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Short title:WaZhou B Code£º200706 No.: 2016-16

Announcement of debt reconstruction and related trade of

Wafangdian Bearing Company Limited

Our company, the whole members of the board of directors and top managements ensured the truth,

accuracy, completeness, no false record, misleading statement and fatal omit of the announcement.

I.Overview

i. The 7th Meeting of 6th Board Session disscus and pass the proposal of debt reconstruction from

January to July,2015.

ii. The 9th Meeting of 6th Board Session disscus and pass the proposal of debt reconstruction from

August to December,2015, in which, WBC sign < Debt reconstruction agreement >with Wafangdian

bearing precision forging company,Liao Cheng Hua Ye cage company and other 500 cilents.After friendly

consultation, this clients agree to make a concession to the daliy business debt with the company, which

lead to debt reconstruction gain with amount of 27,661,381.70 Yuan.

iii. WBC sign < Debt reconstruction agreement >with Sinotruk group Jinan bridge box co., LTD and

other 5 companys, After friendly consultation,the company agree to make a concession to the daliy

accounts receivable with the two company,which lead to debt reconstruction losses with amount of

242,647.74Yuan.

The two debt reconstruction affact the gains and looses with amount of 27,418,733.96 Yuan.

iv.Because Wafangdian bearing precision forging company and other 9 suppliers are the

wholly-owned subsidiaries or sharing company of WBGC, the largest shareholder of WBC,thus this trade

composes related transaction

v.This trade has been reviewed and unanimously passed by the 9th meeting of the sixth session of

the Board. The related director Mr.Meng Wei, Mr.Zhang Xinghai,Mr.Li Shi ,Mr.Chen Jiajun,Mr.Sun

Maolin,Mrs Sun Najuan avoid from the related issues, and the unrelated director, discussed and

unanimously passed the proposal. The independent directors show independent opinion on this proposal.

vi. The proposal shall be passed by shareholder¡¯s meeting.

II. Introduction on the object

The the daliy account receivable and account paybale between WBC and the cilents and suppliers.

III¡¢The effect to WBC

The trade is benefit to company operation, which will not damages minority shareholder¡¯s interests.

IV¡¢independent opinion

The company had explained the agreement content to independent directors, each of them agree

with the proposal and sign the independent opinion paper.

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Short title:WaZhou B Code£º200706 No.: 2016-16

V¡¢The documents for future reference

1. Wafangdian Bearing Co., Ltd Resolutions of Board of Directors

2. The independent director independent opinion

3. Wafangdian Bearing Co., Ltd Resolutions of the Board of Supervisors.

4. Debt reconstruction agreement.

5. Other document required by SZSE

Specially Announcement

Board of director of Wa Fangdian bearing Co., Ltd

August 25, 2016

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