Stockcode：200706 Stock ID: Wazhou B Announcement No.2015-22
Announcement about the excess ratify of implementation of daily related party transactions of 2014 and daily r
elated transactions estimated of 2015
I. Excess ratify about the the implementation of related daily party transactions of 2014
After approved by the third meeting of the sixth session of the Board and the 2013 Annual Shareholders meeting, In 2014, the forecasted sales and purchases of goods between company and related parties amounted to 2,027.35 million Yuan in related party transactions, actually occurred amounted to 1,386.76 million.
Of which the forecasted sales with Wafangdian Bearing Group(American) Co.,Ltd is 9 million Yuan,actually 21.74 million Yuan, the excess part is 12.74 million Yuan; the forecasted sales with Wafangdian Bearing Precision Forging Co., Ltd is 250 million Yuan,actually 279.99 million Yuan. the excess part is 29.99 millionYuan.The main reason lead to excess than forecasted is:1.Due to product structure adjustment needed by operating,the product quantity trade with related parties are not so many,but the unit price is larger;2.The equity of Da lian SKF Wazhou bearing company was deliveried on November 30,2014, thus the trade with Wafangdian Bearing Precision Forging Co., Ltd in December is accunting intoWBC’s scope;3.Because of betterexpectation，the company increase product purchasing from Wafangdian Bearing Group(American) Co.,Ltd
In addtion,
Wafangdian Bearing Group National engineering research center Co.,Ltd(Hereafter “engineering research center”) was set up in 2014,after discuss with WBGC,both parties agree that if the engineering research center can make indepadent financial accounting in 2014, WBC will pay the Technical developing services expense (paied to WBGC before) with amount of 5.4 million Yuan to it ,and list it in to forecasted scheme.However, itdidn’t happen in 2014, which lead to the Technical developing services expense is still charged by WBGC.
II.The General situation of daily related transaction
1. The General situation of daily related transaction
The predicted amount in 2015 is148，121 million Yuan.
The issues that the directors should avoid in related party transactions in 2015
Stockcode：200706 Stock ID: Wazhou B Announcement No.2015-22
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|-|-|
|Director|Voting or not|
|Cong Hong|Suffrage avoiding|
|Meng Wei|Suffrage avoiding|
|Li Shi|Suffrage avoiding|
|Chen Jiajun|Suffrage avoiding|
|Shao Yang|Suffrage avoiding|
|Sun Najuan|Voting|
|Zhu Jiming|Voting|
|Fang Bo|Voting|
|Wu Chunyou|Voting|
|Zhang Li|Voting|
|Liu Yuping|Voting|
|Sun Guangguo|Voting|

Besides above related directors have obviated from the voting while voting for the relative related issues, and the issues thatneedn’t been obviated unanimously passed by the other directors and 0 rejecting vote, 0 abstaining vote; The issues still should be passed byshareholder’s meeting of 2014 .At that time, the related shareholders will obviate from the related issues.
