Stock：* STWazhouB Code：200706 No.：2016-48 Wafangdian Bearing Company Limited
Announcement of the bad debt write-off
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.
Wafangdian bearing co., LTD. (hereinafter referred to as the "company") held on the fourth temporary board of director in December 12, 2016, examined and passed the proposal on the bad debt write-off, the specific content is as follows:
I.The statement of the bad debt write-off
In order to reflect the company's financial situation, according to “the accounting standards for enterprises”, “the notice about the listed company complete the issues such as assets depreciation reserves” , “the notice about further improve the quality of financial information disclosure of listed companies”, the company will clean up and write-off a part of accounts receivable which is long-term and failed to achieve recovery, other receivables and prepayment formed in business process. the specific situation report as follows:
(1) The detail of accounts receivable and prepayment written off
|||||||||
|-|-|-|-|-|-|-|-|
|Items|Companyname|Nature|Amount(yuan)|Provision forbaddebts(yuan)|AssetsdecreaseLosses(yuan)|Reason of write-off|Relatedpartytransaction(Y or N)|
|accountreceivable|1|payment for goods|782,420.60|391,210.30|391,210.30|Confirm the payment willnot be repaid afterprosecution|N|
||2|Payment for goods|684,139.18|342,069.59|342,069.59|Confirm the payment willnot be repaid afterprosecution|N|
||3|Payment for goods|3,006,264.56|1,503,132.28|1,503,132.28|The enterprise has beenrevoked|N|
||4|Payment for goods|67,800.98|33,900.49|33,900.49|Confirm the payment willnot be repaid afterprosecution|N|
||5|Payment for goods|77,480.61|77,480.61||Go bankrupt|N|
||6|Payment for goods|162,477.73|162,477.73||Go bankrupt|N|
||Otherscatteredcustomers|Payment for goods|15,634.83|6,487.15|9147.68|Several reasons lade toaccount difference betweenWBC and the clients over 2years, WBC stop businesswith them, and unable toask for payment|N|
|Sub-total||—|4,796,218.49|2,516,758.15|2,279,460.34|||

Stock：* STWazhouB Code：200706 No.：2016-48
|||||||
|-|-|-|-|-|-|
|Items|Companyname|Nature|Amount(yuan)|Reason of write-off|Relatedpartytransaction(Y or N)|
|prepayment|1|Payment for goods|64,074.66|The acceptance check after arrival is unqualified, failed torecovered by many times, stoped trading since 2002, morethan the law statute of limitations|N|
||2|Payment for goods|62,000.00|The acceptance check after arrival is unqualified, failed torecovered by many times, stoped trading since 2008, morethan the law statute of limitations|N|
||3|Payment for goods|60,339.80|The acceptance check after arrival is unqualified, failed torecovered by many times, stoped trading since 2001, morethan the law statute of limitations|N|
||4|Payment for goods|57,100.00|The acceptance check after arrival is unqualified, failed torecovered by many times, stoped trading since 2008, morethan the law statute of limitations|N|
||5|Payment for goods|49,969.60|The acceptance check after arrival is unqualified, failed torecovered by many times, stoped trading since 2001, morethan the law statute of limitations|N|
||6|Payment for goods|42,000.00|The acceptance check after arrival is unqualified, failed torecovered by many times, stoped trading since 2008, morethan the law statute of limitations|N|
||7|Payment for goods|36,613.32|The acceptance check after arrival is unqualified, failed torecovered by many times, stopped trading since 2008, morethan the law statute of limitations|N|
||Otherscatteredcustomers|Payment for goods|220,386.22|Formed more than 3 years, stopped trading and more than thelaw statute of limitations|N|
|Sub-total|||592,483.60|||

(2) The statement of the other receivable write-off
Other receivables are expected to write off about 150 thousand Yuan, for the test product advances and untreated, such as travel expenses. (due to the testing technical standards, unable to obtain invoices; travel payment without reimbursement, no reimbursement vouchers), other receivables aging for more than three years, unable to confirm back, shall write off processing.
II. The influence of the bad debts write-off on the company
The bad debt write-off reflect the company's financial condition, conform to the requirements of the accounting standards and relevant policy, in line with the company's actual situation, does not involve companies related parties, does not harm the interests of the company and the shareholders.
III. Decision-making process
The proposal of bad debt write-off was examined and passed by the company for the fourth the
temporary board of director in 2016 and fourth temporary board of supervisors in 2016, agreed to the
company the bad cancel after verification. According to the provisions of the relevant laws and
Stock：* STWazhouB Code：200706 No.：2016-48 regulations, the proposal of bad debt write-off does not need to submit the company shareholders' meeting for consideration.
IV.The opinion of independent directors
Board of independent director suggests that, the bad debt write-off is to ensurecompany’s accounting standards, and other related regulations and the company actual situation, reflect the company's financial situation, the bad debt write-off is fully for the basis, does not harm the interests of the shareholders especially minority shareholders. the review procedures comply with relevant laws and regulations and the company's articles of association ,so the proposal is approved.
V. The opinion of Board of Supervisors
Board of Supervisors suggests that, according to the accounting standards for enterprises "and other relevant provisions, we carefully check the conditions of the bad debt write-off, it conform to the requirements of the relevant laws and regulations, comply with the company's financial situation, does not involve related parties, does not harm the interests of the company and shareholders. The procedure is legal; the basis is fully, accord with the actual situation of the company. so the proposal is approved.
VI、The documents for future reference
1. Wafangdian Bearing Co., Ltd Resolutions of Board of Directors
2. Wafangdian Bearing Co., Ltd Resolutions of the Board of Supervisors.
3. The independent director independent opinion
Specially announced
Board of director of Wa Fangdian bearing
Company limited
December 13, 2016