Shorttitle:*STWaZhouB Code：200706 No.:2016-49 Announcementofdebtreconstructionandrelatedtradeof WafangdianBearingCompanyLimited Ourcompany,thewholemembersoftheboardofdirectorsandtopmanagementsensuredthetruth, accuracy,completeness,nofalserecord,misleadingstatementandfatalomitoftheannouncement. I.Overviewofdebtreconstructioninvolverelatedpartytransactions i.2016fourthinterimBoardofdirectorsconsideredthecompany'sdailyoperationsdebtrestructuring fromJanuary2016toNovember.Duringthisperiod,thecompanysign“debtrestructuringagreement"with WafangdianBearingGroup Ltd,DalianboleiteBearingTechnologyCo.Ltd. Andother 270suppliers, throughfriendlynegotiation,thesupplieragreestomakeconcessionstodaliybusinessdebtwiththem, whichleadtodebtreconstructiongainwithamountof23.50millionYuan. ii.Inordertospeedupclearingupaccountsreceivable,recyclingoffunds,thecompanyhassigned "debtrestructuringagreement",withZOOMLIONroadmachinerybranchcompanyandother11clients throughfriendlynegotiation,thecompanyagreetomakeaconcessiontothedailyaccountsreceivable withthethem,whichleadtodebtreconstructionlosseswithamountof1.45millionYuan. iii.ThecompanyexpectsDecemberdebtrestructuringgainsabout9.7millionYuan. Thebusinessabovewillaffecttheprofitin2016withaboutof31.75millionYuan. iv.BecauseWafangdianbearingGroupcompanyandother5suppliersaretheshareholderorthe wholly-ownedsubsidiariesorsharingcompanyofWBGC,,thusthistradecomposesrelatedtransaction v.Thistrade has beenreviewed and unanimously passedby the2016fourth interim Board of directors. 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 unanimouslypassedtheproposal.Theindependentdirectorsshowindependentopiniononthisproposal. vi.AccordingtotheShenzhenStockExchange"ListingRules"ofArticle9.3(five):"tradingprofitsof listedcompaniesaccountedforthemostrecentfiscalyearauditedmorethan50%ofthenetprofit,the provisionsandtheabsoluteamountofmorethan5millionYuan,the"debtrestructuring"whichshouldbe submitted to the general meeting of the deal" but do not constitute a major asset restructuring "managementmeasures"provisionsofamajorreorganizationoflistedcompanies. II.Introductionontheobject TheobjectionsarethedailyaccountreceivableandaccountpayablebetweenWBCandtheclients andsuppliers. III.TheeffecttoWBC Thetradeisbenefittocompanyoperation,whichwillnotdamagesminorityshareholder’sinterests. Shorttitle:*STWaZhouB Code：200706 No.:2016-49 IV.independentopinion Thecompanyhadexplainedtheagreementcontenttoindependentdirectors,eachofthemagree withtheproposalandsigntheindependentopinionpaper. V.Thedocumentsforfuturereference 1.WafangdianBearingCo.,LtdResolutionsofBoardofDirectors 2.Theindependentdirectorindependentopinion 3.WafangdianBearingCo.,LtdResolutionsoftheBoardofSupervisors. 4.Debtreconstructionagreement. 5.OtherdocumentrequiredbySZSE SpeciallyAnnouncement BoardofdirectorofWaFangdianbearingCo.,Ltd December13,2016