Stock：WazhouB Code：200706 No.：2016-17 Announcement about the excess ratify of implementation of daily related party transactions of 2015 and daily r
elated transactions estimated of 2016
I. Excess ratify about the the implementation of related daily party transactions of 2015
After approved by the sixth meeting of the sixth session of the Board and the 2014Annual Shareholders meeting, the seventh meeting of the sixth session of the Board and the extraordinary shareholders' general meeting for the first time in 2015. In 2015, the forecasted sales and purchases of goods between company and related parties amounted to 176,804 million Yuan in related party transactions, actually occurred amounted to126,843 million Yuan . Daily connection transaction actually happened 2015 exceeded 2015 basic situation:
1) Purchase from related party
Unit：RMB10000 Yuan
|||||||||
|-|-|-|-|-|-|-|-|
|No.|Associated unites|Forecastedsum of 2015|2015 yearsafter theadjustmentis expectedto total|Actually in2015|The actualexcess|Thecause oftheadditional|Additional analysis of thereasons|
|1|Wafangdian bearinggroup special precisionbearing co., LTD|-|-|47|-47|new|The company sales companyto buy the products for sale.|
|2|Wazhou group wheelbearing co., LTD|4,000|10,958|11,478|-520|excess|Due to the need of businessdevelopment.|
|3|Wazhou group (USA)bearing co., LTD|-|-|2,341|-2,341|new|Corporations through therelated party generation ofpurchasing roller, do not addany charge.|
|4|Dalian wazhou groupbearing equipmentmanufacturing co., LTD|2,000|-|3,864|-1,864|excess|Due to the need of businessdevelopment.|
|5|Wafangdian bearingprecision steel ballmanufacturing co., LTD|22|-|45|-23|excess||
|6|Wafangdian bearinggroup co., LTD|-|-|540|-540|new|Wazhou group collection.Willbe the beginning of the costis expected to related parties"engineering technologycenter" in the amount ofrelated transactions.|
|Total||||18,318|-5,335|||

2)Sale to related party
Stock：WazhouB Code：200706 No.：2016-17
|||||||||
|-|-|-|-|-|-|-|-|
|No.|Associated unites|Forecastedsum of 2015|2015 yearsafter theadjustmentis expectedto total|Actually in2015|The actualexcess|Thecause oftheadditional|Additional analysis of thereasons|
|1|Dalian north metalmaterials trading centerco., LTD|-|-|1,751|-1,751|new|The affiliated party a new unitfor the end of 2015。|
|2|Dalian wazhou Jin Zhoumachinery co., LTD|30|-|50|-20|excess|The related party, businessdevelopment needs|
|3|Wazhou group precisiontransmission bearingco., LTD|2,300|-|2,905|-605|excess||
|4|Wafangdian bearinggroup special precisionbearing co., LTD|450|-|477|-27|excess||
|5|Wafangdian bearingprecision forging co.,LTD|35|-|46|-11|excess||
|6|Wafangdian bearingprecision steel ballmanufacturing co., LTD|170|-|172|-2|excess||
|7|Dalian wazhou Jin Zhoumachinery co., LTD|50|-|64|-14|excess||
|8|Dalian wazhou fengyuanmachine develop co.,LTD|-|-|3|-3|excess||
|9|Wafangdian tongdabearing manufacturingco., LTD|-|-|49|-49|excess||
|10|Wafangdian bearinggroup co., LTD|130|-|5,602|-5,472|excess|2015 acquisition of windpower spindle products of thecompany to sell.|
|Total||||11,119|-7,954|||

II.The General situation of daily related transaction
1. The General situation of daily related transaction
The predicted amount in 2016 is177,105 million Yuan.
The issues that the directors should avoid in related party transactions in 2016
|||
|-|-|
|Director|Voting or not|
|Meng Wei|Suffrage avoiding|
|Li Shi|Suffrage avoiding|
|Chen Jiajun|Suffrage avoiding|
|Sun Maolin|Suffrage avoiding|
|Zhang Xinghai|Suffrage avoiding|
|Sun Najuan|Suffrage avoiding|