2. The forecast of daily associated transactions of the whole year
Procurement of the products and labor from the associated units and Supply of products and goods for the associated unites
1) Purchase from related party
Unit：RMB10000 Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|Type|According toproducts or labor|No.|Associated unites|Forecastedsum of2015|Actually in 2014||||
||||||Amount||Proportion||
|Procurement oftheprodu|Components|1|Wafangdian Bearing Precision Ball ManufacturingCo., Ltd|650|||||
|||||||618||0.18|
|||2|Wafangdian Bearing Precision Forging Co., Ltd|25,000|27999||8.31||
|||3|Da Lian Wazhou Jin Zhou Machinery CompanyLimited|14,500|11247||3.34||

Stockcode：200706 Stock ID: Wazhou B Announcement No.2015-22
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|-|-|-|-|-|-|-|-|-|
|ctsandlaborfromtheassociatedunits||4|Da Lian Wazhou Feng Yuan Machinery CompanyLimited|16,000|14611||4.34||
||Bearing products|5|Dalian SKF Wazhou Bearing Co., Ltd.(Jan to Nov2014)|0|||||
|||||||17111||5.08|
|||6|WBGC Slewing Bearing Co.,Ltd|4,000|24626||7.31||
|||7|WBGC transmission driving Bearing Co.,Ltd|10,300|10454||3.10||
|||8|Da Lian KOYO Co., Ltd|5,000|4885||1.45||
|||9|Wafangdian Tong Da beaing Manufacturing Co.,Ltd|7,000|0||-||
||Products|10|Dalian Bearing Equipment Manufacturing Co.,Ltd. of WBGC|2,000|1995||0.59||
||Lease of houses|11|Wafangdian Bearing Precision Ball ManufacturingCo., Ltd|22|22||0.01||
||Equipment andsevice|12|Wafangdian Bearing Group EquipmentTechnology Engineer Co.,Ltd|4,500|3499||1.04||
||Security &fire-proof services|13|Wafangdian Bearing Group Corporation|329|329||0.10||
||Advertisementservices|14||80|80||0.02||
||Technicaldevelopingservices|15||0|540||0.16||
||Trademark using|16||900|893||0.27||
||Lease of houses|17||1,900|1228||0.36||
||lease of land|18||460|134||0.04||
||Equipment leasing|19||950|1102||0.33||
||Technicaldevelopingservices|20|Wafangdian Bearing Group National engineeringresearch center Co.,Ltd|540|0||0||
|||21|International trade company|10,000|0||0||
||Total|||104,131|121,373||36.02||

 2)Sale to related party
Stockcode：200706 Stock ID: Wazhou B Announcement No.2015-22
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|-|-|-|-|-|-|-|-|-|
|Type|According toproducts orlabor|No.|Associated unites|Forecastedsum of2015|Actually in 2014||||
||||||Amount||Proportion||
|Supplyofproductsandgoodsfor theassociatedunites|Material|22|Wafangdian Bearing Group Corporation|130|127||0.04||
|||23|Wafangdian Bearing Precision Ball ManufacturingCo., Ltd.|300|||||
|||||||525||0.17|
|||24|Wafangdian Bearing Precision Forging Co., Ltd.|32,000|32873||10.93||
|||25|Dalian Bearing Equipment Manufacturing Co., Ltd.of WBGC|160|141||0.05||
|||26|WBGC Slewing Bearing Co.,Ltd|80|81||0.03||
|||27|Da Lian Wazhou Jin Zhou Machinery CompanyLimited|30|31||0.01||
||Components|28|WBGC Precisiontransmission driving Bearing Co.,Ltd|2,300|||||
|||||||2300||0.76|
|||29|WBGC precision special bearing Co., Ltd|450||443||0.15|
|||30|Dalian SKF Wazhou Bearing Co., Ltd.(Jan to Nov2014)|0|||||
|||||||6289||2.09|
||Lease ofhousing|31|Wafangdian Bearing Precision Forging Co., Ltd.|35|35||0.01||
|||32|WBGC precision special bearing Co., Ltd|51|51||0.02||
|||33|Da Lian Wazhou Feng Yuan Machinery CompanyLimited|11|11||0.00||
|||34|Da Lian Wazhou Jin Zhou Machinery CompanyLimited|80|80||0.03||
||Lease of land|35|Wafangdian Bearing Precision Ball ManufacturingCo., Ltd.|20|||0.00||
|||||||11|||
|||36|WBGC precision special bearing Co., Ltd|9|5||0.00||
|||37|Wafangdian Bearing Precision Forging Co., Ltd.|84|6.3||0.00||
||Heat treatment|38|Wafangdian Tong Da beaing Manufacturing Co., Ltd|50||0||-|
|||39|Dalian SKF Wazhou Bearing Co., Ltd.(Jan to Nov2014)|0|||||
|||||||436||0.14|
|||40|Wafangdian Bearing Precision Ball ManufacturingCo., Ltd.|170|127||0.04||
|||41|WBGC Precisiontransmission driving Bearing Co.,Ltd|210|211||0.07||
|||42|WBGC precision special bearing Co., Ltd|70|41||0.01||
|||43|Da Lian Wazhou Jin Zhou Machinery CompanyLimited|50|32||0.01||
||Product|44|Wafangdian Bearing Group(American) Co.,Ltd.|7,700|2,173||0.72||
||Total|||43,990|46,029.3||15.30||

 III. Introduction of associated parties and associated relation
3.1 Introduction of associated parties
|||||||
