Huamao Shares Issue 840 Million Yuan Bonds

1, Anhui Huamao textile Limited by Share Ltd (hereinafter referred to as "issuer", "company" or "Huamao shares") is publicly issued not exceeding RMB 900 million yuan.

2, the total issue amount of this issue is RMB 840 million yuan, with a face value of RMB 100 yuan, a total of 8 million 400 thousand pieces, with a price of 100 yuan per issue.

3, issuer bond rating is AA.

Before the listing of the bonds, the net assets of the issuer at the end of the latest period amounted to 3 billion 354 million 230 thousand yuan (up to the total stockholders' equity in the consolidated statements in September 30, 2011). The average annual distributable profit of the issuers in the last three fiscal years was 189 million 580 thousand yuan (the average net profit attributable to the shareholders of the parent company in 2008, 2009 and 2010). The annual net profit attributable to the shareholders of the parent company after deducting the non recurring gains and losses is 94 million 476 thousand and 700 yuan, and is expected to be no less than 1.5 times the interest rate of the current bond.

As of September 30, 2011, the parent company's assets and liabilities ratio was 54%, and the combined assets and liabilities ratio was 54.95%.

The financial indicators of the issuer before this release are in conformity with the relevant provisions.

4, the current bonds are unsecured.

5, the current bond is 5 year fixed rate bond (with the option of redemption option issued by the issuer at the end of third, the issuer's option to raise the coupon interest rate and the investor's option to sell back), the preset interval of the coupon interest rate of the current bond is 6.30%-6.70%, and the final coupon interest rate is negotiated between the issuer and the principal underwriter in the preset range according to the inquiry result from the network to the institutional investor.

The coupon interest rate of the bonds will remain unchanged for 3 years.

At the end of third at the end of this term, if the issuer exercises the option to raise the coupon interest rate, the coupon rate of the unsold part of the bonds in the 2 years after the bond renewal period will be 3 years before the bond life period plus the base point raised, and the new interest rate will be implemented 2 years after the bond life. If the issuer fails to exercise the option to raise the coupon interest rate, the coupon interest rate of the unsold part of the bonds will remain unchanged for 2 years after the bond life period.

The issuer and the main underwriter will make an interest rate inquiry on the net investors in April 11, 2012 (T-1) and determine the final coupon interest rate of the bonds according to the results of the inquiry.

The issuer and the main underwriter will announce the final coupon rate of the bonds in the securities times, the Shanghai Securities Journal, the Shenzhen stock exchange website (http://www.szse.cn) and the flood tide information network (http://www.cninfo.com.cn) on April 12, 2011 (T).

6, the issuer redemption option: the issuer will issue thirtieth days before the date of interest payment of the third bonds in the current period, and issue a notice on whether to exercise the option of redemption in the information disclosure media designated by the China Securities Regulatory Commission.

If we decide to exercise the right of redemption, the bonds will be deemed to be fully expired in third years. The issuer will redeem all the bonds in the face of the face value plus the last interest.

The method of redemption is the same as the payment of the principal and interest of the current bonds. The list of the bondholders will be counted according to the relevant provisions of the current bond registration institutions, and shall be handled in accordance with the relevant provisions of the bond registration institution.

If the issuer fails to make a redemption option, the bonds will continue for fourth and fifth years.

7, the issuer raises the option rate of coupon interest: if the issuer releases thirtieth days before the date of interest payment in the third interest bearing year of the current bond, it will issue a notice on abandoning the exercise of redemption option on the information disclosure media designated by the CSRC, and will issue a notice on whether to raise the coupon interest rate and the rate of increase of the current bond. The issuer has the right to decide whether to raise the coupon rate of the bonds for 2 years at the end of the third year of the current bond renewal, and the rate of increase is 0 to 200 basis points, one of which is 0.01%.

If the issuer fails to exercise the option to raise the coupon interest rate, the subsequent coupon interest rate of the term bonds will remain unchanged.

8, the investor's right to sell back: after the issuer issues a notice about whether to raise the coupon interest rate and the rate of increase of the current bond, the debenture holder shall have the right to sell all or part of the current bonds at the face value to the Issuer on the third interest bearing year.

The third payment date of the current bond is the date of resale payment, and the issuer will complete the resale payment work according to the relevant business rules of the Shenzhen stock exchange and China Securities Depository and Clearing Co., Ltd. Shenzhen branch.

Within 3 trading days after the issuer sends a notice on whether to raise the coupon interest rate and the rate of increase of the current bond, the bondholder can make a declaration of return through the designated trading system, and the declaration of the return of the bondholder can not be revoked after confirmation, and the corresponding share of the corporate bond will be frozen. When the declaration is not declared, it will be deemed to give up the option to sell back, continue to hold the current bonds and accept the above decision on raising the coupon interest rate and the rate of increase.

9, the way of issue: the issuance of this issue is based on the combination of online public investment and social public investors and the inquiry and placement of institutional investors (except those prohibited by laws and regulations).

Online subscription is done in real time according to the principle of "time first"; the online subscription is made by the issuer and the main underwriter according to the inquiry price.

The specific issuance arrangements will be carried out in accordance with the relevant provisions of the Shenzhen stock exchange.

10, the callback mechanism: the number of presuppositions issued online and offline is 10 million yuan and 830 million yuan respectively.

The issuer and the underwriter will decide whether to start the callback mechanism according to the online public offering and the placing of inquiries under the network. If the number of online outlets is fully subscribed, no callback will be made; if the number of online public offerings is insufficient, the remaining part will be allocated back to the net.

The bonds are one-way callback and do not return to the Internet.