Short title:WaZhou B Code：200706 No.: 2019-05
Wafangdian Bearing Company Limited
Subsequently Confirm of the Daily Related Transactions for Year of 2018 and Plan
of Daily Related Transactions for year of 2019
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. Execution of the daily related transaction for year of 2018 and ratify the amount above the budget (audited)
Through the 6th meeting of the 7th board of directors and the meeting of the shareholders of 2017,the total amount of
related transactions between the company and related parties in 2018 is estimated to be 1,700,440,000 Yuan.
The actual related transaction amount was 1,452,950,000 yuan.(audited).Companies affiliated transactions actual total
amount not more than is expected to total amount.
2018 daily connection transaction individual component actual exceeded 2018 estimated amount:
(i) Sales to related parties
In 10 thousand Yuan
Actual
Estimated Surplus
No. Related party Details amount in Reasons
for 2018 amount
2018(audited)
Wafangdian Bearing
1 Materials 6,000 9,262 3,262 Production and operation demand
Precision Forging Co., Ltd
Wafangdian Bearing Group
2 Materials 2,500 4,490 1,990 Production and operation demand
Precision Retainer Co., Ltd.
Wafangdian Bearing Group
3 Spare parts 600 3,856 3,256 Production and operation demand
Precision Retainer Co., Ltd.
Wafangdian Bearing
4 High-end Auto Bearing Co., Machines 0 220 220 Let translate to sell
Ltd.
(ii)Purchase from related parties
In 10 thousand Yuan
Actual amount
Estimated Surplus
No. Related party Details in 2018 Reasons
for 2018 amount
(audited)
Wafangdian Bearing Group
1 Spare parts 10,000 15,411 5,411 Production and operation demand
Precision Retainer Co., Ltd.
Dalian Wazhou Jinzhou
2 Spare parts 800 2,185 1,385 Production and operation demand
Machinery Co., Ltd.
Wafangdian Bearing Group
Technology
3 Enginering Technology 800 1,124 324 Production and operation demand
development
Research Center
Germany Leipzig Roller and Technology
4 0 122 122 Production and operation demand
Ball Bearing Co., Ltd. development
Technology
5 zwz Bearing Europe GmbH 0 24 24 Production and operation demand
development
1
Short title:WaZhou B Code：200706 No.: 2019-05
II. Daily related transaction for year of 2019
(i) overview
The Company holds the 9th meeting of the 7th board of directors meeting on April 26, 2019, for deliberated “the
Proposal of Subsequently confirm of the daily related transactions for year of 2018, and plan of related transactions for
year of 2019”(audited), related directors, Meng Wei, Sun Maolin,Zhao Yang,Chen Jiajun,Zhang Xinghai and Sun Najuan
are withdraw from voting. The proposal has approved with 6 agrees, 0 against and 0 abstention vote. Independent
directors issued independent opinions.
The bill should be submitted to the company 2018 annual general meeting of shareholders for approval. And at that
time, the interested shareholder- Wafangdian Bearing Group Co., Ltd. will withdraw from voting in the Meeting.
(ii) Category and amount for related transaction of 2019
In 10 thousand Yuan
Amount in Amount
Amount in
Content Pricing contract or to report
Category No. Related person last year
principle estimated date
(audited)
amount
1 Wafangdian Bearing Precision Ball Manufacturing Co., Ltd. Market-driven 500 71 412
2 Wafangdian Bearing Precision Forging Co., Ltd. Market-driven 23,000 5,961 22,398
3 Dalian Wazhou Fengyuan Machinery Co., Ltd. Market-driven 10,000 56 7,924
Purchasing
4 Wafangdian Bearing Precision Rolling Element Co., Ltd. Spare Market-driven 12,000 3,114 15,411
spare part
5 part
from related Wafangdian Bearing Group Precision Retainer Co., Ltd. Market-driven 6,000 821 5,344
person 6 Dalian Wafangdian Bearing Group Bearing Equipment
Market-driven 1,500 367 1,407
Manufacturing Co., Ltd.
7 Dalian Wazhou Jinzhou Machinery Co., Ltd. Market-driven 2,000 127 2,185
Subtotal 55,000 10,517 55,082
8 Wafangdian Bearing Group Wind Power BearingCo., Ltd. Market-driven 100 82 769
9 Wafangdian Bearing Group Co., Ltd. Market-driven 30,000 9,933 10,396
Purchasing 10 Wazhou Group Precision Drive Bearing Co., Ltd. Market-driven 100 - 10,778
bearing 11 Dalian Wafangdian Bearing Group Bearing Equipment
Products Market-driven 500 - -
products Manufacturing Co., Ltd.
from related 12 Wazhou Group High-end Auto Bearing Co., Ltd. Market-driven 10,000 1,631 10,159
person 13 Wafangdian Bearing Special Precision Bearing Co., Ltd. 10 4 57
14 Wafangdian Tongda Bearing Manufacturing Co., Ltd. Market-driven 9,000 - 9,479
Subtotal 49,710 11,650 41,639
16 Wafangdian Bearing Group Equipment Technical
Market-driven 500 47 358
Purchasing Engineering Co., Ltd.
