2021-08-23-深交所-瓦轴B_2021年半年度报告（英文版）_137页_921kb

报告摘要

Summary of the 2021 Midyear Report of Wafangdian Bearing Company Limited

Core Content Overview

This document is the 2021 Midyear Report of Wafangdian Bearing Company Limited (WBC), issued in August 2020. It provides a comprehensive overview of the company's operations, financial performance, corporate governance, and risk management strategies for the reporting period of January 1, 2020 to June 30, 2020.

Main Points and Key Information

1. Document Guarantees and Definitions

The Board of Directors, Supervisory Committee, and top management guarantee the accuracy and completeness of the report.
The financial report is guaranteed by Chairman Mr. Liu Jun, General Accountant Ms. Sun Najuan, and accounting charger Ms. Zhang Yajing.
The report includes forward-looking statements, which are not binding commitments to investors.
Key terms are defined, including:
- Company: Wafangdian Bearing Company Limited
- Wazhou Group: Wafangdian Bearing Group Company
- Shen Jiao Suo: Shenzhen Stock Exchange
- SRC: China Securities Regulatory Commission

2. Company Profile

Stock abbreviation: Wazhou B
Stock code: 200706
Listing location: Shenzhen Stock Exchange
Chinese name: 瓦房店轴承股份有限公司
Abbreviation: 瓦轴股份公司
Legal representative: Liu Jun
Contact information:
- Board Secretary: Sun Najuan
- Stock Affairs Representative: Ke Xin
- Address: No. 1 Beigongji Street, Wafangdian City, Liaoning Province
- Email: zwz2308@126.com
- Phone: 0411-62198008
- Fax: 0411-62198333

3. Financial Highlights

Operating income increased by 20.56% to RMB 1,081,064,853.66.
Net profit available for shareholders rose by 14.95% to RMB 4,192,143.24.
Net profit after deducting abnormal income increased by 127.58% to RMB 1,248,469.67.
Net cash flows from operating activities decreased by 56.70% to RMB 31,402,343.49.
Net increase in cash and cash equivalents decreased by 70.65% to RMB 33,151,074.54.

4. Business Summary

Principal businesses include bearing manufacturing, spare parts, mechanical equipment, auto parts, and related product sales.
The company has strong manufacturing capacity, quality assurance, and extensive services in key industries such as railway, automobile, metallurgy, and mining.
Core competitiveness:
- Largest bearing R&D and manufacturing base in China.
- Long-term practical experience in bearing technology.
- Close cooperation with domestic research institutions and university.
- Strong customized design and manufacturing process to meet customer needs.
- 24/7 service capability and ten value-added services.
Market strategy: Focus on middle and high-end products, high-end breakthroughs, and differentiated management.
Sales strategy: Emphasize "grab the order to protect the market" and "cash is king".
Risk mitigation: Strengthen credit control, improve capital turnover, and optimize supply chain.

5. Asset and Liability Analysis

Significant changes in asset composition:
- Inventory increased by 3.09% to RMB 761,125,814.98.
- Accounts receivable decreased by 2.92% to RMB 944,368,834.23.
- Fixed assets decreased by 3.10% to RMB 402,752,098.78.
Major liabilities:
- Short-term borrowing increased slightly to RMB 698,000,000.00.
- Contract liability increased by 0.16% to RMB 47,607,834.61.
Assets and liabilities measured at fair value:
- Trading financial assets increased by 183,361.31.
- Fair value changes were recorded, but no significant equity investment or derivative investment was made.

6. Corporate Governance

Shareholders’ Meeting:
- 2020 Annual Shareholders’ Meeting held on 2021.05.19, with 80.31% investor participation.
- Disclosed on 2021.05.20 at http://www.cninfo.com.cn.
Changes in directors, supervisors, and senior management:
- Zhao Yang left as Director and GM on 2021.01.08 due to job changes.
- Wang Jiyuan was employed as GM on 2021.01.13 and elected as Director on 2021.05.19.
- Gao Ping left as Supervisor on 2021.01.07; Zhang Yihui was elected as Supervisor on 2021.01.08.
Profit distribution: No cash dividend, bonus shares, or capital increase planned for the reporting period.

7. Environmental and Social Responsibility

The company and its subsidiaries are not classified as key pollutant discharge units by environmental authorities.
No environmental penalties were imposed during the reporting period.
The company adheres to national and local environmental regulations and fulfills social responsibilities.
It ensures employee welfare by providing social insurance, housing fund, and health education.
The company is committed to resource efficiency, environmental protection, and coordinated development with society and stakeholders.

8. Risks and Countermeasures

Market risks: Uncertainty in market demand and competitors.
Cost risks: Labor costs and raw material prices continue to rise.
Profit margins: Remain tough due to market pressures.
Countermeasures:
- Develop middle and high-end products.
- Improve core competitiveness through customer value and quality.
- Accelerate reforms and supply chain optimization.
- Focus on market expansion, cost reduction, and efficiency improvement.

9. Non-recurring Items

The company had non-recurring gains and losses totaling RMB 2,943,673.57, mainly from debt restructuring and fair value changes.
Non-recurring items were not classified as recurring according to regulatory guidelines.