Jiaxin Silk (002404):2019 Annual Equity Allocation Announcement

Zhejiang Jiaxin silk Limited by Share Ltd 2019 annual interest distribution announcement

The company and the board of Directors ensure that the contents of the announcement are true, accurate and complete, and assume responsibility for false statements, misleading statements or major omissions in the announcement.

Special note:

According to the provisions of the company law, the company's shares held by the company's repurchase account do not enjoy the right to participate in the distribution of profits. The company's annual interest distribution plan in 2019 is: the total share capital of 568719737 shares after excluding the total number of shares of the company's total stock of 577673641 shares is 8953904 shares, and it is sent to all shareholders 10 yuan per 10 yuan (including tax).

1. The general meeting of shareholders shall consider and approve the distribution plan.

1. Zhejiang Jiaxin silk Limited by Share Ltd (hereinafter referred to as the "company" and "company") has been approved by the shareholders' meeting in May 6, 2020 at the 2019 annual meeting of shareholders. The resolution of the shareholders' meeting was published in the May 7, 2020 securities times and http://www.cninfo.com.cn. (2019)

2. the profit distribution plan implemented is consistent with the motion considered by the shareholders' meeting in 2019.

3. this profit distribution is not more than two months from the general meeting of shareholders through the profit distribution scheme.

4. the total share capital of the company has not changed since its implementation.

5. the company has opened a repurchase special securities account holding 8953904 shares of the company's stock.

Two. Equity allocation scheme

The company's 2019 equity allocation plan is: 568719 of the total share capital of the company is removed from the repurchase shares. The 737 shares are the cardinal number, and 2 yuan (10 yuan) is paid to all shareholders in every 10 shares (including tax). After deducting tax, QFII and RQFII and individuals who hold the pre sale restricted stock and the securities investment fund are paid 1.80 yuan for every 10 shares. The dividend tax on personal dividends, which is held after the first sale, the restricted stock, the stock option incentive restricted stock and the unlimited sale of tradable shares, is subject to a differential tax rate. When a person transfers shares, he shares his shares.

The tax payable for the securities investment fund held after the initial sale restricted stock, equity incentive limited sale stock and unlimited sale of circulating stocks is partly levied on the Hongkong investor's share of the fund portion by 10%, and partial tax rate is imposed on the mainland investors' share of the fund. Note: according to the principle of first in first out, the duration of stock holding is calculated on the basis of investor's securities account. Within 1 months (including 1 months), every 10 shares are paid 0.40 yuan in tax, and 10 to 1 years (including 1 years) is held, and the tax is 10 yuan per 10 shares. The tax is not required to cover more than 1 years. ]

Three, the date of registration and the ex dividend date.

The date of registration is: May 14, 2020, the ex dividend date is: May 15, 2020.

Four. Rights and interests assigned objects

The assignment is: as of the end of the afternoon of May 14, 2020, after the closing of the Shenzhen stock exchange, all shareholders of the company will be registered in the Shenzhen branch of China Securities Depository and Clearing Co., Ltd. (hereinafter referred to as "China settlement Shenzhen branch").

Five. Equity allocation method

1. the company's cash dividend on behalf of the Shenzhen branch of the China settlement company will be directly transferred to its capital account by shareholders trusteeship securities company (or other trusteeship institution) in May 15, 2020 by the A shareholders' cash dividends.

2. the cash dividends of the A shareholders below are distributed by the company itself:

During the period of application for distribution of rights and interests (application date: May 7, 2020 to registration date: May 14, 2020), if the cash dividends from the Shenzhen branch of the Chinese settlement company are insufficient due to the decrease of the shares in the securities account of the shareholders, all legal liabilities and consequences shall be borne by the company itself.

Six, the relevant parameters and formulas of the reference price of ex dividend rights.

Taking into account that the shares of the company's repurchase special securities account do not participate in the distribution of rights and interests in 2019, the total amount of the actual cash dividends of the company is the total share capital allocation ratio actually allocated.

113743947.40 yuan = 568719737 shares * 0.2 yuan / share. Since the company's share buyback is not involved in dividends, after the allocation of rights and interests, according to the principle of stock market value unchanged, the total share capital of the company will remain unchanged before and after the allocation of rights and interests. The proportion of the total cash dividends to each 10 shares will be reduced. Therefore, the cash dividend of every 10 shares should be calculated at 1.969000 yuan when the rights and interests are distributed. (every 10 shares of cash dividends = total cash dividends / total share capital * 10 shares, that is, 1.969000 yuan =113743947.40 yuan, 577673641 shares * 10 shares).

To sum up, under the premise that the rights and interests allocation scheme is unchanged, the ex dividend interest rate after the implementation of the annual equity allocation in 2019 will be carried out in accordance with the above principles and calculation methods, that is, the right ex dividend price after the implementation of the rights and interests allocation is the closing price of -0.196900 yuan / share on the stock registration day.

Seven. Advisory bodies

Address: No. 588, Central West Road, Jiaxing, Zhejiang.

Advisory Contact: Zheng Xiao Li Chaofan

Telephone: 0573-82078789

Fax: 0573-82084568

Eight. Reference documents

1. company 2019 annual general meeting resolution;

2. the resolution of the twenty-eighth session of the seventh board of directors of the company;

3. China Clearing Shenzhen branch confirms the specific time schedule for dividend payment.

Notice hereby.

Zhejiang Jiaxin silk Limited by Share Ltd board of directors

May 8, 2020