Stock：WazhouB Code：200706 No.：2016-17
|||
|-|-|
|Tang Yurong|Voting|
|Fang Bo|Voting|
|Wu Chunyou|Voting|
|Zhang Li|Voting|
|Wen Bo|Voting|
|Wan Shouyi|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 2015 .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
|||||||||
|-|-|-|-|-|-|-|-|
||According||||Actually in 2015|||
|||||Forecasted||||
|Type|to products|No.|Associated unites|||||
|||||sum of 2016|Amount|Proportion||
||or labor|||||||
||||Wafangdian Bearing Precision Ball|||||
|||1||300|245||0.07|
||||Manufacturing Co., Ltd|||||
||||Procurement of the products and labor|||||
|||2||20,000|18,132||5.08|
||||from the associated units|||||
||||Da Lian Wazhou Jin Zhou Machinery|||||
|Procurement||3||9,500|8,794||2.46|
||Components||Company Limited|||||
|of the||||||||
||||Da Lian Wazhou Feng Yuan Machinery|||||
|products and||4||10,000|8,767||2.45|
||||Company Limited|||||
|labor from||||||||
|||5|Wazhou group (USA) bearing co., LTD|0|2,341||0.66|
|the||||||||
||||Dalian wazhou group bearing equipment|||||
|associated||6||1,500|1,192||0.33|
||||manufacturing co., LTD|||||
|units||||||||
|||7|Wazhou group wheel bearing co., LTD|5,000|11,478||3.21|
||||Wazhou group precision transmission|||||
|||8||9,500|8,577||2.4|
||Bearing||bearing co., LTD|||||
||||Dalian koyo wazhou automobile bearing|||||
|||9||4,000|3,782||1.06|
||||co., LTD|||||

Stock：WazhouB Code：200706 No.：2016-17
|||||||||
|-|-|-|-|-|-|-|-|
|||Wafangdian bearing group special||||||
||10||-||47|0.01||
|||precision bearing co., LTD||||||
|||Wafangdian tongda bearing||||||
||11||7,000||3,985|1.12||
|||manufacturing co., LTD||||||
|Equipment||Dalian wazhou group bearing equipment||||||
||12||1,800||1,672|0.47||
|||manufacturing co., LTD||||||
|Lease of||Wafangdian bearing precision steel ball||||||
||13||22||45|0.01||
|houses||manufacturing co., LTD||||||
|Equipment||Wafangdian bearing group equipment||||||
||14||3,000||2,724|0.76||
|and sevice||technology engineering co., LTD||||||
|Security &||||||||
|fire-proof|15||329||329|0.09||
|services||||||||
|Advertiseme||||||||
|nt|16||80||80|0.02||
|services||||||||
|Technical||||||||
|developing|17||540||540|0.15||
|services||Wafangdian bearing group co., LTD||||||
|Trademark||||||||
||18||500||400|0.11||
|using||||||||
|Lease of||||||||
||19||1,900||767|0.21||
|houses||||||||
|lease of land|20||524||219|0.06||
|Equipment||||||||
||21||1,239||806|0.23||
|leasing||||||||
||22||16,000||10,297|2.88||
|||Wazhou group high-end automobile||||||
||23|||1,3000|-|-||
|Goods||bearing co., LTD||||||
|||Dalian north metal materials trading||||||
||24||12,000||-|-||
|||center co., LTD||||||
|Total|||117,734||85,219||23.86|

 2)Sale to related party
||||||||
|-|-|-|-|-|-|-|
|Type|Accordingto productsor labor|No.|Associated unites|Forecastedsum of 2016|Actually in 2015||
||||||Amount|Proportion|
|Supply ofproducts andgoods for theassociated|Material|25|Wafangdian bearing precision steel ballmanufacturing co., LTD|70|56|0.02|
|||26|Wafangdian bearing precision forgingco., LTD|21,000|19,266|8.38|

