are transferred from other
comprehensive income to retained earnings.
Financial assets measured at fair value and whose changes are included in current profits and losses
Financial assets measured at fair value and whose changes are included in current profits and losses include trading financial assets, etc. They
are initially measured at fair value, and related transaction costs are included in current profits and losses. These financial assets are
subsequently measured at fair value, and changes in fair value are included in current profits and losses.
Financial liabilities measured at fair value and whose changes are included in current profits and losses
Financial liabilities measured at fair value and whose changes are included in current profits and losses include trading financial liabilities,
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derivative financial liabilities, etc. They are initially measured at fair value, and related transaction costs are included in current profits and losses.
These financial liabilities are subsequently measured at fair value, and changes in fair value are included in current profits and losses.
When they are derecognized, the difference between their book value and the payment made is included in current profits and losses.
Financial liabilities measured at amortized cost
Financial liabilities measured at amortized cost include short-term loans, notes payable, accounts payable, other payables, long-term loans,
long-term payables, etc. They are initially measured at fair value, and related transaction costs are included in the initial recognition amount.
Interest calculated using the actual interest rate method during the holding period is included in current profits and losses.
When they are derecognized, the difference between the payment made and the book value of the financial liability is included in current profits
and losses.
The criteria and measurement methods for the derecognition of financial assets and the recognition of financial asset transfers
When any of the following conditions is met, the Group terminates the recognition of financial assets:
(1) The contractual right to receive cash flows from the financial asset is terminated;
(2) The financial asset has been transferred, and almost all risks and rewards of the financial asset have been transferred to the transferee;
(3) The financial asset has been transferred, although the Group has neither transferred nor retained almost all risks and rewards of the financial
asset, but has not retained control over the financial asset.
When the Group modifies or renegotiates the contract with the counterparty and constitutes a substantive modification, the original financial
asset is derecognized, and a new financial asset is recognized in accordance with the modified terms.
When a financial asset transfer occurs, if almost all risks and rewards of the financial asset are retained, the financial asset is not derecognized.
When determining whether a financial asset transfer meets the above conditions for derecognition of financial assets, the principle of substance
over form is adopted.
This group distinguishes the transfer of financial assets into overall transfer and partial transfer. If the overall transfer of financial assets meets
the conditions for termination recognition, the difference between the two amounts will be recorded in the current profit and loss:
(1) The book value of the transferred financial assets;
(2) The sum of the consideration received from the transfer and the cumulative amount of the fair value changes originally directly recorded in
the owner's equity (in the case where the transferred financial assets are financial assets measured at fair value and their changes are included
in other comprehensive income (debt instruments)).
If the partial transfer of financial assets meets the conditions for termination recognition, the book value of the entire transferred financial assets
will be allocated between the terminated and non-terminated parts based on their respective relative fair values, and the difference between the
two amounts will be recorded in the current profit and loss:
(1) The book value of the terminated part;
(2) The consideration for the terminated part, and the cumulative amount of the fair value changes originally directly recorded in the owner's
equity corresponding to the terminated part (in the case where the transferred financial assets are financial assets measured at fair value and
their changes are included in other comprehensive income (debt instruments)).
If the transfer of financial assets does not meet the conditions for termination recognition, the financial asset will continue to be recognized, and
the consideration received will be recognized as a financial liability.
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Termination of Financial Liabilities
If the present obligation of a financial liability is all or partially relieved, then the financial liability or a part thereof will be terminated; if the group
signs an agreement with the creditor to replace the existing financial liability with a new financial liability, and the contract terms of the new
financial liability are materially different from those of the existing financial liability, then the existing financial liability will be terminated and the
new financial liability will be recognized.
If the contract terms of the existing financial liability are substantially modified, then the financial liability or a part thereof will be terminated, and
the modified financial liability will be recognized as a new financial liability.
When a financial liability is partially or wholly terminated, the difference between the book value of the terminated financial liability and the
consideration paid (including the transferred non-cash assets or the assumed new financial liability) will be recorded in the current profit and loss.
If the group repurchases part of the financial liability, at the repurchase date, the book value of the financial liability will be allocated between the
continuingly recognized part and the terminated part based on their relative fair values. The difference between the book value allocated to the
terminated part and the consideration paid (including the transferred non-cash assets or the assumed new financial liability) will be recorded in
the current profit and loss.
Impairment of financial assets
Method for recognizing impairment provisions
The Group accounts for impairment of financial assets measured at amortized cost, financial assets measured at fair value with changes
recognized in other comprehensive income (debt instruments) and financial guarantee contracts, etc. based on expected credit losses.
The Group considers reasonable and well-founded information such as past events, current conditions, and predictions of future economic
conditions, and uses the risk of default as a weight to calculate the probability-weighted amount of the difference between the contractual cash
flows receivable and the expected cash flows that can be received, and recognizes the expected credit loss.
For receivables and contract assets formed by transactions regulated by Accounting Standard for Business Enterprises No. 14 - Revenue,
regardless of whether they contain significant financing components, the Group always measures the loss provision at an amount equivalent to
the expected credit loss over the entire duration of the receivables.
For lease receivables formed by transactions regulated by Accounting Standard for Business Enterprises No. 21 - Leases, the Group chooses to
always measure the loss provision at an amount equivalent to the expected credit loss over the entire duration of the receivables.
For other financial instruments, the Group assesses the changes in credit risk of the relevant financial instruments since initial recognition at
each balance sheet date.
The Group compares the risk of default of financial instruments at the balance sheet date with the risk of default at the initial recognition date to
determine the relative changes in the risk of default over the expected duration of the financial instruments, and assesses whether the credit risk
of the financial instruments has significantly increased since initial recognition. Generally, if the overdue period exceeds 30 days, the Group
considers that the credit risk of the financial instrument has significantly increased, unless there is conclusive evidence that the credit risk of the
financial instrument has not significantly increased since initial recognition.
If the credit risk of a financial instrument is low at the balance sheet date, the Group considers that the credit risk of the financial instrument has
not significantly increased since initial recognition.
If the credit risk of a financial instrument has significantly increased since initial recognition, the Group measures the loss provision at an amount
Wafangdian Bearing Co., LTD 2026 Midyear Report
equivalent to the expected credit loss over the entire duration of the financial instrument; if the credit risk of the financial instrument has not
significantly increased since initial recognition, the Group measures the loss provision at an amount equivalent to the expected credit loss over
the next 12 months. The increase or reversal amount of the impairment provision thus formed is recognized as an impairment loss or gain in the
current profit or loss. For financial assets measured at fair value with changes recognized in other comprehensive income (debt instruments), the
loss provision is recognized in other comprehensive income and the impairment loss or gain is recognized in the current profit or loss, and the
carrying amount of the financial asset in the balance sheet is not reduced.
If there is objective evidence indicating that a certain receivable has experienced credit impairment, the Group recognizes impairment provisions
on an individual basis for that receivable.
For receivables and contract assets formed by transactions regulated by Accounting Standard for Business Enterprises No. 14 - Revenue (2017),
regardless of whether they contain significant financing components, the Group always measures the loss provision at an amount equivalent to
the expected credit loss over the entire duration of the receivables.
For lease receivables, the Group chooses to always measure the loss provision at an amount equivalent to the expected credit loss over the
entire duration of the receivables.
Methods for determining credit losses of various financial assets
Except for certain financial assets that assess overdue credit losses on an individual basis, the Group also assesses the expected credit losses
of financial assets measured at amortized cost based on the aging group.
Except for the above receivables that are subject to individual bad debt provisions, the Group classifies the remaining financial instruments
based on their credit risk characteristics into several groups, and determines the expected credit losses on a group basis. The group has
established the following categories and determination basis for recognizing expected credit losses for its receivables such as commercial bills,
accounts receivable, receivables financing, and other receivables: Impairment of financial assets
Method for recognizing impairment provisions
The Group accounts for impairment of financial assets measured at amortized cost, financial assets measured at fair value with changes
recognized in other comprehensive income (debt instruments) and financial guarantee contracts, etc. based on expected credit losses.
The Group considers reasonable and well-founded information such as past events, current conditions, and predictions of future economic
conditions, and uses the risk of default as a weight to calculate the probability-weighted amount of the difference between the contractual cash
flows receivable and the expected cash flows that can be received, and recognizes the expected credit loss.
For receivables and contract assets formed by transactions regulated by Accounting Standard for Business Enterprises No. 14 - Revenue,
regardless of whether they contain significant financing components, the Group always measures the loss provision at an amount equivalent to
the expected credit loss over the entire duration of the receivables.
For lease receivables formed by transactions regulated by Accounting Standard for Business Enterprises No. 21 - Leases, the Group chooses to
always measure the loss provision at an amount equivalent to the expected credit loss over the entire duration of the receivables.
For other financial instruments, the Group assesses the changes in credit risk of the relevant financial instruments since initial recognition at
each balance sheet date.
The Group compares the risk of default of financial instruments at the balance sheet date with the risk of default at the initial recognition date to
determine the relative changes in the risk of default over the expected duration of the financial instruments, and assesses whether the credit risk
of the financial instruments has significantly increased since initial recognition. Generally, if the overdue period exceeds 30 days, the Group
considers that the credit risk of the financial instrument has significantly increased, unless there is conclusive evidence that the credit risk of the
financial instrument has not significantly increased since initial recognition.
If the credit risk of a financial instrument is low at the balance sheet date, the Group considers that the credit risk of the financial instrument has
Wafangdian Bearing Co., LTD 2026 Midyear Report
not significantly increased since initial recognition.
If the credit risk of a financial instrument has significantly increased since initial recognition, the Group measures the loss provision at an amount
equivalent to the expected credit loss over the entire duration of the financial instrument; if the credit risk of the financial instrument has not
significantly increased since initial recognition, the Group measures the loss provision at an amount equivalent to the expected credit loss over
the next 12 months. The increase or reversal amount of the impairment provision thus formed is recognized as an impairment loss or gain in the
current profit or loss. For financial assets measured at fair value with changes recognized in other comprehensive income (debt instruments), the
loss provision is recognized in other comprehensive income and the impairment loss or gain is recognized in the current profit or loss, and the
carrying amount of the financial asset in the balance sheet is not reduced.
If there is objective evidence indicating that a certain receivable has experienced credit impairment, the Group recognizes impairment provisions
on an individual basis for that receivable.
For receivables and contract assets formed by transactions regulated by Accounting Standard for Business Enterprises No. 14 - Revenue (2017),
regardless of whether they contain significant financing components, the Group always measures the loss provision at an amount equivalent to
the expected credit loss over the entire duration of the receivables.
For lease receivables, the Group chooses to always measure the loss provision at an amount equivalent to the expected credit loss over the
entire duration of the receivables.
Methods for determining credit losses of various financial assets
Except for certain financial assets that assess overdue credit losses on an individual basis, the Group also assesses the expected credit losses
of financial assets measured at amortized cost based on the aging group.
Except for the above receivables that are subject to individual bad debt provisions, the Group classifies the remaining financial instruments
based on their credit risk characteristics into several groups, and determines the expected credit losses on a group basis. The group has
established the following categories and determination basis for recognizing expected credit losses for its receivables such as commercial bills,
accounts receivable, receivables financing, and other receivables:
Receivable Notes
Combination names The basis for determining the combination
Combination 1 Bank acceptance draft
Combination 2 Commercial acceptance draft
Combination 3 Financial company acceptance draft
Accounts Receivable and Contract Assets
Project The basis for determining the combination
Related party grouping Receivables from related parties within the scope of Dalian Heavy Industry Equipment Group Co., Ltd.
Age grouping of accounts Receivables from other related parties
Receivables Financing
Project The basis for determining the combination
Accounts Receivable Notes Accounts receivable notes that aim to collect contractual cash flows as well as those that aim for sale
Supply Chain Vouchers Supply chain vouchers that aim to collect contractual cash flows as well as those that aim for sale
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Other Receivables
Project The basis for determining the combination
Other Receivables Related party combination
Other Receivables Age of accounts combination
Savings fund combination (classified and combined based on the creditworthiness of the transaction counterpart,
Other Receivables
the nature of the funds, and transaction security measures, etc.)
If the Group no longer reasonably expects that the contractual cash flows of the financial assets can be fully or partially recovered, it will directly
write down the book balance of the financial assets.
Refer to item 11.
Refer to item 11.
Refer to item 11.
The determination method and accounting treatment for the expected credit losses of other receivables
Refer to item 11.
The Group presents contract assets or contract liabilities in the balance sheet based on the relationship between the performance of the
obligation and the customer's payment. The Group's rights to receive consideration for transferring goods or providing services (and such rights
depend on factors other than the passage of time) are presented as contract assets. Contract assets and contract liabilities under the same
contract are presented net. The rights that the Group has, which are unconditional (depending only on the passage of time), to collect
consideration from the customer as an account receivable are presented separately.
The determination method and accounting treatment for expected credit losses of contract assets are described in Note 4, (9), Financial Asset
Impairment.
Classification of Inventories
Inventories are classified as: raw materials, packaging materials, low-value consumables, work-in-progress, finished goods, etc.
Valuation methods for the acquisition and issuance of inventories
Inventories are initially measured at cost. The cost of inventories includes purchase costs, processing costs, and other expenditures incurred to
bring the inventories to their current location and condition. Inventories are valued and priced using the real-time moving weighted average
method when issued.
Methods for confirming the net realizable value of inventories and the recognition of impairment provisions
At the balance sheet date, inventories should be measured at the lower of cost and net realizable value. If the cost of inventories is higher than
their net realizable value, impairment provisions for inventories should be made. Net realizable value refers to the estimated selling price of the
inventory in normal operations, minus the estimated costs to complete the inventory, estimated selling expenses, and related taxes and fees.
Finished goods, inventory items for sale, and materials held for sale that are directly for sale in normal production and operation processes, their
net realizable value should be determined based on the estimated selling price of the inventory minus the estimated selling expenses and
related taxes and fees; materials that need to be processed should be determined based on the estimated selling price of the finished products
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minus the estimated costs to complete the inventory, estimated selling expenses, and related taxes and fees; inventories held for fulfilling sales
contracts or service contracts should be determined based on the contract price, and if the quantity held exceeds the quantity ordered in the
sales contract, the net realizable value of the excess part of the inventory should be determined based on the general selling price.
After making impairment provisions for inventories, if the factors that previously reduced the value of inventories have disappeared, resulting in
the net realizable value of the inventories being higher than their book value, the previously made impairment provisions can be reversed within
the amount, and the reversed amount is included in the current profit and loss.
Low-value consumables are depreciated using the one-time amortization method upon issuance; packaging materials are depreciated using the
one-time amortization method upon issuance.
The long-term equity investment referred to in this section refers to the long-term equity investment held by the Group that has control, joint
control or significant influence over the invested entity.
Joint control refers to the common control of an arrangement in accordance with the relevant agreement, and the relevant activities of the
arrangement must be agreed upon by the participants who share control. Where the group, together with other joint ventures, exercises joint
control over the investee and enjoys rights over the net assets of the investee, the investee shall be a joint venture of the group.
Significant influence refers to having the power to participate in the decision-making of the financial and operational decisions of the investee,
but not being able to control or jointly control the formulation of these policies with other parties. Where the group is able to exert significant
influence on the investee, the investee is an associate enterprise of the group.
Determination of initial investment costs
For a long-term equity investment in a subsidiary formed by a combination of enterprises under the same control, the initial investment cost of
the long-term equity investment is based on the share of the acquired owner's equity in the book value of the consolidated financial statements
of the ultimate controlling party on the merger date. The difference between the initial investment cost of long-term equity investment and the
book value of the consideration paid, and the equity premium in the capital reserve; The retained earnings are adjusted when the equity
premium in the capital reserve is insufficient to write off. If the investore under the same control can be controlled due to additional investment or
other reasons, the difference between the initial investment cost of long-term equity investment recognized in accordance with the above
principles and the sum of the book value of long-term equity investment before the merger plus the book value of the new consideration for
further shares acquired on the merger date shall be adjusted for the equity premium, and the retained earnings shall be deducted if the equity
premium is insufficient.
For a long-term equity investment in a subsidiary formed by a merger of enterprises not under the same control, the merger cost determined on
the purchase date shall be regarded as the initial investment cost of the long-term equity investment. If the investee under different control can
be controlled due to additional investment or other reasons, the initial investment cost shall be the sum of the book value of the equity
investment originally held plus the cost of the new investment.
For long-term equity investment obtained by cash payment, the initial investment cost shall be based on the purchase price actually paid.
For long-term equity investments obtained by issuing equity securities, the initial investment cost shall be based on the fair value of the equity
securities issued.
Subsequent measurement and profit and loss recognition methods
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Long-term equity investments accounted for by the cost method
The Company's long-term equity investments in subsidiaries are accounted for using the cost method, unless the investment is held for sale. In
addition to the cash dividends or profits declared but not yet paid in the price or consideration actually paid at the time of investment acquisition,
the Company recognizes the current investment income according to the cash dividends or profits declared and paid by the investee.
