2016-04-25-深交所-瓦_轴Ｂ_2015年年度报告（英文版）_135页_964kb

Summary of Wafangdian Bearing Company Limited 2015 Annual Report

Core Content

Wafangdian Bearing Company Limited, listed on the Shenzhen Stock Exchange with stock code 200706, released its 2015 annual report. The report outlines the company's financial performance, business operations, and strategic direction for the year.

Main Points and Key Information

Financial Performance

• Net Profit Attributable to Shareholders: -33,380,013.39 RMB in 2015, a decrease of 67.87% from 2014.
• Net Profit After Non-Recurring Gains/Losses: -66,446,677.65 RMB in 2015, a decrease of 65.18% from 2014.
• Operating Revenue: 2,300,161,296.48 RMB in 2015, a decrease of 23.52% from 2014.
• Net Cash Flow from Operating Activities: -51,528,028.21 RMB in 2015, a decrease of 173.12% from 2014.
• Basic Earnings Per Share: -0.08 RMB/share in 2015, a decrease of 69.23% from 2014.
• Net Return on Equity: -2.45% in 2015, compared to -7.18% in 2014.
• Total Assets: 3,523,969,203.48 RMB in 2015, a decrease of 10.46% from 2014.
• Shareholders' Equity: 1,348,464,975.33 RMB in 2015, a decrease of 2.42% from 2014.

Dividend Policy

The company decided not to distribute cash dividends, bonus shares, or convert capital reserves into share capital in 2015.

Risk Notice

• The company experienced losses in the net profit for two consecutive years.
• As a result, it will be subject to a *ST risk admonition.
• The specified media for disclosure include the Securities Times, Hong Kong Commercial Newspaper, and the website http://www.cninfo.com.cn.

Business Summary

Principal Businesses

• The company engages in the manufacture and sales of bearings, bearing components, mechanical equipment, bearing maintenance and technology services, automobile parts and fittings, and other related products.
• It also offers leasing of mechanical equipment and buildings, and inspection of bearings and related mechanical equipment and measuring instruments.
• The company has strong manufacturing and quality assurance capabilities and provides extensive services across various industries, including railway, automobile, metallurgy, and mining.

Core Competitiveness

• The company is recognized as the country's largest bearing technology and product R&D and manufacturing base.
• It has over 70 years of experience in the bearing industry and related fields.
• It has established a perfect bearing technology innovation system and maintains close cooperation with domestic research institutions, colleges, and universities.
• It has set up a complete product service system and 24-hour dynamic service ability.
• The company is praised for its "ten value-added services" and has established a strong brand and influence in the domestic bearing market.
• It has won certification qualifications in important target markets internationally.

Strategic Direction and Management Analysis

2015 Overview

• 2015 was an extraordinary year for the company, marked by economic challenges, overcapacity, and orders insufficiency.
• Despite these difficulties, the company successfully coped with market and operational risks.
• The company did not achieve a turnaround in the situation, but it greatly reduced losses and laid a solid foundation for future development.

Difficulties Faced

1. Bearing Industry Adjustment: The industry has entered a new stage of adjustment, restructuring, and upgrading due to the new economic normal.

   • The market did not grow significantly.
   • The industry accelerated structural adjustment, with high-end products continuing to grow and low-end products decreasing.
   • Competition intensified, with foreign companies entering the market and increasing market share.
   • The company faces more fierce competition in the main shaft sleeve market.

2. Development Opportunities

• Market Demand Growth: The company anticipates structural growth in market demand, particularly in global sourcing, group centralized purchasing, and OEM markets.
• Government Support: The 13th Five-Year Plan presents major development opportunities for the bearing industry.
  • The State Council issued the "Made in China 2025" plan, which includes strengthening the industrial base and supporting technological upgrades.
• Favorable Policies: National macroeconomic policies are favorable for cost reduction and efficiency improvement.
• Company Strengths: The company has strong self-advantages and development potential, including synergism from non-operating net assets, technological transformation, and independent innovation.

2016 Operating Principles and Main Tasks

• Overall Policy: "Steady growth, structural adjustment, to inventory, pressure receivable, cost reduction, security benefits."
• Key Tasks:
  1. Accelerate product and market structure adjustment to achieve market growth targets.
  2. Promote lean production management to establish a manufacturing system that meets market needs.
  3. Implement a quality first strategy to develop through quality.
  4. Reduce costs and improve efficiency to enhance capital turnover and operational quality.
  5. Strengthen basic management and establish a results-oriented management system.

Financial Highlights and Breakdown

Revenue and Cost Breakdown

• Operating Revenue:

  • Export: 353,230,102.39 RMB, up 23.54% YoY.
  • Civil (including Traffic Bearing): 556,417,955.42 RMB, down 42.43% YoY.
  • Special Bearing: 595,546,617.11 RMB, up 2.57% YoY.
  • Common Bearing: 537,228,097.35 RMB, down 23.72% YoY.
  • Industrial Income: 30,836,333.22 RMB, down 68.55% YoY.
  • Others: 226,902,190.99 RMB, down 39.04% YoY.

• Operating Costs:

  • Export: 331,205,551.30 RMB, up 20.60% YoY.
  • Civil (including Traffic Bearing): 496,110,751.32 RMB, down 43.79% YoY.
  • Special Bearing: 566,838,486.10 RMB, down 0.40% YoY.
  • Common Bearing: 439,192,840.60 RMB, down 28.44% YoY.
  • Industrial Income: 39,025,926.57 RMB, down 64.77% YoY.
  • Others: 207,103,551.31 RMB, down 44.36% YoY.

Non-Recurring Gains/Losses

• Total Non-Recurring Gains/Losses in 2015: 33,066,664.26 RMB.
• Key Items:
  • Gain/Loss of Non-Current Assets: 1,299,449.10 RMB.
  • Government Subsidies: 4,867,966.82 RMB.
  • Debt Restructuring Gains/Losses: 32,072,692.54 RMB.
  • Other Non-Business Income/Expenditures: 1,760,549.53 RMB.
• Influence on Income Tax: 6,933,993.73 RMB.

Major Clients and Suppliers

• Top 5 Clients:

  • Total Sales Revenue: 501,875,135.88 RMB, accounting for 21.81% of total revenue.
  • Top Client: First, with sales revenue of 188,951,369.10 RMB (8.21% of total revenue).
  • Second: 160,169,539.48 RMB (6.96% of total revenue).
  • Third: 64,425,857.83 RMB (2.80% of total revenue).
  • Fourth: 46,463,464.99 RMB (2.02% of total revenue).
  • Fifth: 41,864,904.48 RMB (1.82% of total revenue).

• Top 5 Suppliers:

  • Total Purchase: 731,417,251.58 RMB, accounting for 20.48% of total purchases.
  • Top Supplier: First (sum of three other companies controlled by the same controlling shareholders), with purchase of 438,912,886.57 RMB (12.29% of total purchase).
  • Second: 87,672,622.48 RMB (2.45% of total purchase).
  • Third: 87,942,288.16 RMB (2.46% of total purchase).
  • Fourth: Not specified in the text.

Additional Information

• Financial Consultant: Not applicable.
• Accountants: Wang Yang, Wang Dong.
• Audit Firm: Shine Wing Certified Public Accountants.
• Website: http://www.zwz-200706.com.
• Email: zwz2308@126.com.
• Consolidation Scope: No change.
• Significant Changes in Business: No significant changes or adjustments were reported.