Stock：WazhouB Code：200706 No.：2016-17
||||||||
|-|-|-|-|-|-|-|
|unites||27|Dalian north metal materials tradingcenter co., LTD|9,000|1,751|0.76|
|||28|Dalian wazhou group bearing equipmentmanufacturing co., LTD|400|132|0.06|
|||29|Wazhou group wheel bearing co., LTD|200|76|0.03|
|||30|Dalian wazhou Jin Zhou machinery co.,LTD|150|50|0.02|
||Components|31|Wazhou group precision transmissionbearing co., LTD|6,000|2,905|1.26|
|||32|Wafangdian bearing group specialprecision bearing co., LTD|600|477|0.21|
||Lease ofhousing|33|Wafangdian bearing precision forgingco., LTD|55|46|0.02|
|||34|Wafangdian bearing group specialprecision bearing co., LTD|51|51|0.02|
|||35|Dalian wazhou fengyuan machinedevelop co., LTD|11|11|-|
|||36|Dalian wazhou Jin Zhou machinery co.,LTD|80|80|0.03|
||Lease of land|37|Wafangdian bearing precision steel ballmanufacturing co., LTD|20|20|0.01|
|||38|Wafangdian bearing group specialprecision bearing co., LTD|9|9|-|
|||39|Wafangdian bearing precision forgingco., LTD|55|43|0.02|
||Heattreatment|40|Wafangdian tongda bearingmanufacturing co., LTD|50|7|-|
|||41|Wafangdian bearing precision steel ballmanufacturing co., LTD|300|172|0.07|
|||42|Wazhou group precision transmissionbearing co., LTD|-|134|0.06|
|||43|Wafangdian bearing group specialprecision bearing co., LTD|100|45|0.02|
|||44|Dalian wazhou Jin Zhou machinery co.,LTD|100|64|0.03|
|||45|Dalian wazhou fengyuan machinery co.,LTD develop|20|3|-|
||Product|46|Wafangdian tongda bearingmanufacturing co., LTD|100|49|0.02|
|||47|Wazhou group (USA) bearing co., LTD|13,000|10,517|4.57|
|||48|Wafangdian bearing group co., LTD|8,000|5,602|2.44|
||Total|||59,371|41,566|18.07|

Stock：WazhouB Code：200706 No.：2016-17 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（WBGC）|Cong Hong|41,379.31|Manufacturing and Selling of Bearing, Special toolfor bearing, tooling, equipment, mechanicalequipment, special steel, abrasive material,grinding tool, casting, automobile components andparts, locomotive components and parts, relativeindustry products; habitation and food services;building and equipment tenancy|Solelystate-owned|No.1 BeigongjiStreetWafangdianCity|
|Dalian WBGCBearing EquipmentManufacturing Co.,Ltd.(EquipmentManufacturing）|Chen Jiajun|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）|Meng Wei|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 north metalmaterials tradingcenter co., LTD|Meng Wei|1,000|Metal materials sales;Computer networktechnology development, technical advisoryservices;General cargo warehousing (excludingdangerous chemicals and the specialapproval);Domestic general trade, goods andtechnology import and export;Enterpriseinformation consulting|joint venture|No.1 BeigongjiStreetWafangdianCity|
|WBGC SlewingBearing Co.,Ltd|Meng Wei|5,000|Manufacture and sale of bearings , lease ofhousing ,machinery|Solely state|Wa FangdianZhuHuaIndustry Zone|
|WBGC Precisiontransmission drivingBearing Co.,Ltd|Zhao Yang|3,000|Manufacture and sale of bearings , lease ofhousing ,machinery|Solely state|Wa FangdianZhuHuaIndustry Zone|
|Wafangdian BearingGroup Corporation|Cong Hong|1,000|Manufacture and sale of bearings|Solelystate-owned|No.1 BeigongjiStreetWafangdian|

Stock：WazhouB Code：200706 No.：2016-17
|||||||
|-|-|-|-|-|-|
|Precise Bearing Co.,Ltd.|||||City|
|Da Lian Wazhou JinZhou MachineryCompany Limited|ZhangXinghai|5,000|Machining operation and sale of mechanicalcomponents and parts|Solelystate-owned|No.1 BeigongjiStreetWafangdianCity|
|Da Lian WazhouFeng Yuan MachineryCompany Limited|ZhangXinghai|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.|Meng Wei|800 doller|Sale bearing made by wazhou and itssubsidiary.which include car bearing and industrybearing and foring|Solelystate-owned|Buhler akkubstreet No.535ofCalif.|
|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|Sun Maolin|320|Manufacture and sale of bearings|State holding|No.1 BeigongjiStreetWafangdianCity|
|Wafangdian bearinggroup equipmenttechnologyengineering co., LTD|Men Wei|6,800|Bearing technology and research anddevelopment, manufacture, marketing;Goods andtechnology import and export|Joint Venture|No.1 BeigongjiStreetWafangdianCity|

