Huamao Shares (000850): Carry Out Pledged Repo Trading

All members of the company and the board of directors guarantee that the contents of the information disclosure are true, accurate and complete, without false records, misleading statements or major omissions.

The board of directors of Anhui Huamao textile Limited by Share Ltd (hereinafter referred to as "company" or "our company") convened the seven ten board meeting in December 14, 2018. All directors of the company voted by 9 votes, 0 votes against, and 0 abstentions. They passed the "motion on financing of stock raising pledge" by the company. According to the company's actual capital needs and operating conditions, the company used some of the financial assets held by the company to carry out stock pledge financing (including but not limited to stock pledge repurchase transactions, agreed repurchase securities transactions, etc.), and the amount of financing is not more than 800 million yuan.

I. Basic Situation of pledge of shares

In September 23, 2019, the company will pledge the 25 million shares of the Guotai Junan Securities Limited by Share Ltd, which is legally held by the Limited by Share Ltd, to the Anqing branch of Bank of Communications Ltd (hereinafter referred to as the "Bank of Anqing branch"). The duration of the pledge is three years from the date of the registration of equity pledge (September 24, 2019). The company registered the securities pledge in September 23, 2019 at the China Securities Depository and clearing Shanghai branch. The pledge will receive a financing amount of 240 million yuan. The company will apply for the payment of funds to the Anqing branch of the bank within the above-mentioned time limit according to the actual production and operation needs.

Up to now, the company holds 67 million 600 thousand shares of Guotai Junan's unlimited tradable shares, accounting for 0.78% of the registered capital of the company, of which 37 million 670 thousand shares are used for stock pledge, accounting for 0.42% of the total capital stock of Guotai Junan.

Two. Reference documents

1. The certificate of securities registration of China Securities Depository and Clearing Co., Ltd.;

2, the stock pledge contract.

Notice hereby

Anhui Huamao textile Limited by Share Ltd

Board of directors

September 24th two 19