|-|-|-|-|-|-|
|Name of associatedunits|Legal ofrepresentative|Enrolledcapital(RMB’0000)|Main business|Type ofenterprise|Corporationaddress|
|Wafangdian BearingGroup Corporation|Cong Hong|41,379.31|Manufacturing and Selling of Bearing, Special toolfor bearing, tooling, equipment, mechanical|Solelystate-owned|No.1 BeigongjiStreet|

Stockcode：200706 Stock ID: Wazhou B Announcement No.2015-22
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|-|-|-|-|-|-|
|（WBGC）|||equipment, special steel, abrasive material,grinding tool, casting, automobile components andparts, locomotive components and parts, relativeindustry products; habitation and food services;building and equipment tenancy||WafangdianCity|
|Dalian WBGCBearing EquipmentManufacturing Co.,Ltd.(EquipmentManufacturing）|Shao Yang|1,673.60|Machining and manufacturing of special mould forbearing; manufacturing of special equipment andspare parts for bearing; equipment improving,installing ,debugging and maintaining；thedesigning ,manufacturing and repairing of varies ofmechanical equipment, components and parts andmatching parts；management of spare equipmentand parts; the purchasing and supplying of grindingtool , abrasive material, blade tool, alloy, andhardware etc.|Solelystate-owned|No.1 BeigongjiStreetWafangdianCity|
|Wafangdian BearingPrecision Steal BallManufacturing Co.,Ltd.（Precision Ball）|GaoYongyang|680|Designing, manufacturing and selling of ball;manufacturing and selling of mechanicalcomponents and parts and mechanical products.|Solely state|No.1 BeigongjiStreetWafangdianCity|
|Wafangdian BearingPrecision ForgingCo., Ltd.（PrecisionForging）|Shao Yang|2,445|machining of forging part and mechanicalcomponents and parts, forging equipmentmaintaining; forging parts annealing；forgingprocess designing；metal material selling.|Solely state|No.1 BeigongjiStreetWafangdianCity|
|Dalian SKF WazhouBearing Co., Ltd.(SKFWazhou（) Before Nov30，2014）|Cong Hong|19,400|Manufacturing and selling of spherical rollerbearing|China andforeign jointventure|No.1 BeigongjiStreetWafangdianCity|
|WBGC SlewingBearing Co.,Ltd|Shao Yang|5,000|Manufacture and sale of bearings , lease ofhousing ,machinery|Solely state|Wa FangdianZhuHuaIndustry Zone|
|WBGC Precisiontransmission drivingBearing Co.,Ltd|Shao Yang|3,000|Manufacture and sale of bearings , lease ofhousing ,machinery|Solely state|Wa FangdianZhuHuaIndustry Zone|
|Wafangdian BearingGroup CorporationPrecise Bearing Co.,Ltd.|Cong Hong|1,000|Manufacture and sale of bearings|Solelystate-owned|No.1 BeigongjiStreetWafangdianCity|
|Da Lian Wazhou JinZhou MachineryCompany Limited|Shao Yang|5,000|Machining operation and sale of mechanicalcomponents and parts|Solelystate-owned|No.1 BeigongjiStreetWafangdianCity|
|Da Lian WazhouFeng Yuan MachineryCompany Limited|Shao Yang|5,000|Machining operation and sale of mechanicalcomponents and parts|Solelystate-owned|No.1 BeigongjiStreetWafangdianCity|
|Wafangdian BearingGroup EquipmentTechnology EngineerCo.,Ltd|ZhangXinghai|300|Electrician engineer install, construction,mechanical equipment, instrument purchase,manufacture, install and sales|Solelystate-owned|Wa FangdianXijiao IndustryZone|
|Wafangdian BearingGroup(American)Co.,Ltd.|ShaoYang|800 doller|Sale bearing made by wazhou and itssubsidiary.which include car bearing and industrybearing and foring|Solelystate-owned|Buhler akkubstreet No.535ofCalif.|
|Wafangdian BearingGroup National|Cong Hong|1,000|Bearing design,technology design;detection andtest,computure development,bearing development|Solelystate-owned|Wa FangdianZhuHua|

Stockcode：200706 Stock ID: Wazhou B Announcement No.2015-22
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|-|-|-|-|-|-|
|engineering researchcenter Co.,Ltd|||design,scientific research service||Industry Zone|
|Da Lian KOYO Co.,Ltd|Cong Hong|18,185.40|Ball bearing and tapered roller bearing|Joint Venture|Da LianShuang Dharbor LiaoDong StreetNo 96|
|Wafangdian Tong Dabeaing ManufacturingCo., Ltd|GaoYongyang|320.00|Manufacture and sale of bearings|State holding|No.1 BeigongjiStreetWafangdianCity|

 3.2 Associated relationship
As the parent company, Wafangdian Bearing Group Corporation holds60.6% of theCompany’s stock , Chairman Mr. Cong Hong also occupies the Chairman of the Company.