3.2 Associated relationship
Wafangdian bearing group co., LTD is the company's parent company, with a60.6% stake.In 2015 the company general manager Mr Meng is the chairman of the board of directors of the company.
Wazhou group wheel bearing co., LTD is a wholly owned subsidiary of wafangdian bearing group co., LTD.The company's chairman Mr Meng is the chairman of the board of directors of the company.
Wazhou group precision transmission bearing co., LTD. is a wholly owned subsidiary of wafangdian bearing group co., LTD., wafangdian bearing group co., LTD holds100% share in the company.
Wafangdian bearing precision forging co., LTD. is a wholly owned subsidiary of wafangdian
bearing group co., LTD., wafangdian bearing group co., LTD holds100% share in the company.
Wafangdian bearing precision steel ball manufacturing co., ltd. is a wholly owned subsidiary of
Stock：WazhouB Code：200706 No.：2016-17 wafangdian bearing group co., LTD., wafangdian bearing group co., LTD holds a100% share in the company.
Dalian wazhou group bearing equipment manufacturing co., LTD., is a wholly owned subsidiary of wafangdian bearing group co., LTD., wafangdian bearing group co., LTD holds100% share in the company.
Wafangdian bearing group co., LTD is Dalian north metal materials trading center co.,LTD’s parent company, with a60.6% share.Mr Meng is the chairman of the board of directors of the company.
Wafangdian bearing group special precision bearing co., LTD is a wholly owned subsidiary of wafangdian bearing group co., LTD.,wafangdian bearing group co., LTD holds100% share in the company.
Dalian wazhou Jin Zhou machinery co., LTD is a subsidiary wafangdian bearing group co., LTD.,wafangdian bearing group co., LTD holds25% share in the company.The chairman of the board of directors of the company for the company director Mr Xing-hai zhang.
Dalian wazhou fengyuan machine develop co., LTD is a subsidiary wafangdian bearing group co., LTD.,wafangdian bearing group co., LTD holds25% share in the company.The chairman of the board of directors of the company for the company director Mr Xing-hai zhang.
Wafangdian bearing group equipment technology engineering co., LTD is a wholly owned subsidiary of wafangdian bearing group co., LTD., wafangdian bearing group co., LTD holds a100% share in the company.The chairman of the board of directors of the company for the company director Mr Xing-hai zhang.
Wazhou group (USA) bearing co., LTD is a subsidiary wafangdian bearing group co., LTD.,wafangdian bearing group co., LTD holds70% share in the company.The chairman of the board of directors of the company for the company director Mr Meng Wei.
Dalian koyo wazhou automobile bearing co., LTD is a subsidiary wafangdian bearing group co., LTD.,wafangdian bearing group co., LTD holds45% share in the company.
Wafangdian tongda bearing manufacturing co., LTD is a subsidiary wafangdian bearing group co., LTD.,wafangdian bearing group co., LTD holds40% share in the company.The chairman of the board of directors of the company for the company director Mr Sun Maolin is general manager of the company.
Wazhou group high-end automobile bearing co., LTD.is a subsidiary wafangdian bearing group co., LTD.,wafangdian bearing group co., LTD holds51.47% share in the company.The chairman of the board of directors of the company to the company chairman Mr Meng Wei.
Stock：WazhouB Code：200706 No.：2016-17 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 2015 annual financial condition of associated parties are as follows:
Unit：Yuan
||||||||
|-|-|-|-|-|-|-|
|Name of associatedunit|Monetary fund|Income|Net profit|Ratio ofliabilities|Total assets|Operatingcondition|
|Wafangdian bearinggroup co., LTD|211,151,981.87|714,658,810.29|71,214,604.57|64.91|3,547,637,492.19|Normal|
|Wafangdian bearinggroup of specialprecision bearing co.,LTD|31,702,482.61|30,571,395.33|2,501,100.85|15.71|112,421,951.83|Normal|
|Dalian wazhou groupbearing equipmentmanufacturing co.,LTD|2,062,036.78|61,553,823.54|1,187,600.96|35.63|121,486,057.23|Normal|
|Wafangdian bearingprecision steel ballmanufacturing co.,LTD|2,030,780.97|36,212,907.21|9,780,103.03|37.20|34,819,713.39|Normal|
|Wafangdian bearingprecision forging co.,LTD|12,190,177.45|554,074,363.49|431,864.52|40.62|321,208,005.38|Normal|
|Wafangdian bearinggroup precisionturntable bearing co.,LT|2,869,925.00|505,189,717.45|69,690,770.05|33.40|964,138,279.33|Normal|
|Wafangdian bearinggroup precisiontransmission bearingco., LTD|3,303,535.79|87,738,153.48|-9,321,070.54|16.90|163,981,295.80|Normal|
|Dalian wazhou JinZhou machinery co.,LTD|138,336.81|86,884,220.93|-3,334,425.91|43.41|91,376,827.16|Normal|
|Wafangdian tongdabearing manufacturingco., LTD|6,073.49|69,699,610.60|2,692,600.32|41.92|90,584,427.42|Normal|