Equipmen
equipment 17 Dalian Wafangdian Bearing Group Bearing Equipment
t Market-driven 500 0 36
from related Manufacturing Co., Ltd.
person 18 Wafangdian Bearing Power Co., Ltd. Market-driven 0 0 23
Subtotal 1,000 47 417
2
Short title:WaZhou B Code：200706 No.: 2019-05
18
Houses Market-driven 1,200 615 993
Wafangdian Bearing Group Co., Ltd.
Leasing Lands Cost pricing 400 42 547
from related Equipmen
person Cost pricing 300 27 265
t
Subtotal 1,900 684 1,805
Purchasing Waters Cost pricing 40 5 34
fuels and Electricity Cost pricing 1,800 425 1,733
19 Wafangdian Bearing Power Co., Ltd.
power from Government
Heat 200 104 144
related pricing
person Subtotal 2,040 534 1,911
Security,
Mutual
fire-fightin 200 14 213
agreement
20 Wafangdian Bearing Group Co., Ltd. g service
Trademar Mutual
900 292 816
k use agreement
Receiving 21 Wafangdian Bearing Group Enginering Mutual
1,000 252 1,124
service from Technology Research Center Technolo agreement
related 22 Germany Leipzig Roller and Ball Bearing Co., gy Mutual
0 0 122
person Ltd. developm agreement
23 ent Mutual
zwz Bearing Europe GmbH 0 0 24
agreement
24 Maintena Mutual
Wafangdian Bearing Power Co., Ltd. 60 3 40
nce cost agreement
Subtotal 2,160 561 2,339
Total 111,810 23,993 103,194
25 Wafangdian Bearing Group (U.S.A.) Co., Ltd. Market-driven 6,000 1,131 5,507
Wafangdian Bearing Group Wind Power
26 Market-driven 3,000 219 1,413
BearingCo., Ltd.
Sales of Wazhou Group High-end Auto Bearing Co.,
27 Market-driven 4,000 205 3,949
products Ltd.
Products
to related 28 Wafangdian Tongda Bearing Manufacturing Co., Ltd. Market-driven 200 0 -
person Germany Leipzig Roller and Ball Bearing Co.,
29 Market-driven 700 147 727
Ltd.
30 zwz Bearing Europe GmbH Market-driven 28
Subtotal 13,900 1,701 11,623
31 Wafangdian Bearing Precision Ball Manufacturing Co., Ltd. Market-driven 100 0 9
Sales of Wafangdian Bearing Precision Forging Co.,
32 Market-driven 15,000 2,876 9,262
materials to Ltd.
Materials
related Dalian Wafangdian Bearing Group Bearing
33 Market-driven 50 4 18
person Equipment Manufacturing Co., Ltd.
34 Wafangdian Bearing Group Wind Power BearingCo., Ltd. Market-driven 700 3 20
3
Short title:WaZhou B Code：200706 No.: 2019-05
35 Wafangdian Bearing Precision Rolling Element Co., Ltd. Market-driven 5,000 1,087 4,490
Wafangdian Bearing Group Precision Retainer Co.,
36 Market-driven 50 9 7
Ltd.
37 Wafangdian Bearing Special Precision Bearing Co., Ltd. Market-driven 100 15 69
38 Wazhou Group High-end Auto Bearing Co., Ltd. Market-driven 500 4 618
39 Wazhou Group Precision Drive Bearing Co., Ltd. Market-driven 400 80 359
40 Wafangdian Tongda Bearing Manufacturing Co., Ltd. Market-driven 150 23 141
41 Wafangdian Bearing Group Co., Ltd. Market-driven 20 0 5
42 Dalian Wazhou Jinzhou Machinery Co., Ltd. Market-driven 0 0 1
Subtotal 22,070 4,102 14,999
Wazhou Group Precision Drive Bearing Co.,
43 Market-driven 100 0 4,189
Ltd.
Selling Wazhou Group High-end Auto Bearing Co.,
44 Spare Market-driven 2,000 416 1,795
spare part to Ltd.
part
related 45 Wafangdian Bearing Precision Rolling Element Co., Ltd. Market-driven 500 235 3,856
person 46 Wafangdian Bearing Group Precision Retainer Co., Ltd. Market-driven 50 0 2
47 Wafangdian Bearing Group Co., Ltd. Market-driven 5,000 990 413
Subtotal 7,650 1,642 10,254
Wafangdian Bearing Precision Forging Co.,
48 Market-driven 110 26 104
Ltd.
49 Wafangdian Bearing Special Precision Bearing Co., Ltd. Market-driven 50 13 51
50 Wafangdian Bearing Precision Rolling Element Co., Ltd. Market-driven 50 12 49
Wafangdian Bearing Group Precision Retainer Co., Plant
51 Market-driven 90 19 77
Ltd. leasing
Wazhou Group High-end Auto Bearing Co.,
52 Market-driven 600 154 618
Ltd.