Wa Fangdian Slewing Bearing Co.,Ltd is the solely holding subsidiary of thecompany’s parent company-Wafangdian Bearing Group Corporation.
Wa Fangdian Precision transmission driving Bearing Co.,Ltd is the solely holding subsidiary of thecompany’s parent company-Wafangdian Bearing Group Corporation.
Wafangdian Bearing Precision Forging Co., Ltd. is the holding company of thecompany’s parent company-Wafangdian Bearing GroupCorporation，Wafangdian Bearing Group Corporation Limited holds90% of thecompanies’ stocks.
Wafangdian Bearing Precision Ball Manufacturing Co., Ltd. is the participating company of thecompany’s parent company-Wafangdian Bearing Group Corporation, Wafangdian Bearing Group Corporation holds48.9% of thecompany’s stocks.
Dalian Wafangdian Bearing Equipment Manufacturing Co., Ltd. is the solely holding subsidiary of thecompany’s parent company-Wafangdian Bearing Group Corporation.
Dalian SKF Wafangdian Bearing Co., Ltd. is the affiliated company of the Company, The Company holds49% stocks of Dalian SKF Wazhou; Mr. Cong Hong, The chairman of the Company, also occupies the chairman of Dalian SKF Wazhou.
Wafangdian Bearing Group Corporation Precise Special Bearing Co., Ltd. is the solely holding subsidiary of thecompany’s parent company-Wafangdian Bearing Group Corporation.
Da Lian Wazhou Jin Zhou Machinery Company Limited is the affiliated company of the Company, Wafangdian Bearing Group Corporation ----our parent company holds25% stocks of Da Lian Wazhou Jin Zhou Machinery Company Limited; Mr. Shao Yang, The chairman of the Company, also occupies the chairman of Da Lian Wazhou Jin Zhou Machinery Company Limited.
Da Lian Wazhou Feng Yuan Machinery Company Limited is the affiliated company of the Company, Wafangdian Bearing Group Corporation ----our parent company holds25% stocks of Da Lian Wazhou Feng Yuan Machinery Company Limited; Mr. Shao Yang, The chairman of the Company, also occupies the chairman of Da Lian Wazhou Feng Yuan Machinery Company Limited.
