Shorttitle:*STWaZhouB Code:200706 No.:2017-24 WafangdianBearingCompanyLimited ApplyforLiftingthedelistingriskwarningandchangingtheshorttitle The Company,allmembers of theBoardof Directors,supervisorsand top management hereby guaranteethe truth, accuracy andcompleteness ofthe informationdisclosure,no anyfalse records, misleadingstatementsandmajormissingcontents. I.Specialriskwarning: 1.SinceMay12,2017,companystockopeningdateofsuspensionfor1day,fromtheopeningdateof May15,2017toresumetrading; 2.SinceMay15,2017,thecompany'sstockdelistingdelistingdelistingriskwarning,theshortnameof thestockchangefrom*STWazhouBtoWazhouB,andtheStockcode200706isunchanged; 3.Company2016annualnetprofitattributabletoshareholdersoflistedcompaniesof30,872,950.22 yuan,netprofitafterdeductingnon-recurringgainsandlossesof-57,771,828.22Yuan; 4.Thedailylimitofstockpriceschangefrom5%to10%. II.ImplementationofdelistingriskwarningforstockoftheCompany WafangdianBearingCo.,Ltd.(hereinafterreferredtoastheCompany)havebeenintheredinmost recenttwoconsecutiveyearsof2014and2015,andaccordingtorelevantregulationofStockListingRules ofShenzhenStockExchange(2014Revised),stockoftheCompanyarebeingspecialtreatedontradingas “delistingriskwarning”on27April2016onShenzhenStockExchange.Shortformofthestockturnsto “*STWazhouB”afterwarninganddailylimitturnsto5%. III.Worksduringdelistingriskwarning In2016,BoardoftheDirectorsworkhardforrevokingthedelistingriskwarningandurgedmanagement takingefficientmeasurestoimplemented.Finally,theCompanymakesaprofitinsteadofsufferingaloss. Wefinallyrealizedthestatedobjectivemadebymanagementatyear-beginning,throughun-remitting effortsoftheCompany;protecttheinterestofshareholderseffectively. Achievingprofitabilityistheprioritytargetfortheyearof2016inoperation,inpurposeofrevokingthe delistingriskwarning.Determineprofitabilityin2016asmainline,andearningfromnon-mainbusinessas subordinateline,effectivelyreversethelossoftwoconsecutiveyearsbydoubleinsurancemeasure. i)Maincountermeasuresformainoperation Atbeginningoftheyear,managementmakesapromptdecisiononoperationstrategyas“steadygrowth, structureadjustment,de-stocking,tighteningreceivable,reducingcostandguaranteeefficiency”.Stabilized revenuefrommainbusinessbyadjustingproductstructure,develophighprofitproducts;optimize resourcesallocation,integrateresourcesoflatheworkerandheattreatmentaswellasoverseasmarketing network,tighteningexpensesandimprovingefficiency;theCompanystrippingbusinesswithdeficitsin Shorttitle:*STWaZhouB Code:200706 No.:2017-24 legalprocedures,suchasautomanufacture,cagebusinessandrollerservicesetc,forreducingthelosses; implementedleanmanagementinwholeCompany,reducing7kindsofwastesforcostreductionand efficiencyenhancement;tighteningmanufacturedinventoryandwork-in-process(WIP),increasingcash flows,improvingturnoverrateoffundsandreducingfinancialexpenses; 1.Customersatisfaction-oriented,bringforthnewideasinmanagementmechanismandoperation