Stock：WazhouB Code：200706 No.：2016-17
||||||||
|-|-|-|-|-|-|-|
|Dalian wazhoufengyuan machineryco., LTD develop|1,613,031.59|94,806,246.30|129,052.76|8.53|58,049,568.51|Normal|
|Wazhou group (USA)bearing co., LTD|5,101,767.87|109,789,318.92|2,349,469.04|87.17|60,761,712.20|Normal|
|Dalian north metalmaterials tradingcenter co., LTD|2,000,000.00|17,512,466.00|||2,000,000.00|Normal|
|Dalian koyo wazhouautomobile bearingco., LTD|6,286,434.88|172,482,542.84|2,948,029.76|10.88|234,945,368.60|Normal|
|Wafangdian bearinggroup equipmenttechnologyengineering co., LTD|786,941.74|93,892,962.11|1,579,051.51|87.78|45,692,472.27|Normal|
|Wazhou grouphigh-end automobilebearing co., LTD.|6,730,248.62||-198.38|0.03|68,017,191.62|Norma|

3.4 The total amount of all the associated transactions with associated parties in 2015
Unit：RMB10000 Yuan
|||||
|-|-|-|-|
|Associated company|Total amount|Associated company|Total amount|
|Wafangdian bearing group co., LTD|29,112|Wazhou group precision transmissionbearing co., LTD|15,500|
|Wafangdian bearing precision steelball manufacturing co., LTD|712|Dalian koyo wazhou automobile bearingco., LTD|4,000|
|Wafangdian bearing precisionforging co., LTD|41,110|Wafangdian tongda bearing manufacturingco., LTD|7,150|
|Dalian wazhou Jin Zhou machineryco., LTD|9,830|Wafangdian bearing group equipmenttechnology engineering co., LTD|3,000|
|Dalian wazhou fengyuan machinedevelop co., LTD|10,031|Dalian north metal materials trading centerco., LTD|21,000|
|Wazhou group (USA) bearing co.,LTD|13,000|Wafangdian bearing group specialprecision bearing co., LTD|760|
|Dalian wazhou group bearingequipment manufacturing co., LTD|3,700|Wazhou group wheel bearing co., LTD|5,200|
|Wazhou group high-end automobilebearing co., LTD|13,000|||

