Stock：WazhouB Code：200706 No.：2020-09

Wafangdian Bearing Co., LTD on Daily

Connection Transaction Announcement is Expected in 2020

I. 2019 daily related transactions

Approved by the ninth and tenth meetings of the seventh board of directors, the 2018 annual general meeting of shareholders, and the first extraordinary general meeting of shareholders in 2019,the total amount of related transactions between the company and related parties in 2019 is estimated to be

1,646,690,000yuan.The actual related transaction amount was 1,230,850,000yuan.Companies affiliated transactions actual total amount not more than is expected to total amount.

II. Daily overview related transactions

The Company holds the 4th meeting of the 8th board of directors meeting on April 24, 2020, for deliberated “the Proposal of on daily connection transaction announcement is expected in 2020” related directors, Liu jun, Zhao Yang,Chen Jiajun,Zhang Xinghai and Sun Najuan are withdraw from voting. The proposal has approved with 7agrees, 0 against and 0 abstention vote. Independent directors issued prior approval and independent opinion.

In 2020, the company is expected to the goods during the related parties of the total amount of sales and purchase of related party transactions is 1,590,800,000 yuan.

The bill should be submitted to the company 2019 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.

1 Stock：WazhouB Code：200706 No.：2020-09

(I) Category and amount for related transaction of 2020 In 10 thousand Yuan

Amount in contract Amount Amount Category No. Related person Content Pricing principle or to in last estimated report year amount date (audited)

1 Wafangdian Bearing Group Co., Ltd. Market-driven 12,600 2,789 395 2 Wafangdian Bearing Precision Forging Co., Ltd Market-driven 25,000 5,426 20,359 3 Dalian Wazhou Fengyuan Machinery Co., Ltd. Market-driven 300 48 256 Purchasing spare part 4 Wafangdian bearing group precision roller co., LTD Spare part Market-driven 3,000 553 11,915 from 5 Wafangdian Bearing Group Precision Retainer Co., Ltd. Market-driven 7,000 1,349 4,453 related person Dalian Wafangdian Bearing Group Bearing Equipment 6 Market-driven 1,500 118 547 Manufacturing Co., Ltd. 7 Dalian Wazhou Jinzhou Machinery Co., Ltd. Market-driven 2,000 88 1,153 Subtotal 51,400 10,371 39,078 8 Wafangdian Bearing Group Wind Power BearingCo., Ltd. Market-driven 100 - 82 9 Wafangdian Bearing Group Co., Ltd. Market-driven 20,000 5,829 28,275 Purchasing 10 Wazhou Group Precision Drive Bearing Co., Ltd. Market-driven 500 45 416 bearing Dalian Wafangdian Bearing Group Bearing Equipment 11 Products Market-driven 5,000 396 1,963 products Manufacturing Co., Ltd. from 12 Wafangdian Bearing High-end Auto Bearing Co., Ltd. Market-driven 11,000 1,464 8,159 related person 13 Wafangdian Bearing Special Precision Bearing Co., Ltd. Market-driven 500 - 47 14 Wafangdian Tongda Bearing Manufacturing Co., Ltd. Market-driven 300 59 1,616 Subtotal 37,400 7,793 40,558

2 Stock：WazhouB Code：200706 No.：2020-09

Wafangdian bearing group equipment technology 15 engineering co., LTD Market-driven 500 - 85 Purchasing Dalian Wafangdian Bearing Group Bearing Equipment equipment 16 Manufacturing Co., Ltd. Equipment Market-driven 500 - 31 from related 17 Wafangdian Bearing Power Co., Ltd. Market-driven 30 - 8 person 18 Wafangdian Bearing Group Co., Ltd. Market-driven 500 30 460 Subtotal 1,530 30 584 Leasing Houses Market-driven 1,250 312 886 from 19 Wafangdian Bearing Group Co., Ltd. Lands Cost pricing 270 68 651 related Equipment Cost pricing 220 55 266 person Subtotal 1,740 435 1,803 Purchasing water Cost pricing 40 6 19 fuels and 20 Wafangdian Bearing Power Co., Ltd. electricity Cost pricing 1,800 399 1,597 power from Government heating 200 111 167 related pricing person Subtotal 2,040 516 1,783 Security, fire-fighting Mutual agreement 400 256 service publicity Mutual agreement 80 21 Wafangdian Bearing Group Co., Ltd. expenses Public Mutual agreement 115 Receiving facilities cost service Trademark Mutual agreement 2,000 502 1,268 from use related Wafangdian Bearing Group Engineering Technology person 22 Mutual agreement 1,700 919 988 Research Center Technology 23 Germany Leipzig Roller and Ball Bearing Co., Ltd. development Mutual agreement 200 130 24 zwz Bearing Europe GmbH Mutual agreement - - Maintenance 25 Wafangdian Bearing Power Co., Ltd. Mutual agreement 60 1 43 cost Subtotal 4,555 1,422 2,685