53 Dalian Wazhou Fengyuan Machinery Co., Ltd. Market-driven 10 3 11
54 Dalian Wazhou Jinzhou Machinery Co., Ltd. Market-driven 80 20 80
Leasing to Wazhou Group High-end Auto Bearing Co.,
55 Cost pricing 1,100 280 1,022
related Ltd.
person 56 Wafangdian Bearing Precision Rolling Element Co., Ltd. Equipmen Cost pricing 1,000 246 984
t leasing
57 Wafangdian Bearing Special Precision Bearing Co., Ltd. Cost pricing 3 0 4
58 Wafangdian Bearing Group Precision Retainer Co., Ltd. Cost pricing 250 62 248
59 Wafangdian Bearing Precision Ball Manufacturing Co., Ltd. Cost pricing 20 5 20
60 Wafangdian Bearing Precision Rolling Element Co., Ltd. Cost pricing 21 5 21
61 Wafangdian Bearing Group Precision Retainer Co., Ltd. Land Cost pricing 26 7 26
62 Wafangdian Bearing Special Precision Bearing Co., Ltd. leasing Cost pricing 9 2 9
Wafangdian Bearing Precision Forging Co.,
63 Cost pricing 80 19 76
Ltd.
Subtotal 3,499 873 3,399
Offering 64 Wafangdian Bearing Precision Ball Manufacturing Co., Ltd. Heat Market-driven 150 35 127
4
Short title:WaZhou B Code：200706 No.: 2019-05
service to 65 Wafangdian Bearing Precision Rolling Element Co., Ltd. treatment, Market-driven 1,500 310 1,346
related 66 Wafangdian Bearing Special Precision Bearing Co., Ltd. acid Market-driven 60 21 51
person 67 Dalian Wazhou Jinzhou Machinery Co., Ltd. picking Market-driven 20 0 24
Dalian Wafangdian Bearing Group Bearing
68 Market-driven 40 8 36
Equipment Manufacturing Co., Ltd.
Wazhou Group Precision Drive Bearing Co.,
69 Market-driven 80 22
Ltd.
70 Wafangdian Tongda Bearing Manufacturing Co., Ltd. Market-driven 10 2 2
Wazhou Group High-end Auto Bearing Co.,
71 Market-driven 25 0 20
Ltd.
72 Wafangdian Bearing Group Precision Retainer Co., Ltd. 5 0 0
Subtotal 1,890 397 1,606
Selling to Wazhou Group High-end Auto Bearing Co., Equipme
73 Market-driven 0 0 220
related party Ltd. nt
Total 49,009 8,715 41,881
(iii) Actual related transaction last year (2019) In 10 thousand Yuan
Actual Ratio in Difference
amount similar with the Disclos
Authorized busine authorized
Category No. Related person Content in ure
amount ss (%)
2018(una amount index
udited) (%)
Wafangdian Bearing Precision Ball 1.
1 412 500 0.75 82.4
Manufacturing Co., Ltd. Notice
2 Wafangdian Bearing Precision Forging Co., Ltd. 22,398 23,000 40.66 97.4 on
3 Dalian Wazhou Jinzhou Machinery Co., Ltd. 2,185 800 14.39 79.2 Juchao
Website
Purchasi 4 Dalian Wazhou Fengyuan Machinery Co., Ltd. 7,924 10,000 27.98 154.1
ng spare Spare part dated 29
part from Wafangdian Bearing Precision Rolling April
related 5 15,411 10,000 9.70 89.1
Element Co., Ltd. 2019 :”
person
Wafangdian Bearing Group Precision Proposa
6 5,344 6,000 2.55 93.8
Retainer Co., Ltd. l of daily
Dalian Wafangdian Bearing Group Bearing related
7 1,407 1,500 3.97 273.1
Equipment Manufacturing Co., Ltd. transacti
Subtotal 55,082 51,800 - 106.3 ons
executio
Wafangdian Bearing Group Wind Power BearingCo.,
8 769 2,200 1.85 35.0 n and
Ltd.
superad
Wafangdian Bearing Group Co., Ltd. 10,396 15,000 24.97 69.3 dition for
9 Wazhou Group Precision Drive Bearing Co., Ltd. 10,778 14,000 25.89 77.0 year of
Purchasi 2018
ng Dalian Wafangdian Bearing Group Bearing
bearing 10 Products 0 1,600 - 0.0 and
Equipment Manufacturing Co., Ltd.
products ratify the
from Wazhou Group High-end Auto Bearing Co.,
related 11 10,159 20,000 24.40 50.8 amount
Ltd.
person above
Wafangdian Bearing Special Precision
12 57 0 0.14 - the
Bearing Co., Ltd.
budget
13 Wafangdian Tongda Bearing Manufacturing Co., Ltd. 9,479 9,000 22.76 105.3 and
Subtotal 41,639 61,800 - 67.4 Estimate
Purchasi Wafangdian Bearing Equipment Technical d daily
ng 14 Equipment 358 1,000 85.76 35.8 related
Engineering Co., Ltd.