Long-term equity investments accounted for by the equity method
Long-term equity investments in associates and joint ventures shall be accounted for using the equity method. If the initial investment cost is
greater than the investment, it shall enjoy the difference in the share of the fair value of the identifiable net assets of the investee, without
adjusting the initial investment cost of long-term equity investment; When the initial investment cost is less than the investment, the difference in
the share of the fair value of the identifiable net assets of the investee shall be included in the current profit or loss, and the cost of long-term
equity investment shall be adjusted.
The group recognizes investment income and other comprehensive income respectively according to the share of net profit and loss and other
comprehensive income realized by the investee, and adjusts the book value of long-term equity investment; The book value of long-term equity
investment shall be reduced accordingly in accordance with the profit or cash dividend declared by the investee; For changes in owner's equity
other than net profit and loss, other comprehensive income and profit distribution of the investee (" Other owner's equity changes "), the carrying
value of long-term equity investments is adjusted and included in owner's equity.
When recognizing the share of the investee's net profit and loss, other comprehensive income and other changes in owner's equity, it is
recognized on the basis of the fair value of the investee's identifiable net assets at the time of acquisition of the investment, and after adjusting
the net profit and other comprehensive income of the investee in accordance with thegroup's accounting policies and accounting periods.
The profit or loss of unrealized internal transactions between thegroup and its associate or joint venture shall be offset by the part attributable to
thegroup calculated in proportion to its share, and the investment income shall be recognized on this basis, except where the assets invested or
sold constitute business. If the unrealized internal transaction loss occurred with the investee is an asset impairment loss, it shall be fully
recognized.
The net loss incurred by thegroup to the joint venture or associated enterprise, except for the obligation to bear additional losses, shall be limited
to the carrying value of the long-term equity investment and other long-term interests that substantially constitute the net investment in the joint
venture or associated enterprise. If a joint venture or associate enterprise later realizes net profit, thegroup shall resume the recognition of the
income sharing amount after the income sharing amount has made up the unrecognized loss sharing amount.
Disposal of long-term equity investments
If a long-term equity investment is disposed of, the difference between the carrying value and the actual purchase price shall be included in the
current profit or loss.
If part of the long-term equity investment accounted for by the equity method is disposed of, and the remaining equity is still accounted for by the
equity method, the other comprehensive income recognized by the original equity method is carried forward on the same basis as the relevant
assets or liabilities directly disposed of by the invee, and the changes in other owners' equity are transferred to the current profit or loss in
proportion.
Where the common control or significant influence on the investee is lost due to the disposal of equity investment or other reasons, other
comprehensive income recognized by the original equity investment as a result of the equity method accounting shall be accounted for on the
same basis as the direct disposal of the relevant assets or liabilities by the investee when the equity method accounting is terminated. All other
changes in owners' equity are transferred to current profit or loss upon termination of the equity method.
If the company loses the control over the investee due to the disposal of part of the equity investment or other reasons, and the remaining equity
can jointly control or significantly affect the investee when preparing individual financial statements, it shall be calculated according to the equity
method, and when the remaining equity is regarded as self-acquired, it shall be adjusted by the equity method. Other comprehensive income
recognized before the acquisition of the control of the investee is carried forward on the same basis as the direct disposal of related assets or
liabilities by the investee, and the changes in other owner's equity recognized by the equity method are transferred to the current profit or loss on
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a proportional basis; If the remaining equity cannot jointly control or exert significant influence on the investee, it is recognized as a financial
asset, and the difference between the fair value and the carrying value on the date of loss of control is included in the current profit or loss, and
all other comprehensive income and other changes in owners' equity recognized before the acquisition of the control of the investee are carried
forward.
If the equity investment of the subsidiary is disposed of step by step through multiple transactions until the control is lost, and it is a package
transaction, each transaction shall be accounted for as a transaction that disposed of the equity investment of the subsidiary and lost the control.
The difference between the disposal price of each disposal and the book value of the disposed equity against the entitled long-term equity
investment before the loss of control is first recognized as other comprehensive income in individual financial statements, and then transferred to
the loss and profit of the current period when the control is lost. If it is not a package transaction, each transaction shall be accounted for
separately.
Investment real estate measurement model
Cost measurement
Depreciation or amortization method
Investment real estate refers to real estate held for the purpose of earning rent or capital appreciation, or both, including land use rights that
have been leased, land use rights that have been held and are to be transferred after appreciation, and buildings that have been leased
(including buildings that have been leased after completion of self-construction or development activities, and buildings that are under
construction or development and will be leased in the future).
Subsequent expenditures related to investment real estate are included in the cost of investment real estate when the related economic benefits
are likely to flow in and their costs can be reliably measured; Otherwise, it is charged to current profit or loss when incurred.
Thegroup adopts a cost model for the measurement of existing investment real estate. The depreciation policy for investment real estate -
leased buildings measured according to the cost model is the same as that for the Company's fixed assets, and the amortization policy for
leased land use rights is the same as that for intangible assets.
(1) Confirm the conditions
Fixed assets refer to tangible assets with a unit value of more than 2,000 yuan that are held for the purpose of producing commodities, providing
services, renting or operating management and have a service life exceeding one fiscal year. Fixed assets are recognized when both of the
following conditions are met:
(1) The economic benefits related to the fixed assets are likely to flow into the enterprise;
(2) The cost of the fixed asset can be measured reliably.
Fixed assets are initially measured at cost (taking into account the impact of anticipated disposal cost factors).
Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the economic benefits related to them are likely to
flow in and their costs can be reliably measured; To terminate the recognition of the book value of the replaced portion; All other subsequent
expenses are recognised in profit or loss as incurred.
（2） Depreciation method
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Ratio of salvage Annual depreciation
category Depreciation method Depreciation life
value rate
Houses and buildings
Among them: houses, factories, three-
dimensional warehouses, pipe networks, Life averaging method 30 3 3.23
roads
Waste storage Life averaging method 20 3 4.85
Machinery and equipment Life averaging method 10 3 9.70
Transport equipment Life averaging method 5 3 19.40
Electronic equipment Life averaging method
Among them: electronic devices Life averaging method 5 3 19.40
Instrument and meter Life averaging method 10 3 9.70
Other equipment Life averaging method
Among them: conduction equipment Life averaging method 10 3 9.70
Special equipment Life averaging method 10 3 9.70
Office equipment Life averaging method 5 3 19.40
Other fixed assets Life averaging method 5 3 19.40
Construction in progress is measured at actual cost incurred. Actual costs include construction costs, installation costs, capitalized borrowing
costs, and other expenditures necessary to bring the construction in progress to its intended serviceability. When the construction under
construction reaches the intended serviceable state, it shall be transferred to fixed assets and depreciation shall be calculated from the following
month.
The methods for conducting impairment tests on construction in progress and for making impairment provisions are detailed in Note 4, Item 19
"Impairment of Long-Term Assets".
(1) Service life and the basis for its determination, estimate, amortization method or review procedure
Intangible assets refer to non-monetary identifiable assets without physical form that the group owns or controls.
Intangible assets are initially measured at cost. The cost of purchased intangible assets includes the purchase price, relevant taxes, and other
expenditures directly attributable to making the asset reach its intended use.
When obtaining intangible assets, the useful life of the asset is analyzed and determined.
For intangible assets with a limited useful life, they are amortized over the period during which the economic benefits are generated by the group;
if the period during which the intangible asset is expected to bring economic benefits to the group cannot be predicted, it is regarded as an
intangible asset with an uncertain useful life and is not amortized.
Intangible assets with limited service life shall be amortized within the time limit during which they bring economic benefits to the enterprise;
Intangible assets that cannot be foreseen to bring economic benefits to the enterprise shall be regarded as intangible assets with uncertain
service life and shall not be amortized.
The right to the use of the land shall be amortized on an average basis according to the period of grant from the date of grant; ERP software and
other intangible assets shall be amortized in equal stages according to the shortest among the expected service life, the benefit life stipulated in
the contract and the effective life stipulated by law. Amortization amounts are included in the cost of the relevant assets and current profit or loss
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according to the beneficiaries. The estimated useful life and amortization method of intangible assets with limited useful life are reviewed at the
end of each year and are treated as accounting estimate changes if they occur.
(2) The scope of research and development expenditures and related accounting treatment.
The scope of capitalization of research and development expenditures
The group's expenses incurred in the process of conducting research and development include related staff salaries, materials consumed,
related depreciation and amortization expenses and other related expenses of the personnel engaged in research and development activities,
and are summarized as follows:
The relevant employee compensation of the personnel engaged in R&D activities mainly refers to the relevant employee compensation of the
personnel directly engaged in R&D activities, the management personnel closely related to R&D activities and the direct service personnel.
Depreciation expense refers to the expense of depreciation of instruments, equipment and buildings in use for research and development
activities. Long-term deferred expenses refer to long-term deferred expenses incurred in the course of alteration, modification, renovation and
repair of research and development facilities.
Direct input expense refers to the related expenditure actually incurred by enterprises for the implementation of research and development
activities. Including direct consumption of materials, fuel and power costs; Expenses for the operation, maintenance, adjustment, inspection,
inspection and repair of instruments and equipment used in research and development activities, as well as lease fees for fixed assets rented
through business leasing for research and development activities.
Specific criteria for dividing the research stage and the development stage
The expenditures of the internal research and development projects of this group are classified into research stage expenditures and
development stage expenditures.
Research stage: The stage of conducting original and planned investigation and research activities to obtain and understand new scientific or
technical knowledge, etc.
Development stage: The stage of applying the research results or other knowledge to a certain plan or design to produce new or materially
improved materials, devices, products, etc., before commencing commercial production or use.
Specific conditions for capitalizing expenditures in the development stage
Expenditures in the research stage are recorded in the current profit and loss account when they occur. Expenditures in the development stage
are recognized as intangible assets if they simultaneously meet the following conditions:
① The completion of the intangible asset to make it usable or marketable is technically feasible;
② There is an intention to complete the intangible asset and use or sell it;
③ The way in which the intangible asset generates economic benefits, including being able to prove the existence of a market for the products
produced using the intangible asset or the market for the intangible asset itself, and for internal use, being able to prove its usefulness;
④ There are sufficient technical, financial and other resources to support the development of the intangible asset and the ability to use or sell
the intangible asset;
⑤ The expenditures attributed to the development stage of the intangible asset can be reliably measured.
If it is impossible to distinguish between research stage expenditures and development stage expenditures, all research and development
expenditures incurred shall be recorded in the current profit and loss account.
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Long-term equity investments, investment real estate measured by the cost model, fixed assets, construction in progress,intangible assets with
limited useful life and other long-term assets, where there are signs of impairment at the balance sheet date, impairment tests shall be
conducted. If the impairment test results show that the recoverable amount of the asset is lower than its carrying value, an impairment provision
shall be made according to the difference and included in the impairment loss. The recoverable amount is the higher of the fair value of the asset,
net of disposal costs, and the present value of the asset's expected future cash flows. The asset impairment reserve is calculated and
recognized on the basis of individual assets, and if it is difficult to estimate the recoverable amount of an individual asset, the recoverable
amount of the asset group is determined on the basis of the asset group to which the asset belongs. An asset group is the smallest portfolio of
assets that can independently generate cash inflows.
For goodwill formed as a result of business merger, intangible assets with uncertain service life, intangible assets that have not yet reached the
usable state, regardless of whether there are signs of impairment, at least at the end of each year impairment tests.
The group conducts goodwill impairment tests, and the carrying value of goodwill formed as a result of the business combination is apportioned
to the relevant asset group in a reasonable way from the date of purchase; If it is difficult to apportion to the relevant asset group, it is
apportioned to the relevant asset group combination. An associated asset group or combination of asset groups is an asset group or
combination that can benefit from the synergies of a business combination.
When conducting an impairment test on the related asset group or asset group combination containing goodwill, if there are signs of impairment
in the asset group or asset group combination related to goodwill, the impairment test is first conducted on the asset group or asset group
combination excluding goodwill, and the recoverable amount is calculated and compared with the relevant carrying value to recognize the
corresponding impairment loss. Then, an impairment test is conducted on the asset group or asset group combination containing goodwill to
compare its carrying value with the recoverable amount. If the recoverable amount is lower than the carrying value, the impairment loss amount
is first offset against the carrying value of the goodwill in the asset group or asset group combination. The book value of the other assets is then
reduced proportionally according to the proportion of the book value of the asset group or the asset group combination of other assets other than
goodwill. Once the above-mentioned asset impairment loss is recognized, it will not be reversed in the subsequent accounting period.
Long-term deferred expenses are expenses that have already been incurred but are liable for the current and subsequent periods for an
apportionment period of more than one year. Such expenses are amortized evenly over the benefit period, and if the long-term unamortized
expense item does not benefit subsequent accounting periods, the full amortized value of the item that has not been amortized is carried to profit
or loss for the current period.
The group shows contractual assets or contractual liabilities in the balance sheet according to the relationship between the performance
obligations and the customer's payments. Obligations of the group to transfer goods or provide services to customers for which consideration
has been received or received from customers are shown as contractual liabilities. Contract assets and contract liabilities under the same
contract are shown in net terms.
(1) Accounting treatment of short-term compensation
During the accounting period in which employees provide services to the group, the group recognizes the short-term compensation actually
incurred as a liability and includes it in the profit or loss of the current period or the cost of related assets.
The group shall, during the accounting period in which the employees provide services to the group, calculate and determine the corresponding
amount of salary for the employees according to the prescribed basis and proportion of the provision of social insurance premiums and housing
provident funds, as well as the funds for the trade union and the education of the employees as prescribed.
The employee welfare expenses incurred by the group are included in the current profit or loss or related asset costs according to the actual
amount incurred when actually incurred, among which non-monetary benefits are measured at fair value.
(2) Accounting treatment of post-resignation benefits
(1) Set a drawdown plan
Wafangdian Bearing Co., LTD 2026 Midyear Report
The group shall pay basic pension insurance and unemployment insurance for its employees in accordance with the relevant regulations of the
local government. During the accounting period when the employees provide services to the group, the amount payable shall be calculated
according to the payment base and proportion prescribed by the local regulations, recognized as liabilities, and included in the profit or loss of
the current period or the cost of related assets. In addition, the group participates in the Enterprise annuity plan/Supplementary pension
insurance fund approved by the relevant state authorities. The group pays contributions to the annuity plan/local social insurance institution
according to a certain proportion of the total salary of the employees, and the corresponding expenditure is included in the profit and loss of the
current period or the cost of related assets.
(2) Set a benefit plan
According to the formula determined by the expected cumulative benefit unit method, the group will attribute the benefit obligation arising from
the defined benefit plan to the period during which the employee provides the service, and record it in the current profit or loss or related asset
cost.
A deficit or surplus resulting from the present value of defined benefit plan obligations less the fair value of defined benefit plan assets is
recognized as a defined benefit plan net liability or net asset. If there is surplus in the defined benefit plan, the group shall measure the net
assets of the defined benefit plan by whichever is lower than the surplus of the defined benefit plan or the upper limit of assets.
All defined benefit plan obligations, including those expected to be paid within twelve months after the end of the annual reporting period in
which the employee rendered services, are discounted at the balance sheet date based on the market yield of Treasury bonds or high-quality
corporate bonds in an active market that match the maturity and currency of defined benefit plan obligations.
The cost of services incurred by the defined benefit Plan and the net interest on the net liabilities or net assets of the defined benefit plan are
recognised in profit or loss or the cost of the related assets for the period; Changes resulting from the remeasurement of net liabilities or net
assets of defined benefit plans are recognized in other comprehensive income and are not carried back to profit or loss in subsequent
accounting periods, and the portion originally recognized in other comprehensive income is fully carried forward to undistributed profit within
equity at the termination of the original defined benefit plan.
At the time of settlement of defined benefit plans, settlement gains or losses are recognized based on the difference between the present value
of defined benefit plan obligations and the settlement price determined on the settlement date.
(3) The accounting treatment method of dismissal welfare
If the group provides termination benefits to employees, the employee compensation liability arising from the termination benefits shall be
recognized at an early date and recorded in the current profit or loss of either of the following: If the group cannot unilaterally withdraw the
termination benefits provided by the termination of labor relations plan or reduction proposal; When the group recognizes costs or expenses
associated with restructuring involving the payment of termination benefits.
(4) Accounting treatment methods for other long-term employee benefits
Obligations relating to contingencies are recognised by the group as projected liabilities when the following conditions are met:
(1) The obligation is a current obligation of the group;
(2) the performance of the obligation is likely to result in the outflow of economic benefits from the group;
(3) The amount of the obligation can be measured reliably.
Projected liabilities are initially measured at the best estimate of the expenditure required to meet the relevant current obligations.
In determining the best estimate, factors such as risks, uncertainties and the time value of money associated with contingencies are taken into
account. Where the time value of money is significant, the best estimate is determined by discounting the relevant future cash outflows.
Where there is a continuous range of required expenditures within which outcomes are equally likely to occur, the best estimate is determined at
the midpoint of the range; In other cases, the best estimates are treated as follows:
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• Contingencies involving a single item are determined according to the amount most likely to occur.
Contingencies involving multiple items shall be determined according to the calculation of various possible outcomes and relevant probabilities.
Where all or part of the expenditure required to satisfy the projected liability is expected to be compensated by a third party, the amount of
compensation is recognized separately as an asset when it is basically certain that it will be received, and the amount of compensation
recognized does not exceed the carrying value of the projected liability.
