Jiaxin Silk (002404): The Controlling Shareholder Provides Guarantee For Its Wholly-Owned Subsidiary.

Zhejiang Jiaxin silk Limited by Share Ltd announcements of guarantee for its wholly owned subsidiary by its holding subsidiary

All members of the company and the board of directors guarantee the authenticity, accuracy and completeness of the information disclosure, without any false record, misleading statement or major omission.

I. summary of guarantee situation

Zhejiang Jiaxing silk Limited by Share Ltd (hereinafter referred to as "company"), a subsidiary holding company of Jiaxing excellent metal products Co., Ltd. (hereinafter referred to as "excellent metal") intends to provide a comprehensive credit guarantee for its wholly owned subsidiary, Jiaxing Tianxin Hardware Co., Ltd. (hereinafter referred to as "Tianxin hardware"), which does not exceed 20 million yuan. The guarantee amount is valid for three years from the date of the consideration of the shareholders' meeting. The above amount can be recycled. At any time during the validity period of the guarantee amount, the guarantee balance provided by the best metal is Tianxin hardware which does not exceed 20 million yuan. The specific guarantee period is two years from the date of debt maturity of the Tianxin hardware contract. Tianxin hardware provides counter guarantee for the warranty. The above guarantee items were deliberated and passed by the shareholders' meeting on June 2020 29. According to the relevant provisions of the guidelines for the standardized operation of the listed companies of the Shenzhen Stock Exchange (2020 Revision), the company has fulfilled the internal decision-making process and has no need to submit the company's board of directors and shareholders' meeting for consideration.

Two, the basic situation of the guarantor

1. Company Name: Jiaxing Tianxin Hardware Products Co., Ltd.

2. unified social credit Code: 9133040078291069X9

3. establishment date: December 2, 2005

4. registered address: west side of Xiu Yuan Road, Xiuzhou Industrial Park, Jiaxing City, Zhejiang province (Zhejiang building 12 floor of the Limited by Share Ltd)

5. legal representative: Zhu Weibo

6. registered capital: 322.603534 yuan RMB.

7. scope of business: R & D, design, manufacture and sale of hardware, aluminum products, daily plastic products and their hardware and plastic combination products; engaged in import and export business. (legally approved projects can be launched after approval by the relevant departments).

8. shareholding structure: excellent metal holding 100%, the company holds 67.5% stake in excellent metals. Tianxin hardware

It is a wholly-owned subsidiary of the company's controlling subsidiary.

9. recent and one-year financial data

Unit: Yuan

Note: the above 2019 financial data has been audited by Lixin Accounting firm (special general partnership), and the financial data for the first quarter of 2020 have not been audited.

Three, the main contents of the guarantee agreement

Excellent metal will sign the highest guarantee contract with the Agricultural Bank of China Limited by Share Ltd Jiaxing Xiu Zhou branch, the guarantee method is joint and several liability guarantee, the guarantee period is two years from the date of the debt maturity of the Tianxin hardware contract, the guarantee balance is no more than 2. 000 million yuan, the specific content of the guarantee agreement will be determined by the excellent metals, Tianxin hardware and the Jiaxing branch of the Agricultural Bank of China Limited by Share Ltd, Xu Hong.

Four, the impact of security matters

The external guarantee is mainly excellent metal to meet the needs of the development and operation of Tianxin hardware, a wholly owned subsidiary, which is conducive to financing and business development. Tianxin hardware has stable financial situation, good credit standing, controllable financial risk and practical debt repayment capability. The assurance company provides guarantee for the company to meet the needs of the company and the development of the whole metal business. To sum up, the guarantee risk is controllable, and there is no damage to the interests of shareholders of the company and excellent metals.

Five. Quantity of accumulated external guarantee and quantity of overdue guarantee.

As of the date of this announcement, the balance of the external guarantee of the company and the controlling subsidiary is 66 million 926 thousand yuan, accounting for 3.77% of the company's latest audited net assets. There is no accumulated amount of overdue guarantee, the amount of guarantee involved in the litigation and the amount of loss that should be borne due to the failure of the guarantee.

Six. Reference files directory

1. Jiaxing excellent metal products Co., Ltd. resolution of shareholders' meeting is hereby announced.

Zhejiang Jiaxin silk Limited by Share Ltd board of directors

June 30, 2020