Jiangsu Sunshine (600220): Guarantee For Controlling Shareholders

Announcement of Jiangsu sunshine Limited by Share Ltd's guarantee for controlling shareholders

The board of directors and all directors of the company guarantee that there is no false record, misleading statement or major omission in the contents of this announcement, and shall bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents. Important note:

The name of the guarantor: Jiangsu Sunshine Group Co., Ltd. (the controlling shareholder of the company, hereinafter referred to as "Sunshine Group").

This guarantee amount and accumulated amount are the guarantee balance: the guarantee amount is 100 million yuan RMB. As of this announcement day, the guarantee balance of the company's total sunshine group is 500 million yuan (including the guarantee).

The accumulated balance of external guarantee: as at the date of this announcement, the accumulated balance of the company's external guarantee is 500 million yuan.

This guarantee Sun Group provides counter guarantee.

The accumulated amount of the company's overdue guarantee: none.

I. summary of guarantee situation

(1) recently, the company signed the highest guarantee contract with the Jiangyin branch of Limited by Share Ltd, Guangdong Development Bank (hereinafter referred to as GFB), providing joint and several liability guarantee for the sunshine group's loan to Guangdong Development Bank. The above guarantee amount is 100 million yuan, with a period from April 7, 2020 to March 26, 2021.

(2) the twenty-second session of the sixth board of directors of the company and the annual general meeting of shareholders in 2016 approved the motion on providing guarantee for the controlling shareholder of Jiangsu Sunshine Group Co., Ltd.: a company that guarantees that the company, including its subsidiaries, is a controlling shareholder, Jiangsu Sunshine Group Co., Ltd., which guarantees financing to financial institutions, provides its balance of not more than 500 million yuan RMB. The guarantee (including 500 million yuan) is three years. The Shanghai Securities Daily, China Securities Journal and Shanghai stock exchange website (www.sse.com.cn) are detailed in April 19, 2017 and May 11, 2017. After this guarantee, the total guarantee amount of the listed company as the controlling shareholder is 500 million yuan.

Two, the basic situation of the guarantor

Name of the company: Jiangsu Sunshine Group Co., Ltd.: the legal representative of No. 18 Tao Xin Road, Jiangyin Xinqiao Town: the registered capital of Lu Ke Ping: 1 billion 953 million 873 thousand yuan RMB: business scope: woollen, wool yarn, knitted cashmere, wool, sweater, clothing, special labour protective articles (antistatic work clothes, acid proof work clothes, flame retardant protective clothing), knitwear, fittings, textile industrial special The development, design, manufacture, processing and sale of equipment and accessories; dyeing and finishing; wool washing; textile raw materials (excluding seed cotton) and metals.

Sales of materials, building materials, glass textile machinery parts, hardware, electrical appliances, communication equipment (excluding satellite TV broadcasting ground receiving facilities and launchers); research, development and sales of drinking water treatment technology; production and marketing of mineral water, packaged drinking water and beverages; photovoltaic power station technology development, technical consultation, technology transfer; photovoltaic power station system construction; photovoltaic power generation The sale of electricity, the sale of photovoltaic equipment and accessories, and the import and export of various commodities and technologies. However, the state limits the operation and import and export of goods and technologies. The second category is the production of medical devices; the first type of medical device production; the first type of medical device retail; and the second category of medical device retail (approved by law according to the approval of the relevant departments, business activities can be carried out).

As of December 31, 2018, the sun group's total assets amounted to 22 billion 467 million 284 thousand and 500 yuan, with a total liabilities of 10 billion 640 million 108 thousand yuan and net assets of 9 billion 573 million 135 thousand yuan. From January 2018 to December, the operating income was 11 billion 242 million 513 thousand and 800 yuan, and the net profit was 810 million 834 thousand and 100 yuan.

As of September 30, 2019, the sun group's total assets amounted to 22 billion 407 million 137 thousand and 800 yuan, with a total liabilities of 10 billion 120 million 673 thousand and 700 yuan and net assets of 10 billion 62 million 413 thousand and 800 yuan. From January 2019 to September, the operating income was 8 billion 864 million 555 thousand and 200 yuan, and the net profit was 489 million 278 thousand and 700 yuan.

Sun Group owns 9.98% of the company's shares and is the controlling shareholder of the company. Sunshine Group's ownership structure is as follows:

Three, the main contents of the guarantee agreement

The company signed the highest guarantee contract with GFB, providing joint and several liability guarantee for Sunshine Group's loan to Guangdong Development Bank.

Guarantee: joint and several liability guarantee;

Guarantee period: from April 7, 2020 to March 26, 2021;

Guarantee amount: the maximum amount is 100 million yuan RMB.

The company signed an anti guarantee contract with sunshine group, and sun group carried out counter guarantee against Party A according to the scope of guarantee stipulated in the "maximum guarantee contract" and performed the anti guarantee responsibility.

Yu Qin Feng

Jiangsu sunshine Limited by Share Ltd

Jiangsu sunshine Limited by Share Ltd Sun Ningling

Jiangsu sunshine Holding Group Co., Ltd.

58.29%

Four. Board opinion

The board of Directors believes that: for many years, the sunshine group has strongly supported the company's production and operation, especially in financing, which has always been a guarantee unit for the company (including its subsidiaries) to finance the bank. In line with the principle of mutual protection, we agree that the company (including its subsidiaries) provides guarantee for sunshine group, thereby promoting the common prosperity of controlling shareholders and our company. The guarantee provided by our company (including its subsidiaries) is feasible and the risk can be controlled. The implementation of this guarantee is beneficial to the development of both sides.

Five. The impact of this transaction on the company.

The controlling shareholders are in good condition and have the ability to take risks. The company can guarantee the risk of its guarantee and will not bring adverse effects to the company.

Six. The total amount of external guarantee and the amount of overdue guarantee.

As of the date of this announcement, the balance of the external guarantee of the company and its controlling subsidiaries amounted to 500 million yuan, accounting for 22.81% of the audited net assets of the company as at 31 December 2018. There is no overdue guarantee.

Seven. Reference files directory

1, the maximum guarantee contract;

2. Photocopy of the business license of the guarantor;

3, the guarantor's 2018 financial statements;

4, the guarantor's financial statements for the third quarter of 2019.

Notice hereby

Jiangsu sunshine Limited by Share Ltd board of directors

April 8, 2020