The group reviews the carrying value of the projected liabilities at the balance sheet date and adjusts the carrying value according to the current
best estimate if there is solid evidence that the carrying value does not reflect the current best estimate.
Disclose accounting policies used to recognize and measure revenue by business type
The accounting policies adopted for revenue recognition and measurement
The Group recognizes revenue upon fulfilling the performance obligations in the contract, that is, when the customer obtains control of the
relevant goods or services. Obtaining control of the relevant goods or services means being able to dominate the use of the goods or services
and obtaining almost all the economic benefits from them.
If a contract contains two or more performance obligations, the Group allocates the transaction price to each individual performance obligation
based on the relative proportion of the standalone selling prices of the goods or services promised in each obligation. The Group measures
revenue based on the transaction price allocated to each individual performance obligation.
The transaction price refers to the amount that the Group expects to receive as consideration for transferring goods or services to the customer,
excluding amounts collected on behalf of third parties and amounts expected to be refunded to the customer. The Group determines the
transaction price based on the terms of the contract, combined with its past practices. When determining the transaction price, the Group
considers factors such as variable consideration, significant financing components in the contract, non-cash consideration, and consideration
payable to the customer. The Group determines the transaction price including variable consideration at a level not exceeding the amount that is
highly likely not to be reversed in the cumulative revenue recognized when the relevant uncertainties are eliminated. For contracts with
significant financing components, the Group determines the transaction price by assuming that the customer pays in cash at the time of
obtaining control of the goods or services. The Group amortizes the difference between the transaction price and the contract consideration over
the contract period using the effective interest rate method. One of the following conditions must be met for the performance obligation to be
fulfilled over a period of time: 1. The customer obtains and consumes the economic benefits brought by the Group's performance at the same
time. 2. The customer can control the goods under construction by the Group. 3. The Group has the right to receive payment for the cumulative
completed performance throughout the contract period. For performance obligations fulfilled at a point in time, the Group recognizes revenue at
the point when the customer obtains control of the relevant goods or services. When determining whether the customer has obtained control of
the goods or services, the Group considers the following signs: 1. The Group has the current right to collect consideration for the goods or
services, that is, the customer has the current obligation to make payment for the goods or services. 2. The Group has transferred the legal
ownership of the goods to the customer, that is, the customer has the legal ownership of the goods. 3. The Group has transferred the physical
goods to the customer, that is, the customer has physical possession of the goods. 4. The Group has transferred the main risks and rewards of
ownership of the goods to the customer, that is, the customer has obtained the main risks and rewards of ownership of the goods. 5. The
customer has accepted the goods or services. The Group determines the identity of the Company when entering into a transaction based on
whether it has control over the goods or services before transferring them to the customer. If the Group can control the goods or services before
transferring them to the customer, the Group is the principal and recognizes revenue based on the total amount of received or receivable
consideration; otherwise, the Group is the agent and recognizes revenue based on the amount of commission or handling fee expected to be
received.
The specific methods of revenue recognition and measurement are disclosed according to the nature of the business.
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Merchandise sales revenue: When the Group has transferred the principal risks and rewards of ownership of the goods to the purchaser, the
Group has not retained the continuing management rights normally associated with ownership, nor has it exercised effective control over the
goods sold, the amount of revenue can be measured reliably, the related economic benefits are likely to flow to the business, and the related
costs incurred or to be incurred can be measured reliably, Recognize the realization of sales revenue.
Income from transferred assets: The realization of income from the right to use transferred assets is recognized when the economic benefits
associated with the transaction are likely to flow to the Group and the amount of revenue can be measured reliably.
The use of different business models involving different revenue recognition methods and measurement methods of similar businesses
Contract cost includes contract performance cost and contract acquisition cost.
The cost incurred by the group for the performance of the contract, which does not fall within the scope of relevant standards such as inventory,
fixed assets or intangible assets, shall be recognized as an asset as the performance cost of the contract when the following conditions are met:
• The cost is directly related to a current or expected contract.
• This cost increases the group's resources to meet performance obligations in the future.
• This cost is expected to be recovered.
The incremental cost incurred by the group to obtain a contract is recognized as an asset if it is expected to be recovered as a contract
acquisition cost.
Assets related to contract costs are amortized on the same basis as the recognition of revenue of goods or services related to that asset;
However, if the amortization period of contract acquisition costs does not exceed one year, the group will recognize it in the profit and loss of the
current period when it occurs.
If the carrying value of an asset related to the contract cost is higher than the difference between the following two items, the group shall make
an impairment provision for the excess and recognize it as an asset impairment loss:
(a) the remaining consideration expected to be obtained as a result of the transfer of goods or services related to the asset;
If the factors of impairment in previous periods change later, making the aforementioned difference higher than the carrying value of the asset,
the group shall revert to the original provision for impairment and record it in the profit or loss of the current period, provided that the carrying
value of the asset after the reversal shall not exceed the carrying value of the asset on the date of reversal if no provision for impairment is
assumed.
Government subsidies refer to monetary assets or non-monetary assets obtained free of charge by the group from the government, which are
divided into government subsidies related to assets and government subsidies related to income.
Government subsidies related to assets refer to government subsidies obtained by the group for the purchase and construction or other forms of
long-term assets. Revenue-related government subsidies refer to government subsidies other than those related to assets.
The group's specific criteria for classifying government grants as asset-related are government grants obtained by the Group for the acquisition,
construction or otherwise formation of long-term assets
The group's specific criteria for classifying government grants as income-related are: government grants other than government grants related to
assets
If the government documents do not clearly specify the object of the subsidy, the group will classify the government subsidy as asset-related or
revenue-related based on the following judgment: The Group will make a judgment according to the above distinction principle, and if it is difficult
to distinguish, the whole government subsidy is classified as revenue-related.
Wafangdian Bearing Co., LTD 2026 Midyear Report
Government grants are recognized when the group is able to meet the conditions attached to them and can receive them.
Government subsidies related to assets, write-down of the book value of related assets or recognized as deferred income. If it is recognized as
deferred income, it shall be included in the profit or loss of the current period in a reasonable and systematic way during the service life of the
relevant assets (if it is related to the daily activities of the group, it shall be included in other income; If it is not related to the daily activities of the
group, it is included in non-operating income);
Government grants related to revenue that are used to compensate the group for related costs or losses in subsequent periods are recognized
as deferred revenue and are recognized in current profit or loss during the period in which the related costs or losses are recognized (other
income if related to the group's daily activities; If it is not related to the daily activities of the group, it is included in non-operating income) or
written off the related costs or losses; If it is used to compensate the relevant costs or losses incurred by the group, it is directly included in the
current profit and loss (if it is related to the daily activities of the group, it is included in other income; If it is not related to the daily activities of the
group, it is included in non-operating income) or written off related costs or losses.
Income tax includes current income tax and deferred income tax. In addition to income tax arising from business mergers and transactions or
events that are directly included in owners' equity (including other comprehensive income), the group recognizes current income tax and
deferred income tax in current profit or loss.
Deferred income tax assets and deferred income tax liabilities are calculated and recognized based on the difference (temporary difference)
between the tax basis of assets and liabilities and their carrying value.
Deferred income tax assets are recognized for deductible temporary differences to the extent that taxable income is likely to be obtained in
future periods to offset deductible temporary differences. For deductible losses and tax credits that can be carried forward to subsequent years,
the corresponding deferred tax assets are recognized to the extent that future taxable income is likely to be obtained to offset the deductible
losses and tax credits.
For taxable temporary differences, deferred income tax liabilities are recognized, except in exceptional circumstances.
Exceptional circumstances in which deferred tax assets or deferred tax liabilities are not recognized include:
• Initial recognition of goodwill;
• Transactions or events that are neither a business combination nor affect accounting profit and taxable income (or deductible losses) at the
time of occurrence, and where the assets and liabilities initially recognized do not result in an equal amount of taxable temporary differences and
deductible temporary differences.
Deferred tax liabilities are recognized for taxable temporary differences related to investments in subsidiaries, associates and joint ventures,
unless the group is able to control the timing of the reversal of the temporary difference and it is likely that the temporary difference will not be
reversed in the foreseeable future. Deferred tax assets are recognized for deductible temporary differences related to investments in subsidiaries,
associates and joint ventures when the temporary difference is likely to be reversed in the foreseeable future and taxable income to offset the
deductible temporary differences is likely to be obtained in the future.
At the balance sheet date, deferred income tax assets and deferred income tax liabilities are measured at the tax rates applicable to the period
during which the underlying asset is expected to be recovered or the underlying liability is settled, in accordance with the tax laws.
On the balance sheet date, the group reviews the carrying value of the deferred tax assets. If it is likely that it will not be possible to obtain
sufficient taxable income to offset the benefit of the deferred tax asset in future periods, write down the carrying value of the deferred tax asset.
When sufficient taxable income is likely to be obtained, the amount reduced is reversed.
Current income tax assets and current income tax liabilities are presented as the net offset when there is a statutory right to net settlement and
the intention is to net settlement or to acquire assets and settle liabilities simultaneously.
Wafangdian Bearing Co., LTD 2026 Midyear Report
At the balance sheet date, deferred income tax assets and deferred income tax liabilities are shown as net offsets when both of the following
conditions are met:
• The taxpayer has the legal right to net settlement of current income tax assets and current income tax liabilities;
• Deferred income tax assets and deferred income tax liabilities are related to income tax levied by the same tax administration on the same
taxpayer or to different tax entities, but within the period in which each future material deferred income tax asset and liability is repatriated, The
taxpayer involved intends to net the current income tax assets and liabilities or to acquire assets and pay off liabilities at the same time.
(1) Accounting for the lease as a lessee
The main categories of the leased assets of this group are buildings and land.
Right to use assets
On the commencement date of the lease term, the group recognizes the right of use assets for leases other than short-term leases and low
value asset leases. Use rights assets are initially measured at cost. This cost includes:
The initial measurement of the lease liability;
The lease payment amount paid on or before the commencement date of the lease term, if there is a lease incentive, less the amount related
to the lease incentive already enjoyed;
initial direct expenses incurred by the group;
costs expected to be incurred by the group for the demolition and removal of the leased asset, the restoration of the premises where the
leased asset is located, or the restoration of the leased asset to its condition as agreed in the lease terms, excluding costs incurred for the
production of inventory.
The group subsequently adopts the straight-line method to depreciate the right of use assets. If the ownership of the leased asset can be
reasonably determined at the end of the lease term, the group shall calculate depreciation during the remaining service life of the leased asset;
Otherwise, the leased asset shall be depreciated during the shorter of the lease term and the remaining useful life of the leased asset.
The group shall, in accordance with the principles set out in "4, (19) Impairment of Long-term Assets" of this note, determine whether the assets
with the right of use have been impaired, and accounting for the identified impairment losses.
(2) Lease liabilities
At the commencement date of the lease term, the group recognizes lease liabilities for leases other than short-term leases and leases of low-
value assets. Lease liabilities are initially measured at the present value of outstanding lease payments. Lease payments include:
fixed payment amount (including actual fixed payment amount), if there is lease incentive, less the amount related to lease incentive;
Variable lease payments depending on the index or ratio;
the amount expected to be paid based on the remaining value of the guarantee provided by the group;
The exercise price of the purchase option if the group is reasonably certain that it will exercise the option;
The amount payable to exercise the option to terminate the lease, provided that the lease term reflects that the group will exercise the option
to terminate the lease.
The group uses the inherent lease rate as the discount rate, but if the inherent lease rate cannot be reasonably determined, the group's
incremental borrowing rate will be used as the discount rate.
The group calculates the interest expense of the lease liability during each period of the lease term at a fixed cyclical interest rate and includes it
in the profit or loss of the current period or the related asset cost.
Variable lease payments that are not included in the measurement of lease liabilities are recognised in profit or loss or related asset costs when
actually incurred.
Wafangdian Bearing Co., LTD 2026 Midyear Report
After the commencement of the lease term, if the following circumstances occur, the group will re-measure the lease liability and adjust the
corresponding right of use assets. If the book value of the right of use assets has been reduced to zero, but the lease liability still needs to be
further reduced, the difference will be recorded in the current profit or loss:
When the evaluation results of the purchase option, renewal option or termination option change, or the actual exercise of the said option is
inconsistent with the original evaluation results, the group remeasures the lease liability at the present value of the changed lease payment and
the revised discount rate;
When there is a change in the actual fixed payment amount, a change in the estimated amount payable on the guarantee balance, or a
change in the index or ratio used to determine the lease payment amount, the group remeasures the lease liability at the present value
calculated at the changed lease payment amount and the original discount rate. However, where changes in lease payments result from
changes in floating interest rates, the present value is calculated using the revised discount rate.
(3) Short-term leases and leases of low-value assets
If the group chooses not to recognize the right of use assets and lease liabilities for short-term leases and low-value asset leases, the relevant
lease payments are included in the current profit or loss or the cost of the related assets on a straight-line basis during each period of the lease
term. Short-term lease means a lease for a period not exceeding 12 months on the commencement date of the lease term and does not include
a purchase option. Low-value asset lease refers to the lease with a lower value when the single leased asset is a brand-new asset. Where the
group subleases or intends to sublease leased assets, the original lease is not a low-value asset lease.
(4) Lease change
If the lease changes and the following conditions are met, the group will account for the lease change as a separate lease:
The lease variation expands the scope of the lease by adding the right to use one or more of the leased assets;
The increased consideration is equivalent to the separate price for the extension of the lease, adjusted for the circumstances of the contract.
If the lease change is not accounted for as a separate lease, on the effective date of the lease change, the group reappoints the consideration of
the changed contract, redetermines the lease term, and remeasures the lease liability according to the present value calculated by the changed
lease payment amount and the revised discount rate.
If the lease change causes the lease scope to be reduced or the lease term to be shortened, the group shall adjust the book value of the right of
use assets accordingly, and record the gains or losses related to the partial or complete termination of the lease into the current profit or loss. If
other lease changes result in the remeasurement of lease liabilities, the group shall adjust the book value of the right to use assets accordingly.
(2) Accounting treatment of the lease as a lessor
On the commencement date of the lease, the group divides the lease into finance lease and operating lease. A financial lease is a lease that
essentially transfers almost all of the risks and rewards associated with the ownership of the leased asset, regardless of whether ownership is
ultimately transferred. Operating leases refer to leases other than financial leases. When the group acts as a sublease, subleases are classified
based on the right of use assets generated by the original lease.
(1) Accounting for operating leases
Lease receipts from operating leases are recognised as rental income on a straight-line basis during each period of the lease term. The group
capitalises the initial direct expenses incurred in relation to the operating lease and apportionments them to profit or loss during the lease period
on the same basis as rental income is recognised. Variable lease payments that are not included in lease collections are recognised in current
profit or loss when actually incurred. If an operating lease is changed, the group will account for it as a new lease from the effective date of the
change, and the amount received in advance or receivable from the lease before the change will be regarded as the amount received from the
new lease.
(2) Accounting treatment of finance lease
On the commencement date of the lease, the group recognizes the financial lease receivable for the financial lease and terminates the
recognition of the financial lease assets. When the group makes the initial measurement of the financial lease receivable, the net lease
Wafangdian Bearing Co., LTD 2026 Midyear Report
investment is taken as the recorded value of the financial lease receivable. The net lease investment is the sum of the unsecured balance and
the present value of the lease proceeds not yet received at the commencement date of the lease term, discounted at the intrinsic interest rate of
the lease.
The group calculates and recognises interest income for each period of the lease term at a fixed cyclical rate. The termination recognition and
impairment of financial lease receivables are accounted for in accordance with "III. (IX) Financial Instruments" of this note.
Variable lease payments that are not included in the net lease investment measurement are recognised in current profit or loss when actually
incurred.
If a financial lease changes and the following conditions are met, the group will account for the change as a separate lease:
The change expands the scope of the lease by adding the right to use one or more of the leased assets;
The increased consideration is equivalent to the separate price for the extension of the lease, adjusted for the circumstances of the contract.
If the change of the finance lease is not accounted for as a separate lease, the group shall deal with the changed lease under the following
circumstances:
If the change takes effect on the commencement date of the lease, the lease will be classified as an operating lease, and the group will
account for it as a new lease from the effective date of the lease change, and the net lease investment before the effective date of the lease
change will be used as the carrying value of the lease asset;
If the change takes effect on the commencement date of the lease, the lease will be classified as a finance lease, and the group will account
for it in accordance with the group's policy on modification or renegotiation of the contract under "III (IX) Financial Instruments" in this note.43.
Other important accounting policies and estimates
As the creditor
When the contractual right of the Group to receive cash flows from the creditor ceases, the Group shall cease to recognize the creditor's claim.
For debt restructuring through the settlement of assets or the conversion of debt into equity instruments, the Group shall recognize the relevant
assets when they meet the definition and recognition conditions.