3 Stock：WazhouB Code：200706 No.：2020-09

Total 98,665 20,567 86,491

26 Wafangdian Bearing Group (U.S.A.) Co., Ltd. Market-driven 6,000 5,999 Wafangdian Bearing Group Wind Power BearingCo., 27 Products Market-driven 12,000 3,707 4,175 Ltd. 28 Wafangdian Bearing Group Co., Ltd. 1,000 29 Wafangdian Bearing High-end Auto Bearing Co., Ltd. Market-driven 1,100 281 1,132 Sales of products to 30 Wafangdian Tongda Bearing Manufacturing Co., Ltd. Market-driven - related person 31 Germany Leipzig Roller and Ball Bearing Co., Ltd. Market-driven 700 554 Wafangdian Bearing Group Engineering Technology 32 50 5 Research Center 33 zwz Bearing Europe GmbH Market-driven 100 96

Subtotal 20,950 3,988 11,961

34 Wafangdian Bearing Precision Forging Co., Ltd Market-driven 15,000 2,253 8,484 Dalian Wafangdian Bearing Group Equipment 35 Market-driven 500 2 17 Manufacturing Co., Ltd. Wafangdian Bearing Group Wind Power BearingCo., 36 Market-driven 100 6 25 Ltd. Sales of materials to 37 Wafangdian bearing group precision roller co., LTD Market-driven 1,000 193 4,379 supplies related person 38 Wafangdian Bearing Group Precision Retainer Co., Ltd. Market-driven 50 1 12 Wafangdian Bearing Special Precision Bearing Co., 39 Market-driven 100 13 88 Ltd. 40 Wafangdian Bearing High-end Auto Bearing Co., Ltd. Market-driven 500 9 250

41 Wazhou Group Precision Drive Bearing Co., Ltd. Market-driven 200 - 395

4 Stock：WazhouB Code：200706 No.：2020-09

42 Wafangdian Tongda Bearing Manufacturing Co., Ltd. Market-driven 150 24 86

43 Wafangdian Bearing Group Co., Ltd. Market-driven 7,024 925 8

44 Dalian Wazhou Jinzhou Machinery Co., Ltd. Market-driven 10 0 1

Subtotal 24,634 3,426 13,745

45 Wazhou Group Precision Drive Bearing Co., Ltd. Market-driven 300 76 - 46 Wafangdian Bearing High-end Auto Bearing Co., Ltd. Market-driven 1,100 8 420

Selling spare 47 Wafangdian bearing group precision roller co., LTD Spare part Market-driven 200 - 1,082 part to related person 48 Wafangdian Bearing Group Precision Retainer Co., Ltd. Market-driven 50 0 -

49 Wafangdian Bearing Group Co., Ltd. Market-driven 6,600 1,297 3,771 Subtotal 8,250 1,381 5,273 50 Wafangdian Bearing Precision Forging Co., Ltd Market-driven 110 26 124 Wafangdian Bearing Special Precision Bearing Co., 51 Market-driven - 47 Ltd. 52 Wafangdian bearing group precision roller co., LTD Market-driven - 49 53 Wafangdian Bearing Group Precision Retainer Co., Ltd. Market-driven 80 37 76 Plant leasing Leasing to 54 Wafangdian Bearing High-end Auto Bearing Co., Ltd. Market-driven 616 154 618 related 55 Dalian Wazhou Fengyuan Machinery Co., Ltd. Market-driven 11 3 11 person 56 Dalian Wazhou Jinzhou Machinery Co., Ltd. Market-driven 80 20 80

57 Wafangdian Bearing Group Co., Ltd. Market-driven 44 12 58 Wafangdian Bearing High-end Auto Bearing Co., Ltd. Cost pricing 1,177 294 1,177 59 Wafangdian bearing group precision roller co., LTD Equipment Cost pricing 211 60 1,139 leasing Wafangdian Bearing Special Precision Bearing Co., 60 Cost pricing - 3 Ltd.

