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Stock£º WazhouB                                Code£º200706                                    No.£º2026-19
                              Wafangdian Bearing Co., LTD
     Announcement on the Profit Distribution Plan for 2025
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. Review Procedure
Wafangdian Bearing Co., LTD. (hereinafter referred to as the "Company") held
the 5th meeting of the 10th Board of Directors on April 24, 2025, and deliberated
and approved the "Profit Distribution Plan for 2025". This proposal still needs to
be submitted to the Company's 2025 shareholders' meeting for review.
II. The basic situation of the profit distribution and capital reserve fund
conversion into share capital plan
According to the audit conducted by Zhongshen Zhonghuan Certified Public
Accountants (Special General Partnership), the net profit attributable to the
parent company's shareholders for the year 2025 was -58,093,066.41 yuan.
Adding the beginning undistributed profits of -766,382,732.49 yuan, the
distributable profit was -824,475,798.90 yuan. No legal surplus reserve was
extracted. The total distributable profit for shareholders was 0 yuan. After paying
the cash dividends distributed to shareholders in 2024 of 0 yuan, the
undistributed profit at the end of the year was -824,475,798.90 yuan.
Given that the distributable profit for the company in 2025 was negative,
considering the actual situation of the company and its operational needs, the
board of directors agreed on the 2025 profit distribution plan as follows: In 2025,
the company will not distribute dividends, will not issue bonus shares, and will not
convert the accumulated surplus reserve into share capital.
III. Specific Details of the cash dividend plan
(1) The profit distribution plan for 2024 does not trigger any other risk warnings
                 Project                           2025                 2024                 2023
      Total cash dividend (yuan)                     0                    0                    0
   Total amount of repurchase and
          cancellation (yuan)
Stock£º WazhouB                            Code£º200706                            No.£º2026-19
Net profit attributable to shareholders
                                          -58,093,066.41   -110,212,481.53   -99,478,593.08
    of the listed company (yuan)
 Consolidated financial statements:
Accumulated undistributed profits at                       -824,475,798.90
  the end of the current year (yuan)
  The parent company's statement:
Accumulated undistributed profits at                       -551,829,520.90
  the end of the current year (yuan)
 Whether it has been listed for three
                                                                 Yes
          consecutive years
Total cumulative cash dividends in the
    last three fiscal years (yuan)
Total repurchase and cancellation in
  the last three fiscal years (yuan)
 Average net profit of the last three
                                                           -89,261,380.34
          fiscal years (yuan)
Total cumulative cash dividends and
buyback cancellation in the last three                            0
          fiscal years (yuan)
Whether it touches the circumstances
  specified in Article 9.8.1 (9) of the
                                                                 No
   Stock Listing Rules that may be
    subject to other risk warnings
(2) Explanation of the rationality of the cash dividend plan
The relevant provisions on profit distribution in the Company's Articles of
Association are as follows: Conditions for cash dividends: 1. The distributable
profits realized by the company in that year were positive and the cash flow was
abundant. Implementing cash dividends will not affect the company's subsequent
continuous operation. 2. The auditing institution issues a standard unqualified
opinion on the company's financial report for that year. 3. The company has no
major investment plans or significant cash expenditures, etc. (except for
fundraising projects). Major investment plans or major cash expenditures refer to
any of the following circumstances: (1) The cumulative expenditures of the
company on external investments, asset acquisitions or equipment purchases,
Stock£º WazhouB                      Code£º200706                           No.£º2026-19
etc. within the next twelve months reach or exceed 50% of the company's latest
audited net assets. (2) The accumulated expenditures of the company on external
investment, asset acquisition or equipment purchase, etc. within the next twelve
months reach or exceed 30% of the company's latest audited total assets.
The cumulative undistributed profit at the end of the consolidated financial
statements of the company for the year 2025 was-824,475,798.90yuan, and the
cumulative undistributed profit at the end of the financial statements of the parent
company was -551,829,520.90 yuan, which did not meet the profit distribution
conditions stipulated in the Company's Articles of Association.
This profit distribution plan takes into account the company's business losses,
development capital needs, and to ensure the company's continuous and stable
operation and better protect the long-term interests of all shareholders, the
company plans not to conduct profit distribution, not to issue bonus shares, and
not to increase share capital by capital reserve in 2024. It complies with the
relevant provisions of the Company Law, the Stock Listing Rules of the Shenzhen
Stock Exchange, the Regulatory Guidelines for Listed Companies No. 3 - Cash
Dividends of Listed Companies, and the Company's Articles of Association.
IV. Reference Documents
Hereby notify
                                              Board of directors of
                                   Wafangdian bearing Company limited
                                                  April 27, 2026