WafangdianBearingCo.,Ltd.Announcementof AdjustingAdditionalAmountofDailyRelatedTransactionsandtheTotal AnnualForecastof2017. TheCompanyandwholemembersoftheBoardherebyensurethattheNoticeisfactual,accurateand completewithoutanyfalserecord,misleadingstatementsorimportantomissions. Becauseofthecompany'sindustrycharacteristicsandthehistoricalreason,thecompany'srelated partytransactionsismorecomplexanddifficult,cannotmakeanaccuratereservationatthebeginning oftheyearorevenmid-yearfortheamountofassociatedtransactionswitheachaffiliatedpartyofthe whole year. only according to the changing market situation, and theproduction and operation requirementsintermsofdynamicadjustment,toensuretherationalityandaccuracyoftheestimated amountoftherelatedpartytransactions. I.Deliberationandadditionalcasesonthecompany's2017annualdailyrelatedtransactions Bythedeliberationandapprovalofthe3thmeetingofthecompany’s7thsessionoftheboardofdirectors and 2016annualgeneralmeeting, itis predicted that thetotalamountof thecompany’srelated transactionsonallcommoditysalesand purchasesassociated withtherelatedpartiesin2017is 1,493,140,000Yuan. The4thmeetingofthecompany’s7thsessionoftheboardofdirectorsmadeanadditionalamountfor thedailytradingquotaofthecompanyin2017,withanewforecastof1,683,090,000Yuanin2017. Thecompany'sthirdprovisionalboardofdirectorsin2017adjustedthetotalamountofdailyrelated transactionsin2017andthetotalexpectedamountforthewholeyear,andtheestimatedtotalamount ofdailyrelatedtransactionsin2017was1,572,440,000Yuan. IIAdjustthepartofrelatedtransactionsituation (i)Basicinformationofrelatedtransactions Director Votingornot MengWei Suffrageavoiding ZhaoYang Suffrageavoiding SunNajuan Suffrageavoiding SunMaolin Suffrageavoiding ChenJiajun Suffrageavoiding ZhangXinghai Suffrageavoiding Inadditiontothemattersthatabovedirectorsdon’tparticipateandneedtoabstainfromvoting,other directorsvoteyesformattersnoneedtoabstain,thereisneithernegativevotenorabstentionvote. Thisproposalstillneedstobesubmittedtothecompany’s2ndinterimgeneralmeetingofshareholders of2017fordeliberationandapproval.Atthattime,thecompany’srelatedshareholderswillabstainfrom votingfortherelatedmatters. (ii)djustingAdditionalAmountofDailyRelatedTransactionsandtheTotalAnnualForecastof 2017 (1)Purchasefromtherelatedparties In0000RMB Related Additional TotalItem Relatedperson transacti- Approved amountin forecast CauseanalysisNo. on amount august for2017 contents 2017 1 WazhouPrecisionSteelBallCompany 300 500 420 The price of raw 2 WazhouExactForgeLtd. 15,000 － 18,500 materialshasgoneup 3 Dalian Wazhou Fengyuan Machinery 11,000 － 8,500 Productionoflarge Co.,Ltd productsdeclined 4 WazhouGroupPrecisionRollerlimited Compon 9,500 － 9,500 company ent 5 Wazhou Group Precision Retainer 5,000 － 5,000 LimitedCompany DalianWazhouBearingManufacturing Smallbatchesof 6 EquipmentCo.,Ltd 900 1,200 1,500 productsincreased inthemarket 7 DalianWazhouJinzhouMachineryCo., 0 4,000 4,000 Ltd Subtotal 41,700 5,700 47,420 8 WazhouGroupWindpowerBearingLtd 15,000 － 15,000 9 Wazhou Group Exact Transmission 9,000 － 9,000 BearingCo.,Ltd10 DalianWazhouBearingManufacturing Productio 1,000 1,400 1,400 EquipmentCo.,Ltd n11 WazhouGrouphigh-endautobearing 20,000 － 13,000 Exportsofcar limitedcompany bearingshavefallen12 Wafangdian TongdaBearing 7,000 7,600 7,600 ManufacturingCo.,Ltd Subtotal 52,000 9,000 46,00013 WazhouGroupEquipmentTechnology Equipme 500 800 800 ProjectCo.,Ltd. nt14 DalianWazhouBearingManufacturing Equipme 0 100 200 EquipmentCo.,Ltd nt Subtotal 500 900 1,00015 Kugel- und Rollenlagerwerk Leipzig Goods 500 700 400 Productmarket GmbH decline Subtotal 500 700 40016 WazhouGroup Renting 1,000 － 1,000house 17 WazhouGroup Renting 520 - 520 land WazhouGroup Renting 18 equipme 65 240 240 nt Subtotal 1,585 240 1,760 Water 13 13 19 Wafangdian bearing Power Limited Electricity 1,200 1,800 1,800 Company The 260 260 heating Subtotal 1,473 1,800 2,073 Security andfire 240 - 240 services Promotio nal 70 - 70 WazhouGroup services 20 Technical develop 850 0 0 ment service A trademar 800 - 800 kused Technical 21 Wazhou Group Bearing Engineering develop 0 850 600 technologyresearchcenter ment service Subtotal 1,960 850 1,710 Totalpurchaseofrelatedparties 