Jiangsu Sunshine (600220): A Supplementary Announcement By A Wholly Owned Subsidiary To Provide Guarantee For Controlling Shareholders.

Stock Code: 600220 stock short: Jiangsu sunshine number: pro 2020-022

Jiangsu sunshine Limited by Share Ltd

Supplementary announcement of wholly owned subsidiary'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.

The Jiangsu sunshine Limited by Share Ltd (hereinafter referred to as the "company") disclosed the announcement on the guarantee of wholly owned subsidiary for controlling shareholders in June 11, 2020 (announcement number 2020-021). According to the relevant requirements, the announcement of the above announcement is supplemented.

1. The basic situation of the guarantor

As of December 31, 2019 (audited), Jiangsu Sunshine Group Co., Ltd. (hereinafter referred to as "Sunshine Group") has a total assets of 22 billion 691 million 699 thousand and 300 yuan, a total liabilities of 10 billion 854 million 907 thousand and 600 yuan, a total of 7 billion 495 million 848 thousand and 700 yuan of bank loans, 8 billion 528 million 402 thousand and 500 yuan of current liabilities and 9 billion 664 million 557 thousand and 400 yuan of net assets. From January 2019 to December, the operating income was 11 billion 867 million 217 thousand and 700 yuan, and the net profit was 691 million 422 thousand and 300 yuan.

As of March 31, 2020 (Unaudited), Sun Group's total assets amounted to 22 billion 809 million 504 thousand and 400 yuan, total liabilities 10 billion 854 million 981 thousand and 400 yuan, bank loans totaled 7 billion 515 million 610 thousand and 800 yuan, current liabilities totaled 8 billion 970 million 258 thousand and 700 yuan and net assets amounted to 9 billion 822 million 155 thousand and 800 yuan. From January 2020 to March, the operating income was 2 billion 369 million 430 thousand and 500 yuan, and the net profit was 157 million 598 thousand and 400 yuan.

There are no major or contingencies affecting the solvency of the guarantor sunshine group.

Two, the main contents of the guarantee agreement

The company's wholly owned subsidiary, Jiangyin Jindi Wool Textile Co., Ltd. (hereinafter referred to as "Jindi wool spinning") signed the "highest mortgage guarantee contract" with Ping An Bank, providing collateral guarantee for Sunshine Group's loan to Ping An Bank.

Guarantee mode: mortgage guarantee;

Guarantee period of creditor's rights: from June 9, 2020 to June 8, 2021;

Guarantee amount: 300 million yuan.

The guaranty Jindi woolen textile is mortgaged by its house of Rehmannia (2016), house 004505, which is currently used for rent, and there are no judicial measures involving litigation, arbitration matters, sealing up or freezing. The property was put into operation in November 2000, with a depreciation period of 19 years. The value of the assets as at 31 December 2019 was 83 million 924 thousand yuan, and the net book value was 60 million 646 thousand and 100 yuan. The original value of the audited account as at March 31, 2020 was $83 million 924 thousand and the net book value was 59 million 414 thousand and 100 yuan.

The guarantee of Jiangyin Jindi Wool Textile Co., Ltd. signed a "counter guarantee contract" with sunshine group. The sunshine group provided the anti guarantee of joint liability guarantee for Jindi wool spinning in the scope of guarantee responsibility stipulated in the highest mortgage guarantee contract.

Three. Board opinion

The guarantor Sunshine Group has been a guarantee unit for the company and its subsidiaries to bank financing. As at December 31, 2019, the guarantee balance for the company and its subsidiaries has been approximately 1 billion 700 million. The guarantor is in good condition at present and has the ability to take risks, and the guarantee company provides counter guarantee to protect the interests of listed companies. The guarantor has good debt paying ability, and the risk of this guarantee is relatively small, which will not adversely affect the production and operation of the company.

In addition to the above supplementary contents, the other contents of the original announcement remain unchanged.

Notice hereby.

Jiangsu sunshine Limited by Share Ltd

Board of directors

June 11, 2020