Attention: Jiangsu Sunshine (600220) Textile Stocks, The Latest Announcement

1 Jiangsu Sunshine (600220): plans to increase the registered capital of Cheng'an of Ningxia from 200 million yuan to 1 billion yuan

Jiangsu Sunshine (600220) announced on the evening of December 7 that according to the future business and development needs of Ningxia Chengan new energy Co., Ltd. ("Ningxia Chengan"), the 16th meeting of the eighth board of directors of the company held on December 7, 2022, deliberated and passed the proposal on increasing the registered capital of the subsidiary, It is agreed that the company will increase the registered capital of Ningxia Chengan from RMB 200 million to RMB 1 billion (subscription system), and the additional registered capital shall be subscribed by the company.

　 2. Jiangsu Sunshine (600220): termination of project investment planning in Jiuyuan District of Baotou City

Jiangsu Sunshine (600220) announced on the evening of December 7 that the company held the ninth meeting of the eighth board of directors and the first extraordinary general meeting of shareholders in 2022 on March 7, 2022 and March 24, 2022, deliberated on the establishment of a wholly-owned subsidiary Inner Mongolia Chengan new energy Co., Ltd. ("Inner Mongolia Chengan"), and made relevant announcements; Inner Mongolia Chengan new energy Co., Ltd. completed the industrial and commercial registration procedures on March 25, 2022.

On April 23, 2022, the company announced the announcement on signing the cooperation agreement. On April 21, 2022, the company signed the investment cooperation agreement with Baotou Municipal People's government and Baotou Jiuyuan District People's government.

　 The company intends to invest in photovoltaic business in Inner Mongolia.

After the signing of the agreement, the company has carried out a series of work such as industrial and commercial management, geological exploration, project approval, energy assessment and environmental impact assessment reports of the project company. Due to relevant objective factors such as industrial policy, local policy and local actual situation, the conditions required for the company's investment cannot be realized as soon as possible in Baotou, and the project cannot be carried out immediately in accordance with the investment cooperation agreement mentioned above. For example, about 1000 mu of land is needed for the project, of which 600 mu is forest land. The completion time of relevant land property change procedures is unknown, and the progress is not clear. And time and efficiency problems will become the major resistance in the actual promotion process of the later project. Therefore, considering the time cost, project planning and industry market changes, the company carried out the preliminary investigation and other work of the project in Ningxia. After evaluation, the company decided to select the project site of the photovoltaic project to be invested in Shizuishan, Ningxia.

After consultation with Baotou Municipal People's government and Baotou Jiuyuan District People's government, the company intends to terminate the investment agreement signed in the early stage and terminate the project investment planning in Jiuyuan District of Baotou city. And cancel Inner Mongolia Chengan new energy Co., Ltd.

　 3. Jiangsu Sunshine (600220): it plans to invest 5 billion yuan to build a high purity polycrystalline silicon project with an annual output of 50000 tons

Jiangsu Sunshine (600220) announced on the evening of December 7 that the company intends to make relevant investment in photovoltaic industry. It plans to sign a cooperation agreement between Ningxia Chengan new energy Co., Ltd. (Ningxia Chengan) and Shizuishan Municipal People's Government of Ningxia, and plans to construct a 100000 ton / a high-purity polycrystalline silicon project and an annual output of 10GW lamellae chips in the Shizuishan economic and Technological Development Zone 10GW battery sheet and 10GW component project.

The company plans to invest in the construction of high-purity polysilicon project with an annual output of 50000 tons, with an investment amount of about 5 billion yuan.

As of September 30, 2022, the company's monetary capital is 402 million yuan, with total assets of 5.036 billion yuan and net assets of 2.153 billion yuan; The amount of investment is much higher than the current book capital level of the company, which may cause pressure on the company's cash flow and solvency. There are risks in the project, such as the impact of financing on the construction progress, change, termination and so on. The project in Inner Mongolia has not been carried out, and it is planned to be terminated. This investment also has the risk of termination.