Wafangdian Bearing Group Equipment Technology Engineer Co.,Ltd, Wafangdian Bearing Group
Corporation ----our parent company holds100% of theCompany’s stock, Chairman Mr. Zhang Xinghai
Stockcode：200706 Stock ID: Wazhou B Announcement No.2015-22
also occupies the director of the Company
Wafangdian Bearing Group(American) Co.,Ltd., Wafangdian Bearing Group Corporation ----our parent company holds70% of theCompany’s stock, Chairman Mr. Shao Yang also occupies the General Manager of the Company
Wafangdian Bearing Group National engineering research center Co., Ltd. Wafangdian Bearing Group Corporation ----our parent company holds100% of theCompany’s stock, Chairman Mr.Cong Hong also occupies the Chairman of the Company
Wafangdian Bearing Group National engineering research center Co.,Ltd, ----our parent company holds100% of theCompany’s stock, Chairman Mr.Cong Hong also occupies the Chairman of the Company
Da Lian KOYO Co., Ltd, Wafangdian Bearing Group Corporation ----our parent company holds45% of theCompany’s stock, Chairman Mr.Cong Hong also occupies the Chairman of the Company
Wafangdian Tong Da beaing Manufacturing Co., Ltd,due to corporate governane structure change,it will be the potential related party
International trade company, the company is being formed by wafangdian bearing group, it will be a subsidiary of Wafangdian Bearing Group after formed well.
3.3 The analysis for the capacity of fulfillment
Thecompany’s related units such as WBGC are in good operating condition with the corresponding capacity of payment, and can fulfill all the agreements signed with the Company, hardly does the fund collectable from the associated transactions become into bad debts. the Company has low default risk. The 2014 annual financial condition of associated parties are as follows:
Unit：Yuan
||||||||
|-|-|-|-|-|-|-|
|Name of associated unit|Monetary fund|Income|Net profit|Ratio ofliabilities|Total assets|Operatingcondition|
|Wafangdian Bearing GroupCorporation|120,748,668.95|208,254,627.22|94,262,537.89|48.17|3,143,930,186.11|Normal|
|Dalian Wafangdian BearingEquipment Manufacturing Co.,Ltd.|178,539.03|84,877,143.44|4,755,757.44|31.62|118,850,137.82|Normal|
|Wafangdian Bearing PrecisionBall Manufacturing Co., Ltd.|2,404,153.86|29,961,768.46|4,148,024.03|56.55|36,419,875.26|Normal|
|Wafangdian Bearing PrecisionForging Co., Ltd.|27,381,880.73|891,471,940.74|34,993,965.48|45.53|407,174,497.07|Normal|
|Wafangdian Slewing BearingCo.Ltd|5,792,603.41|405,746,755.45|27,470,434.48|38.34|968,449,715.38|Normal|
|WBGC Precisiontransmission driving BearingCo.,Ltd|3,065,827.00|108,350,466.76|6,190,965.34|22.92|196,097,146.46|Normal|

Stockcode：200706 Stock ID: Wazhou B Announcement No.2015-22
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|-|-|-|-|-|-|-|
|Da Lian SKF Wa ZhouBearing Manufacturing Co.Ltd|322,269.90|173,871,553.90|8,124,675.68|20.56|284,148,529.29|Normal|
|WBGC precision specialbearing Co., Ltd|3,913,047.52|28,312,253.61|3,018,035.26|45.28|40,969,896.38|Normal|
|Da Lian Wazhou Jin ZhouMachinery Company Limited|4,100,293.38|130,295,583.10|-502,158.28|50.40|110,067,882.31|Normal|
|Da Lian Wazhou Feng YuanMachinery Company Limited|1,984,551.84|181,496,633.78|912,266.46|19.20|65,553,850.37|Normal|
|Wafangdian Bearing GroupEquipment TechnologyEngineer Co.,Ltd,|2,853,497.45|58,743,140.95|768,414.4|85.19|31,705,505.65|Normal|
|Da Lian KOYO Co., Ltd|5,697,445.31|197,060,747.68|3,480,146.30|18.50|253,315,504.79|Normal|
|Wafangdian Tong Da beaingManufacturing Co., Ltd|6,717,982.15|92,973,552.00|6,463,313.88|44.25|92,301,256.33|Normal|
|Wafangdian BearingGroup(American) Co.,Ltd|1,671,747.51|29,775,439.50|-5,128,872.38|78.59|24,102,288.19|Normal|

3.4 The total amount of all the associated transactions with associated parties in 2014
Unit：RMB10000 Yuan
|||||
|-|-|-|-|
|Associated company|Total amount|Associated company|Total amount|