99,718 19,190 100,363 (2)Promotetotherelatedparties In 0000RMB Related Additional Total Item Relatedperson transacti- Approved amountin forecast Causeanalysis No. on amount august for2017 contents 2017 22 WazhouGroup(USA)BearingCo.,Ltd 12,500 - 7,000 Exportsofcar bearingshavefallen 23 WazhouGroupWindpowerBearingLtd 4,500 - 3,500 Productmarket decline WazhouGrouphigh-endautobearing Demand for 24 limitedcompany Productio 6,500 10,000 15,000 domestic car n bearingshasrisen The company has 25 Wafangdian TongdaBearing 0 - 1,000 an increased ManufacturingCo.,Ltd demand for free customers 26 Kugel-undRollenlagerwerkLeipzig 50 300 450 GmbH Subtotal 23,550 10,300 26,95027 WazhouPrecisionSteelBallCompany Goods 450 120 Thecompany and needsless28 WazhouExactForgeLtd. materials 6,000 12,000 12,000 29 DalianWazhouBearingManufacturing 120 - 60 EquipmentCo.,Ltd 30 WazhouGroupWindpowerBearingLtd 500 - 500 Thecompany 31 WazhouGroupPrecisionRollerlimited 1,500 3,000 2,500 needsless,but company increaseditsfree purchases Thecompany 32 WazhouGroupPrecisionRetainerLimited 850 - 500 needsless,but Company increaseditsfree purchases 33 WazhouGroupSpecialPrecisionBearing 50 - 50 Co.,Ltd Thecompany 34 WazhouGrouphigh-endautobearing 700 - 200 needsless,but limitedcompany increaseditsfree purchases 35 WazhouGroupExactTransmission 0 250 400 BearingCo.,Ltd 36 Wafangdian TongdaBearing 0 50 50 ManufacturingCo.,Ltd 37 WazhouGroup 0 20 20 Subtotal 10,170 15,320 16,400 38 Wazhou Group Exact Transmission 4,500 3,500 Productmarket BearingCo.,Ltd decline 39 Wazhou Group high-end auto bearing 3,500 6,900 4,600 Exportsofcar limitedcompany Compone bearingshavefallen 40 Wazhou Group Precision Roller limited nt 0 500 400 company41 WazhouGroupPrecisionRetainerLimited 0 50 25Company42 WazhouGroup 3,400 0 0 Subtotal 11,400 7,450 8,52543 WazhouExactForgeLtd. 130 - 13044 WazhouGroupSpecialPrecisionBearing 55 - 55 Co.,Ltd45 WazhouGroup 350 - 0 Theplantturnedto high-endleasing46 Wazhou Group Precision Roller limited 55 - 55company47 WazhouGroupPrecisionRetainerLimited Plantrent 72 - 72Company48 Wazhou Group high-end auto bearing 260 - 560 Grouplease limitedcompany transfer49 DalianWazhouFengyuanMachineryCo., 10 - 10Ltd50 DalianWazhouJinzhou MachineryCo., 77 - 77Ltd51 WazhouGroup(auto) Machine 880 - 0 Equipment forhigh rent �Cendrental Grouplease 52 Wazhou Group high-end auto bearing 0 880 1,100 transferand limitedcompany production increases 53 Wazhou Group Precision Roller limited 950 - 950 company54 WazhouGroupSpecialPrecisionBearing 3 - 3 Co.,Ltd55 WazhouGroupPrecisionRetainerLimited 210 - 210Company56 WazhouPrecisionSteelBallCompany 10 - 2057 Wazhou Group Precision Roller limited 20 - 20company58 WazhouGroupPrecisionRetainerLimited Landrent 30 - 30Company59 WazhouGroupSpecialPrecisionBearing 9 - 9 Co.,Ltd60 WazhouExactForgeLtd. 80 - 80 Subtotal 3,201 880 3,38161 WazhouPrecisionSteelBallCompany 180 - 150 Wazhou Group Precision Roller limited The company has62 company Heat 1,000 - 1,400 insufficient treatment processingcapacity63 WazhouGroupSpecialPrecisionBearing 65 - 65 Co.,Ltd64 DalianWazhouJinzhou MachineryCo., 30 - 10Ltd Subtotal 1,275 1,625 Totalsalestorelatedparties 49,596 33,950 56,881 IIIOpinionsofindependentdirectors Company for 2017productstructure adjustment and market changes,thecompany adaptto the changesindailyproductionandbusinessoperationprocess,toindividualtransactionstimelyadjustment, independentdirectorsthink reasonable,normal andcontrolled, and orderlymanner.Thecompany analyzedtheexcesspartsonebyoneandfollowedthecorrespondingprocedures. Thecompanyhasprovidedsufficientinformationtotheindependentdirectorbeforeconsideringthis proposal,andhasmadeanumberofinterpretationwork,whichhasbeenapprovedbytheindependent director.Theindependentdirectoragreedthat thecompanywouldadjusttheamountofadditional amountandtheestimatedannualamountofdaily relatedtransactionsin2017asreasonableandfeasible IVDocumentsavailableforreference 1.Resolutionofthe20173rdextraordinaryBoardofDirectorsMeetingofWBC.;2.Priorapprovalofindependentdirectorsandindependentopinions; 3.OtherdocumentsrequiredbytheShenzhenStockExchange Herebynotify BoardofDirectorsof WafangdianBearingCo.,Ltd. 12Dexcember2017