mechanism1)Customerfocus,promotingthereformofmarketingmechanismInprincipleofdifferentiation,segmentationandkey-customer-productsemphasized,integratingclients,employeesandinstitutionalfacilitiesinindustrialequipmentmarketandre-buildingbusinessprocedures;organizedandimplementedamanagementsystemreforminregionalsalescompanyandsalesbranch,establishedanintegrativeunifymanagementplatformtoimprovinglocalizationsalesmanagement.Implementcustomerauthorizationmanagement,solvedtheissuesofunclearmarketingarea,competingforcustomersandpricewarbetweendirectmarketandtradingmarketeffectively.Customerbasehasexpandedsignificantlyandhassoaringstrategyclientsandtradingcustomers.2)Strippingdeficitindustry,shiftingoperationmechanismManagementmechanismreformcompletedforbusinessofrollingelement,retainer,domestictruckbearingandautomobilegearboxbearingetc.Implementedoverallstrippingandcarriedoutrelatedtransactionsinprincipleofsocializationandmarketization,costsforproductsarereduceddramatically.TheCompanyfinishedanintegrationofhotworkingprocedures,establishedabearingaccessorybranchandoptimizedresourcesallocation,theefficiencyofhotworkingareimprovedandproductioncostsreduced.2.Promotionofleanmanufacturing,improvemarketcapacitycontinuouslyIntroducingideaofleanmanagement,promotingcontinueddevelopmentoftheCompany.Organizedmanylean training camp activities, promoted establishment of lean class, adjusted process layout andimplemented5Smanagementetc.Manychangesaremadeinrespectofideaandprocessimprovement,on-sitemanagementandsequence ofproductionhaveaqualitativechange, andthecapitalefficiencyenhancesignificantlyinpilotunits.3.Strengthenoperationcontrols,improveoperationqualityOptimizedassetallocationandliquidizeremnantassets;reducingconsumption,tighteningexpenses.Implementedcostincentivemechanismandmeasuresofreducingcostandincreasingefficiency.Fullymobilizetheinitiativeandself-motivatedfor“increasingproductionefficiencyandloweringcosts”fromtheCompany,implementedthemeasuresforreal.ii)Maincountermeasuresfornon-mainoperationFacingthebadbusinessenvironmentformain-operationmarket,theCompanyactivelydisposeandmakinguseoftheidleassets,makingdeepcleaninganddisposalforfixedassetsandcurrentassets.TheCompanyeffectivelyincreasestheprofitabilitybycarryingoutprofitabilitymeasures,underthepremiseofensuringShorttitle:*STWaZhouB Code:200706 No.:2017-24 compliancewithrelevantlawandregulations,andperformingnecessaryprocedures. Underthehelpofvariousmeasures,andonbasisofensuringsafeproduction,strivetoreversesevere businesssituationfortheCompany,achievedaninnovationdevelopmentinadversity;re-shapingimageof listedcompanyandavoidingthesuspendedlistingonstockexchange. Thefinancialdataforyearof2016hasbeenauditedbyShineWingCPA,andwithanauditor’sreportwith standardunqualifiedopinionissued(XYZH/2017DLA10202). Afterauditing,endedas31December 2016,netassetsattributabletoshareholdersoflistedcompanyamountingto1379millionYuan,operation revenueforyearof2016was2493.9266millionYuanandnetprofitattributabletoshareholderoflisted companywas30.873millionYuan.MainbusinessoftheCompanyareperformnormallyrecently. IV.TheissueapprovedbytheShenzhenStockExchange, AfterapprovedbytheShenzhenStockExchange,SinceMay15,2017,thecompany'sstockdelisting delistingdelistingriskwarning.Inlinewiththe article 13.2.18,May12,2017,companystockopeningdateofsuspensionfor1day,fromtheopeningdateof May15,2017toresumetrading.theshortnameofthestockchangefrom*STWazhouBtoWazhouB,and theStockcode200706isunchanged,Thedailylimitofstockpriceschangeto10%. V.Otherwarning InformationdisclosuremediaappointedbytheCompanyreferstoSecuritiesTimes,HongKong CommercialDailyandJuchaowebsite (www.cninfo.com.cn), investorsareadvicetopayattentiontothe investmentrisks. Herebynotify BODof WafangdianBearingCo.,Ltd. May11,2017