| 時間：2017年05月11日 21:02:43 中財網 |
Wafangdian Bearing Company Limited
Apply for Lifting the delisting risk warning and changing the short title
The Company, all members of the Board of Directors, supervisors and top management hereby
guarantee the truth, accuracy and completeness of the information disclosure, no any false records,
misleading statements and major missing contents.
I.Special risk warning:
1. Since May12, 2017, company stock opening date of suspension for 1 day, from the opening date of
May15, 2017 to resume trading;
2. Since May 15,2017, the company's stock delisting delisting delisting risk warning, the short name of
the stock change from *ST Wazhou B to Wazhou B, and the Stock code 200706 is unchanged;
3. Company 2016 annual net profit attributable to shareholders of listed companies of 30,872,950.22
yuan, net profit after deducting non-recurring gains and losses of -57,771,828.22 Yuan;
4. The daily limit of stock prices change from 5% to 10%.
II. Implementation of delisting risk warning for stock of the Company
Wafangdian Bearing Co., Ltd. (hereinafter referred to as the Company) have been in the red in most
recent two consecutive years of 2014 and 2015, and according to relevant regulation of Stock Listing Rules
of Shenzhen Stock Exchange (2014 Revised), stock of the Company are being special treated on trading as
「delisting risk warning」 on 27 April 2016 on Shenzhen Stock Exchange. Short form of the stock turns to
「*ST Wazhou B」 after warning and daily limit turns to 5%.
III. Works during delisting risk warning
In 2016, Board of the Directors work hard for revoking the delisting risk warning and urged management
taking efficient measures to implemented. Finally, the Company makes a profit instead of suffering a loss.
We finally realized the stated objective made by management at year-beginning, through un-remitting
efforts of the Company; protect the interest of shareholders effectively.
Achieving profitability is the priority target for the year of 2016 in operation, in purpose of revoking the
delisting risk warning. Determine profitability in 2016 as main line, and earning from non-main business as
subordinate line, effectively reverse the loss of two consecutive years by double insurance measure.
i) Main countermeasures for main operation
At beginning of the year, management makes a prompt decision on operation strategy as 「steady growth,
structure adjustment, de-stocking, tightening receivable, reducing cost and guarantee efficiency」. Stabilized
revenue from main business by adjusting product structure, develop high profit products; optimize
resources allocation, integrate resources of lathe worker and heat treatment as well as overseas marketing
network, tightening expenses and improving efficiency; the Company stripping business with deficits in
legal procedures, such as auto manufacture, cage business and roller services etc, for reducing the losses;
implemented lean management in whole Company, reducing 7 kinds of wastes for cost reduction and
efficiency enhancement; tightening manufactured inventory and work-in-process (WIP), increasing cash
flows, improving turnover rate of funds and reducing financial expenses;
1. Customer satisfaction-oriented, bring forth new ideas in management mechanism and operation
mechanism
1) Customer focus, promoting the reform of marketing mechanism
In principle of differentiation, segmentation and key-customer-products emphasized, integrating clients,
employees and institutional facilities in industrial equipment market and re-building business procedures;
organized and implemented a management system reform in regional sales company and sales branch,
established an integrative unify management platform to improving localization sales management.
Implement customer authorization management, solved the issues of unclear marketing area, competing for
customers and price war between direct market and trading market effectively. Customer base has
expanded significantly and has soaring strategy clients and trading customers.
2) Stripping deficit industry, shifting operation mechanism
Management mechanism reform completed for business of rolling element, retainer, domestic truck bearing
and automobile gear box bearing etc. Implemented overall stripping and carried out related transactions in
principle of socialization and marketization, costs for products are reduced dramatically. The Company
finished an integration of hot working procedures, established a bearing accessory branch and optimized
resources allocation, the efficiency of hot working are improved and production costs reduced.
2. Promotion of lean manufacturing, improve market capacity continuously
Introducing idea of lean management, promoting continued development of the Company. Organized many
lean training camp activities, promoted establishment of lean class, adjusted process layout and
implemented 5S management etc. Many changes are made in respect of idea and process improvement,
on-site management and sequence of production have a qualitative change, and the capital efficiency
enhance significantly in pilot units.
3. Strengthen operation controls, improve operation quality
Optimized asset allocation and liquidize remnant assets; reducing consumption, tightening expenses.
Implemented cost incentive mechanism and measures of reducing cost and increasing efficiency. Fully
mobilize the initiative and self-motivated for 「increasing production efficiency and lowering costs」 from
the Company, implemented the measures for real.
ii) Main countermeasures for non-main operation
Facing the bad business environment for main-operation market, the Company actively dispose and making
use of the idle assets, making deep cleaning and disposal for fixed assets and current assets. The Company
effectively increases the profitability by carrying out profitability measures, under the premise of ensuring
compliance with relevant law and regulations, and performing necessary procedures.
Under the help of various measures, and on basis of ensuring safe production, strive to reverse severe
business situation for the Company, achieved an innovation development in adversity; re-shaping image of
listed company and avoiding the suspended listing on stock exchange.
The financial data for year of 2016 has been audited by Shine Wing CPA, and with an auditor’s report with
standard unqualified opinion issued (XYZH/2017DLA10202). After auditing, ended as 31 December
2016, net assets attributable to shareholders of listed company amounting to 1379 million Yuan, operation
revenue for year of 2016 was 2493.9266 million Yuan and net profit attributable to shareholder of listed
company was 30.873million Yuan. Main business of the Company are perform normally recently.
IV.The issue approved by the Shenzhen Stock Exchange,
After approved by the Shenzhen Stock Exchange, Since May 15,2017, the company's stock delisting
delisting delisting risk warning. In line with the
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