Announcement Of The Twenty-Fourth Meeting Of The First Board Of Directors Of Jiangsu

Securities code: 002394 securities short: joint stock Announcement No.: LF2010-001

All members of the company and the board of Directors ensure that the contents of the announcement are true, accurate and complete, and there are no false statements, misleading statements or major omissions.

The notice of the twenty-fourth meeting of the first board of directors of the Jiangsu joint development textile Limited by Share Ltd (hereinafter referred to as the "company") was delivered to all directors and supervisors in written form in December 28, 2010. The meeting was held in January 9, 2011 on the spot. It should be sent to 9 directors and 9 directors.

The meeting was presided over by Kong Xiangjun, chairman of the board. The meeting was held in accordance with the provisions of the company law of the People's Republic of China and the articles of association of the company.

After careful consideration and vote by the participating directors, the following items were adopted:

I. motions to nominate candidates for the second board of directors of the company

The result of the deliberations was that the Board approved the motion by 9 votes in favour, 0 votes against and 0 abstentions.

According to the relevant provisions of the company law and articles of association, the term of office of the first board of directors of the company has expired. The current board nominated Kong Xiangjun, Xue Qinglong, Huang Changgen, Cui Hengfu, Yu Yongjun and Nie Chengwen as candidates for the second board of directors of the company, and nominated Xu Wen, Zhao Shuming and Zhao Shuming as the second independent directors of the board of directors.

There were 9 members of the second board of directors.

The resume of the relevant personnel is found in the appendix.

A total of 1/2 of the total number of directors in the board of directors are not more than the total number of directors in the board of directors and the number of directors and staff representatives.

This motion still needs to be submitted to the company's first provisional shareholders' meeting in 2011. The election of the second board of directors of the company will adopt a cumulative voting system. The candidates for the independent directors are submitted to the company's first provisional shareholders' meeting in 2011 after no objection is examined by the Shenzhen stock exchange.

The independent directors have already expressed their views on this matter and agreed to nominate candidates for the second board of directors of the company and candidates for independent directors. They agreed to submit the motion to the shareholders' meeting for consideration.

For details, see www.cninfo.com.cn.

Two, the motion to re enact the implementation details of the cumulative voting system (Draft).

The result of the deliberations was that the Board approved the motion by 9 votes in favour, 0 votes against and 0 abstentions.

Unanimously agreed to adopt the new implementation details of the cumulative voting system (Draft).

This motion still needs to be submitted to the first provisional shareholders' meeting in 2011 for examination and approval.

For details, see www.cninfo.com.cn.

Three. Proposals to change part of the fund-raising investment projects and expand investment.

The result of the deliberations was that the Board approved the motion by 9 votes in favour, 0 votes against and 0 abstentions.

We agreed to change the 129 million yuan of the capital investment project "high-grade special natural fiber yarn production line technical pformation project" and expand the investment in the "new 200 thousand high-grade cotton yarn production line project". Through the way of capital increase, the wholly-owned subsidiary of Haian Lian FA cotton spinning Co., Ltd., a wholly owned subsidiary of the company, was set up in the Akesu Textile Industrial Park of Xinjiang. The implementation site is Xinjiang Akesu Textile Industrial Park.

This motion still needs to be submitted to the first provisional shareholders' meeting in 2011 for examination and approval.

For details, see www.cninfo.com.cn.

Four. The motion to convene the first provisional shareholders' meeting in 2011.

The result of the deliberations was that the Board approved the motion by 9 votes in favour, 0 votes against and 0 abstentions.

For details, see www.cninfo.com.cn.

This is hereby announced.

Jiangsu Luen Fat textile Limited by Share Ltd

Board of directors

Two O January 10th

Jiangsu Luen Fat textile Limited by Share Ltd

List of candidates for the second board of directors and resume {page_break}

I. non independent directors

Mr. Kong Xiangjun, Chinese nationality, 56 years old, a member of the Communist Party of China, senior high school education, senior economist.

Successive Haian County dyeing and weaving mill plans to manage the deputy head and chief of the supply and marketing department, the manager of Haian textile wholesale department, the deputy director and director of the state Haian dyeing and weaving mill, the chairman and general manager of Jiangsu Lian FA yarn dyed Limited by Share Ltd, and the chairman and president of the board of directors of the Jiangsu joint development group Limited by Share Ltd.

He is currently the chairman of Jiangsu Luen Fat Group Limited by Share Ltd and Jiangsu lufa import and Export Co., Ltd., and chairman of Jiangsu lufa textile Limited by Share Ltd (the term of office is January 2008 January -2011).

Mr. Kong Xiangjun has not held shares of the company and holds 40.04% of the shares of Limited by Share Ltd, which is the controlling shareholder of the Jiangsu Luen Fat Group. It is one of the co controllers of the company. In addition, it has no relationship with the shareholders and actual controllers, other directors, supervisors and senior managers who hold more than 5% shares of the company. Without the punishment of the China Securities Regulatory Commission and other relevant departments and the stock exchange discipline, there is no condition for the company law to prohibit its employment and the punishment imposed by the CSRC on the securities market.