For debt restructuring through the settlement of assets, when the Group initially recognizes the non-financial assets acquired, it shall measure
them at cost. The cost of inventory includes the fair value of the abandoned creditor's claim and the other costs directly attributable to the asset
to bring it to its current location and condition, such as taxes, transportation fees, loading and unloading fees, insurance premiums, and other
costs. The cost of an investment in an associate or joint venture includes the fair value of the abandoned creditor's claim and other costs directly
attributable to the asset, such as taxes and other costs. The cost of investment property includes the fair value of the abandoned creditor's claim
and other costs directly attributable to the asset, such as taxes and other costs. The cost of fixed assets includes the fair value of the abandoned
creditor's claim and other costs directly attributable to the asset, such as taxes, transportation fees, loading and unloading fees, installation fees,
professional service fees, etc. The cost of biological assets includes the fair value of the abandoned creditor's claim and other costs directly
attributable to the asset, such as taxes and other costs. The cost of intangible assets includes the fair value of the abandoned creditor's claim
and other costs directly attributable to making the asset reach the predetermined use state, such as taxes and other costs. Debt restructuring
through the conversion of debt into equity instruments and resulting in the creditor converting the creditor's claim into equity investment in an
associate or joint venture shall be measured by the Group at the fair value of the abandoned creditor's claim and other costs directly attributable
to the asset. The difference between the fair value and the book value of the abandoned creditor's claim shall be recognized in the current profit
or loss.
For debt restructuring through modifying other terms, the Group shall recognize and measure the restructured creditor's claim in accordance with
the "III. (9) Financial Instruments" of this note.
Wafangdian Bearing Co., LTD 2026 Midyear Report
For debt restructuring through the settlement of multiple assets or through a combination, the Group shall first recognize and measure the
acquired financial assets and the restructured creditor's claim in accordance with the "III. (9) Financial Instruments" of this note, and then
allocate the net amount of the fair value of the abandoned creditor's claim after deducting the recognized amount of the acquired financial assets
and the restructured creditor's claim based on the proportion of the fair value of each asset other than the acquired financial assets, and
determine the cost of each asset based on the aforementioned methods. The difference between the fair value and the book value of the
abandoned creditor's claim shall be recognized in the current profit or loss.
As the debtor
When the current obligation of the Group regarding the debt is discharged, the Group shall cease to recognize the debt.
For debt restructuring through the settlement of assets, the Group shall cease to recognize the debt when the relevant assets and the debt being
settled meet the conditions for recognition. The difference between the book value of the debt being settled and the book value of the transferred
assets shall be recognized in the current profit or loss.
For debt restructuring through the conversion of debt into equity instruments, the Group shall cease to recognize the debt when the debt being
settled meets the conditions for recognition. When the equity instrument is initially recognized, it shall be measured at the fair value of the equity
instrument. If the fair value of the equity instrument cannot be reliably measured, it shall be measured at the book value of the debt being settled.
The difference between the book value of the debt being settled and the recognized amount of the equity instrument shall be recognized in the
current profit or loss.
For debt restructuring through modifying other terms, the Group shall recognize and measure the restructured debt in accordance with the "III. (9)
Financial Instruments" of this note.
For debt restructuring through the settlement of multiple assets or through a combination, the Group shall recognize and measure the equity
instrument and the restructured debt in accordance with the aforementioned methods, and the difference between the book value of the debt
being settled and the sum of the book value of the transferred assets and the recognized amounts of the equity instrument and the restructured
debt shall be recognized in the current profit or loss.
(1) Changes in important accounting policies
? Applicable ? Not applicable
(2) Changes in important accounting estimates
? Applicable ? Not applicable
(3) The first implementation of the new accounting standards from 2026 to adjust the financial statements related to the first implementation of
the year
? Applicable ? Not applicable
VI.Taxation
tax Plan tax basis Tax rate
Output tax shall be calculated on the basis of the income from the sale of goods and
taxable services calculated in accordance with the provisions of the Tax Law. After
The VAT 13%、9%、6%、5%
deducting the input tax allowable for deduction in the current period, the difference
shall be the VAT payable
Urban maintenance and
The tax is calculated based on the actual amount of turnover tax paid. 7%
construction tax
Corporate income tax It is calculated at the prescribed tax rate based on the taxable income. 15%、25%
If there are different subjects of enterprise income tax rates, the disclosure shall be explained
Wafangdian Bearing Co., LTD 2026 Midyear Report
Name of taxpayer rate
Wafangdian Bearing Co., LTD 15%
Wazhou Liaoyang Bearing Manufacturing Co., LTD 15%
Dalian Wazhou Precision Motor Automotive Bearing Co., LTD 25%
Wazhou precision ball bearing (Wafangdian) Co., LTD 25%
The Company obtained the qualification of high-tech enterprise identification on December 12, 2023, and the certificate number of high-tech
enterprise identification is GR202321200183, which is valid for 3 years. According to the tax law, the company can enjoy the preferential tax
policy of levying enterprise income tax at the rate of 15% within 3 years.
The subsidiary Waxiang Liaoyang Bearing Manufacturing Co., Ltd. obtained the qualification of high-tech enterprise identification on December
policy of levying enterprise income tax at a tax rate of 15% within 3 years according to the tax law.
VII. Notes to consolidated financial statements
In RMB Yuan
project The ending balance Beginning balance
Bank deposits 111,182,872.10 63,915,454.70
Other monetary funds 348,170.15 1,372,065.14
A combined 111,531,042.25 65,287,519.84
In RMB Yuan
project The ending balance Beginning balance
Financial assets measured at fair value and whose
changes are recorded in current profit or loss
A combined 200,310.67 246,536.22
（1）Category of notes receivable
In RMB Yuan
Items Closing Balance Opening Balance
Banker's acceptance 294,196,921.38 293,562,783.24
Commercial acceptance 268,716,160.07 203,435,408.83
Finance company acceptance bill 7,490,678.64 11,266,224.46
Bad debt reserve -8,144,740.04 -8,153,742.83
total 562,259,020.05 500,110,673.70
(2) Disclosure by classification according to bad debt provision method
In RMB Yuan
Ending balance Opening balance
Bad debt
Book balance Book balance Bad debt reserve
category reserve
Book value Book value
amou amo Provisio Provision
scale amount scale amount
nt unt n ratio ratio
Wafangdian Bearing Co., LTD 2026 Midyear Report
Among them:
Notes receivable
for provision for 570,4 8,14
doubtful 03,76 4,74 1.44% 562,259,020.05 100.00% 1.60%
accounts on a 0.09 0.04
combined basis
Among them:
Banker's 51.58 293,562,783 293,562,783
acceptance % .24 .24
Finance 7,490,
company 678.6 7,490,678.64 2.22%
% 46 46
acceptance bill 4
Commercial 47.11 203,435,408 8,153,742. 195,281,666
acceptance % .83 83 .00
total 03,76 4,74 562,259,020.05 100.00%
Category name of combined bad debt provision: credit risk characteristic combination
In RMB Yuan
name ending balance
bank acceptance book balance bad debt provision Provision ratio
Financial company acceptance bill 294,196,921.38 0.00%
trade acceptance draft 7,490,678.64 0.00%
amount to 268,716,160.07 8,144,740.04 3.03%
name 570,403,760.09 8,144,740.04
Explanation of the basis for determining this combination:
Accounts receivable that are both aimed at collecting contractual cash flows and at selling.
If the bad debt provision for notes receivable is made in accordance with the general model of expected credit losses:
□ Applicable ?Not applicable
(3) Bad debt provision of notes receivable accrued, collected and reversed
Bad debt provision of notes receivable：
In RMB Yuan
Change during the year
Category Opening balance Closing Balance
Accrued Collected/reversed Written-off others
Commercial
acceptance bill
Total 8,153,742.83 9,002.79 8,144,740.04
Among them, the amount of the recovery or reversal of the current bad debt reserve is important:
□ Applicable ?Not applicable
(4) Pledged notes receivable up to the end of year.
(5)Notes receivable endorsed or discounted but not mature at the end of year
In RMB Yuan
Item Closing amount no more recognized Closing amount still recognized
Bank acceptance notes 210,889,024.17
Trade acceptance notes 224,581,252.41
Financial company acceptance bill 4,417,434.96
Total 439,887,711.54
Wafangdian Bearing Co., LTD 2026 Midyear Report
(1) Age disclosure
In RMB Yuan
aging Ending book balance Opening book balance
Within 1 year (inclusive) 853,174,343.40 840,257,060.95
More than 3 years 72,840,407.51 60,461,324.78
Four to five years 9,344,690.35 5,093,807.93
More than 5 years 49,545,551.47 46,268,131.14
total 1,087,752,590.52 1,034,757,449.31
(2) Disclosure by classification according to bad debt provision method
In RMB Yuan
Ending balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
category Book Book
Provisi Provision
amount scale amount value amount scale amount value
on ratio ratio
Accounts
receivable that
are set aside for 9.36% 99.81% 10.05% 99.82%
bad debts on an
individual basis
Among them:
Accounts
receivable that 927,17
are provided for 90.64% 5.96% 0,750. 89.95% 6.32%
bad debts on a 24
combined basis
Among them:
Related party 84,908,7 1,164,04 61,408,09 1,164,045 60,244,05
grouping 55.08 5.66 6.15 .66 0.49
Age grouping 901,037, 57,611,6 869,316,4 57,635,34 811,681,1
of accounts 726.67 85.85 75.54 8.32 27.22
total 14.75% 0,217. 100.00% 15.72%
Category name for bad debt provision calculated on an individual basis: Accounts receivable for which bad debt provision is calculated on an
individual basis
In RMB Yuan
Opening Balance Ending balance
name
Reason for
Book balance Bad debt reserve Book balance Bad debt reserve Provision ratio
provision
Accounts
receivable for
which bad debt Expected to be
provisions are unrecoverable
made on a per-
item basis
total 104,032,877.62 103,843,410.02 101,806,108.77 101,616,641.17
Category name for bad debt provision calculated based on combination: Related party combination
In RMB Yuan
Wafangdian Bearing Co., LTD 2026 Midyear Report
Name ending balance
book balance bad debt provision provisioning ratio
Portfolio of related parties 84,908,755.08 1,164,045.66 1.37%
Total 84,908,755.08 1,164,045.66
The basis for determining this combination is as follows:
In principle, no bad debt provisions will be made unless there is clear evidence indicating that the full or partial recovery of the funds is
impossible.
The category name for bad debt provisions calculated based on the combination: Aging Group
In RMB Yuan
Name ending balance
book balance bad debt provision provisioning ratio
Aging account combination 901,037,726.67 57,611,685.85 6.39%
Total 901,037,726.67 57,611,685.85
The basis for determining this combination is as follows:
Based on historical credit loss experience, combined with the current situation and the forecast of future economic conditions, a table comparing
the aging of accounts receivable with the expected credit loss rate over the entire duration is compiled, and the expected credit loss is calculated.
If the bad debt provision for accounts receivable is accrued according to the general model of expected credit loss:
□ Applicable ? Not applicable
(3) the provision for bad debts accrued, recovered or rolled back during the period
Provision for bad debts in the current period:
In RMB Yuan
Change during the year
category
Opening balance Other Collected/reversed Ending balance
Accrued Written-off
increase
Bad debt reserve 162,642,804.00 2,250,431.32 160,392,372.68
total 162,642,804.00 2,250,431.32 160,392,372.68
(4) Accounts receivable actually written off during the current period
In RMB Yuan
item Amount written off
Accounts receivable actually written off 2,250,431.32
The important details regarding the write-off of accounts receivable are as follows:
Whether the funds
Nature of accounts The write-off are generated from
Organization Name Write-off amount Write-off reason
receivable procedures fulfilled related-party
transactions
Shandong Taishan Expected inability to Management
Payment for goods 2,220,385.22 No
Steel Group Co., Ltd. recover approval
Total 2,220,385.22
(5) The receivables and contractual assets of the top five closing balances collected by the defaulting party.
In RMB Yuan
Wafangdian Bearing Co., LTD 2026 Midyear Report
Ending balance of
Percentage of the
allowance for
Ending total balance of
Ending balance of doubtful accounts
Ending balance of balance of accounts receivable
Unit name accounts receivable receivable and
accounts receivable contract and contract assets
and contract assets allowance for
assets at the end of the
impairment of
period
contract assets
China State Railway Group
Co., Ltd. and its affiliated 136,759,490.23 118,996.41 136,878,486.64 12.58% 9,510,365.57
companies
Wafangdian Bearing Group
Co., Ltd. and its affiliated 80,517,958.01 80,517,958.01 7.40% 1,279,184.27
companies
Anshan Iron and Steel Group
Co., Ltd. and its subsidiaries
Chongqing Gearbox Co., Ltd. 25,249,785.46 26,267,400.18 2.41% 1,342,855.15
China First Heavy Industries
Group Corporation Limited 22,206,476.85 276,493.26 22,482,970.11 2.07% 2,235,769.91
and its affiliated companies
Total 290,578,968.53 291,992,072.92 26.84% 18,689,092.16
(1) Contract assets
Closing Balance Beginning balance
project
Provision for Provision for
Book value Net book value Book value Net book value
decline decline
Contract
performance
A combined 7,119,828.52 1,861,067.28 5,258,761.24 7,119,828.52 1,861,067.28 5,258,761.24
(2) The amount and reasons for significant changes in book value during the reporting period
(3) Disclosure by classification according to bad debt provision method
Closing Balance Opening Balance
Items Booking balance Provision Booking balance Provision
Booking Booking
value value
Amount % Amount % Amount % Amount %
Among them:
Bad debt
provisions are 3,026,95 42.5 1,656,423 54.72 1,370,5 1,656,423. 1,370,529
made on an 3.42 1% .52 % 29.90 52 .90
individual basis
Among them:
Provision for 4,092,87 57.4 204,643.7 3,888,2 3,888,231
bad debts is 5.00% 4,092,875.10 57.49% 204,643.76 5.00%
accrued based
Wafangdian Bearing Co., LTD 2026 Midyear Report
on a
combination of
factors.
Among them:
Aging account 4,092,87 57.4 204,643.7 3,888,2 3,888,231
combination 5.10 9% 6 31.34 .34
Total 7,119,828.52
Category name for bad debt provision calculation on a single basis: Bad debt provision is calculated separately through individual assessment
In RMB Yuan
beginning balances ending balance
Name
bad debt bad debt Accrual
book balance book balance provisioning ratio
provision provision Reason
The expected
uncollectible
Individual tests
amount is
are provided for 3,026,953.42 1,656,423.52 3,026,953.42 1,656,423.52 54.72%
recognized as a
separately
bad debt
provision.
Total 3,026,953.42 1,656,423.52 3,026,953.42 1,656,423.52
Bad debt provision category: Aging-based grouping
In RMB Yuan
Name ending balance
book balance bad debt provision provisioning ratio
By age group of accounts 4,092,875.10 204,643.76 5.00%
Total 4,092,875.10 204,643.76
The basis for determining this combination is as follows:
Based on historical credit loss experience, combined with the current situation and predictions of future economic conditions, a table comparing
the aging of accounts receivable with the expected credit loss rate over the entire duration is compiled, and the expected credit loss is calculated.
A provision for bad debts is made according to the general model of expected credit loss.