5 Stock：WazhouB Code：200706 No.：2020-09

61 Wafangdian Bearing Group Precision Retainer Co., Ltd. Cost pricing 246 334 246 62 Wafangdian Bearing Group Co., Ltd. Cost pricing 928 232 - Wafangdian Bearing Precision Ball Manufacturing Co., 63 Cost pricing 20 5 20 Ltd. 64 Wafangdian bearing group precision roller co., LTD Cost pricing - 21 65 Wafangdian Bearing Group Precision Retainer Co., Ltd. Cost pricing 26 15 26 Land leasing Wafangdian Bearing Special Precision Bearing Co., 66 Cost pricing - 8 Ltd. 67 Wafangdian Bearing Precision Forging Co., Ltd Cost pricing 80 19 55 68 Wafangdian Bearing Group Co., Ltd. Cost pricing 22 5 -

Subtotal 3,651 1,216 3,700 Wafangdian Bearing Precision Ball Manufacturing Co., 69 Market-driven 200 58 176 Ltd. 70 Wafangdian bearing group precision roller co., LTD Market-driven 500 0 1,293 Wafangdian Bearing Special Precision Bearing Co., 71 Market-driven 90 17 80 Ltd. 72 Dalian Wazhou Jinzhou Machinery Co., Ltd. Heat Market-driven 50 1 40 treatment,acid Dalian Wafangdian Bearing Group Equipment 73 picking Market-driven 40 2 12 Offering Manufacturing Co., Ltd. service to 74 Wazhou Group Precision Drive Bearing Co., Ltd. Market-driven 100 3 100 related person 75 Wafangdian Tongda Bearing Manufacturing Co., Ltd. Market-driven 10 - 3

76 Wafangdian Bearing High-end Auto Bearing Co., Ltd. Market-driven 30 0 198

77 Wafangdian Bearing Group Precision Retainer Co., Ltd. Market-driven 10 0 1 Heat 78 Wafangdian Bearing Group Co., Ltd. treatment,acid Market-driven 1,400 134 - picking 79 Wafangdian Bearing Precision Forging Co., Ltd Market-driven - 4 12 Subtotal 2,430 219 1,915

6 Stock：WazhouB Code：200706 No.：2020-09

Selling to 80 Wafangdian Bearing High-end Auto Bearing Co., Ltd. Sale of Market-driven 300 - - related party 81 Wafangdian Bearing Group Co., Ltd. equipment Market-driven 200 - -

Subtotal 500 - -

Total 60,415 10,230 36,594

(II) Actual related transaction last year (2019) In 10 thousand Yuan Actual Differenc Ratio in amount Authoriz e with the Categor similar Disclosur No. Related person Content in ed authorize y busines e index 2019(un amount damount s (%) audited) (%)

1 Wafangdian bearing group precision forging co., LTD 20,359 23,000 52.1 -11.48 2 Dalian Wazhou Fengyuan Machinery Co., Ltd. 256 10,200 0.66 -97.49 Purchas 3 Wafangdian bearing group precision roller co., LTD 11,915 12,000 30.49 -0.71 ing spare 4 Wafangdian Bearing Group Precision Retainer Co., Ltd. Spare part 4,453 6,000 11.4 -25.78 part from 5 Wafangdian Bearing Group Equipment Manufacturing Co., Ltd. 547 1,500 1.4 -63.53 related 6 Wafangdian Bearing Group Co., Ltd. 395 500 1.01 -21 person 7 Dalian Wazhou Jinzhou Machinery Co., Ltd. 1,153 2,000 2.95 -42.35

