Fengzhu Textile (600493): Henan Fengzhu Completely Quits CITIC Environmental Protection

Fengzhu textile (600493. SH) announced that in order to better promote the development of Anyang project, revitalize existing assets, optimize resource allocation, relieve capital pressure and increase liquidity, the company held the 9th meeting of the 7th board of directors on November 23, 2020, which deliberated and passed the proposal on transfer of equity of joint venture company and sale of land use right by wholly-owned subsidiary.

Henan Fengzhu, a wholly-owned subsidiary of the company, intends to transfer 10% equity of CITIC environment (Anyang) printing and dyeing environmental protection Comprehensive Development Co., Ltd. (hereinafter referred to as "CITIC environmental protection") to CITIC environmental technology investment (China) Co., Ltd. at the transfer price of RMB 722221. After the transfer, Henan Fengzhu will no longer hold the equity of the joint venture and completely withdraw from the operation of the joint venture; meanwhile, it is planned to divide the 424.08 Mu parcel of land into 58.34 mu for self construction of "Henan Fengzhu (Anyang) 30000 ton printing and dyeing project", and the remaining 365.74 mu of land will be transferred to CITIC environmental protection, with the transfer price of about 115 million yuan.