5
Short title:WaZhou B Code：200706 No.: 2019-05
bearing Dalian Wafangdian Bearing Group transacti
equipmen 15 36 500 8.73 7.3
t from Equipment Manufacturing Co., Ltd. on for
related Wafangdian Bearing Power Limited year of
person 23 0 5.51 - 2019
Company
Subtotal 417 1,500 - 27.8
Houses 993 1,500 55.01 66.2
17 Wafangdian Bearing Group Co., Ltd.
Lands 547 400 30.30 136.8
Equipment 265 400 14.69 66.3
Subtotal - 1,805 2,300 - 78.5
Purchasi water 34 20 1.79 170.9
ng fuel
and 18 Wafangdian Bearing Power Limited electricity 1,733 1,800 90.67 96.3
powerfro Company
m related heating 144 400 7.54 36.0
person
Subtotal - 1,911 2,220 - 86.1
Security,
fire-fighting 213 250 100.00 85.2
19 Wafangdian Bearing Group Co., Ltd. service
Trademark
816 900 100.00 90.7
use
Receiving Wafangdian Bearing Group Enginering
service
20 1,124 800 88.50 140.5
Technology Research Center
Technology
from Germany Leipzig Roller and Ball Bearing developme 122 0 9.61 -
related
Co., Ltd. nt
person
zwz Bearing Europe GmbH 24 0 1.89 -
Wafangdian Bearing Power Limited Maintenanc
40 0 100.00 -
Company e cost
Subtotal 2,339 1,950 - 120.0
Total 103,194 121,570 - -15.2
21 Wafangdian Bearing Group (U.S.A.) Co., Ltd. 5,507 10,000 47.38 55.1
Wafangdian Bearing Group Wind Power BearingCo.,
22 1,413 5,000 12.16 28.3
Ltd.
23 Wafangdian Bearing High-end Auto Bearing Co., Ltd. 3,949 5,000 33.97 79.0
Sales of
Products
products
24 Wafangdian Tongda Bearing Manufacturing Co., Ltd. 0 1,000 - 0.0
25 Germany Leipzig Roller and Ball Bearing Co., Ltd. 727 700 6.25 103.9
zwz Bearing Europe GmbH 28 - 0.24 -
Subtotal 11,623 21,700 53.6
Wafangdian Bearing Precision Ball
26 9 200 0.06 4.4
Manufacturing Co., Ltd.
Wafangdian Bearing Precision Forging Co.,
27 9,262 6,000 61.76 154.4
Ltd.
Dalian Wafangdian Bearing Group
Sales of 28 18 130 0.12 14.1
Equipment Manufacturing Co., Ltd. Materials
materials
29 Wafangdian Bearing Group Wind Power BearingCo., Ltd. 20 700 0.14 2.9
30 Wafangdian Bearing Precison Roli g Element Co., Ltd. 4,490 2,500 29.94 179.6
31 Wafangdian Bearing Group Precison Retainer Co., Ltd. 7 900 0.05 0.8
32 Wafangdian Bearing Specia Precison Bearing Co., Ltd. 69 100 0.46 68.6
6
Short title:WaZhou B Code：200706 No.: 2019-05
33 Wafangdian Bearing High-endAuto Bearing Co., Ltd. 618 1,000 4.12 61.8
34 Wazhou Group Precison Drive Bearing Co., Ltd. 359 800 2.39 44.9
35 Wafangdian Tongda Bearing Manufacturing Co., Ltd. 141 100 0.94 140.7
36 Wafangdian Bearing Group Co., Ltd. 5 30 0.03 16.7
Dalan Wazhou Jinzhou Machinery Co., Ltd. 1 - 0.00 -
Subtotal 14,999 12,460 - 120.4
37 Wazhou Group Precison Drive Bearing Co., Ltd. 4,189 6,000 40.85 69.8
38 Wazhou Group High-end Auto Bearing Co., Ltd. 1,795 2,000 17.50 89.8
Selling
spare 39 Wafangdian Bearing Precison Roli g Element Co., Ltd. Spare part 3,856 600 37.60 642.6
part to
related 40 Wafangdian Bearing Group Precison Retainer Co., Ltd. 2 100 0.02 1.8
person 41 Wafangdian Bearing Group Co., Ltd. 413 0 4.03
Subtotal 10,254 8,700 - 117.9
Wafangdian Bearing Precision Forging Co.,
42 104 110 3.05 94.1
Ltd.
Wafangdian Bearing Special Precision
43 51 50 1.51 102.9
Bearing Co., Ltd.
Wafangdian Bearing Precision Rolling
44 Plant 49 50 - 98.0
Element Co., Ltd.
leasing
Wafangdian Bearing Group Precision
45 77 80 1.44 96.1
Retainer Co., Ltd.