|Wafangdian Bearing GroupCorporation|4,749|Wafangdian Bearing Precision BallManufacturing Co., Ltd.|1,162|
|Dalian Wafangdian Bearing EquipmentManufacturing Co., Ltd.|2,160|W a f an g d i an B e a ring PrecisionForging Co., Ltd.|57,119|
|Wafangdian Slewing Bearing Co.Ltd|4,080|Wafangdian Bearing GroupCorporation Precise Bearing Co.,Ltd.|580|
|WBGC Precisiontransmission driving Bearing Co.,Ltd|12,810|D a L i an W a z h o u Feng YuanMachinery Company Limited|16,011|
|Da Lian Wazhou Jin Zhou MachineryCompany Limited|14,660|W a f a ng d i a n B e aringGroup(American) Co.,Ltd|7,700|
|Wafangdian Bearing Group EquipmentTechnology Engineer Co.,Ltd|4,500|W a f a ng d i a n B e a ring Group Nationalengineering research center Co.,Ltd|540|
|Wafangdian Tong Da beaingManufacturing Co., Ltd|7,050|Da Lian KOYO Co., Ltd|5,000|
|International trade company|10,000|||

IV. Price making policy and basis
The Company entered the business agreement with the associated parties under the principal of voluntary, equal, reciprocal and dispassion. The pricing was based on the market price excluding
government pricing and agreement pricing. The businesses between the Company and the above
associated parties were the normal operation activities so that could not harm the interests of the listed
Company.
Stockcode：200706 Stock ID: Wazhou B Announcement No.2015-22
V. Transaction target and influence
The Company rents the land, buildings and workshops of Wafangdian Bearing Group Corporation, and usesit’s “ZWZ” brand with compensation, and accepts the services of WBGC such as security, fire fighting, propaganda and technical development. These transactions are the necessary conditions for the operation of the Company, and provides a good advantage for the development of the company .
In order to ensure the normal operation of the company, It is necessary that the company buys component, bearings, goods and steel from the associated parities and supplies the materials, components and rent of housing, etc to them.
It is the normal operation activities that the company buys and sells the products of SKF Wa Zhou and supplies the bearing components to it, and these activities can not harm the interests of the listed company.
The above associated businesses are normal daily operation activities on the basis of dispassion and mutual benefit. Each side is strictly in accordance with the relative agreement. There is no case that harms the interest of the listed company. The associated transactions will not greatly affect the financial condition and operating result of the company in the report period and future, and will not affect the independence of the listed company.
V. The Agreement of associated transactions
Unit: RMB10000yuan
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|-|-|-|-|-|-|
|No.|Agreementofassociated business|Main contents|Settlement method|Agreementvalidity period|Forecastamount of2015|
|1|《Admission Contract ofTrademark Using》|The company use “ZWZ”trademarkof WGBC with compensation to sellself-manufactured finished products.|Cash|2015-1-1 to2015-12-31|900|
|2|《The agreement onproviding promotionservices》|The company makes use of medialike newspapers, TV andbroadcasting etc. of WBGC to carrythrough promotion services for thecompany.|Cash|2015-1-1 to2015-12-31|80|
|3|《The Agreement onTechnical Developing》|The Company entrusts WBGC toprovide product developing, producttesting, engineering projectorganizing and technical services.|Cash|2015-1-1 to2015-12-31|540|
|4|《Contract of houseleasing》|The Company rent building fromPrecision Ball|Cash|2015-1-1 to2015-12-31|22|
|5||The Company rent building fromWBGC|Cash|2015-1-1 to2015-12-31|1,900|
|6|《Contract of lease ofbuilding 》|Wafangdian Bearing specialprecision Co., Ltd rent the building ofWBC|Cash|2015-1-1 to2015-12-31|51|
|7||Wazhou Fengyuan MachineryCompany Limited rent the building ofWBC.|Cash|2015-1-1 to2015-12-31|11|