IV. Price making policy and basis
Stock：WazhouB Code：200706 No.：2016-17 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.
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
||||||||
|-|-|-|-|-|-|-|
|No.|Agreementof associatedbusiness|Main contents|Settlement method|Agreementvalidity period|Forecastamount of2016||
|1|《The trademark usepermission contract》|The company paid usewazhou group "ZWZ" brandsales since the manufacturedgoods|Cash|2016-1-1 至2016-12-31|||
|||||||500|
|2|《Provide advertisingservices agreement》|Companies use wazhougroup of newspapers,television, radio and othermedia to propagandize for thecompany services|Cash|2016-1-1 至2016-12-31|||
|||||||80|
|3|《Technology developmentagreement》|Company commissionednational engineering researchcenter for bearing wafangdianbearing group co., LTD., toprovide product development,product experiment, theorganization of the projectand technical services|Cash|2016-1-1 至2016-12-31|||
|||||||540|
|4|《House lease contract》|Company to precision steelball rental housing assets|Cash|2016-1-1 至2016-12-31|||
|||||||22|

Stock：WazhouB Code：200706 No.：2016-17
|||||||
|-|-|-|-|-|-|
|5||Wazhou group to rentalhousing assets|Cash|2016-1-1 至2016-12-31||
||||||1,900|
|6|《Workshop leasingcontract》|Company to related partyspecial precision factory rent|Cash|2016-1-1 至2016-12-31||
||||||51|
|7||Company to related partyspecial precision factory rent|Cash|2016-1-1 至2016-12-31||
||||||11|
|8||Company to related partiesprecision forging factory rent|Cash|2016-1-1 至2016-12-31||
||||||55|
|9||Company to the related partydalian wazhou Jin Zhoufactory rent|Cash|2016-1-1 至2016-12-31||
||||||80|
|10|《Land lease contract》|Wazhou group to lease land|Cash|2016-1-1 至2016-12-31||
||||||524|
|11||Company to the specialprecision leased land|Cash|2016-1-1 至2016-12-31||
||||||9|
|12||Company to precision steelball company leased land|Cash|2016-1-1 至2016-12-31||
||||||20|
|13||Company to the precisionforging company leased land|Cash|2016-1-1 至2016-12-31||
||||||55|
|14|《To provide security, fireservice agreement》|By wazhou group to thecompany to provide security,fire service|Cash|2016-1-1 至2016-12-31||
||||||329|
|15|《Spare parts purchasecontract general terms andconditions》|Company to the related partyprecision forging procurementrequired spare parts|Cash|2016-1-1 至2016-12-31||
||||||20,000|
|16||Company to the related partyprecision steel ball needed forpurchasing spare parts|Cash|2016-1-1 至2016-12-31||
||||||300|
|17||Company to related partiesJin Zhou machinery neededfor purchasing spare parts|Cash|2016-1-1 至2016-12-31||
||||||9,500|
|18||Company to related partiesfengyuan machine developprocurement required spareparts|Cash|2016-1-1 至2016-12-31||
||||||10,000|
|19||Company to related partiesbearing equipmentmanufacturing purchasingspare parts needed|Cash|2016-1-1 至2016-12-31||
||||||1,500|
|20|《Spare parts supplycontract general terms andconditions》|The shaft company purchaseproduction of bearing parts|Cash|2016-1-1 至2016-12-31||
||||||6,000|
|21||Special precision companypurchase production ofbearing parts|Cash|2016-1-1 至2016-12-31||
||||||600|
|22|《Material centralizedpurchasing agreement》|Centralized purchasingcompany for related partyprecision forging companybearing steel, carburizedsteel such as main rawmaterials, equipment generalspare parts, auxiliary|By the end of eachmonth, the twosides carry throughsettlementaccording to theactual purchasingamount of that|2016-1-1 至2016-12-31||
||||||21,000|