46 Wazhou Group High-endAuto Bearing Co., Ltd. 618 700 2.26 88.3
47 Dalan Wazhou Fengyuan Machinery Co., Ltd 11 10 18.18 107.5
Leasing 48 Dalan Wazhou Jinzhou Machinery Co., Ltd. 80 80 0.32 100
to related Wazhou Group High-endAuto Bearing Co., Ltd. 1,022 1,200 2.36 85.2
person Wafangdian Bearing Precison Roli g Element Co., Ltd. 984 1,100 - 89.4
Equipment
Wafangdian Bearing Specia Precison Bearing Co., Ltd. leasing 4 3 30.08 133.3
Wafangdian Bearing Group Precison Retainer Co., Ltd. 248 250 28.94 99.3
53 Wafangdian Bearing Precison Bal Manufacturing Co., Ltd. 20 20 0.12 100
54 Wafangdian Bearing Precison Roli g Element Co., Ltd. 21 21 7.30 100
Land
55 Wafangdian Bearing Group Precison Retainer Co., Ltd. 26 26 0.58 100
leasing
56 Wafangdian Bearing Specia Precison Bearing Co., Ltd. 9 9 0.61 100
57 Wafangdian Bearing Precison Forging Co., Ltd. 76 80 0.77 94.9
Subtotal 3,399 3,789 89.7
Wafangdian Bearing Precision Ball
58 127 150 7.91 84.7
Manufacturing Co., Ltd.
Wafangdian Bearing Precision Rolling
59 1,346 1,500 83.82 89.7
Element Co., Ltd.
Wafangdian Bearing Special Precision
60 51 70 3.18 73.0
Offering Bearing Co., Ltd.
61 Dalian Wazhou Jinzhou Machinery Co., Ltd. Heat 24 20 1.50 120.6
service to
treatment,
related Dalian Wafangdian Bearing Group
acid picking 36 35 2.22 101.7
person Equipment Manufacturing Co., Ltd.
Wazhou Group Precision Drive Bearing Co.,
62 - 10 - 0.0
Ltd.
Wafangdian Tongda Bearing Manufacturing
63 2 10 0.15 24.2
Co., Ltd.
Wazhou Group High-endAuto Bearing Co., Ltd. 20 25 1.22 78.2
7
Short title:WaZhou B Code：200706 No.: 2019-05
Wafangdian Bearing Group Precison Retainer Co., Ltd. - 5 - -
Subtotal 1,606 1,825 88.0
Selling to
Wazhou Group High-end Auto Bearing Co.,
related Equipment 220 0 100.00
Ltd.
party
Total 42,101 48,474 - 86.9
1. Business of the company is “manufacturing of general equipment”, the
bearing finished product is the semi-finished product or spare part for other
industries, thus, the suitable standards for the Company and its affiliated
Board of Directors: Explanation on major difference between the companies reached more than thousands with major changes in market
actual amount and estimated amount in aspect of daily related needs;
transactions (if applicable) 2. In way of transaction, on the principle of cost-reduction, under
circumstances of satisfy quality certification, reduced or increased the
estimated related transactions. some of the business are transfer to social
factories.
Independent Directors: Explanation on major difference between
the actual amount and estimated amount in aspect of daily
related transactions (if applicable)
II. Related person and relationship
(i) introduction of related parties
Registered
Legal capital (in Corp.
Related unit Rep. 10 Main business type Add.
thousand
Yuan)
Manufacturing and sales of bearing, bearing
spare parts, bearing special tools, tooling,
Wafangdian Bearing machinery equipment, abrasive, grinding No.1 Bei Gongji
Group Co., Ltd. Meng Wei 41,379.31 apparatus, casting, auto parts, car parts and LLC One street,
(Wazhou Group) relevant products; bearing design, maintenance, Wafangdian
upkeep and technical service; purchasing and
sales of bearing raw and auxiliary materials;
house and equipment leasing.
Processing& manufacturing of bearing special
mould; manufacturing of bearing special
Dalian Wazhou Group equipment and spare part; equipment improving,
Bearing Manufacturing Chen installation and debugging and repair; design, No.1 Bei Gongji
Co., Ltd. (Equipment Jiajun 1,673.60 manufacturing and repair of vary machinery LLC One street,
Manufacturing) equipment, spare parts and supporting parts; Wafangdian
operation of equipment spare and replacement
part; tool supply of abrasive tool, abrading,
cutting tool, alloy and hardware
Wafangdian Bearing Design, processing & manufacturing and sales of No.1 Bei Gongji
Precision Ball Meng 680 steel ball; manufacturing and sales of machinery LLC One street,
Manufacturing Co., Ltd. Xiangyi spare parts and products Wafangdian
(Precision Ball)
Wafangdian Bearing Forgings processing; machinery spare parts No.1 Bei Gongji
Precision Forging Co., Wang 2,445 processing; repairmen of forging equipment; LLC One street,
Ltd. (Precision Forging) Longjie forging back-out; forging process design; sales of Wafangdian
metal materials
Bearing manufacturing and marketing; Leasing Limited
Wafangdian Bearing of houses and machinery; Import and export of company Zhuhua Industry
Group Wind Power Zhang 20,000 goods and technologies;Wind power bearing (sole Park,
BearingCo., Ltd. Xinghai technology development and consulting;Fan proprietor Wafangdian
operation and maintenance ship of
LP)
8
Short title:WaZhou B Code：200706 No.: 2019-05
Wazhou Group LLC (sole Zhuhua Industry
Precision Drive Bearing Zhao 3,000 Bearing manufacturing and marketing; Leasing proprietor Park,
Co., Ltd. Yang of houses and machinery ship of Wafangdian
LP)
Wafangdian Bearing LLC (sole No.1 Bei Gongji
Special Precision Jing Lei 3,000 Manufacturing and sales of bearing proprietor One street,
Bearing Co., Ltd. ship of Wafangdian
LP)
Wang No.1 Bei Gongji
Dalian Wazhou Jinzhou 5,000 Machinery processing, sales of machinery spare LLC One street,
Machinery Co., Ltd. part Zhuhua Str.