Subtotal 39,078 55,200 - -29.21 Purchas 8 Wafangdian Bearing Group Wind Power BearingCo., Ltd. 82 200 0.2 -59 ing bearing 9 Wafangdian Bearing Group Co., Ltd. Products 28,275 30,000 69.72 -5.75 product s from 10 Wazhou Group Precision Drive Bearing Co., Ltd. 416 350 1.03 18.86

7 Stock：WazhouB Code：200706 No.：2020-09 related 11 Wafangdian Bearing Group Equipment Manufacturing Co., Ltd. 1,963 2000 4.84 -1.85 person 12 Wafangdian Bearing Special Precision Bearing Co., Ltd. 47 20 0.12 135.00 13 Wafangdian Tongda Bearing Manufacturing Co., Ltd. 1,616 9,000 3.98 -82.04 14 Wafangdian Bearing High-end Auto Bearing Co., Ltd. 8,159 10,000 20.12 -18.41

Subtotal 40,558 51,570 -21.35

Wafangdian bearing group equipment technology engineering 15 85 500 14.55 -83 co., LTD Purchas ing 16 Wafangdian Bearing Group Equipment Manufacturing Co., Ltd. 31 500 5.31 -93.8 equipm Equipment ent from 17 Wafangdian Bearing Power Co., Ltd. 8 20 1.37 -60 related person 18 Wafangdian Bearing Group Co., Ltd. 460 500 78.77 -8 Subtotal 584 1,520 - -61.58 Houses 886 1,200 49.14 -26.17 Leasing 19 Wafangdian Bearing Group Co., Ltd. from Lands 651 400 36.11 62.75 related Equipment 266 300 14.75 -11.33 person Subtotal 1,803 1,900 -5.11

Purchas water 19 40 1.07 -52.5 ing fuels and 20 Wafangdian Bearing Power Co., Ltd. electricity 1,597 1,800 89.57 -11.28 power heating 167 200 9.37 -16.5 from related Subtotal 1,783 2,040 - -12.6 person Receivi Security, ng fire-fighting 256 200 9.53 28 21 Wafangdian Bearing Group Co., Ltd. service service from publicity - 0 - -

8 Stock：WazhouB Code：200706 No.：2020-09 related expenses person Public - 0 - - facilities cost Trademark 1,268 1500 47.3 -15.47 use Wafangdian Bearing Group Engineering Technology Research 22 988 1,000 36.8 -1.2 Center Technology 23 Germany Leipzig Roller and Ball Bearing Co., Ltd. development 130 170 4.84 -23.53 24 zwz Bearing Europe GmbH - 0 - Maintenance 25 Wafangdian Bearing Power Co., Ltd. 43 60 1.6 -28.33 cost Subtotal 2,685 2,930 - -8.36 Total 86,491 115,160 -24.89 26 Wafangdian Bearing Group (U.S.A.) Co., Ltd. 5,999 6,000 50.15 -0.02

27 Wafangdian Bearing Group Wind Power BearingCo., Ltd. 4,175 3,000 34.91 39.17 Sales 28 Wafangdian Bearing Group Co., Ltd. - 0 - - of produ 29 Wafangdian Bearing High-end Auto Bearing Co., Ltd. 1,132 4,000 9.46 -71.7 cts Products to 30 Wafangdian Tongda Bearing Manufacturing Co., Ltd. - 200 - - relate d 31 Germany Leipzig Roller and Ball Bearing Co., Ltd. 554 700 4.63 -20.86 perso Wafangdian Bearing Group Engineering Technology Research n 32 5 0 0.04 - Center 33 zwz Bearing Europe GmbH 96 0 0.8 Subtotal 11,961 13,900 - -13.95 Sales 34 Wafangdian bearing group precision forging co., LTD 8,484 15,000 63.28 -43.44 of supplies materi 35 Wafangdian Bearing Group Equipment Manufacturing Co., Ltd. 17 50 0.13 -66