□ Applicable ? Not applicable
(1) Classification and listing of receivables financing
In RMB Yuan
item Ending balance Opening balance
Wafangdian Bearing Co., LTD 2026 Midyear Report
Accounts Receivable Bills 66,266,216.55 45,079,733.86
Supply chain certificate 22,717,450.40 20,893,788.65
Provision for bad debts -1,044,689.43 -1,044,689.43
Total 87,938,977.52 64,928,833.08
（2） Disclosure classified by the bad debt provision method
In RMB Yuan
Ending balance Opening balance
book balance bad debt provision book balance bad debt provision
item
book book
provisioni value provisioni value
amount ratio amount amount ratio amount
ng ratio ng ratio
among ：
Recognize
a bad debt
provision 88,983,666 100.0 1,044,689 87,938,97 65,973,52 1,044,689 64,928,83
based on a .95 0% .43 7.52 2.51 .43 3.08
combinatio
n of factors
among ：
Among
them: 66,266,216 74.47 66,266,21 45,079,73 45,079,73
Receivable .55 % 6.55 3.86 3.86
bills
Supply
chain 4.60% 31.67% 5.00%
.40 % .43 0.97 8.65 .43 9.22
vouchers
Total
.95 .43 7.52 2.51 .43 3.08
Bad debt provision accounting method: Based on credit risk characteristics
In RMB Yuan
Name ending balance
book balance bad debt provision provisioning ratio
Accounts Receivable Bills 66,266,216.55
Supply chain certificate 22,717,450.40 1,044,689.43 4.60%
Total 88,983,666.95 1,044,689.43
(3)The status of bad debt provisions recognized, recovered, or reversed during the current period
Wafangdian Bearing Co., LTD 2026 Midyear Report
In RMB Yuan
class Current period change amount
beginning
bad debt ending balance
balances counting and Revoke or Write-off or
provision Other changes
drawing reverse derecognition
amount to 1,044,689.43 1,044,689.43
class 1,044,689.43 1,044,689.43
(4) Receivables financing pledged by the Company at the period-end
(5) Accounts receivable financing for which the Company has performed endorsement or discounting but for which the maturity date has not yet
arrived as of the balance sheet date
In RMB Yuan
Amount of termination of recognition at
project Unrecognized amount at period-end
period-end
Bank-accepted bill of exchange 82,970,301.23
Supply Chain Certificate 39,014,603.22
amount to 121,984,904.45
In RMB Yuan
item Ending balance Opening balance
Other receivables 15,389,177.53 10,631,908.31
total 15,389,177.53 10,631,908.31
(1) Interest receivable
(2) Dividends receivable
(3) Other receivables
In RMB Yuan
Nature of money Ending book balance Opening book balance
Security deposits and pledges 13,013,456.06 9,440,995.28
Personal cash reserves 2,106,652.68 3,714,719.01
Other amounts 8,582,646.84 5,789,772.07
total 23,702,755.58 18,945,486.36
In RMB Yuan
aging Ending book balance Opening book balance
Within 1 year (inclusive) 9,638,324.80 7,778,270.21
Wafangdian Bearing Co., LTD 2026 Midyear Report
More than 3 years 9,325,313.36 8,413,035.86
Four to five years 899,684.90 1,127,576.79
More than 5 years 6,577,105.09 5,504,440.80
total 23,702,755.58 18,945,486.36
?Applicable □ Not applicable
In RMB Yuan
Ending balance Opening Balance
Items Booking balance Provision Booking Booking balance Provision Booking
Amount % Amount % value Amount % Amount % value
Accounts
receivabl
e with 5,206,086 5,206,086.4 100.00 5,206,086.4 27.48 5,206,086.4
individual .42 2 % 2 % 2
bad debt
provision
Among them:
Provision
for bad
debts on 78.04% 22.62%
a portfolio
basis
Among them:
Related
party 20,000.00 0.08% 20,000.00 25,000.00 0.13%
group
Surplus
fund 8.89% 6.82%
.68 .68 7 85.37
group
Account
age 69.06% 25.01%
group
total 100.00%
Category name for bad debt provision calculated on a single basis: Other receivables that are tested individually and for which bad debt
provision is calculated separately
In RMB Yuan
Opening balance Ending balance
name
Reason for
Book balance Bad debt reserve Book balance Bad debt reserve Provision ratio
provision
Other receivables
It is expected that
that are tested
individually and
recovered.
for which bad
Wafangdian Bearing Co., LTD 2026 Midyear Report
debt provisions
are made
separately
total 5,206,086.42 5,206,086.42 5,206,086.42 5,206,086.42
Category name for bad debt provision calculated based on combination: Credit risk characteristic combination
In RMB Yuan
Name ending balance
book balance bad debt provision provisioning rate
Related party
combination
Surplus fund combination 2,106,652.68
Aging account
combination
Total 18,496,669.16 3,107,491.63
The basis for determining this combination:
Apart from the above receivables for which bad debt provisions are made on a single basis, the Group classifies the remaining financial
instruments based on their credit risk characteristics into several groups, and determines the expected credit losses on a group basis.
Bad debt provisions are made according to the general model of expected credit losses:
In RMB Yuan
The first stage The second stage The third stage
Bad debt provision Expected credit losses
Expected credit losses
Expected credit throughout the entire Total
throughout the entire
losses over the duration (incorporating
duration (where no credit
next 12 months already occurred credit
impairment has occurred)
impairment)
Balance as of January 1, 2026 3,107,491.63 5,206,086.42 8,313,578.05
Balance as of January 1, 2026 is
included in this period
Balance as of June 30, 2026 3,107,491.63 5,206,086.42 8,313,578.05
The significant changes in the book balance of the loss provision for the current period
□ Applicable □ Not applicable
In RMB Yuan
The
nature of Proportion of the Bad debt provision
Company Name the funds ending balance aging total ending balance – Period-end
Margin of other receivables balance
deposit
Daqin Railway Co., LTD. Material Margin
purchasing office deposit
Margin
Anhui Conch Cement Co., LTD 1,300,000.00 3–4 years 5.48% 650,000.00
deposit
Wafangdian Bearing Co., LTD 2026 Midyear Report
China Railway Shenyang Bureau
Margin
Group Co., Ltd. Shenyang Railway 1,216,300.00 1–2 years 5.13% 60,815.00
deposit
Vehicle Factory
Margin
CRRC Logistics Co., LTD 1,174,508.00 Within 1 year 4.96% 117,450.80
deposit
The
nature of
Shanxi Railway Construction
the funds 1,125,983.00 Within 1 year 4.75% 56,299.15
Engineering Co., Ltd.
Margin
deposit
Margin
Total 6,990,386.00 29.49% 1,068,244.70
deposit
(1) Prepayments are shown according to aging
In RMB Yuan
aging Ending balance Opening balance
amount scale amount scale
Within 1 year 6,313,386.75 81.48% 8,574,276.95 92.32%
More than 3 years 0.00% 82,603.74 0.89%
total 7,748,093.20 9,287,712.68
Explanation for the reasons why overdue prepayments (with an age exceeding one year and significant in amount) have not been settled in a
timely manner:
(2) The advance payment of the top five of the closing balance collected by the prepaid object
Proportion of the total year-end balance of prepaid
Organization Name year end balance
accounts (%)
Bengang Steel Plates Co.,Ltd 5,678,111.01 73.28
Wafangdian Bearing Group National Bearing
Engineering Technology Research
Northeast Special Steel Group Co., Ltd. 276,494.39 3.57
China Railway Fuel Group Beijing Co., Ltd. 628,250.79 8.11
Dalian Hongqian Municipal Engineering Co., Ltd. 554,800.00 7.16
Total 7,551,066.87 97.46
Whether the company is required to comply with real estate industry disclosure requirements
no
(1) Inventory classification
In RMB Yuan
item Ending balance Opening balance
Book balance Reserve for Book value Book balance Reserve for Book value
Wafangdian Bearing Co., LTD 2026 Midyear Report
inventory decline inventory decline
or contract or contract
performance cost performance cost
impairment impairment
Raw material 42,789,705.81 12,558,592.95 30,231,112.86 60,710,575.37 12,558,592.95 48,151,982.42
Goods in process 119,428,047.19 11,353,869.92 108,074,177.27 119,338,500.26 11,353,869.92 107,984,630.34
Goods in stock 461,199,216.73 81,082,033.99 380,117,182.74 511,318,017.16 79,973,033.99 431,344,983.17
Turnover material 833,008.82 602,878.58 230,130.24 1,248,011.18 602,878.58 645,132.60
Delivery of goods 33,199,265.32 33,199,265.32 48,199,265.32 48,199,265.32
total 657,449,243.87 105,597,375.44 551,851,868.43 740,814,369.29 104,488,375.44 636,325,993.85
(2) Data resources recognized as inventories
(3) Reserve for inventory decline and impairment of contract performance costs
In RMB Yuan
Current increase Current decrease
item Opening
Turn back or Ending balance
balance accrual other other
resell
raw and processed material 12,558,592.95 12,558,592.95
goods in process 11,353,869.92 11,353,869.92
merchandise inventory 79,973,033.99 81,082,033.99
Turnover materials 602,878.58 602,878.58
amount to 0.00 0.00 0.00 105,597,375.44
In RMB Yuan
item Ending balance Opening balance
Deferred deductible input VAT 2,703,270.09 50,294,287.94
Others 4,520.25
Total 2,703,270.09 50,298,808.19
In RMB Yuan
Loss Reasons
Gains Gains
recognize Loss specified as
recognized accrued to
d in other accrued to Dividend measured at fair
as other other
comprehe other income value and for
Opening comprehe comprehensi Ending
Project name nsive comprehensi recognize which changes
balance nsive ve income at balance
income in ve income at d for the are included in
income in the end of
the the end of period other
the current the current
current the period comprehensive
period period
period income
Shanghai Aimuyi
electromechanical 8,705,393 1,000,000 8,705,393.1
equipment chain .14 .00 4
Co., LTD
Tianjin Bogang No.
Wafangdian Bearing Co., LTD 2026 Midyear Report
Management
Partnership (Limited
Partnership) (Qian
'an Zha Yi Steel
Group Co., LTD.)
Trust Beneficiary
Rights of CCB Trust
- Caidie No.1
Property Rights
Trust Plan (Qian 'an
Zha Yi Iron and
Steel Group Co.,
LTD.)
General Technology
Group Dalian
Machine Tool Co.,
LTD. (Dalian
Longhui Industry
and Trade Co.,
LTD.)
Total
.14 .31 4
(1) Investment real estate using cost measurement model
? Applicable □ Not applicable
In RMB Yuan
item Houses and buildings Land use right Construction in progress total
I. Original book value
period
(1) Outsourcing 0.00 0.00 0.00
(2) Transfer of inventory,
fixed assets and construction 0.00 0.00 0.00
in progress
(3) Increase in business
combinations
current period
(1) Disposal
(2) Other transfers
II.Accumulated depreciation
and amortization
period
(1) Provision or amortization 2,115,980.46 660,755.99 2,776,736.45
Wafangdian Bearing Co., LTD 2026 Midyear Report
current period
(1) Disposal
(2) Other transfers
III. Impairment Provisions
period
(1) Provision
current period
(1) Disposal
(2) Other transfers
Iv. Book value
Recoverable amounts are determined at the net of fair value less disposal costs
□ Applicable ? Not applicable
Recoverable amounts are determined at the present value of projected future cash flows
□ Applicable? Not applicable
The reason for the discrepancy between the foregoing information and the information used in the previous year's impairment test or external
information
Reasons for the difference between the company's previous annual impairment test information and the actual situation of the year
item Ending balance Opening balance
Fixed assets 382,146,917.75 406,111,493.56
total 382,146,917.75 406,111,493.56
(1) Fixed assets
In RMB Yuan
machinery delivery Electronic
Project buildings Other equipment total
equipment equipment equipment
I. Book Value:
Period
(1) Purchase 0.00 0.00 0.00 6,151.48 0.00 6,151.48
(2) Transfer from
Construction in Progress
(3) Increase from
Business Combination
Period 67
(1) Disposal or Scrap 0.00 257,782.27 680,471.17 0.00 3,110,845.11
II. Accumulated
Depreciation
Wafangdian Bearing Co., LTD 2026 Midyear Report
Period .68
(1) Provision 3,184,001.27 472,287.01 1,366,575.09 1,865,772.98 29,793,767.03
.68
Period 93
(1) Disposal or Scrapping 0.00 257,782.27 612,005.76 0.00 2,977,201.96
III. Impairment Provision
.15
Period
(1) Provision
Period
(1) Disposal or Scrapping 0.00 0.00 0.00 65,330.25 0.00 65,330.25
.15
IV. Book Value
of the Period 0.31
Beginning of the Period 4.66
(2) Temporarily idle fixed assets
accumulated provision for diminution
Project Book value book value Note
depreciation in value
Houses and
buildings
Machinery and
equipment
Transportation
equipment
Electronics and other
items
In total 114,737,765.05 99,847,876.04 8,384,898.71 6,504,990.30
(3) Fixed assets leased through operating leases
(4) The fixed assets that have not completed the title certificate
Project Book value Reasons for the failure to obtain property ownership certificates
Seven finished product vehicle The land spans two plots and cannot be registered; awaiting consolidation of
loading factory the land
The actual obtained land certificate is Wa Guo (1994) 027, and the registered
Conical and cylindrical flaw
detection and packaging rooms
property and land are inconsistent
The ownership of the factory building and the ownership of the land are
Dalian Industrial Park ball bearing
workshop
temporarily
The ownership of the factory building and the ownership of the land are
Outdoor storage shed of Dalian ball
bearing workshop
temporarily
In total 23,347,898.76
(5) Impairment test of fixed assets
Wafangdian Bearing Co., LTD 2026 Midyear Report
□ Applicable ? Not applicable
(6) Liquidation of fixed assets
In RMB Yuan
item Ending balance Opening balance
Construction in progress 7,268,202.66 10,513,430.99
total 7,268,202.66 10,513,430.99
(1) Construction in progress
In RMB Yuan
Ending balance Opening balance
item
Reserve for Reserve for
Book balance Book value Book balance Book value
impairment impairment
Ultra-precision machine
installation project
Dalian Industrial Park project 5,590.45 5,590.45 0.00 5,590.45 5,590.45
Equipment to be installed 5,334,981.63 987,470.88 4,347,510.75 7,337,976.83 987,470.88 6,350,505.95
Stock project renovation 1,175,375.39 1,175,375.39 955,350.36 955,350.36
Stock base surface project 1,087,964.58 1,087,964.58 1,087,964.58 1,087,964.58
Computer engineering 18,000.00 18,000.00 0.00 18,000.00 18,000.00
Precision rolling element
renovation
Grinding processing
production line
Maintenance and renovation
of grinding processing 741,000.00 741,000.00 0.00 741,000.00 741,000.00
production line
Seven finished products
renovation
Spherical roller bearing
assembly production line
Major equipment overhaul 266,002.83 80,870.09 185,132.74 853,657.69 80,870.09 772,787.60
Railway renovation 52,991.45 27,254.40 25,737.05 665,647.85 27,254.40 638,393.45
Construction project of
Channel Two
Update and renovation project
of component numerical
control production line of 497,825.18 205,789.78 292,035.40 759,772.08 205,789.78 553,982.30
medium and large-sized
branch companies
In total 14,699,570.00 7,431,367.34 7,268,202.66 17,944,798.33 7,431,367.34 10,513,430.99
(2) Current changes in the major ongoing construction projects
In RMB Yuan
Amount Where:
Est
of fixed Other Proportion Interest the So
im
assets decrea of Proj capitali amount of Current urc
ate Openin Current
Project transfer ses in Ending cumulative ect zation interest interest e
d g increas
name red in the balance project prog accumu capitalizati capitaliza of
am balance e
the current input to ress lated on in the tion rate fun
ou
current period budget amount current ds
nt
period period
Equipment
to be 0.00
installed
Wafangdian Bearing Co., LTD 2026 Midyear Report
Seven
finished 3,555,7 3,555,7
product 99.28 99.28
renovations
Shareholdin
g project 0.00 0.00
renovations
Shareholdin
g base 1,087,9 1,087,9
surface 64.58 64.58
project
Update and
renovation
project for
component
CNC 759,77 261,94 497,82
production 2.08 6.90 5.18
lines of
medium and
large-scale
branches
Ultra-
precision
machine 0.00 0.00 0.00
installation
project
In total 0.00
(3) The situation of impairment provision for construction in progress made in this period
Reason for
Project Initial balance This issue adds This period reduction Closing balance
Provisioning
Impairment provision for
construction in progress
In total 7,431,367.34 7,431,367.34 --
(1) Intangible assets
Patent Patent-free
Project Land use rights software total
rights technology
I. Book Value
(1) Purchase
(2) Internal Research and Development
(3) Increase from Business Combination
(1) Disposal
II. Accumulated Depreciation
Wafangdian Bearing Co., LTD 2026 Midyear Report
(1) Provision 1,560,151.17 183,902.88 1,744,054.05
(1) Disposal
III. Impairment Provision
(1) Provision
(1) Disposal
IV. Book Value
In RMB Yuan
Current Amortization amount for the Other
item Opening balance Ending balance
increase current period reduction
Fixed asset improvement
expenses
Building maintenance
expenses
Road usage fees 115,871.56 115,871.56
In total 6,949,581.27 765,561.70 1,069,690.58 6,645,452.39
(1) Unoffset deferred income tax assets
(2) Unoffset deferred income tax liabilities
(3) Deferred income tax assets or liabilities presented on a net basis after offsetting
In RMB Yuan
Deferred income tax Deferred income tax
Ending balance of Deferred tax assets or
assets and liabilities assets and liabilities
project deferred tax assets or liabilities after write-off of
offsetting each other at offsetting each other at
liabilities after write-off the opening balance
the end of the period the beginning
Deferred income tax
liabilities
(4) The details of deferred income tax assets have not been confirmed
In RMB Yuan
project ending balance beginning balances
Deductible losses 790,821,313.82 856,258,144.28
Bad debt losses of receivable bills 8,153,742.83 9,849,657.75
Bad debt losses of accounts receivable 162,642,804.00 145,149,697.84
Bad debt losses of financing of receivables 1,044,689.43
Bad debt losses of other receivables 8,313,578.05 8,449,559.85
Losses from inventory depreciation 104,488,375.44 88,108,503.81
Losses from impairment of fixed assets 24,610,834.28 31,314,105.77
Losses from impairment of construction in progress 7,431,367.34 7,091,322.25
Losses from impairment of contract assets 1,861,067.28 605,182.64
In total 1,109,367,772.47 1,146,826,174.19
(5) The deductible losses of unrecognized deferred income tax assets will mature in the following years
Wafangdian Bearing Co., LTD 2026 Midyear Report
In RMB Yuan
Year ending balance beginning balances Note
total 790,821,313.82 856,258,144.28
In RMB Yuan
ending balance initial balance
Project provision for provision for
book balance diminution in book value book balance diminution in book value
value value
Advance
payment for 282,900.00 282,900.00
construction work
In total 282,900.00 282,900.00
In RMB Yuan
end of term the beginning of the period
Project
book Restricted Restricted book Restricted Restricted
book value book value
balance Type conditions balance Type conditions
Margin/SDN Margin/SDN
Other Other
sanctions sanctions
Monetary monetary 1,642,200.3 1,642,200.3 monetary
funds funds / bank 0 0 funds / bank
litigation litigation
deposits deposits
involved involved
Expired Expired
Notes 439,887,711 439,887,711 See Section 405,338,560 405,338,560 See Section
endorsemen endorsemen
receivable .54 .54 6, (3) .48 .48 6, (3)
t t
Expired Expired
Accounts 59,027,915. 59,027,915. Supply chain 59,547,219. 59,547,219. Supply chain
endorsemen endorsemen
receivable 58 58 bills 71 71 bills
t t
In total
.01 .01 .49 .49
(1) Classification of short-term loans
In RMB Yuan
item Ending balance Opening balance
Credit loan 82,053,118.00
total 82,053,118.00
In RMB Yuan
species Ending balance Opening balance
Wafangdian Bearing Co., LTD 2026 Midyear Report
Commercial acceptance 60,000,000.00
Letter of credit 370597.50 370,597.50
total 60,370,597.50 370,597.50
(1) Accounts payable are listed
In RMB Yuan
item Ending balance Opening balance
Within 1 year 919,266,147.29 919,158,607.52
Over 3 years 64,736,108.97 77,986,335.79
amount to 1,203,331,491.03 1,261,731,806.69
In RMB Yuan
item Ending balance Opening balance
Other payables 663,791,490.44 587,079,378.98
total 663,791,490.44 587,079,378.98
(1) Interest payable
(2) Dividends payable
(3) Other payables
In RMB Yuan
item Ending balance Opening balance
Margin and deposit 79,614,464.60 82,966,684.78
Loan and interest 542,000,000.00 460,329,726.03
Other 42,177,025.84 43,782,968.17
In total 663,791,490.44 587,079,378.98
In RMB Yuan
item Ending balance Opening balance
Payment for goods 36,573,801.46 31,776,246.33
total 36,573,801.46 31,776,246.33
(1) Salaries payable to employees shall be listed
In RMB Yuan
item Opening balance Current increase Current decrease Ending balance
I short-term
compensation
II. Post-employment
benefits - Set up a 4,653,177.88 16,979,074.84 17,125,553.67 4,506,699.05
savings plan
III. Dismissal welfare 99,286.00 797,240.19 860,560.18 35,966.01
total 49,061,641.96 177,685,995.32 196,182,279.49 30,565,357.79
(2) Short-term salary is listed
In RMB Yuan
Wafangdian Bearing Co., LTD 2026 Midyear Report
item Opening balance Current increase Current decrease Ending balance
and subsidies
Among them: Medical insurance
premiums
Work injury insurance premiums 80.00 919,416.26 919,496.26 0.00
training funds
compensation
In total 44,309,178.08 159,909,680.29 178,196,165.64 26,022,692.73
(3) Set up deposit plan list
In RMB Yuan
item Opening balance Current increase Current decrease Ending balance
insurance
insurance
total 4,653,177.88 16,979,074.84 17,125,553.67 4,506,699.05
In RMB Yuan
item Ending balance Opening balance
Value-added tax 6,430,546.93 6,281,267.42
Individual income tax 134,633.51 148,637.64
City maintenance and construction tax 377,024.06 336,765.59
Vehicle and vessel tax 523.35 523.35
House tax 766,598.62 769,261.38
Resource taxes 1,215.50 5,258.80
Education surcharge 155,584.83 138,331.21
Land use tax 612,301.75 613,163.82
Local education fees surcharge 103,723.20 92,220.79
Stamp duty 447,055.53 547,277.47
total 9,029,207.28 8,932,707.47
In RMB Yuan
item Ending balance Opening balance
Supply chain vouchers that have been endorsed but are not yet
due as of the balance sheet date
Commercial acceptance bills that have been endorsed but are
not yet due as of the balance sheet date
Bank acceptance bills that have been endorsed but are not yet
due as of the balance sheet date
Financial company acceptance bills that have been endorsed but
are not yet due as of the balance sheet date
Deferred VAT to be reversed 4,754,594.19 4,130,912.02
In total 503,670,221.31 469,016,692.21
Wafangdian Bearing Co., LTD 2026 Midyear Report
In RMB Yuan
item Ending balance Opening balance
Long-term payables 100,000.00 100,000.00
Special payables 244,974.84 244,974.84
total 344,974.84 344,974.84
(1) List long-term payables according to the nature of the payments
In RMB Yuan
item Ending balance Opening balance
Payment for equipment 100,000.00 100,000.00
total 100,000.00 100,000.00
(2) Special payables
In RMB Yuan
Opening Current Current Ending
item Formation reason
balance increase decrease balance
The Finance Bureau of Wafangdian City and the
Environmental Protection Bureau of Wafangdian
Special pollution
control
document "Wafangdian Finance Bureau
Document [2004] No. 217".
