Henan Xinye Textile Limited By Share Ltd On Foreign Guarantee

Stock Code: 002087 securities short: Xinye textile Bulletin No.: 2010--042

Henan

All members of the company and the board of Directors ensure that the contents of the announcement are true, accurate and complete, and assume responsibility for false statements, misleading statements or major omissions in the announcement.

I. overview of mutual insurance

(1) 1, Henan Xinye textile Limited by Share Ltd (hereinafter referred to as "company" or "company") and Henan pigeon Rui composite materials Co., Ltd., in accordance with the principle of mutual cooperation and common development, have signed friendly mutual agreement through friendly consultation.

The total amount of mutual insurance is RMB 30 million yuan, accounting for 1.87% of audited net assets for 30 days in June 2010.

Deadline for mutual guarantee: from the date of signing the agreement to June 30, 2011.

Mutual guarantee form: joint and several liability guarantee.

2.

3, Henan Xinye textile Limited by Share Ltd and Henan Tianguan fuel

6.25%.

Deadline for mutual guarantee: from the date of signing the agreement to December 31, 2011.

Mutual guarantee form: joint and several liability guarantee.

(two) the vote of the board of directors on the motion of mutual guarantee.

In September 28, 2010, the company held the fifteenth meeting of the sixth board of directors to deliberate and unanimously adopt the motion on signing mutual insurance agreement with Henan pigeon Rui composite materials Co., Ltd., the proposal on signing mutual insurance agreement with Xichuan Aluminum Group (Henan) Co., Ltd. and the motion on signing mutual insurance agreement with Henan Tianguan Fuel Ethanol Co.

Two, the basic situation of mutual insurance units

The residence of Henan pigeon composite material Co., Ltd. is No. 1, Xinzheng double Lake Economic Development Zone, the legal representative: Lu Mingwang.

Business scope: metal composite strip development, development, production and sales; mechanical and electrical equipment manufacturing, marketing, technical services.

As of June 30, 2010, the company

The total assets amounted to 1 billion 356 million 694 thousand and 300 yuan, the total liabilities amounted to 857 million 679 thousand and 600 yuan, the asset liability ratio was 63.22%, the net assets were 499 million 14 thousand and 700 yuan, the main business income in the half year of 2010 was 680 million 781 thousand and 900 yuan, and the main business profit was 71 million 656 thousand and 200 yuan (the above financial data was not audited).

The unit is not related to the company.

Henan Xichuan aluminum industry (Group) Co., Ltd. is located at No. 406 Guan he road, Xichuan county. The legal representative is Yuan Zhong.

Business scope: aluminum ingot, aluminum rolling plate, aluminum products, silicon ferroalloy, export self produced products, imported self produced products, import raw materials and scientific research machinery and equipment for the production of enterprises, and goods pportation.

As of June 30, 2010, the total assets of the company amounted to 1 billion 424 million 194 thousand and 500 yuan, the total liabilities amounted to 889 million 625 thousand and 200 yuan, the asset liability ratio was 62.47%, the net assets were 534 million 569 thousand and 300 yuan, and the main business income in 2010 was 1 billion 855 million 781 thousand and 600 yuan in the half year, and the main business profit was 99 million 341 thousand yuan (the financial data was not audited).

The unit is not related to the company.

The residence of the Henan Tianguan Fuel Ethanol Co is: No. 999 Changjiang Road, Nanyang, the legal representative: Zhang Xiaoyang.

The scope of operation is: research and development of fuel ethanol products, technical services and by-products (gluten, feed, wheat bran, carbon dioxide, biogas, steam, electricity, fusel oil) production and sale (excluding hazardous chemicals and flammable Yi Baopin); investment in fuel ethanol projects.

(where the above scope is subject to prior approval or the relevant provisions of the state, it shall be operated on the basis of a license or relevant approval documents).

As of June 30, 2010, the total assets of the company amounted to 2 billion 6 million 962 thousand and 200 yuan, the total liabilities amounted to 1 billion 305 million 261 thousand and 500 yuan, the asset liability ratio was 65.04%, the net assets were 701 million 700 thousand and 700 yuan, and the main business income in 2010 was 1 billion 364 million 541 thousand and 900 yuan in the half year, and the main business profit was 87 million 303 thousand and 500 yuan (the financial data was not audited).

