Huafang Textile Limited By Share Ltd Announcements On Litigation Matters

　　 Stock Code: 600273

Securities short: Huafang textile

Announcement number: 2014-017

　　 Huafang textile Limited company

about Litigation matters Announcement

All members of the company and the board of directors guarantee that there are no false statements, misleading statements or major omissions in the contents of the announcement, and shall bear individual and joint liabilities for the authenticity, accuracy and completeness of the contents.

The Huafang textile Limited by Share Ltd (hereinafter referred to as "Huafang textile" or "company"), in connection with the loan dispute between Hua Tian Xin Mstar Technology Ltd of Zhangjiagang (hereinafter referred to as "Alex Hua Tian company"), was made by the Zhangjiagang people's Court on July 2, 2012 (2011) the civil judgment No. 762nd of Zhang Shang Chu min Zi, which decided that company returned the principal 12014291.74 yuan to the Hua Fang textile and the yield was 303426.13 yuan, and assumed 97245 yuan for the case acceptance fee. Alex Hua Tian lodge an appeal against the intermediate people's Court of Suzhou. The intermediate people's Court of Suzhou made (2012) the civil judgment No. 0565 of the Soviet Union Central Business in March 20, 2013. Alex Hua Tian company The appeal was upheld and the original sentence was upheld. In April 6, 2013, the company submitted the enforcement application to the people's Court of Zhangjiagang, and applied for compulsory execution of the appeal decision. The people's Court of Zhangjiagang Municipality put it on record in April 7, 2013.

In October 16, 2013, the company received the notice of Reply of the higher people's Court of Jiangsu province (No. [2013], No. 466th of the Soviet Union's Shang Dynasty). Alex Hua Tian and Xiao Zhaoya refused to accept the civil judgment made by the intermediate people's Court of Suzhou in March 20, 2013 (2012) in the final 0565 of the Soviet Union, and applied for a retrial to the higher people's Court of Jiangsu. The higher people's Court of Jiangsu Province issued the "civil ruling" in January 6, 2014 ([2013] 466th of the Soviet Union's Shang Dynasty). The Jiangsu Provincial Higher People's court held that the reason why Alex Hua Tian and Xiao Zhaoya applied for retrial were not valid and dismissed the retrial application of Alex Hua Tian company and Xiao Zhaoya.

Up to now, the case is still in the process of implementation.

Notice hereby.

Huafang textile Limited by Share Ltd board of directors

March 31, 2014

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The practice in recent years has proved that the comparative advantage that is formed only by cheap labor is an unsustainable advantage, and institutional innovation is becoming a new development bonus. According to the insiders, the textile and garment industry in Jiangsu has a good foundation. The upside down of raw material prices is the biggest factor for enterprises to operate. If we can solve the cotton price differentials and quotas and increase the development of high value-added products, we can still achieve better results. More importantly, it can co-ordinate the industrial transformation and transfer rhythm of the whole province and avoid the cage of existing industries. The new "birds" have not been nurturing in good time and the real economy is unstable.

"The market plays a decisive role in the allocation of resources, and the" pre planned economy and post market economy "is not feasible. Shen Jianhong, chairman of Dasheng group, suggested that the top-level design of cotton policy should be carried out in the top level of the country. From the aspects of planting, storage, and sales, the urgent task is to carry out "price separation" to make domestic cotton prices more close to the price of cotton.

"Enterprise development must be hard at first." Li Guangming, vice chairman of Wuxi Yangtze River precision textile industry, believes that the cost difference between China and Southeast Asia is only 3-4 times, so that everyone is crying for diversion. After a few years of Southeast Asia's cost differential, we have to find new "cost depression". If our enterprises are just "migratory birds", they are satisfied with harvesting limited profits in the process of migration and not taking the road of connotative development, and grasp the core competitiveness of the high-end links of the industrial chain, which will be really dangerous in the future.

"Going out" is worth encouraging. We should do something in the high-end links such as channel construction, marketing mode innovation, product design, research and development, and make full use of international resources. Dasheng group is considering holding shares or holding an Australian enterprise to build an international platform to integrate into the European and American markets. Bosideng insists on brand internationalization and has opened more than 80 chain stores in the three islands of the UK. Its profit increased by 12.7% last year.