The Finance Bureau of Dalian City and the
Economic and Information Technology
Commission of Dalian City approved the
Information
construction
Bureau Document [2012] No. 917" and "Dalian
Economic and Information Technology
Commission Document [2012] No. 199".
total 244,974.84 244,974.84
In RMB Yuan
item Ending balance Opening balance Formation reason
Advance payment for product quality
Product quality guarantee 18,306,043.74 16,472,767.59
compensation
Compensation for customer losses in Compensation for customer losses due to
railway bearing maintenance business bearing maintenance
The product has quality issues and is being
Wind power product quality claim 30,299,065.63 30,476,133.03
pursued for compensation by the customer
In total 63,066,105.59 62,247,622.41
In RMB Yuan
Opening Current
item Current decrease Ending balance Formation reason
balance increase
Government subsidies 12,899,895.75 1,375,212.84 11,524,682.91 Receiving government subsidies
The funds for building the new
Relocation compensation
factory site and the factory land due
for the old factory area of 21,947,294.07 589,777.86 21,357,516.21
to the demolition of the old factory
Liaozhou Company
area of Liaozhou Company
Government subsidies 34,847,189.82 0.00 1,964,990.70 32,882,199.12
Wafangdian Bearing Co., LTD 2026 Midyear Report
In RMB Yuan
This change increases or decreases (+, -)
Conversion of Ending
Opening balance Issue new Share
provident fund other subtotal balance
shares dividend
shares
Total share 402,600,000.00
In RMB Yuan
item Opening balance Current increase Current decrease Ending balance
Capital premium (equity
premium)
Other capital reserves 283,734,603.95 283,734,603.95
total 485,691,050.47 485,691,050.47
In RMB Yuan
Current period amount
Deduct:
Amount
Deduct: Amount
previously
previously
recognized in
recognized in After-tax
other After-tax
other Deduct: amount
Opening comprehensi amount ending
item Current pre- comprehensive Income attributabl
balance ve income attributable balance
tax amount income that is Tax e to the
that is to the parent
transferred to Expense parent
transferred to company
profit or loss in company
retained
the current
earnings in
period
the current
period.
comprehensi
ve income
- -
that cannot
be
reclassified
into profit or
loss
Fair value
changes in - -
other equity 3,201,535.2 2,378.19 2,378.19 3,199,157.0
instrument 1 2
investments
Total other - -
comprehensi 3,201,535.2 2,378.19 2,378.19 3,199,157.0
ve income 1 2
Other notes, including the reclassification of the effective portion of cash flow hedge gains or losses into adjustments to the initial recognition
amount of the hedged item:
Wafangdian Bearing Co., LTD 2026 Midyear Report
In RMB Yuan
item Opening balance Current increase Current decrease Ending balance
Safety cost 1,639,850.97 4,129,015.94 2,187,685.84 3,581,181.07
total 1,639,850.97 4,129,015.94 2,187,685.84 3,581,181.07
In RMB Yuan
item Opening balance Current increase Current decrease Ending balance
Legal surplus reserve 116,179,772.10 116,179,772.10
Discretionary surplus reserve 20,590,618.91 20,590,618.91
total 136,770,391.01 136,770,391.01
In RMB Yuan
item Current period Previous period
Undistributed profit at the end of the previous period before adjustment -824,475,798.90 -766,382,732.49
Adjust the undistributed profit at the beginning of the later period -824,475,798.90 -766,382,732.49
Plus: Net profit attributable to the owner of the parent company for the period 7,324,544.44 -58,093,066.41
Undistributed profit at the end of the period -817,151,254.46 -824,475,798.90
In RMB Yuan
item Current amount Amount incurred in the previous period
income cost income cost
Main business 1,153,617,407.36 995,029,342.82 1,297,524,895.46 1,131,292,818.53
Other business 31,353,344.82 16,541,339.14 33,090,322.02 19,525,773.78
total 1,184,970,752.18 1,011,570,681.96 1,330,615,217.48 1,150,818,592.31
In RMB Yuan
item Current amount Amount incurred in the previous period
City maintenance and construction tax 743,708.23 2,970,002.57
Education surcharge 530,922.19 2,121,114.97
House tax 1,665,887.60 1,647,231.77
Land use tax 1,380,707.50 1,382,431.64
Stamp duty 924,508.29 1,420,212.63
other 13,844.54 16,835.04
total 5,259,578.35 9,557,828.62
In RMB Yuan
item Current amount Amount incurred in the previous period
Employee compensation 44,738,381.50 51,992,583.25
Amortization of intangible assets 1,905,109.10 2,001,742.46
Guard and fire cost 1,617,821.60 1,609,068.09
Depreciation cost 2,044,655.28 1,985,814.69
Business entertainment 151,156.95 165,316.91
Travel expense 1,182,990.34 1,109,040.96
Other expenses 9,823,634.94 7,375,576.35
total 61,463,749.71 66,239,142.71
In RMB Yuan
item Current amount Amount incurred in the previous period
Employee compensation 33,693,463.75 37,698,149.82
Wafangdian Bearing Co., LTD 2026 Midyear Report
Quality compensation 1,599,231.70 817,987.23
freight 436,711.88 604,876.90
Travel expense 7,346,881.99 6,690,045.12
Trademark royalty 8,679,499.04 9,731,454.38
Business activity expense 4,496,141.55 3,782,163.92
Rental fee 445,541.79 400,807.50
Conference expense 11,813.94 523,403.45
Other expenses 10,711,246.92 8,229,557.04
total 67,420,532.56 68,478,445.36
In RMB Yuan
item Current amount Amount incurred in the previous period
Material input 22,620,791.96 43,582,392.71
Technical service fee, design fee, new
process specification setting fee (equipment 103,773.58
debugging fee - new product tooling)
Labor cost 7,397,206.25 5,459,731.85
Amortization of depreciation expense and
long-term expense
Fuel power 482,128.14 782,504.74
Research and development equipment repair
and rental costs
Processing cost 18,352.96
Other expenses 7,807,443.84 13,522,010.65
total 40,530,503.54 65,781,912.27
In RMB Yuan
item Current amount Amount incurred in the previous period
Interest expense 66,852.96 7,581,344.95
Less: Interest income 630,239.22 450,534.54
Plus: exchange loss 531,494.67 -1,148,506.78
Other expenditure 8,045,562.77 840,802.44
total 8,013,671.18 6,823,106.07
In RMB Yuan
Other sources of income Current amount Amount incurred in the previous period
Government subsidy 2,848,791.69 2,780,427.53
Input tax plus credit -28,442.96 3,108,617.20
Personal income tax withholding fee 54,346.37 77,916.34
Direct VAT relief 0.97 0.97
total 2,874,696.07 5,966,962.04
In RMB Yuan
Source of income from changes in fair value Current amount Amount incurred in the previous period
Trading financial assets -46,225.55 -4,622.55
total -46,225.55 -4,622.55
In RMB Yuan
item current period Last period
Dividend income from investments in other equity
instruments during the holding period
Wafangdian Bearing Co., LTD 2026 Midyear Report
Proceeds from debt restructuring 11,092,523.93 8,661,904.04
total 12,096,052.24 9,664,256.68
In RMB Yuan
project current period Last period
Bad debt loss on notes receivable 32,665.26 -300,000.00
Bad debt losses on accounts receivable 613,552.31
amount to 32,665.26 313,552.31
In RMB Yuan
Source of asset disposal proceeds current period Last period
Gain on disposal of non-current assets 107,376.24 351,928.90
total 107,376.24 351,928.90
In RMB Yuan
The amount included in the non-
project current period Last period recurring profit and loss of the
current period
Fine income 1,442,591.34 -53,003.46 1,442,591.34
Write-off of payments that cannot be made 152,245.62 230,350.08 152,245.62
other 4.39 100,953.11 4.39
total 1,594,841.35 278,299.73 1,594,841.35
In RMB Yuan
The amount included in the non-
project current period Last period recurring profit and loss of the
current period
Loss of non-current assets destroyed and scrapped 249,003.22 0.00
fines forfeits and penalty expenditure 8,000.00 54,500.00 8,000.00
other 38,896.05 113,975.57 38,896.05
total 46,896.05 417,478.79 46,896.05
（1）Income Tax Expense Statement
（2） Accounting Profit and Income Tax Expense Adjustment Process
In RMB Yuan
item Current period amount
total profit 7,324,544.44
Income tax expense calculated at the statutory or applicable tax rate 1,098,681.67
The impact of subsidiaries being subject to different tax rates 29,867.48
The impact of non-deductible costs, expenses, and losses 8,000.00
The impact of additional deductible expenses as stipulated by tax law -1,136,549.15
For details, please refer to Note 7(57) – Other Comprehensive Income.
(1) Cash related to operating activities
Other cash received in connection with operating activities
In RMB Yuan
project current period Last period
Wafangdian Bearing Co., LTD 2026 Midyear Report
Interest income 630,019.28 432,887.16
Government subsidies 1,563,336.83 1,430,244.51
Come-and-go money 7,007,320.59 18,202,032.93
Return the deposit 6,000.00 5,500.00
other 3,843,704.25 4,195,845.05
A combined 13,050,380.95 24,266,509.65
Other cash payments in connection with operating activities
In RMB Yuan
project current period Last period
Cost of sales 12,117,488.22 17,356,439.08
Management fees 7,150,986.33 4,392,810.03
Finance charges 75,893.31 496,368.60
other 47,425,633.84 22,268,873.14
A combined 66,770,001.70 44,514,490.85
(2) Cash related to investment activities
(3) Cash related to fund-raising activities
Other cash received in connection with fund-raising activities
In RMB Yuan
project current period Last period
Bill discount 71,721,936.89
Borrowing from related parties 82,000,000.00 150,000,000.00
Recovery of security deposit upon maturity 1,501,517.61 14,191,213.55
Total 83,501,517.61 235,913,150.44
Other cash receipts related to financing activities – Note:
Other cash payments related to financing activities
In RMB Yuan
project current period Last period
Bill payable at maturity 299,744,866.45
deposit 30,879,433.46
total 330,624,299.91
Changes in liabilities arising from financing activities
□ Applicable ? Not applicable
(1) Supplementary information to the statement of cash flows
In RMB Yuan
Supplementary information current period Last period
Net profit 7,324,544.44 -20,930,911.54
Plus: Provision for asset impairment
Depreciation of fixed assets, depletion of oil and gas assets,
depreciation of productive biological assets
Depreciation of tenure assets
Amortization of intangible assets 1,905,109.10 2,001,742.46
Amortization of long-term deferred expenses 1,069,690.58 735,736.38
Loss on disposal of fixed assets, intangible assets and other long-
term assets (gain marked with "-")
Loss on retirement of fixed assets (income marked with "-") 414,054.00
Loss on changes in fair value (gain marked with "-") 46,225.55 4,622.55
Financial expenses (income marked with "-") 8,582,264.83 7,581,344.95
Wafangdian Bearing Co., LTD 2026 Midyear Report
Investment loss (income marked with "-") -12,096,052.24 -9,664,256.68
Decrease in deferred tax assets (increase marked with "-")
Increase in deferred tax liabilities (decrease marked with "-")
Decrease in inventory (increase marked with "-") 83,365,125.42 37,244,271.64
Decrease in operating receivables (increase marked with "-") -141,362,278.95 -63,886,058.07
Increase in operating payables (decrease marked with "-") 67,340,439.65 251,194,984.13
other 32,665.26 313,552.31
Net cash flow from operating activities 44,857,385.39 239,656,451.73
cash payments:
debt-to-capital
Convertible bonds maturing within one year
Financing leases into fixed assets
The ending balance of cash 111,160,012.50 71,652,395.62
Less: Opening balance of cash 63,915,460.74 160,907,298.24
Plus: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents 47,244,551.76 -89,254,902.62
(2) Net cash received from subsidiaries paid during the period
(3) Net cash received from disposal of subsidiaries during the period
(4) Composition of cash and cash equivalents
In RMB Yuan
item Ending balance Opening balance
I. Cash 111,160,012.50 63,915,460.74
A bank deposit that can be used to pay at any time 111,182,872.10 71,652,395.62
III.Balance of cash and cash equivalents at the end of the period 111,160,012.50 63,915,460.74
(1) Foreign currency monetary items
Ending translation of RMB
project Ending foreign currency balance Equivalent exchange rates
balance
monetary resources 94,708.77
Including: US dollars 90.72 6.8109 617.88
Euro 12,114.03 7.7671 94,090.88
Hong Kong currency
accounts receivable 5,812,502.90
Including: US dollars 729,531.02 6.8109 4,968,762.82
Euro 108,630.00 7.7671 843,740.07
Hong Kong currency
money borrowed for long term
Including: US dollars
Euro
Hong Kong currency
(2) The nature of currency non-convertibility and its financial implications, the spot exchange rate adopted and its estimation process, as well as
the risks faced by enterprises due to currency non-convertibility;
□ Applicable ? Not applicable
Wafangdian Bearing Co., LTD 2026 Midyear Report
(3) Description of overseas operating entities: For significant overseas operating entities, the principal place of business abroad, the functional
currency, and the rationale for selecting such currency shall be disclosed; where the functional currency changes, the reason for such change
shall also be disclosed.