Quanbin Wafangdian
Dalian Wazhou No.1 Bei Gongji
Fengyuan Machinery Zhang 5,000 Machinery processing, sales of machinery spare LLC One street,
Co., Ltd. Xinghai part Zhuhua Str.
Wafangdian
Wafangdian Bearing Mechanical and electrical engineering installation LLC (sole Xijiao Industry
Equipment Technical Zhang 300 and construction, purchasing, manufacturing, proprietor Park,
Engineering Co., Ltd. Xinghai installment and sales of machinery equipment ship of Wafangdian
and apparatus LP)
Sales of bearing products of the Wazhou and its Limited No.535 Buhler
Wafangdian Bearing Jiang Jun US$ 8 subsidiary in USA, including vary auto bearing company akkub Avenue,
Group (U.S.A.) Co., Ltd. million and industrial bearing and forging (joint Industry, State of
venture) California
Wafangdian Bearing Bearing product design, process design, test LLC (sole Bearing
Group Enginering Wang 1000 test, computer application development, bearing proprietor Industry Park,
Technology Research Longjie special machine development design, scientific ship of Wafangdian,Liao
Center research advisory service. LP) ning
Limited
Wafangdian Tongda company No.1 Bei Gongji
Bearing Manufacturing Liu Feng 320 Manufacturing and sales of bearing (state-con One street,
Co., Ltd. trolled Wafangdian
shareholdi
ng)
Wazhou Group Technical and research and development of Limited No.1 Bei Gongji
High-end Auto Bearing Zhao 6,800 bearing, manufacturing and sales; import and company One street,
Co., Ltd. Yang export of cargo and technology (joint Wafangdian
venture)
Wafangdian Bearing LLC (sole No.1 Bei Gongji
Precision Rolling Zhang 2,000 Design, manufacturing and sales of rolling body, proprietor One street,
Element Co., Ltd. Shiyin leasing of houses and equipment ship of Wafangdian
LP)
Wafangdian Bearing LLC (sole No.1 Bei Gongji
Group Precision Zhang 1,000 Design, manufacture and sales of holder, leasing proprietor One street,
Retainer Co., Ltd. Shiyin of houses and equipment ship of Wafangdian
LP)
Germany Leipzig Roller LLC (sole Gutenbergstraβe
and Ball Bearing Co., Meng Wei 5 million Research, manufacturing and sales of bearing proprietor 6 04178 Leipzig
Ltd. Euro ship of Gutenbergstraβe
LP)
No.1 Bei Gongji
LLC (sole One street,
Wafangdian Bearing Hou 25,160 Heat supply, heating and air supply proprietor WafangdianNo.1
Power Co., Ltd. Gang ship of Bei Gongji One
LP) street,
Wafangdian
25 To acquire and sell enterprises, management
zwz Bearing Europe Meng Wei thousand holding companies, set up subsidiaries branch LLC Gutenbergstr. 6,
GmbH Euro and selling department , to sell bearings and 04178
related products in Europe.
(ii) relationship
Wafangdian Bearing Group Co., Ltd. is the parent company of the Company, holds 60.6% shares in the Company; in
2018, chairman of the company Mr. Meng Wei also is the chairman of the Company
Wafangdian Bearing Group Wind Power Bearing Co., Ltd. is the wholly-owned subsidiary of Wafangdian Bearing Group
9
Short title:WaZhou B Code：200706 No.: 2019-05
Co., Ltd.—parent enterprise of the Company. Chairman of the enterprise Mr. Zhang Xinghai also is the director of the
Company.
Wazhou Group Precision Drive Bearing Co., Ltd. is the wholly-owned subsidiary of Wafangdian Bearing Group Co.,
Ltd.—parent enterprise of the Company. Chairman of the enterprise Mr. Zhao Yang also is the director and general
manager of the company.
Wafangdian Bearing Precision Forging Co., Ltd. is the wholly-owned subsidiary of Wafangdian Bearing Group Co.,
Ltd.—parent enterprise of the Company.
