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Stock abbreviation: Wazhou B                 Stock code: 200706                       No.: 2026-21
                    Wafangdian Bearing Co., LTD
        Announcement of uncovered losses exceeding one third of
                      paid-in capital stock
The Company and all members of the BOD guarantee that the information disclosed is true, accurate
and completed, and that there are no false records, misleading statements or material omissions.
Wafangdian Bearing Co., LTD. (hereinafter referred to as the "Company") held the fifth
meeting of the 10th Board of Directors on April 24, 2026 to consider and pass the
"Proposal on uncovered losses exceeding one third of paid-in capital stock", which
needs to be submitted to the 2025 annual general meeting of shareholders for
deliberation. The details are hereby announced as follows:
I. Basic information
According to the audit by Zhongtian Zhonghuan Certified Public Accountants (Special
General Partnership), as of December 31, 2025, the company's consolidated financial
statements for 2025 had an undistributed profit of -824,475,798.9 yuan, accounting for
-204.79% of the total share capital of 402,600,000.00 yuan. The undistributed profit of
the parent company's financial statements for 2025 was -551,829,520.9 yuan,
accounting for -137.07% of the total share capital of 402,600,000.00 yuan. The
company's unremedied losses have exceeded one-third of the total share capital.
According to the relevant provisions of the "Company Law of the People's Republic of
China" and the "Company Charter", this matter needs to be submitted to the company's
shareholders' meeting for deliberation.
II. Reasons for loss
resulting from the provision of various impairment provisions amounted to 59.2 million
yuan, an increase of 9.32 million yuan compared to the previous year.
carry-forward and deduction income.
purchase costs, the product profit margin has increased, and the operating profit
increased by 74.73 million yuan compared to the previous year.
III. Countermeasures
Stock abbreviation: Wazhou B             Stock code: 200706                   No.: 2026-21
The company continues to set its main business goals as increasing product profits and
enhancing profitability. The main measures are as follows:
(1) Seize market orders to increase revenue, focus on major clients for addition, deeply
cultivate high-value major clients, develop mid-to-high-end products, narrow down
product varieties, divest non-core products, and enhance profitability.
(2) Focus on sales prices for value-added, further strengthen price control, and increase
product profit margins. Establish a multi-dimensional price management system and
standardize the sales prices of service providers.
(1) Continuously deepen technological research, optimize design and manufacturing
processes. Increase the proportion of R&D for mid-to-high-end products and A-class
products, optimize design templates, increase the number of standard parts, achieve
simplified and serialized design, reduce manufacturing costs, and increase added value.
(2) Deepen the transformation of integrated supply chains, enhance procurement
efficiency through centralized purchasing, direct purchasing, and bidding, and achieve
cost reduction.
(3) Deepen the transformation of lean production to improve production efficiency, quality,
and reduce costs.
(4) Control labor costs, strictly control the total number of employees, and improve
personnel efficiency.
(5) Deepen the management of warehousing and logistics to reduce inventory and
shipping costs.
IV. Documents for reference
Co., LTD.;
Hereby notify
                                                  Board of directors of
                                      Wafangdian bearing Company limited
                                                      April 27, 2026