Jingwei Textile Machinery Limited By Share Ltd External Guarantee Announcement

Stock Code: 000666 securities short: Jingwei Textile Machinery announcement number: No. 2010-42

Warp and weft

All members of the company and the board of directors guarantee that the contents of the information disclosure are true, accurate and complete, without false records, misleading statements or major omissions.

I. summary of guarantee situation

Jingwei Textile Machinery Limited by Share Ltd (hereinafter referred to as the "company") signed the highest irrevocable guarantee with the Beijing branch of the Jianguo Road, China Merchants Bank in October 19, 2010, providing RMB 150 million yuan for the Beijing Hualian Group Klc Holdings Ltd (hereinafter referred to as "Hualian investment") to the Beijing branch of the Jianguo Road branch of China Merchants Bank.

The company held the sixth annual meeting of the board of directors in October 19, 2010. The meeting was chaired by Chairman Ye Maoxin.

Should be 8 directors, the actual attendance of 8 directors, in line with the company law and the provisions of the company's articles of association.

After full discussion, the conference adopted the following 8 votes, 0 votes against and 0 abstentions, and agreed that the company will provide guarantee for the 150 million yuan RMB loan for the Hualian investment in China's Beijing Jianguo Road sub branch.

Two, the basic situation of the guarantor

The guarantor was invested by Hualian and was founded in December 18, 1993.

Three, the main contents of the guarantee agreement

According to the highest irrevocable guarantee signed by our company and China Merchants Bank Beijing Jianguo Road sub branch, the company provides guaranty for the loan of RMB 150 million yuan from Hualian investment to Beijing branch of China Merchants Bank. The guarantee is joint liability guarantee and loan term.

For one year.

Four. Board opinion

In view of the Hualian investment credit and profitability is good, at the same time, Hualian investment commitments will be calculated on the basis of 0.5% of the guarantee amount paid to the company's guarantee fee and agreed to be provided by the company or its associated company to provide the corresponding amount of security; in addition, Beijing China business Huatong Technology and Trade Co., Ltd. has provided joint liability and counter guarantee for the guarantee.

After careful consideration and deliberation, the board of directors agreed to sign the highest irrevocable guarantee.

The guarantee does not exist contrary to the notice of the China Securities Regulatory Commission (CSRC) on regulating the financial pactions between listed companies and related parties and the external guarantee of listed companies, and the notice of the CSRC and the CBRC on regulating the conduct of external guarantee of listed companies. The guarantee agreement will not harm the interests of the company.

Five. The total number of external guarantees.

At present, after the implementation of the guarantee, the company's external guarantee amount is RMB 240 million yuan (of which the external guarantee amount is 150 million yuan, the guarantee for the subsidiary is RMB 90 million yuan), accounting for 8.21% of the company's latest audited net assets.

Six. Reference files directory

1. Resolutions of the board of directors;

2. A copy of the business license of Hualian investment.

3. The highest irrevocable guarantee;

4, the relevant counter guarantee documents.

Notice hereby

Jingwei Textile Machinery Limited by Share Ltd

Board of directors October 19, 2010