The unit is not related to the company.

Three, the main contents of mutual insurance agreement

The mutual guarantee agreement signed between our company and Henan pigeon composite materials Co., Ltd. is jointly and severally guaranteed. The total amount of mutual guarantee is RMB 30 million yuan, and the guarantee within this limit should be completed before June 30, 2011.

The mutual insurance agreement signed between the company and Henan Xichuan Aluminum Group Co., Ltd. is jointly and severally guaranteed, the total amount of mutual guarantee is RMB 40 million yuan, and the guarantee within this limit should be completed before December 31, 2011.

The mutual insurance agreement signed between the company and Henan Tianguan Fuel Ethanol Co is guaranteed jointly and severally. The total amount of mutual guarantee is RMB 100 million yuan, and the guarantee within this limit must be completed before December 31, 2011.

Four. Board opinion

The board of Directors believes that: Henan pigeon Rui composite material Co., Ltd. and Henan Xichuan aluminum industry.

(Group) Co., Ltd. and Henan Tianguan Fuel Ethanol Co are currently in stable operation and in good financial condition. They have certain solvency and risk taking ability. Signing this mutual insurance agreement is in conformity with the relevant laws, regulations and the articles of association of the company, which is conducive to meeting the requirements of the company for capital requirements, meeting the needs of the company's operation and development, and signing the mutual insurance agreement with the company.

For this guarantee, the company will take corresponding counter guarantee measures.

Five. Views of independent directors

The independent directors hold that: the decision procedure of mutual insurance agreement between the company and Henan pigeon composite materials Co., Ltd., Henan Xichuan Aluminum Group (Group) Co., Ltd. and Henan Tianguan Fuel Ethanol Co is in conformity with the relevant regulations of the CSRC and the China Banking Regulatory Commission on the behavior of regulating the listed companies' external guarantee activities ([2005]120) and the articles of association. The main purpose of the company's mutual insurance agreement is to meet the normal operation and development needs of the company. Henan pigeon Rui composite material Co., Ltd., Henan Xichuan Aluminum Group Co., Ltd. and Henan Tianguan Fuel Ethanol Co are stable in production and operation, and have certain solvency. The mutual insurance act will not harm the interests of the company and shareholders, and agrees that the company will sign mutual insurance agreements with them.

Discussion.

Six. Sponsor's opinion

The company's sponsor, Zhongyuan securities, thinks:

(1) the above guarantee has been examined and approved at the fifteenth session of the sixth Xinye textile board, and the examination and approval procedures are in conformity with the relevant laws, regulations and the provisions of the articles of association.

(2) Henan pigeon Rui composite materials Co., Ltd., Henan Xichuan Aluminum Group (Group) Co., Ltd. and Henan Tianguan Fuel Ethanol Co have normal production and operation conditions. The mutual protection between the company and the above three companies is conducive to expanding the financing channels and ensuring smooth production and operation.

Conduct;

(3) Zhongyuan securities has no objection to Xinye textile's external guarantee.

Seven. Quantity of accumulated external guarantee and quantity of overdue guarantee.

At present, the total amount of external guarantee has reached 415 million yuan, accounting for 25.93% of the audited net assets for 30 days in June 2010, accounting for 13.04% of the total audited assets of 30 days in June 2010. After the new 170 million yuan guarantee was added, the total external guarantee was RMB 585 million yuan, accounting for 36.55% of the audited net assets 30 days in June 2010, accounting for 18.39% 18.39% of the total daily assets audited by June 2010.

16.87%, accounting for 8.49% of the total audited assets of the company on 30 June 2010.

There is no overdue guarantee.

The company did not provide guarantee to the controlling shareholder.

Eight. Reference documents

1, Henan Xinye textile Limited by Share Ltd sixth session of the fifteenth meeting of the board of directors resolution; 2, the company's independent director "on the company's external guarantee to provide an independent opinion."

This is hereby announced.

Henan Xinye textile Limited by Share Ltd board of directors

September 28th, two