Notice On Issue Of External Guarantee For Independent Directors Of Shenzhen Textiles A

The independent director of the Municipal Textile (Group) Limited by Share Ltd gave special instructions and independent opinions on the occupation and external guarantee of the controlling shareholders and other related parties in the half year of 2012.

In accordance with the notice on regulating the capital pactions between listed companies and related parties and the external guarantee of listed companies (No. 2003 of the Securities Commission [56]), and the notice on strengthening the information disclosure of the fund occupation and violation of guarantee information of listed companies (No. 338 issued by the Shenzhen Bureau No. 2004) and the spirit of the circular on regulating the behavior of the listed companies' external guarantee activities (No. 2005, No. 120), we conducted a verification of the funds and external guarantee of the controlling shareholders of Shenzhen textile (Group) Limited by Share Ltd (hereinafter referred to as "company") in 2012 of 1-6 months and other related parties.

1. During the reporting period, the funds occupied between the company and other related parties belong to the capital pactions formed in the normal operation process.

And other related parties illegally occupy the funds of listed companies.

Two, during the reporting period, the company is a wholly owned subsidiary, Shenzhen Shengbo Photoelectric Technology Co., Ltd., to the [12.42 -0.64% share research report of the Industrial Bank of China. The Limited by Share Ltd Shenzhen branch applies for RMB 115 million yuan comprehensive credit line to provide guarantee guarantee, with a period of 12 months, and the actual guarantee amount is 0 yuan. The company is a wholly owned subsidiary, Shenzhen Shengbo Photoelectric Technology Co., Ltd., which provides a guaranty guarantee for the comprehensive credit line of RMB 200 million yuan to the Shenzhen Jiangsu building branch. The period is 12 months, and the actual guarantee amount is 0 yuan.

In addition to the above guarantee, the company has no other external guarantee.

There is no violation of external guarantee when there is no overdue guarantee obligation.

We believe that the guaranty of a bank's credit line for a wholly owned subsidiary during the company's reporting period is the fund's demand for its working capital, which is conducive to supporting its business development, and does not harm the interests of the company and its minority shareholders. There is no indication that the company may be liable for breach of contract because of the default of the secured party.

Shenzhen City

(Group) Limited by Share Ltd has developed strict external authority approval authority and procedures, which can effectively prevent external guarantee risks.

Independent directors: Zhang Yong, Shi Weihong and Yang Shibin

August 1st two one or two