Mr. Huang Changgen, Chinese nationality, 45, university degree, bachelor's degree, senior engineer, senior economist.

He served as technician of dyeing and finishing workshop of Haian silk dyeing and dyeing mill, chief of equipment and Energy Department of Haian silk dyeing and printing plant, director of Haian silk weaving factory of Haian County, deputy director of Limited by Share Ltd chief engineer office of Jiangsu Lian FA group, deputy general manager of Lianshui Lian fa yarn dyed fabric Co., Ltd., assistant director and director of Jiangsu Lian FA group Limited by Share Ltd, chairman and general manager of Nantong Hong Kong Textile Co., Ltd.

He is currently vice-chairman and general manager of Jiangsu Lian FA textile Limited by Share Ltd, whose term of office is January 2008 -2011 January, and the chairman and general manager of Nantong Lian FA dyeing and Printing Co., Ltd.

Mr. Huang Changgen has not held shares of the company and holds 2.03% of the shares of Limited by Share Ltd, which is a controlling shareholder of the Jiangsu Luen Fat Group. He is one of the co controllers of the company. He is married to the chief engineer Tang Wenjun of the company's senior management. In addition, he has no relationship with the shareholders and actual controllers, other directors, supervisors and senior managers of the company holding more than 5% shares of the company. Without the punishment of the China Securities Regulatory Commission and other relevant departments and the stock exchange, there are no conditions for the prohibition of office in the company law and the punishment imposed by the CSRC on the securities market.

Mr. Cui Hengfu, Chinese nationality, 52 years old, a member of the Communist Party of China, a junior college graduate, and a senior economist.

He served as director of dyeing and dyeing factory of Haian dyeing and weaving mill, director of Lian FA dyeing and finishing plant, director of Limited by Share Ltd of Jiangsu Luen Fat Group, general manager of Nantong Lian FA Thermal Power Co., Ltd., chairman of Huaian Lian FA Textile Co., Ltd., general manager of Haian Lian FA cotton spinning Co., Ltd.

He is currently the director of Jiangsu Lian FA textile Limited by Share Ltd (with a term of -2011 January 2008 January), Haian Lian FA cotton spinning Co., Ltd. and Nantong Lian FA Thermal Power Co., Ltd.

Mr. Cui Hengfu has not held shares of the company and holds 6.16% of the shares of Limited by Share Ltd, which is the controlling shareholder of the Jiangsu Luen Fat Group. It is one of the co controllers of the company. In addition, it has no relationship with the shareholders and actual controllers, other directors, supervisors and senior managers of the company holding more than 5% shares of the company. Without the punishment imposed by the China Securities Regulatory Commission and other relevant departments and the stock exchange, there is no condition for the company to prohibit its employment and the punishment imposed by the CSRC on the securities market.

Mr. Xue Qinglong, Chinese nationality, 47, a member of the Communist Party of China, a university degree, a bachelor's degree and a senior economist.

He served as director of Limited by Share Ltd Technology Department of Jiangsu Luen Fat Group, Limited by Share Ltd director of Jiangsu Luen Fat Group, general manager of Jiangsu lufa import and Export Co., Ltd., general manager of Nantong Lian FA Garment Co., Ltd.

He is currently the director of Jiangsu Lian FA textile Limited by Share Ltd (with a term of -2011 January 2008 January), Nantong Lian FA Garment Co., Ltd., Haian Lian FA Garment Co. Ltd., and Suqian Lian FA Garment Co. Ltd.

Mr. Xue Qinglong has not held shares of the company and holds 2.03% of the shares of Limited by Share Ltd, the controlling shareholder of the Jiangsu Luen Fat Group. In addition, there is no relationship between the shareholders and the actual controller, the other directors, supervisors and senior managers of the company holding more than 5% shares of the company. No punishment has been imposed by the CSRC and other relevant departments and the stock exchange has punished the company.

Mr. Yu Yongjun, Chinese nationality, 43, a member of the Communist Party of China, a university degree, a bachelor's degree and a senior economist.

He served as the production technician of the Haian dyeing and weaving mill's production office, the production scheduling, the director of the weaving weaving factory of Jiangsu Lian FA group, the planning director of the Limited by Share Ltd joint hair dyed weaving factory of Jiangsu Luen Fat Group, the director of the Limited by Share Ltd planning and dispatching center, the director of the production office, the vice general manager of Jiangsu lufa import and Export Co., Ltd., and the general manager of Jiangsu Lian FA import and Export Co., Ltd., Jiangsu.

He is currently the managing director and deputy general manager of Jiangsu Lian FA textile Limited by Share Ltd (the term of office is January 2008 -2011 January), and the chairman and general manager of Jiangsu James Textile Co., Ltd.

Mr. Yu Yongjun has not held shares of the company and holds 2.03% of the shares of Limited by Share Ltd, the controlling shareholder of the Jiangsu Luen Fat Group. In addition, there is no relationship between the shareholders and the actual controller, the other directors, supervisors and senior managers of the company holding more than 5% shares of the company. No punishment has been imposed by the CSRC and other relevant departments and the stock exchange has punished the company.