□ Applicable ? Not applicable
(4)The absence of convertibility between the functional currency used in overseas operations and the reporting currency of the enterprise.
□ Applicable ? Not applicable
(1) The Company as the lessee
?Applicable □ Not applicable
Variable lease payments not included in the measurement of lease liabilities
□ Applicable ? Not applicable
Lease costs for short-term leases or leases of low-value assets (simplified treatment)
?Applicable □ Not applicable
item current period Last period
Interest expense on lease liabilities
Short-term lease expenses that are factored into the cost of the underlying asset or the
simplified treatment of current profit or loss
Lease expenses for short-term leases or low-value assets with simplified processing
?Applicable □ Not applicable
Project current period Last period
Short-term lease costs accounted for using a simplified treatment (either as part of the cost of
related assets or in the current period's profit or loss)
total 9,497,194.92 9,487,389.78
(2) The Company shall be the lessor
Operating lease as lessor
?Applicable □ Not applicable
In RMB Yuan
Among them: Income related to variable
item Lease income lease payments not included in lease
collections
Income from operating leases 9,999,899.55 9,772,790.20
total 9,999,899.55 9,772,790.20
Finance lease as lessor
□ Applicable ? Not applicable
Undiscounted lease receipts for each of the next five years
□ Applicable ? Not applicable
Adjustment Schedule between Uncollected Lease Receivables (Before Discounting) and Net Lease Investment
VIII. R&d expenditure
In RMB Yuan
item current period Last period
Wafangdian Bearing Co., LTD 2026 Midyear Report
Material input 22,620,791.96 43,582,392.71
Technical service fees, design fees, new process procedure
development fees (equipment debugging fees - new product 103,773.58
tooling)
Labor costs 7,397,206.25 5,459,731.85
Depreciation expenses and long-term expense amortization 2,005,370.89 2,232,237.46
Fuel and power 482,128.14 782,504.74
Repair and rental fees for research and development equipment 113,788.88 184,681.90
processing charges 18,352.96
other expenses 7,807,443.84 13,522,010.65
total 40,530,503.54 65,781,912.27
Among them:Expensed R&D Expenses 40,530,503.54 65,781,912.27
item current period Last period
research and development expenditure 65,781,912.27 34,845,558.21
total 65,781,912.27 34,845,558.21
Among them: expensed research and
development expenditure
IX. Changes in the scope of consolidation
X.Rights and interests in other entities
(1) The composition of enterprise group
In RMB Yuan
Registered Principal place Place of Shareholding ratio Acquisition
Subsidiary name Business nature
capital of operation registration direct indirect mode
Wazhou
Wangshuitai Production and
Liaoyang Liaoyang City,
Bearing Liaoning 100.00% 0.00%
Manufacture Province
City manufacturing
Co.,Ltd
Dalian Free Trade Production and
Daliang City, Investment
Dalian motor 10,000,000. Zone 13 Li sales of bearing
Liaoning 100.00% 0.00% and
Bearing Co.,Ltd 00 Yongsheng Street and machinery
Province establishment
No. 12 manufacturing
No. 1 Beigongji
Production and
Wazhou spherial Wafangdian, Street,
roller bearing Liaoning Wafangdian City, 100.00% 0.00%
.00 and machinery combination
company limited Province Liaoning
manufacturing
Province, China.
XI. Government subsidies
? Applicable? Not applicable
Reasons for not receiving the expected amount of government subsidy at the expected time
□ Applicable ?Not applicable
?Applicable □ Not applicable
In RMB Yuan
Accounting The Amount Amount transferred to Other Ending Related to
Opening balance
account amount of included in other income in the change balance assets/earning
Wafangdian Bearing Co., LTD 2026 Midyear Report
subsidy non-operating current period s in s
added in income in the current
this period current period period
Deferred Related to
income assets
total 34,847,189.82 1,964,990.70 36,812,180.52
?Applicable □ Not applicable
In RMB Yuan
Accounting account Current amount Amount incurred in the previous period
Deferred income/other income 1,964,990.70 807,676.77
Bank deposits/other income 883,800.99 1,972,750.76
total 2,848,791.69 2,780,427.53
XII. Risks Associated with Financial Instruments
The main financial instruments of the Group include receivables, accounts payable, etc. The detailed information on each financial instrument is
provided in the relevant items of this note. The Group faces various financial risks during its operations: credit risk, liquidity risk, and market risk
(including exchange rate risk, interest rate risk, and other price risks).
Market risk of financial instruments refers to the risk that the fair value or future cash flows of financial instruments fluctuate due to changes in
market prices, including exchange rate risk, interest rate risk, and other price risks.
Exchange Rate Risk
Exchange rate risk refers to the risk that the fair value or future cash flows of financial instruments fluctuate due to changes in foreign exchange
rates.
The Group's exposure to foreign exchange risk is mainly related to the US dollar. The Group's main export business is denominated and settled
in US dollars. As of December 31, 2025, except for the foreign currency monetary items balance as described in Note 5, (55), the Group's assets
and liabilities are all in RMB. The foreign currency balances of assets and liabilities may have an impact on the Group's operating performance.
The exchange rate risk faced by the Group mainly originates from financial assets and financial liabilities denominated in US dollars. The
amounts of foreign currency financial assets and foreign currency financial liabilities converted into RMB are presented as follows:
Current year
Item
Impact on profits Impact on shareholder equity
The RMB exchange rate against the US dollar
appreciated by 1%. -49,693.81 -49,693.81
The RMB exchange rate against the US dollar
depreciated by 1%. 49,693.81 49,693.81
The RMB appreciated by 1% against the euro. -9,378.31 -9,378.31
The RMB depreciated by 1% against the euro. 9,378.31 9,378.31
Note 1: The table above uses positive numbers to indicate increases and negative numbers to indicate decreases.
Note 2: The changes in shareholders' equity shown in the above table do not include retained earnings.
Other price risks
As of June 30, 2026, the purchase of bearing components by the group may be affected by price fluctuations.
Other price risks refer to the risks that the fair value or future cash flows of financial instruments fluctuate due to changes in market prices other
Wafangdian Bearing Co., LTD 2026 Midyear Report
than exchange rate risks and interest rate risks.
Credit risk
Credit risk refers to the risk that the counterparty fails to fulfill contractual obligations, resulting in financial losses for the group.
The book amount of confirmed financial assets in the consolidated balance sheet; for financial instruments measured at fair value, the book
value reflects their exposure to risk, but it is not the maximum risk exposure. The maximum risk exposure will change as the fair value changes
in the future.
To reduce credit risk, the group has established a specialized department to determine credit limits, conduct credit approvals, and implement
other monitoring procedures to ensure that necessary measures are taken to recover overdue debts. In addition, the group reviews the recovery
situation of each individual receivable at each balance sheet date to ensure that sufficient bad debt provisions are made for uncollectible
amounts. Therefore, the management of the group believes that the credit risk assumed by the group has been significantly reduced.
The group's liquid funds are deposited in banks with high credit ratings, so the credit risk of liquid funds is low.
The group has adopted necessary policies to ensure that all sales customers have a good credit record. Except for the top five accounts
receivable amounts, the group has no other significant credit concentration risks.
Liquidity risk
Liquidity risk refers to the risk that an enterprise experiences a shortage of funds when fulfilling obligations to settle in the form of delivering cash
or other financial assets.
The group's method of managing liquidity risk is to ensure there is sufficient liquidity of funds to fulfill due debts without causing unacceptable
losses or damaging the group's reputation. The group regularly analyzes the liability structure and maturity to ensure there is sufficient funds.
The group's management monitors the use of bank borrowings and ensures compliance with loan agreements. At the same time, the group
conducts financing negotiations with financial institutions to maintain a certain credit line and reduce liquidity risk.
The financial liabilities of the company are presented below in the form of undiscounted contractual cash flows by maturity date.
As of June 30,2026, the financial liabilities held by the Group are analyzed below based on the maturity dates of the undiscounted remaining
contractual obligations:
Item Within 1 year 1-2year 2-5year Over 5 years
accounts payable-others 545,242,147.34
notes payable 60,370,597.5
XIII. Disclosure of fair value
F V at the year end
items 1st Level FV 2nd Level FV 3rd Level FV
Total
Measurement Measurement Measurement
I. Continuously measured at FV -- -- -- --
(1).Financial assets at fair value through profit or
loss
(2). Equity Instrument Investments 200,310.67 200,310.67
Total assets measured at fair value over time 200,310.67 96,644,370.66 96,844,681.33
II. Non-recurring fair value measurements -- -- -- --
For certain equity instrument investments held within the Group's trading financial assets, the measurement basis is the unadjusted closing price
on the public stock exchange as of June 30,2026.
techniques and key parameters used;
Wafangdian Bearing Co., LTD 2026 Midyear Report
quantitative information pertaining to the key parameters;
The Group has established relevant processes to identify appropriate valuation techniques and input values for Level 3 fair value measurements.
The Group's Securities Investment Department regularly reviews these processes as well as the appropriateness of the fair value determination
methods employed.
XIV. Related parties and related transactions
The parent
The proportion of
Name of parent The registered company's
registered Nature of the business voting rights of the
company capital shareholding ratio in
parent company
the company
Wafangdian Bearing No. 1 Beigongji
Bearings and all kinds of
Group Co., Ltd. Street, Wafangdian
equipment 519,869,400.00 60.61% 60.61%
（ Wafangdian City, Liaoning
manufacturing. sales
Bearing Group ） Province, China.
The ultimate control party of the enterprise is the State-owned Assets Supervision and Administration Commission of Dalian Municipal People's
Government.
For details regarding the subsidiaries of this enterprise, please refer to Note "10: Interests in Other Entities".
For details regarding the Company's significant joint ventures or associates, please refer to the Notes.
Names of other related parties Relationships between other related parties and the enterprise
The enterprises controlled by the same controlling shareholder and
Dalian Waxial Group Bearing Equipment Manufacturing Co.
ultimate controller
The enterprises controlled by the same controlling shareholder and
Wazhou Exact Forge Co., Ltd
ultimate controller
The enterprises controlled by the same controlling shareholder and
Wafangdian Bearing Group Wind Power Bearing Co.
ultimate controller
The enterprises controlled by the same controlling shareholder and
Wazhou Group Exact Transmission Bearing Co., Ltd
ultimate controller
The enterprises controlled by the same controlling shareholder and
Wazhou Group Special Precision Bearing Co., Ltd.
ultimate controller
The enterprises controlled by the same controlling shareholder and
Wazhou Group High-End Auto Bearing Co.,Ltd
ultimate controller
The enterprises controlled by the same controlling shareholder and
Dalian Zhixin Machinery Trading Co., Ltd
ultimate controller
The enterprises controlled by the same controlling shareholder and
Wazhou Group Precision Roller Co.,Ltd
ultimate controller
The enterprises controlled by the same controlling shareholder and
Wazhou Group Precision Retainer Co.,Ltd
ultimate controller
The enterprises controlled by the same controlling shareholder and
Leipzig Roller Ball Bearing Manufacturing Co.
ultimate controller
The enterprises controlled by the same controlling shareholder and
Wafangdian Bearing Power Co.,Ltd
ultimate controller
Wazhou Group National Bearing Engineering Technology Research The enterprises controlled by the same controlling shareholder and
Centre Co.,Ltd ultimate controller
The enterprises controlled by the same controlling shareholder and
Wafangdian Bearing Group Dalian Wind Power Spindle Bearing Co.
ultimate controller
The enterprises controlled by the same controlling shareholder and
Wafangdian Bearing Group Shanghai R&D Center Co., Ltd.
ultimate controller
The enterprises controlled by the same controlling shareholder and
ZWZ Group (Europe) Bearing Co., Ltd.
ultimate controller
Wafangdian Tongda Bearing Manufacturing Co. Other related parties
Jietai gete wazhou Automobile Bearing co., LTD(Dalian) Other related parties
Wafangdian Bearing Co., LTD 2026 Midyear Report
Wafangdian Bearing Education and Training Center Other related parties
Dalian Diye Gikai Wax Shaft Industry Co., Ltd Other related parties
Other entities controlled by the ultimate controlling
Subsidiaries of Dalian Heavy Industries Crane Group Co., Ltd.
party
(1) Related transactions for the purchase and sale of commodities, the provision and receipt of services
Statement of goods purchased/services received
In RMB Yuan
Whether it
Approved exceeds Amount of
The affiliated party Related party transaction content Current amount
trading quotas the trading previous period
limit
Wafangdian Bearing Group Co., 281,070,897 600,000,00 348,781,805
Spare parts no
LTD. and its subsidiaries .64 0.00 .35
Wafangdian Bearing Group Co., 140,543,205 300,000,00 328,733,809
Product no
LTD. and its subsidiaries .81 0.00 .64
Wafangdian Bearing Group Co., 21,678,570. 55,000,000 26,993,189.
Kinetic energy no
LTD. and its subsidiaries 35 .00 50
Wafangdian Bearing Group Co., 1,000,000.
Equipment 62,918.59 no 23.25
LTD. and its subsidiaries 00
Dalian Heavy Industry Equipment
Group Co., Ltd. and its Maintenance no 26,378.73
subsidiaries
Security services, fire safety
services, trademark usage,
occupation of public facilities,
advertising services, vehicle
usage, technical development
Wafangdian Bearing Group Co., 37,822,927. 90,000,000 32,265,488.
services, interest on fund no
LTD. and its subsidiaries 78 .00 35
occupation, maintenance/greening
services, engineering labor
services, labor fees, jacket
cleaning services, training,
medical examinations, etc.
Table of Goods Sold/Services Provided
In RMB Yuan
Related party transaction
The affiliated party Current amount Amount of previous period
content
Dalian Heavy Industry Equipment Group Co., Ltd. and its
product 31,980,393.79
subsidiaries
Wafangdian Bearing Group Co., LTD. and its subsidiaries product 141,903,271.76
Wafangdian Bearing Group Co., LTD. and its subsidiaries Materials 4,565,065.38 11,287,363.03
Semi-finished products
Wafangdian Bearing Group Co., LTD. and its subsidiaries 139,558.98
and spare parts
Services such as heat
Wafangdian Bearing Group Co., LTD. and its subsidiaries 22,651,368.15 32,083,674.21
treatment
Wafangdian Bearing Group Co., LTD. and its subsidiaries Equipment 58,229.88
(2) Associated entrusted management/contracting and entrusted management/contracting
(3) Related leases
The Company as the lessor:
Wafangdian Bearing Co., LTD 2026 Midyear Report
In RMB Yuan
Lease income
Types of Lease income recognized
Name of lessee recognized for the
leasehold assets in the previous period
period
Wafangdian Bearing Group Co., Ltd. and its subsidiaries House 3,045,644.65 3,638,571.24
Wafangdian Bearing Group Co., Ltd. and its subsidiaries Equipment 4,910,211.44 4,851,898.45
Wafangdian Bearing Group Co., Ltd. and its subsidiaries Land 1,816,934.11 1,101,097.50
The Company as lessee:
In RMB Yuan
Variable lease
Simplified treatment of
payments not
rental costs for short- Interest expense
included in the Increased access to
Types term leases and leases Rent paid incurred on lease
measurement of assets
of of low value assets (if liabilities
lease liabilities (if
leaseh applicable)
Name of lessor applicable)
old
Amount Amount Amount Amount Amount
assets Curren Curren
incurred incurred incurred incurred incurred
Current t Current Current t
in the in the in the in the in the
amount amoun amount amount amoun
previous previous previous previous previous
t t
period period period period period
Wafangdian
Bearing Group 1,581,552. 1,581,552 1,581,55 1,581,552
Land
Co., Ltd. and 53 .54 2.53 .54
its subsidiaries
Wafangdian
Bearing Group 6,815,773. 6,777,336 6,815,77 6,777,336
House
Co., Ltd. and 51 .00 3.51 .00
its subsidiaries
Wafangdian
Bearing Group Equipm 1,099,868. 1,128,501 1,099,86 1,128,501
Co., Ltd. and ent 88 .24 8.88 .24
its subsidiaries
(4) Related guarantee situation
(5) Fund lending by related parties
(6) Asset transfer and debt restructuring of related parties
Amount incurred in the previous
The affiliated party Types Current amount
period
Wazhou Group High-End Auto Bearing Co.,Ltd Debt restructuring
and its Subsidiaries loss
Wafangdian Bearing Group Wind Power Bearing Debt restructuring
Co. loss
Debt restructuring
Wafangdian Bearing Group Co., Ltd. 634,188.99 509,812.52
gains
Dalian Waxial Group Bearing Equipment Debt restructuring
Manufacturing Co. gains
Debt restructuring
Wazhou Exact Forge Co., Ltd 702,309.43 131,578.95
gains
Debt restructuring
Wazhou Group Precision Retainer Co.,Ltd 40,000.00 160,529.24
gains
Wazhou Group National Bearing Engineering Debt restructuring
Technology Research Centre Co.,Ltd gains
Wafangdian Bearing Group Wind Power Bearing Debt restructuring
Co. gains
Debt restructuring
Wafangdian Tongda Bearing Manufacturing Co. 70,000.00
gains
Wafangdian Bearing Co., LTD 2026 Midyear Report
(7) Remuneration for key management personnel
In RMB Yuan
item Current amount Amount incurred in the previous period
Key management compensation 2,431,048.00 618,163.80
(1) Receivable items
In RMB Yuan
Project name Affiliated party Ending balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Accounts Wazhou Group High-End
receivable Auto Bearing Co.,Ltd
Wazhou Group Exact
Accounts
Transmission Bearing Co., 9,557,749.30
receivable
Ltd
Accounts Leipzig Roller Ball Bearing
receivable Manufacturing Co.