9 Stock：WazhouB Code：200706 No.：2020-09 als to 36 Wafangdian Bearing Group Wind Power BearingCo., Ltd. 25 700 0.19 -96.43 relate d 37 Wafangdian bearing group precision roller co., LTD 4,379 5,000 32.66 -12.42 perso n 38 Wafangdian Bearing Group Precision Retainer Co., Ltd. 12 50 0.09 -76 39 Wafangdian Bearing Special Precision Bearing Co., Ltd. 88 100 0.66 -12 40 Wafangdian Bearing High-end Auto Bearing Co., Ltd. 250 500 1.86 -50 41 Wazhou Group Precision Drive Bearing Co., Ltd. 395 400 2.87 -1.25

42 Wafangdian Tongda Bearing Manufacturing Co., Ltd. 86 150 0.64 -42.67

43 Wafangdian Bearing Group Co., Ltd. 8 120 0.06 -93.33

44 Dalian Wazhou Jinzhou Machinery Co., Ltd. 1 0 0.01 -

Subtotal 13,745 22,070 -37.72

45 Wazhou Group Precision Drive Bearing Co., Ltd. - 100 - -

Selling 46 Wafangdian bearing group precision roller co., LTD 1,082 1000 20.5 8.2 spare part to 47 Wafangdian Bearing Group Precision Retainer Co., Ltd. Spare part - 50 - - relate d 48 Wafangdian Bearing Group Co., Ltd. 3,771 5,000 71.5 -24.58 perso n 49 Wafangdian Bearing High-end Auto Bearing Co., Ltd. 420 2,000 7.97 -79

Subtotal 5,273 8,150 - -35.3

Leasin 50 Wafangdian Bearing Precision Forging Co., Ltd 124 110 3.35 12.73 g to relate 51 Wafangdian Bearing Special Precision Bearing Co., Ltd. Plant leasing 47 50 1.27 -6 d perso 52 Wafangdian bearing group precision roller co., LTD 49 50 1.32 -2

10 Stock：WazhouB Code：200706 No.：2020-09 n 53 Wafangdian Bearing Group Co., Ltd. - 0 - -

54 Wafangdian Bearing Group Precision Retainer Co., Ltd. 76 90 2.05 -15.56

55 Wafangdian Bearing High-end Auto Bearing Co., Ltd. 618 600 16.7 3

56 Dalian Wazhou Fengyuan Machinery Co., Ltd. 11 10 0.3 10

57 Dalian Wazhou Jinzhou Machinery Co., Ltd. 80 80 2.16 0

58 Wafangdian Bearing High-end Auto Bearing Co., Ltd. 1,177 1,100 31.81 7

59 Wafangdian bearing group precision roller co., LTD 1,139 1,000 30.78 13.9 Equipment 60 Wafangdian Bearing Group Co., Ltd. - 0 - - leasing 61 Wafangdian Bearing Special Precision Bearing Co., Ltd. 3 3 0.08 0

62 Wafangdian Bearing Group Precision Retainer Co., Ltd. 246 250 6.65 -1.6

63 Wafangdian Bearing Precision Ball Manufacturing Co., Ltd. 20 20 0.54 0

64 Wafangdian bearing group precision roller co., LTD 21 21 0.57 0

65 Wafangdian Bearing Group Co., Ltd. - 0 - - Land leasing 66 Wafangdian Bearing Group Precision Retainer Co., Ltd. 26 26 0.7 0

67 Wafangdian Bearing Special Precision Bearing Co., Ltd. 8 9 0.22 -11.11

68 Wafangdian Bearing Precision Forging Co., Ltd 55 80 1.49 -31.25 Subtotal 3,700 3,499 - 5.74 Offerin 69 Wafangdian Bearing Precision Ball Manufacturing Co., Ltd. Heat 176 150 9.2 17.33 g treatment,acid servic 70 Wafangdian bearing group precision roller co., LTD picking 1,293 1,500 67.55 -13.8

11 Stock：WazhouB Code：200706 No.：2020-09

e to 71 Wafangdian Bearing Group Co., Ltd. - 0 - - relate d 72 Wafangdian Bearing Special Precision Bearing Co., Ltd. 80 60 4.18 33.33 perso n 73 Dalian Wazhou Jinzhou Machinery Co., Ltd. 40 20 2.09 100

