Jialin Jie Textile Is Planning To Invest In New Fabric And Garment Production And Research Base In Jiayu, Hubei.

Code: 002486 securities short: Jialin Jie announcement number: 2012-044

Shanghai Jialin Jie textile Limited by Share Ltd announcements on investment and development of new fabric and garment production and research base in Jiayu, Hubei

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 this external investment

1, in order to adapt to the market demand and development trend of the company's products in the future, keep up with the international advanced technology, and further improve the quality and grade of the products, after careful study and discussion by the management, the company plans to invest in the development of new high-grade fabric and clothing production and research base in Jiayu County Economic and Technological Development Zone, Xianning, Hubei province. Through this project, the production cost and product competitiveness will be reduced while the product's technical content, production capacity and sales volume are increased, and the domestic high-end outdoor sports fabrics and clothing market will be actively developed, so as to promote the long-term, stable and healthy development of the company.

2, the proposed investment plan is still in the stage of investment intention. It has been adopted at the eleventh session of the second board of directors of the company and is proposed to be submitted to the shareholders' meeting for consideration. Its final entry into force must be approved by the relevant government departments.

3. The successful implementation of this foreign investment does not constitute a related paction, nor does it constitute a major asset reorganization stipulated in the administrative measures for the major asset reorganization of listed companies.

Two. The main contents of this external investment.

1. Project name

Hubei Jiayu high quality fabric and clothing production R & D base project.

2. Project location

The project is located in the place where the project is located.

Xianning province Jiayu County Economic Development Zone, the plant area of about 257 acres (the exact address and area of the project will be measured accurately).

3. Main contents of the project

(1) new factory building: the gross floor area is about 50000 square meters.

(2) equipment purchase: the corresponding weaving, dyeing and finishing, garment sewing, printing and embroidery equipment and technology research and development equipment are allocated according to capacity requirements.

(3) supporting facilities: auxiliary facilities such as piping and distribution, and related environmental protection and energy saving facilities.

4. Product plan and scale of production

After the project is completed and put into operation, Jialin Jie of Shanghai will add 18 million meters / year of new fabric, including functional fabrics, polyester fleece fabrics, wool blended fabrics and pure cotton fabrics. The new garment processing capacity will be 6 million pieces / year.

5. Project progress plan

The time required for the project to start from completion to completion is about 36 months, of which the first phase is about 26 months, and the second period is about 10 months.

The actual progress of project construction may be adjusted according to the change of market demand.

6, investment calculation and financing

After preliminary calculation, the total investment of the project is about 401 million 160 thousand yuan, and will be built in two phases.

All the funds needed for the project will be resolved by the company itself.

Three. The purpose of foreign investment, its impact on the company and its risks.

1. The purpose of this external investment is to reduce production costs and enhance product competitiveness through increasing product technology content, production capacity and sales volume through the project, and actively developing domestic high-end outdoor sports fabrics and clothing market, and promoting long-term, stable and healthy development of the company.

2, the impact on the future financial situation and operating results of listed companies: after the investment project is completed and put into operation, it is estimated that the annual production capacity of the company will increase by about 18 million meters, and the ready-made garment industry will increase by about 6 million. The annual operating income, gross profit and net profit will also increase correspondingly, which will have a positive impact on the future financial situation and operating results of the listed companies in the long run.

3, the above construction projects still need to complete the establishment, EIA and the corresponding land, planning and other administrative filing, examination and approval work, there are major uncertainties.

4, the investment may lead to corresponding risks due to factors such as market, technology and finance. Investors should be prudent in judging and making investment decisions.

5, the implementation of the proposed investment plan is subject to the approval of the shareholders' meeting and relevant government departments.

Four, others

1, the above investment plan involves the figures only for the general estimates of the current communication situation of the parties, and the specific formal agreements, government approvals and the actual implementation of the projects shall prevail.

2. After the first announcement of this foreign investment announcement, the company will promptly disclose the significant progress or change of this external investment.

Jialin Jie textile Limited by Share Ltd board of directors

July 18, 2011