Wafangdian Bearing Precision Ball Manufacturing Co., Ltd. is the wholly-owned subsidiary of Wafangdian Bearing
Group Co., Ltd.—parent enterprise of the Company.
Dalian Wazhou Group Bearing Manufacturing Co., Ltd. is the wholly-owned subsidiary of Wafangdian Bearing Group
Co., Ltd.—parent enterprise of the Company. Chairman of the enterprise Mr. Chen Jiajun is the Director of the
Company.
Wafangdian Bearing Special Precision Bearing Co., Ltd. is the subsidiary (with 70% shares hold) of Wafangdian
Bearing Group Co., Ltd.—parent enterprise of the Company.
Dalian Wazhou Jinzhou Machinery Co., Ltd. is the subsidiary (with 25% shares hold) of Wafangdian Bearing Group Co.,
Ltd.—parent enterprise of the Company.
Dalian Wazhou Fengyuan Machinery Co., Ltd. is the subsidiary (with 25% shares hold) of Wafangdian Bearing Group
Co., Ltd.—parent enterprise of the Company.
Wafangdian Bearing Equipment Technical Engineering Co., Ltd. is the subsidiary (with 100% shares hold) of
Wafangdian Bearing Group Co., Ltd.—parent enterprise of the Company. Chairman of the enterprise Mr. Zhang Xinghai
also is the Director of the Company.
Wafangdian Bearing Group (U.S.A.) Co., Ltd is the subsidiary (with 70% shares hold) of Wafangdian Bearing Group Co.,
Ltd.—parent enterprise of the Company.Chairman of the enterprise Mr. Meng Wei also is the Chairman of the Company.
Wafangdian Bearing Group Enginering Technology Research Center is the wholly-owned subsidiary of Wafangdian
Bearing Group Co., Ltd.—parent enterprise of the Company.
Wafangdian Tongda Bearing Manufacturing Co., Ltd. is the subsidiary (with 40% shares hold) of Wafangdian Bearing
Group Co., Ltd.—parent enterprise of the Company..
Wazhou Group High-end Auto Bearing Co., Ltd. is the subsidiary (with 51.47% shares hold) of Wafangdian Bearing
Group Co., Ltd.—parent enterprise of the Company. Chairman of the enterprise Mr. Zhao Yang also is the director and
general manager of the company.
Wafangdian Bearing Precision Rolling Element Co., Ltd is the wholly-owned subsidiary of Wafangdian Bearing Group
Co., Ltd.—parent enterprise of the Company. C
Wafangdian Bearing Group Precision Retainer Co., Ltd. is the wholly-owned subsidiary of Wafangdian Bearing Group
Co., Ltd.—parent enterprise of the Company.
Germany Leipzig Roller and Ball Bearing Co., Ltd. is the wholly-owned subsidiary of Wafangdian Bearing Group Co.,
Ltd.—parent enterprise of the Company. Chairman of the enterprise Mr. Meng Wei also is the Chairman of the
Company.
Wafangdian Bearing Power Co., Ltd. is the wholly-owned subsidiary of Wafangdian Bearing Group Co., Ltd.—parent
enterprise of the Company.
zwz Bearing Europe GmbH, is the wholly-owned subsidiary of Wafangdian Bearing Group Co., Ltd.—parent enterprise
of the Company.
(iii) contractual capacity analysis
The related party Wazhou Group has a favorable business status, and posses corresponding payment capacity, they
has a normal operation and has ability to perform vary agreements signed with the Company. the amount payable to
the Company arising from daily related transactions has a slim chance to be a bad debts, the Company has relatively
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Short title:WaZhou B Code：200706 No.: 2019-05
small risk in performance. The financial conditions of the related party in 2018 are as:
Statement of financial conditions of the related parties for year of 2018(unaudited)
In RMB
Debt
Operation
Related unit Monetary fund Net profit asset Total assets Operation
revenue
ratio %
Wafangdian Bearing Group Co., 72,737,452.70 231,919,452.67 27,277,154.53 36.24 3,008,317,791.54 Normal activity
Ltd. (Wazhou Group)
Dalian Wazhou Group Bearing
Equipment Manufacturing 147,360.50 40,717,546.24 -6,296,911.59 65.95 91,120,615.82 Normal activity
Co., Ltd. （ Equipment
Manufacturing）
Wafangdian Bearing Precision
Ball Manufacturing Co., Ltd. 323,411.92 19,610,529.15 540,034.79 61.42 31,357,223.54 Normal activity
(Precision Ball)
Wafangdian Bearing Precision
Forging Co., Ltd. (Precision 31,114,007.24 522,237,605.29 6,472,461.72 66.18 466,158,971.27 Normal activity
Forging)
Wafangdian Bearing Group Wind 27,482,538.33 264,891,658.74 -2,095,499.65 55.93 933,644,137.14 Normal activity
Power BearingCo., Ltd.
Wazhou Group Precision Drive 1,468,102.85 113,220,700.44 -10,688,934.37 71.74 114,435,253.05 Normal activity
Bearing Co., Ltd.