74 Wafangdian Bearing Group Equipment Manufacturing Co., Ltd. 12 40 0.63 -70

75 Wazhou Group Precision Drive Bearing Co., Ltd. 100 80 5.22 25

76 Wafangdian Tongda Bearing Manufacturing Co., Ltd. 3 10 0.16 -70

77 Wafangdian Bearing High-end Auto Bearing Co., Ltd. 198 25 10.34 692

78 Wafangdian Bearing Group Precision Retainer Co., Ltd. 1 5 0.05 -80.00

79 Wafangdian Bearing Precision Forging Co., Ltd 12 0 0.63

Subtotal 1,915 1,890 1.32

Total 36,594 49,509 -26.09

II. Related person and relationship

Main Relations busine The Registere Total Net Net hip with No. Related name Legal Rep. Main business Add. ss performance d capital assets worth profit our incom ability (in 10 company thousand e Yuan)

12 Stock：WazhouB Code：200706 No.：2020-09

Bearing, bearing parts, bearing special tools, tooling, equipment, mechanical equipment, abrasive, abrasive, casting, The auto parts, motorcycle parts and related Wafangdian controllin industrial products manufacturing and 1 Bearing Group Liujun 51986.94 295,528 192,332 46,497 556 g sales; Bearing design, repair, The company's Co., Ltd. sharehol maintenance and technical services; business is in der Bearing raw materials and auxiliary good condition, materials purchasing and sales; House the affiliated leasing, equipment leasing party wazhou group, etc have Bearing equipment and various spare the parts manufacturing, modification, corresponding maintenance; Automatic connection ability to pay, engineering; All kinds of mechanical normal processing equipment manufacture and production and maintenance; Bearing mould and No.1 Bei operation, able measuring tool, cutting tool and Gongji One to perform the equipment manufacture and Dalian street, agreement with maintenance; All kinds of nc rotary table Wafangdian Wafangdian the company, manufacturing; All kinds of bearing Bearing Group liaoning that should be assembly manufacturing; Mechanical 2 Bearing Lixincheng 1673.6 province 6,590 501 4,301 -538 Controlled paid to the and electrical engineering, pipeline Equipment by the company's daily engineering construction and Manufacturing same connection maintenance, industrial building lighting, Co., Ltd. sharehold transaction water and electricity engineering er related formation of the installation and maintenance, housing party possibility of maintenance (the above relating to the bad loans is qualifications, with professional business small, the CARDS); Engineering machinery relatively small installation and maintenance; All kinds of risk of the equipment installation; All kinds of performance of welding processing the company. Forging products processing, machinery Wafangdian parts processing, forging equipment bearing group Wanglongji 3 2445 maintenance, forgings anneal, forging 47,100 15,131 44,886 897 precision forging e process design and sales of metal co., LTD materials, goods and technology import

13 Stock：WazhouB Code：200706 No.：2020-09

and export, general cargo warehousing hoisting Mechanical and electrical installation Wafangdian engineering, construction, mechanical bearing group equipment, instrument purchasing equipment 4 Lixincheng 300 manufacturing installation sales, real 2,729 512 2 -1 technology estate machinery and equipment sales engineering co., and leasing, nonfinancial assets LTD management Wafangdian Bearing Special Bearing manufacturing, sales and 5 Jinglei 3000 14,046 11,111 4,875 115 Precision Bearing scientific research Co., Ltd. Metal materials sales, computer network technology development, technical advisory services, general cargo warehousing (excluding dangerous chemicals and the special approval), the domestic general trade, and export of goods and technologies, enterprise information consulting (above all do not contain items are prohibited by laws and Liaoning northern Zhangxingh regulations, do not contain dangerous 6 metal supply 1000 3,184 1,022 10,188 15 ai chemicals and the special approval, chain co., LTD excluding financial and licensing issues, matters relating to the licensed for examination and approval of the former does not operate without obtaining permission for examination and approval, the above premises do office use only) (subject to ratification in accordance with the project, the related department approval to operate) Wafangdian Bearing design, development, bearing Group Zhangshiyi 7 6800 manufacture, marketing; Goods and 41,070 -9,813 46,037 -6,098 High-end Auto n technology import and export Bearing Co., Ltd.