Stock：WazhouB Code：200706 No.：2016-17
|||||||
|-|-|-|-|-|-|
|||materials and other than theoffice supplies, laborinsurance supplies, groceriesall supplies, materials|month and theprinciple of balance.The company willcharge a certainreplacing purchase|||
|23|《Material centralizedpurchasing agreement》|Centralized purchasingcompany for related partyprecision steel ball bearingsteel, carburized steel suchas main raw materials,equipment general spareparts, ZWZ brand withvarious internal and externalpackaging, labels, woodencases and pallets and otherthan the office supplies, laborinsurance supplies, groceriesall supplies, materials.|By the end of eachmonth, the twosides carry throughsettlementaccording to theactual purchasingamount of thatmonth and theprinciple of balance.The company willcharge a certainreplacing purchase|2016-1-1 至2016-12-31||
||||||70|
|24|《Material centralizedpurchasing agreement》|Metal materials trading centerto the company to purchasematerials|By cash or transfer|2016-1-1 至2016-12-31||
||||||9,000|
|25|《Material centralizedpurchasing agreement》|Equipment company to buygoods|By cash or transfer|2016-1-1 至2016-12-31||
||||||400|
|26|《Material centralizedpurchasing agreement》|Rotary buy goods to thecompany|By cash or transfer|2016-1-1 至2016-12-31||
||||||200|
|27|《Material centralizedpurchasing agreement》|Wazhou Jin Zhou machinerycompany sales materials,products, etc|By cash or transfer|2016-1-1 至2016-12-31||
||||||150|
|28|《Equipment procurementcontract》|Company to the equipmenttechnology engineering co.,LTD., purchasing products|By cash or transfer|2016-1-1 至2016-12-31||
||||||3,000|
|29|《Equipment procurementcontract》|Company to lease equipmentwazhou group co., LTD|By cash or transfer|2016-1-1 至2016-12-31||
||||||1,239|
|30|《Equipment procurementcontract》|Company purchase productsto equipment manufacturingcompany|By cash or transfer|2016-1-1 至2016-12-31||
||||||1,800|
|31|《Bearing parts andadditional tempering heattreatment protocol》|Companies to provide heattreatment services to tongdacompany|By cash or transfer|2016-1-1 至2016-12-31||
||||||50|
|32|《Bearing parts andadditional tempering heattreatment protocol》|Company to the ball with heattreatment services|By cash or transfer|2016-1-1 至2016-12-31||
||||||300|
|33|《Bearing parts andadditional tempering heattreatment protocol》|Company to the specialprecision heat treatmentservices|By cash or transfer|2016-1-1 至2016-12-31||
||||||100|

Stock：WazhouB Code：200706 No.：2016-17
|||||||
|-|-|-|-|-|-|
|34|《Bearing parts andadditional tempering heattreatment protocol》|Companies to provide heattreatment services to JinZhou machinery company|By cash or transfer|2016-1-1 至2016-12-31||
||||||100|
|35|《Bearing parts andadditional tempering heattreatment protocol》|Companies to provide heattreatment services tofengyuan company develop|By cash or transfer|2016-1-1 至2016-12-31||
||||||20|
|36|《Commodity procurementcontract》|Wazhou group companypurchasing goods|By cash or transfer|2016-1-1 至2016-12-31||
||||||16,000|
|37|《Commodity procurementcontract》|Purchasing goods to metalstrading center|By cash or transfer|2016-1-1 至2016-12-31||
||||||12,000|
|38|《Commodity procurementcontract》|To wazhou group buyinghigh-end automobile bearingco., LTD|By cash or transfer|2016-1-1 至2016-12-31||
||||||1,3000|
|39|《Product sales contract》|To the related party wazhougroup (USA) bearing co.,LTD., selling products|By cash or transfer|2016-1-1 至2016-12-31||
||||||13,000|
|40|《Product sales contract》|Promote and sell shaftcompany production ofbearings|By cash or transfer|2016-1-1 至2016-12-31||
||||||9,500|
|41|《Product sales contract》|Promote and sell wheelcompany production ofbearings|By cash or transfer|2016-1-1 至2016-12-31||
||||||5,000|
|42|《Product sales contract》|Promote and sell wazhoucompany production ofbearings|By cash or transfer|2016-1-1 至2016-12-31||
||||||4,000|
|43|《Product sales contract》|Tongda bearing productspromotion and sales|By cash or transfer|2016-1-1 至2016-12-31||
||||||7,100|
|44|《Product sales contract》|Promote and sell tile bearinggroup co., LTD. Production ofbearings|By cash or transfer|2016-1-1 至2016-12-31||
||||||8,000|

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 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 2015 and the expected related party transactions in 2016of 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
Stock：WazhouB Code：200706 No.：2016-174、Other document required by Shenzhen Stock Exchange.
Board of director of Wa Fangdian bearing
Company limited
Apr. 22, 2016