Wafangdian Bearing Special 2,650,915.62 42,631,188.73 1,936,646.87 16.48 127,980,825.58 Normal activity
Precision Bearing Co., Ltd.
Dalian Wazhou Jinzhou 1,430,106.84 143,563,075.08 3,895,908.75 51.61 111,180,011.79 Normal activity
Machinery Co., Ltd.
Dalian Wazhou Fengyuan 7,790,841.09 89,463,810.15 -309,399.99 34.65 81,419,418.52 Normal activity
Machinery Co., Ltd.
Wafangdian Bearing
Equipment Technical 81,548.53 4,388,796.59 42,300.66 85.78 36,068,806.32 Normal activity
Engineering Co., Ltd.
Wafangdian Bearing Group 21,471,792.03 131,413,655.57 15,613,862.85 16.71 80,051,442.62 Normal activity
(U.S.A.) Co., Ltd.
Wafangdian Bearing Group
Enginering Technology 5,378,137.97 222,383,372.77 13,294,187.06 13.47 260,867,480.37 Normal activity
Research Center
Wafangdian Tongda Bearing 2,354,735.80 155,675,596.04 4,306,751.95 40.64 107,285,798.63 Normal activity
Manufacturing Co., Ltd.
Wazhou Group High-end Auto 1,157,252.49 550,014,831.53 -64,526,256.46 108.61 431,240,732.91 Normal activity
Bearing Co., Ltd.
Wafangdian Bearing Precision 3,653,112.05 185,973,759.40 -22,043,771.91 138.05 86,368,017.19 Normal activity
Rolling Element Co., Ltd.
Wafangdian Bearing Group 1,148,600.63 70,009,895.92 -4,141,172.67 96.68 30,447,064.84 Normal activity
Precision Retainer Co., Ltd.
Germany Leipzig Roller and Ball 286,100.19 70,604,377.96 -5,566,731.10 101.66 80,084,966.00 Normal activity
Bearing Co., Ltd.
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Short title:WaZhou B Code：200706 No.: 2019-05
Wafangdian Bearing Power Co., 111,698.96 210,408,326.70 3,094,032.52 37.22 247,939,482.30 Normal activity
Ltd.
III. Main content of the related transactions
The Company reached a trading agreement with related parties in principle of equality and mutual benefit fair voluntarily,
pricing of the trades are follow the market price except government pricing, finished product pricing and agreement
pricing. The Company conducts normal operation activities with the above mentioned related parties without interest of
the listed company being damaged;
Pricing principle and basis: reference the market pricing while there have comparable prices in marketplace; if there are
no comparable prices, cost plus and agreement price shall prevail;
The above mentioned trading follows the ex aequo et bono in pricing, based on market price, the two parties enter into
a trading frame agreement in voluntary principle of equality and mutual benefit, and guarantee the price keeping to the
one from the third party; trading price are based on the agreement price and actual trading amount, payment
arrangement and settlement are follows accepted industry standards and agreements. As for the related transactions
occurred in the estimation for year of 2019, after the “Proposal of Subsequently Confirm of the Daily Related
Transactions for Year of 2018 and Plan of Daily Related Transactions for year of 2019” deliberated by shareholders
meeting, the Company will trading with the related parties according to actual needs, in line with the market price or
agreement prices determined by negotiation.
IV. Purpose and influence of the listed company
The Company leases the houses and plant house from Wafangdian Bearing Group Co., Ltd., and compensated use the
“ZWZ” trademark, accepting security, fire-fighting and technology development services from Wafangdian Bearing
Group Co., Ltd.and its subsidiary corporation, which is the operation requirement and business needs of the Company,
and all of them providing a benefit guarantee for the Company’s development.
The Company purchasing spare part, bearing products and steel and sales of material, spare part and house leasing
with related parties, the transactions are necessary for the development of the Company and guarantee a normal
business activities for the Company.
The trading refers to the normal activities, and performs in way of necessary, fairness and mutual benefits. The two
parties are strictly in line with the agreements, there are no interest of the listed company being damaged, and show no
major influence on the current and future financial status and operation results, not impact the independent of the listed
company either.
V. Opinions from independent directors and intermediary
Independent directors show totally knowledge of the necessity and pricing of the related transactions for year of 2018
and 2019 after seriously inspections beforehand. The related transactions are conducts in principle of rightness and
equity, the trades are necessity with fair price. The Company purchasing by invitation to bid, saving the cost and shows
no damaged to the minority’s interest. Prior to proposal deliberation, independent directors are totally have the materials
and knowledge, and achieved agreement from the independent directors beforehand.
The independent directors agrees the subsequently Confirm of the Daily Related Transactions for Year of 2018 and
Plan of Daily Related Transactions for year of 2018, the proposal is reasonable, fairness and feasible.
VI. Documents for references
1. Resolution of the Board;
2. Prior approval of the independent directors and opinions;
3. Other documents required by Shenzhen Stock Exchange.
Hereby notify
Board of director of Wafangdian bearing Co., Ltd
April 29, 2019
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