Stockcode：200706 Stock ID: Wazhou B Announcement No.2015-22
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|-|-|-|-|-|-|
|8||Wafangdian Bearing PrecisionForging Co., Ltd rent the building ofWBC.|Cash|2015-1-1 to2015-12-31|35|
|9||Da Lian Wazhou Jin ZhouMachinery Company Limited rentthe building of WBC.|Cash|2015-1-1 to2015-12-31|80|
|10|《Contract of lease ofland》|WBGC rent the land of WBC|Cash|2015-1-1 to2015-12-31|460|
|11||WBGC precision special bearingCo., Ltd rent the land of WBC|Cash|2015-1-1 to2015-12-31|9|
|12||Precision Ball Corp. rent the landof WBC|Cash|2015-1-1 to2015-12-31|20|
|13||Wafangdian Bearing PrecisionForging Co., Ltd rent the land ofWBC|Cash|2015-1-1 to2015-12-31|84|
|14|《Agreement on providingSecurity & fire-proofservices》|WBGC provide Security & fire-proofservices|Cash|2015-1-1 to2015-12-31|329|
|15|《Ecumenical item ofcomponents and partspurchasing contract》|The Company purchase thenecessary components & parts fromthe associated party, PrecisionForging|Cash|2015-1-1 to2015-12-31|25,000|
|16|《Ecumenical item ofcomponents and partspurchasing contract》|The Company purchase thenecessary components & parts fromthe associated party, Precision BallCorp.|Cash|2015-1-1 to2015-12-31|650|
|17|《Ecumenical item ofcomponents and partsproviding contract》|WBGC Precision transmissiondriving Bearing Co.,Ltd purchasesbearing components and partsproduced by the Company|Cash|2015-1-1 to2015-12-31|2,300|
|18|《Ecumenical item ofcomponents and partsproviding contract》|WBGC Special Precision BearingCo.,Ltd purchases bearingcomponents and parts produced bythe Company|Cash|2015-1-1 to2015-12-31|450|
|19|《Centralized materialpurchasing contract》|The Company makes a centralizedpurchase of all the material such asthe main material like bearing steel,carburized steel and currency spareparts of the equipment, assistantmaterial, etc. except office goods,labor insurance goods and sundrygoods for the associated party,Precision Forging.|By the end of eachmonth, the two sidescarry through settlementaccording to the actualpurchasing amount ofthat month and theprinciple of balance. Thecompany will charge acertain replacingpurchase fee from therelating party.|2015-1-1 to2015-12-31|32,000|

Stockcode：200706 Stock ID: Wazhou B Announcement No.2015-22
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|-|-|-|-|-|-|
|20|《Centralized materialpurchasing contract》|The Company makes a centralizedpurchase of all the material such asthe main material like bearing steel,carburized steel and currency spareparts of the equipment, varieties ofinside and outside package withZWZ trademark, label, wooden box,tray etc. except office goods, laborinsurance goods and sundry goodsfor the associated party, PrecisionBall.|By the end of eachmonth, the two sidescarry through settlementaccording to the actualpurchasing amount ofthat month and theprinciple of balance. Thecompany will charge acertain replacingpurchase fee from theassociated party..|2015-1-1 to2015-12-31|300|
|21|《Contract of materialpurchasing》|The Equipment company purchasesthe material from the Company|By cash or transfer|2015-1-1 to2015-12-31|160|
|22|《Contract of materialpurchasing》|Wafangdian Slewing Bearing Co.Ltdpurchases the material from theCompany|By cash or transfer|2015-1-1 to2015-12-31|1,500|
|23|《Contract of materialpurchasing》|WBGC Precisiontransmission driving Bearing Co.,Ltdpurchases the material from theCompany|By cash or transfer|2015-1-1 to2015-12-31|80|
|24|《Contract of materialpurchasing》|WBGC purchases the material fromthe Company|By cash or transfer|2015-1-1 to2015-12-31|130|
|25|《Contract of materialpurchasing》|The Company sell material andproduct to Da Lian Wazhou Jin ZhouMachinery Company Limited|By cash or transfer|2015-1-1 to2015-12-31|30|
|26|《Contract of machinepurchasing》|The Company purchase machinesfrom Equipment TechnologyEngineer Co.,Ltd|By cash or transfer|2015-1-1 to2015-12-31|4,500|
