Wafangdian Bearing Company Limited Announcement on Adjusting the Organizational Structure of the Company The Company and all members of the BOD guarantee that the information disclosed is true, accurate and completed, and that there are no false records, misleading statements or material omissions. Wafangdian Bearing Co., LTD. (hereinafter referred to as the "Company") held the 15th meeting of the ninth Board of Directors on January 20, 2025, at which the "Motion on Adjusting the organizational structure of the Company" was reviewed and passed. In order to continuously improve the company's core competitiveness, optimize the management structure, improve decision-making efficiency, enhance coordination ability, and support the rapid realization of the company's strategic goals, the company's organization was comprehensively optimized and adjusted. This organizational adjustment adopts the basic organizational model of "matrix management + divisional system". Specifically: (1) the part of Functional departments This time, two centers and five functional departments are set up. 1. The "Manufacturing process and equipment Research and Development Center" and "Quality Management Department" will be transformed into "process quality Center". By integrating process, quality and other business sectors and related personnel, the company will undertake the functions of process technology management and quality management, further improve process standardization, promote process cost reduction and efficiency, and achieve quality objectives. 2. Adjust "logistics company" to "operation and management center", and undertake functions such as capacity management, production system management, inventory management, shipping management, safety and environment management and special rectification and elimination by integrating production, procurement, warehousing, logistics, safety and environment and related personnel. Achieve the goals of production coordination, operation improvement, warehousing and logistics optimization, and promote safe production. 3. Integrated and established the market development Department to achieve the goals of expanding the organization, strengthening capabilities and effectively performing duties, effectively supporting the company's market business development and growth needs, coordinating, serving and supporting each business unit to achieve product, customer, market and sales goals. 4. Integrated and established internal control and internal audit Department, responsible for legal affairs, risk control, internal compliance and audit, to further improve the management compliance of listed companies. 5. The Investment and Securities Department, Planning and Finance Department, and Human Resources Department have not been adjusted. (2) Complete the business division The truck branch, Precision Branch and Rail Transit Division are merged into the new "Rail Transit Bearing Division" to form a complete business division of product management, research and development, product performance, product application, sales and service, and production chain closed loop. Focus on key customers and key advantageous products in the railway field, and collaborate with advantageous resources to achieve profitability and stable growth. (3) Sales Division The former construction machinery division, transmission machinery division, precision machinery division Merged into "Industrial Machinery Bearing Division"; The former Metallurgical Bearing Business division and Mining machinery Bearing Business Division were merged into "Industrial Mining Bearing Business Division", and the corresponding business divisions were integrated to form a semi-closed-loop sales business division with product management, R&D and design, product performance, product application, sales and service, and sales and business objectives were achieved through the internal market acquisition transaction mechanism and finished product factory. Focus on key customers and key advantageous products in the corresponding fields, and collaborate with advantageous resources to achieve volume, price and competitiveness growth. (4) Product Division The company included the Precision spherical Roller Bearing (Wafangdian) Co., Ltd. and the Dalian Precision Motor Automotive Bearing Co., Ltd. into the "General and deep Groove Ball Business Division", responsible for the product management, research and development design, product performance, product quality, product comprehensive cost advantage and other product strength building in the field of general and deep groove ball products. Promote sales and service through product management and deep linkage with the region. (5) Sales organization 1. Merged the original Import and Export, India and Pakistan, RECP three overse