Accounts Dalian Zhixin Machinery
receivable Trading Co., Ltd
Dalian Dazhong Mechanical
Accounts
and Electrical Installation 50.00
receivable
Engineering Co.
Accounts Dalian Great Oak Machinery
receivable Manufacturing Co.
Accounts Dalian Huarui Heavy
receivable Industry Group Co., Ltd.
Notes
Dalian Great Oak Machinery
Receivable 150,000.00 7,500.00
Manufacturing Co.
Notes Wazhou Exact Forge Co.,
Receivable Ltd
Wafangdian Bearing Group
Notes
Wind Power Bearing Co., 30,560.11 10,000,000.00
Receivable
Ltd.
Notes Dalian Zhixin Machinery
Receivable Trading Co., Ltd
Notes Wafangdian Bearing Group
Receivable Co., Ltd.
Accounts
Dalian Great Oak Machinery
Receivable 2,256.05
Manufacturing Co.
Financing
Accounts
Dalian Zhixin Machinery
Receivable 66,777.59
Trading Co., Ltd
Financing
Accounts
Wafangdian Bearing Group
Receivable 1,040,000.00
Co., Ltd.
Financing
Advance Wafangdian Bearing Power
payment Co.,Ltd
Dalian Wafangdian Group
Advance
Bearing Equipment 610,405.32 478,000.00
payment
Manufacturing Co., Ltd.
Advance Wazhou Group Special
payment Precision Bearing Co., Ltd.
Other Wafangdian Bearing Group
receivables Co., Ltd.
Wafangdian Bearing Co., LTD 2026 Midyear Report
(2) Payable items
In RMB Yuan
项目名称 Affiliated party Ending book balance Opening book balance
payable
Dalian Wazhou Bearing Manufacturing Equipment Co., Ltd 2,322,625.19 5,216,717.18
account
payable
Dalian Zhixin Machinery Trading Co., Ltd 18,428.32
account
payable
Wafangdian Tongda Bearing Manufacturing Co., Ltd 54,939,927.58 53,989,932.83
account
payable
Wafangdian Bearing Power Co.,Ltd 9,874,808.17 11,451,887.88
account
payable Wafangdian Bearing Group Dalian Wind Power Spindle
account Bearing Co.
payable
Wafangdian Bearing Group Wind Power Bearing Co., Ltd. 31,065,975.28 21,454,613.09
account
payable
Wazhou Group High-End Auto Bearing Co.,Ltd 12,983,953.16 17,683,523.83
account
payable Wazhou Group National Bearing Engineering Technology
account Research Centre Co.,Ltd
payable
Wazhou Group Precision Retainer Co.,Ltd 35,039,243.07 37,799,372.58
account
payable
Wazhou Group Special Precision Bearing Co., Ltd. 5,967,793.57 4,078,223.03
account
payable
Wafangdian Bearing Group Co., Ltd. 121,689,411.59 167,490,157.46
account
payable
Wazhou Exact Forge Co., Ltd 113,872,911.21 154,569,781.59
account
payable
Wazhou Group Exact Transmission Bearing Co., Ltd 504,809.62
account
payable
Dalian Dazhong Testing Technology Service Co., Ltd. 1,108.00
account
payable
Dalian Huarui Heavy Industry Group Co., Ltd. 1.00
account
Other
Wafangdian Bearing Group Co., Ltd. 1,555,801.87 14,586,506.71
payables
Other
Wafangdian Bearing Power Co.,Ltd 1,887,498.33 2,287,498.33
payables
Other
Dalian Zhixin Machinery Trading Co., Ltd 542,000,000.00 460,329,726.03
payables
XV. Share payment
XVI. Commitments and contingencies
Material commitments as of the balance sheet date
no
(1) Significant contingencies existing at the balance sheet date
(2) If the company has no important contingencies that need to be disclosed, it should also be explained
The company has no material contingent matters that need to be disclosed.
XVII. Matters after the balance sheet date
XVIII.Other important matters
XIX. Notes on major items of the parent company's financial statements
Wafangdian Bearing Co., LTD 2026 Midyear Report
(1) Age disclosure
In RMB Yuan
aging Ending book balance Opening book balance
Within 1 year (inclusive) 799,521,034.24 838,847,662.72
More than 3 years 69,511,968.64 56,897,395.97
Four to five years 9,344,690.35 5,093,807.93
More than 5 years 46,217,112.60 42,704,202.33
total 1,030,460,122.67 1,026,849,605.40
(2) Disclosure by classification according to bad debt provision method
In RMB Yuan
Ending balance Opening balance
category
Book balance Bad debt reserve Book balance Bad debt reserve
Book Book
Provisi Provision
amount scale amount value amount scale amount value
on ratio ratio
Accounts
receivable that are
set aside for bad 9.54% 99.81% 9.78% 99.81%
debts on an
individual basis
Among them:
Accounts
receivable that are 867,60
provided for bad 6.31% 90.22% 6.34% 4,925.0
debts on a 8
combined basis
Among them:
Related Party 40,970,4 1,164,0 39,806, 1,164,045 58,167,3
Group 56.74 45.66 411.08 .66% 84.70%
Ageing portfolio 6.46% 84.44 6.64
total 15.22% 100.00% 15.49% 4,392.6
(3) the provision for bad debts accrued, recovered or rolled back during the period
Provision for bad debts in the current period:
In RMB Yuan
Current variation
category
Opening balance Take back or turn Cancel after Ending balance
accrual other
back verification
Bad debt reserve 159,055,212.72 2,226,768.85 156,828,443.87
total 159,055,212.72 2,226,768.85 156,828,443.87
(4) Accounts receivable actually written off during the current period
In RMB Yuan
item Amount written off
Accounts receivable actually written off 2,250,431.32
Important accounts receivable write-off transactions:
Whether the
Accounts Receivable payment arose from
Unit name Write-off amount Write-off reason Write-off procedure
Nature a related-party
transaction
Shandong Taishan payment for goods 2,220,385.22 Expected to be Management no
Wafangdian Bearing Co., LTD 2026 Midyear Report
Steel Group Co., Ltd. unrecoverable Approval
Total 2,220,385.22
(5) The receivables and contractual assets of the top five closing balances collected by the defaulting party
In RMB Yuan
Ending balance of
Percentage of the
allowance for
Ending total balance of
Ending balance of Ending balance of doubtful accounts
balance of accounts receivable
Unit name accounts accounts receivable receivable and
contract and contract assets
receivable and contract assets allowance for
assets at the end of the
impairment of
period
contract assets
China State Railway Group Co.,
Ltd. and its affiliated companies
Wafangdian Bearing Group
Co., Ltd. and its affiliated 80,517,958.01 80,517,958.01 7.81% 1,279,184.27
companies
Ansteel Group Co., Ltd. and its
subsidiaries
Chongqing Gearbox Co., Ltd. 25,249,785.46 26,267,400.18 2.55% 1,342,855.15
China First Heavy Industries
Co., Ltd. and its subsidiaries
Total 290,578,968.53 291,992,072.92 28.33% 18,689,092.16
In RMB Yuan
item Ending balance Opening balance
Other receivables 247,045,163.58 245,164,992.88
total 247,045,163.58 245,164,992.88
(1) Interest receivable
(2) Dividends receivable
(3) Other receivables
In RMB Yuan
Nature of money Ending book balance Opening book balance
Intercompany Receivables and Payables 236,511,588.97 236,702,647.05
Margin Deposits and Security Deposits 9,168,853.14 8,199,052.15
Employee Petty Cash 2,096,652.68 3,714,719.01
other 6,467,219.62 3,747,725.50
total 254,244,314.41 252,364,143.71
In RMB Yuan
aging Ending book balance Opening book balance
Within 1 year (inclusive) 9,628,324.80 6,510,728.91
More than 3 years 240,872,872.19 7,308,608.64
Four to five years 899,684.90 1,132,081.15
More than 5 years 5,447,677.87 4,395,509.22
total 254,244,314.41 252,364,143.71
Wafangdian Bearing Co., LTD 2026 Midyear Report
In RMB Yuan
Ending balance Opening balance
category
Book balance Bad debt reserve Book balance Bad debt reserve
Book Book
Provision Provision
amount scale amount value amount scale amount value
ratio ratio
Provision
for bad
debts on 5,206,086 5,206,086 5,206,086 5,206,086
an .42 .42 .42 .42
individual
basis
Among
them:
Provision
for bad
debts on 97.95% 0.80% 97.94% 0.81%
a portfolio
basis
Among
them:
Related
Party 91.52% 93.45%
Group
Collateral
and
deposit 13,953.50 0.01% 13,953.50 13,953.50 0.01% 13,953.50
combinati
on
Ageing 16,327,28 1,993,064 14,334,22 11,308,08 1,993,064 9,315,022
portfolio 8.44 .41 4.03 7.35 .41 .94
total 100.00% 2.83% 100.00% 2.85%
Category name for individual impairment of bad debt provisions: Other receivables subject to individual
impairment of bad debt provisions
Opening balance Ending balance
name
Reason for
Book balance Bad debt reserve Book balance Bad debt reserve Provision ratio
provision
Other receivables
for which bad
It is expected to be
debt provisions 5,206,086.42 5,206,086.42 5,206,086.42 5,206,086.42 100.00%
unrecoverable.
are made on a
per-item basis
total 5,206,086.42 5,206,086.42 5,206,086.42 5,206,086.42
Combination-based bad debt provision category name: Related Party Combination
Name ending balance
book balance bad debt provision Provision ratio
Related party group 232,696,986.05 0.00%
Total 232,696,986.05
The basis for determining this combination:
Apart from the above receivables for which bad debt provisions are made on a single-item basis, the Group classifies the remaining financial
instruments based on their credit risk characteristics into several combinations. On this basis, it determines the expected credit losses. Generally,
no bad debt provisions are made based on credit risk characteristics, unless there is clear evidence indicating that the full or partial recovery of
the funds is impossible.
Wafangdian Bearing Co., LTD 2026 Midyear Report
Categories for bad debt provisions based on combinations: Guarantee and Deposit Combination
In RMB Yuan
Name ending balance
book balance bad debt provision Provision ratio
Collateral and deposit
combination
Total 13,953.50
Description of the basis for determining the portfolio: Except for the above- mentioned receivables for which impairment for bad debts is
assessed on an individual basis, the Group classifies the remaining financial instruments into several portfolios based on credit risk
characteristics, and determines expected credit losses on a portfolio basis. Based on credit risk characteristics, no allowance for bad debts shall
be provided in principle, unless there is clear evidence that all or part of the receivables are indeed irrecoverable.
Category name for allowance for bad debts assessed on a portfolio basis:?Aging- based Portfolio
In RMB Yuan
Name ending balance
book balance bad debt provision Provision ratio
Account Age Segments 16,327,288.44 1,993,064.41 12.21%
Total 16,327,288.44 1,993,064.41
Explanation of the basis for determining this combination:
Drawing on historical credit loss experience, combined with current conditions and forecasts of future economic conditions, the expected credit
loss is calculated based on the exposure at default and the lifetime expected credit loss rate.
Bad debt provisions are made based on the general model of expected credit losses:
In RMB Yuan
The first stage The second stage The third stage
Expected credit loss over
Provision for bad debts Expected credit loss over the
Expected credit losses the entire duration (no Total
entire duration (credit
for the next 12 months credit impairment
impairment has occurred)
occurred)
Balance as of January 1,
The balance as of January 1,
Balance as of June 30, 2026 1,993,064.41 5,206,086.42 7,199,150.83
The basis for the division of each stage and the proportion of bad debt provisions
The significant changes in the book balance of the loss provision for the current period
?Applicable ? Not applicable
Provision for bad debts in the current period:
In RMB Yuan
Current variation
category
Opening balance Take back or turn Ending balance
accrual Resell or write off other
back
Bad debt reserve 7,199,150.83 7,199,150.83
total 7,199,150.83 7,199,150.83
In RMB Yuan
Unit name Nature of money Ending balance aging Percentage of total Ending balance of
Wafangdian Bearing Co., LTD 2026 Midyear Report
ending balance of allowance for
other receivables doubtful accounts
Dalian wazhou precision
Intercompany
motor car bearing co., 114,575,829.47 3-4year 45.07%
transactions
LTD
Wazhou liaoyang bearing Intercompany
manufacturing co., LTD transactions
Materials Procurement
Institute of Daqin Railway Deposit 2,173,595.00 1-5year 0.85% 183,679.75
Co., Ltd
Anhui Conch Cement
Deposit 1,300,000.00 3-4year 0.51% 650,000.00
Co., LTD
Shenyang Railway
Passenger Car Works,
Deposit 1,216,300.00 Within 1 year 0.48% 60,815.00
China Railway Shenyang
Group Co., LTD
Total 237,376,881.05 93.37% 894,494.75
In RMB Yuan
Ending balance Opening balance
item
Reserve for Reserve for
Book balance Book value Book balance Book value
impairment impairment
Invest in
subsidiaries
total 226,488,897.67 226,488,897.67 226,488,897.67 226,488,897.67
(1) Investment in subsidiaries
In RMB Yuan
Impairment Changes in the current period Impairment
Opening Closing
investee reserve Provision reserve
balance (book Additional Reduce balance
beginning for other ending
value) investment investment (book value)
balance impairment balance
Wazhou
Liaoyang bearing 32,242,259.
manufacturing Co., 95
LTD
Dalian Wazhou
precision motor 45,478,956.
automobile bearing 37
Co., LTD
Wazhou precision
spherical roller
bearing
(Wafangdian) limited
liability company
total
In RMB Yuan
item Current amount Amount incurred in the previous period
income cost income cost
Main business 1,144,156,410.73 1,005,108,540.57 1,286,564,016.29 1,135,892,058.76
Other business 29,283,445.51 14,865,325.48 30,344,445.96 15,971,777.54
total 1,173,439,856.24 1,019,973,866.05 1,316,908,462.25 1,151,863,836.30
In RMB Yuan
item Current amount Amount incurred in the previous period
Wafangdian Bearing Co., LTD 2026 Midyear Report
Dividend income from investments in other
equity instruments during the holding period
Proceeds from debt restructuring 4,635,388.37 4,682,444.26
Total 5,638,916.68 5,684,796.90
XX.Supplementary information
?Applicable □ Not applicable
In RMB Yuan
item amount Instructions
Gain or loss on disposal of illiquid assets 107,376.24
Government subsidies included in the profit and loss of the current period (except government
subsidies that are closely related to the normal operation of the company, comply with national
policies and regulations, enjoy in accordance with determined standards, and have a continuous
impact on the profit and loss of the company)
In addition to the effective hedging business related to the normal operation of the company, the
profit or loss of fair value changes arising from the holding of financial assets and financial
-46,225.55
liabilities by non-financial enterprises and the loss or gain arising from the disposal of financial
assets and financial liabilities
Gains and losses on debt restructuring 11,092,523.93
Other non-operating income and expenditure other than those mentioned above 1,547,945.30
total 15,550,065.16 --
Details of other items of profit or loss that meet the definition of non-recurring profit or loss:
? Applicable ?Not applicable
The Company has no other specific circumstances that meet the definition of non-recurring profit or loss.
The non-recurring profit and loss items listed in Explanatory Announcement No. 1 on Information Disclosure of Publicly Issued Securities
Companies - Non-recurring Profit and Loss are defined as the fact sheet of the regular profit and loss items
□ Applicable ?Not applicable
Earnings per share
Reporting period profit Weighted average return on
Basic earnings per share Diluted earnings per share
equity
(RMB/share) (RMB/share)
Net profit attributable to the company's
common shareholders
Net profit attributable to the company's
common shareholders after deducting -4.04% -0.0204 -0.0204
non-recurring gains and losses
(1) The difference between net profit and net assets in financial reports disclosed under both international accounting standards and Chinese
accounting standards
□ Applicable ?Not applicable
(2) The difference between net profit and net assets in financial reports disclosed under both foreign accounting standards and Chinese
accounting standards
□ Applicable ?Not applicable
(3) Explanation of the reasons for the difference of accounting data under domestic and foreign accounting standards, the name of the overseas
audit institution should be indicated if the difference adjustment is made to the data audited by the overseas audit institution
Wafangdian Bearing Co., LTD 2026 Midyear Report
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