14 Stock：WazhouB Code：200706 No.：2020-09

Roller design, manufacture and sales, Wafangdian houses, equipment leasing (subject to bearing group Zhangshiyi 8 2000 ratification in accordance with the 8,647 -6,978 14,217 -3,750 precision roller n project, the related department approval co., LTD to operate) Wafangdian Bearing Group Cage design, manufacture and sales, 9 Wuyunkui 1000 2,166 -819 5,740 -920 Precision houses, equipment leasing Retainer Co., Ltd. Universal joint manufacturing and sales; Industrial steam, electricity, the manufacture and sale of wind, water, heating; Electric power, communication, pipeline design and installation; Civil turn for services such as water, electricity; This enterprise asset leasing, related equipment procurement business, by-product sales; Air compressor equipment maintenance, installation; Mechanical and electrical equipment maintenance, installation; High and low Wafangdian voltage electrical components, electrical 10 Bearing Power Hougang 28339.67 8,658 789 6,399 0 equipment, electrical control equipment, Co., Ltd. electrical equipment, instrument, machine tool cabinet put oneself in another's electrical equipment manufacture, installation and sales; Wire and cable laying and sales; Transformer test equipment; Insulation equipment facilities detection; Inspection, cylinder filling process; Mechanical and electrical installation engineering construction; Building construction; Botanical garden afforestation project construction, trash pickup, cleaning. Dalian Wazhou Wangquan Mechanical processing, machinery parts 11 5000 13,867 5,702 9,018 427 Jinzhou bin sales

15 Stock：WazhouB Code：200706 No.：2020-09

Machinery Co., Ltd. Dalian Wazhou Fengyuan Mechanical processing, machinery parts, 12 Sunjuan 5000 8,810 5,293 9,567 -25 Machinery Co., steel sales Ltd. Companies engaged in the acquisition, sale in Europe and other enterprises or other enterprises management; Engaged in stock purchase, sale or management, zwz Bearing 25000 Gutenbergstr 13 Lidong set up subsidiary to set up the branches 19,216 19,109 542 -229 Europe GmbH euros aβe 6 04179 and standing body, engaged in the trade Leipzig of ball bearing, sales, services and Gutenbergstr related right of knowledge acquisition aβe and issued license. Germany Leipzig 5 million Bearing research and development, 14 Roller and Ball Lidong 26,943 15,650 20,947 221 euros production, sales and marketing Bearing Co., Ltd. Wazhou drugs sold in the United States The and its subsidiaries manufacture of Wafangdian California US$ 8 bearings and other products. These 15 Bearing Group Lidong buller akkub 7,686 6,411 15,257 804 million products include all kinds of auto bearing (U.S.A.) Co., Ltd. avenue 535 and all kinds of industrial bearings and industrial city forgings Wafangdian city, liaoning Wafangdian province Tongda Bearing xinhua office 16 Liufeng 320 Bearing manufacturing and repair 9,858 6,388 8,786 287 Manufacturing north a Co., Ltd. fraternal street number 7

16 Stock：WazhouB Code：200706 No.：2020-09

Wafangdian Wafangdian bearing Bearing Group industrial Product design, test, process design, 17 Engineering Lihuawei 1000 park in 5,962 1,180 2,773 29 simulation, etc Technology liaoning Research Center province tile (ZhuHua Bearing manufacturing and sales, industrial Wafangdian building, mechanical equipment leasing; park) Bearing Group Zhangxingh Goods and technology import and Wafangdian 18 20000 82,919 43,037 40,857 1,893 Wind Power ai export; Wind power bearing technology bearing BearingCo., Ltd. development and consulting; Wind industrial power operation and maintenance park in liaoning Wazhou Group province tile Mengxiang Bearing products manufacturing and 19 Precision Drive 3000 (ZhuHua 7,645 1,418 9,939 -731 yi sales Bearing Co., Ltd. industrial park)

17 Stock：WazhouB Code：200706 No.：2020-09

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 2020, after the “the Proposal of on daily connection transaction announcement is expected in 2020” 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 2019 and 2020 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 Plan of Daily Related Transactions for year of 2020, 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 27, 2020

18