Mr. Nie Chengwen, a Chinese nationality, aged 37, has a university degree and a master of business administration.

As a research fellow of Fuzhou Tianli investment consultant Co., Ltd., manager of Investment Department of Sichuan Jialing smelter Limited by Share Ltd, manager of Investment Department of Sichuan Tianhe Asset Management Co., Ltd., Secretary of Shanghai fortune Century Investment Co., Ltd., deputy general manager of Shanghai Chenggong Information Technology Service Co., Ltd., currently Deputy general manager of Shanghai Zhongzhou Cci Capital Ltd, director of Jiangsu Lian FA textile Limited by Share Ltd (term of office is January January 2008 -2011).

Mr. Nie Chengwen did not hold shares in the company, and had no relationship with the shareholders and actual controllers, other directors, supervisors and senior managers of the company holding more than 5% shares of the company. Without the punishment of the CSRC and other relevant departments and the disciplinary action of the stock exchange, there was no condition for the company to prohibit its employment and the punishment imposed by the CSRC on the securities market.

Two. Independent directors

Mr. Xu Wenying, Chinese nationality, 59 years old, university degree, professorship engineer, enjoys the State Council special allowance specialist, national registered consulting engineer.

He is currently vice president of China Textile Industry Association. He has been engaged in technical pformation management of textile industry, textile engineering consulting and cotton textile and dyed weaving industry for a long time.

He was appointed director, chief technology officer, deputy director and chief engineer of Inner Mongolia chemical fiber factory, deputy director of technical pformation Department of China Textile Industry Department, honorary president of China Cotton Textile Industry Association, director of China yarn dyed Industry Association, director of textile technology consulting center.

He is currently an independent director of Jiangsu Luen Fat textile Limited by Share Ltd with a term of -2011 January 2008 January.

At the same time, he served as independent director of Wei Qiao textile Limited by Share Ltd.

Mr. Xu Wenying did not hold shares in the company, and had no relationship with the shareholders and actual controllers, other directors, supervisors and senior managers of the company holding more than 5% shares of the company. Without the punishment of the CSRC and other relevant departments and the disciplinary action of the stock exchange, there was no condition for the company to prohibit its employment and the punishment imposed by the CSRC on the securities market.

Mr. Zhao Shuming, Chinese nationality, 59 years old, doctorate, Dean, professor and doctoral tutor of Nanjing University business school, vice chairman of the Professional Education Steering Committee of the Ministry of education, Ministry of education, President of Jiangsu Provincial Human Resources Association, vice president of Jiangsu Provincial Federation of industrial economy, entrepreneur association of Jiangsu Business Management Association, and part-time professor of Business School of University of Missouri.

He has served as assistant professor, lecturer and principal assistant of the Department of foreign languages, Nanjing University. He is a visiting professor of the six university presidents of California, Claremont, Oklahoma University, Oklahoma University Business School, University of Toronto, York University School of management and so on. Professor Marshall, American College of University of Southern California, Professor of Graduate School of Claremont, President of the Graduate School of Macao University of science and technology, and President of the International Association of Chinese management research.

He is currently an independent director of Jiangsu Luen Fat textile Limited by Share Ltd with a term of -2011 January 2008 January.

At the same time, he served as an independent director of KHD Humboldt Wedag International Ltd. in Germany and an independent director of Jiangsu Swan Limited by Share Ltd.

Mr. Zhao Shuming did not hold shares in the company, and had no relationship with the shareholders and actual controllers, other directors, supervisors and senior managers of the company holding more than 5% shares of the company. Without the punishment of the CSRC and other relevant departments and the disciplinary action of the stock exchange, there was no condition for the company to prohibit its employment and the punishment imposed by the CSRC on the securities market.

Mr. Li Xinhe, Chinese nationality, aged 48, is a doctorate in management science and post doctoral research in accounting. He is deputy director, professor and doctoral tutor of the accounting department of Nanjing University.

The co chairman of the Chinese Finance Association, the internal control expert advisory committee of the Ministry of finance, and vice president of Jiangsu general accountant association, taught in Xuzhou finance and economics school, Soochow University finance and Economics Institute, and part-time professors in Ocean University of China, Jiangxi University of Finance and Economics and other universities.

Currently, he is an independent director of Jiangsu Luen Fat textile Limited by Share Ltd. His term of office is from January 2008 to January 2011. He is also an independent director of Nanjing new hundred Limited by Share Ltd and Jiangsu Suzhou futures brokerage Co., Ltd.

Mr. Li Xinhe did not hold shares in the company, and had no relationship with the shareholders and actual controllers, other directors, supervisors and senior managers of the company holding more than 5% shares of the company. Without the punishment of the CSRC and other relevant departments and the disciplinary action of the stock exchange, there was no condition for the company to prohibit its employment and the punishment imposed by the CSRC on the securities market.