|27|《Contract of productpurchasing》|The Company purchases productsfrom Equipment Manufacturing|By cash or transfer|2015-1-1 to2015-12-31|2,000|
|28|《Agreement on heattreatment and additionaltempering of bearing parts》|The Company provided heattreatment services to Steel Ballcompany|By cash or transfer|2015-1-1 to2015-12-31|170|
|29|《Agreement on heattreatment and additionaltempering of bearing parts》|The Company provided heattreatment services to WBGCPrecisiontransmission driving Bearing Co.,Ltd|By cash or transfer|2015-1-1 to2015-12-31|210|

Stockcode：200706 Stock ID: Wazhou B Announcement No.2015-22
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|-|-|-|-|-|-|
|30|《Equipment procurementcontract》|The company to lease equipmentfrom WBGC|By cash or transfer|2015-1-1 to2015-12-31|950|
|31|《Agreement on heattreatment and additionaltempering of bearing parts》|The Company provided heattreatment services to WafangdianBearing Group Corporation PreciseBearing Co., Ltd.|By cash or transfer|2015-1-1 to2015-12-31|70|
|32|《Agreement on heattreatment and additionaltempering of bearing parts》|The Company provided heattreatment services to Da LianWazhou Jin Zhou MachineryCompany Limited|By cash or transfer|2015-1-1 to2015-12-31|50|
|33|《Agreement on heattreatment and additionaltempering of bearing parts》|The Company provided heattreatment services to Tong DaBearing Co., Ltd.|By cash or transfer|2015-1-1 to2015-12-31|50|
|34|《Contract of selling ofproducts》|Popularize and sell the bearingmanufactured by WafangdianBearing Group(American) Co.,Ltd.|By cash or transfer|2015-1-1 to2015-12-31|7,700|
|35|《Contract of selling ofproducts》|Popularize and sell the bearingmanufactured by transmissiondriving Bearing Co., Ltd|By cash or transfer|2015-1-1 to2015-12-31|10,300|
|36|《Contract of selling ofproducts》|Popularize and sell the bearingmanufactured by Slewing BearingCo., Ltd|By cash or transfer|2015-1-1 to2015-12-31|4,000|
|37|《Contract of selling ofproducts》|Popularize and sell the bearingmanufactured by Da Lian YOKOCo., Ltd|By cash or transfer|2015-1-1 to2015-12-31|5,000|
|38|《Contract of selling ofproducts》|Popularize and sell the bearingmanufactured by Tong Da bearingCo., Ltd|By cash or transfer|2015-1-1 to2015-12-31|7,000|
|39|《Contract of purchasecomponent 》|Purchase products produced by DaLian Wazhou Jin Zhou MachineryCompany Limited|By cash or transfer|2015-1-1 to2015-12-31|14,500|
|40|《Contract of purchasecomponent 》|Purchase products produced by DaLian Wazhou Feng Yuan MachineryCompany Limited|By cash or transfer|2015-1-1 to2015-12-31|16,000|
|41||International trade company|By cash or transfer|2015-1-1 to2015-12-31|10,000|

VI The independent opinions
After careful verification, we understand the need and price of related party transactions of the company. We believe that the related party transactions between associated units of the company are fair
and just. The transactions are necessary and the price is reasonable, the company use tendering
procurement and other means to save costs. Related transactions will not be at the expense of the
Stockcode：200706 Stock ID: Wazhou B Announcement No.2015-22
interests of minority shareholders. Before consideration of the motion, the company has provided us with sufficient information, made a lot of interpretation work and obtained the consent of us. We agree with the related party transactions in 2014 and the expected related party transactions in 2015 of the company, and believe it is reasonable and feasible. We agree with the matter.
VII The documents for future reference
1、The announcement of Resolution of the third Meeting of 6th Board Session
2、Pre-approve and independent opinions from independent director
3、Agreement of daily related party transactions
4、Other document required by Shenzhen Stock Exchange.
Board of director of Wa Fangdian bearing
Company limited
Apr. 25, 2014