Shenzhen Textile A (000045): Progress In Providing Guarantee For Subsidiaries

Shenzhen Textile (Group) Co., Ltd. Announcement on the Progress of the Company's Guarantee for Subsidiaries

The Company and all members of the Board of Directors guarantee that the contents of the announcement are true, accurate and complete, and there are no false records, misleading statements or major omissions.

1、 Overview of guarantee

Shenzhen Textile (Group) Co., Ltd. (hereinafter referred to as "the Company" or "the Guarantor") held the 28th meeting of the 7th Board of Directors on March 17, 2020, deliberated and passed the Proposal on the Subsidiary's Application for Mortgage Loans from the Bank and the Proposal on Providing Guarantee for the Subsidiary's Mortgage Loans, On April 3, 2020, the Second Extraordinary General Meeting of Shareholders in 2020 was held to review and approve the Proposal on Providing Guarantees for Subsidiary Mortgage Loans, agreeing to the subsidiary Shenzhen Shengbo Optoelectronics Technology Co., Ltd. (hereinafter referred to as "Shengbo Optoelectronics" or "Borrower") Apply for a fixed asset loan of 800 million yuan (hereinafter referred to as the "Lender") to the consortium with Bank of Communications Shenzhen Branch as the lead bank by mortgaging part of its self owned property, with a term of no more than 8 years. The specific terms are as follows: Syndicated Loan for the Industrialization Project of Polarizer for Super Large Size Television (Line 7) signed by Shengbo Optoelectronics and the Lender (hereinafter referred to as the "Loan Agreement") ）The Mortgage Contract of Syndicated Loan for the Industrialization Project of Polarizer for Super large TV (Line 7) shall prevail; It is agreed that the company will provide joint and several liability guarantee for 60% of all debts of the subsidiary Shengbo Optoelectronics under the above project loan to the lender, of which the principal amount of guaranteed creditor's rights is 480 million yuan. For details of the above, please refer to the Announcement on Guarantee Provided by the Company for Subsidiary Applications for Bank Mortgage Loans (No. 2020-19) of CNINFO (www.cninfo. com. cn).

2、 Guarantee progress

Recently, the company and the lender's security agent, Bank of Communications Co., Ltd. Shenzhen Branch, signed the Guarantee Contract for the Syndicated Loan of the Industrialization Project of Polarizer for Super large TV (Line 7) (hereinafter referred to as the "Guarantee Agreement") on the above guarantee matters, stipulating that the company will pay 60% of all debts under the above loan agreement

Undertake joint and several guarantee liability to the lender.

3、 Main contents of the guarantee agreement

（1） Guarantor: Shenzhen Textile (Group) Co., Ltd

（2） Security Agent: Shenzhen Branch of Bank of Communications Co., Ltd

（3） Guarantee mode: joint liability guarantee

（4） Scope of guarantee: 60% of all debts under the loan agreement. All debts include but are not limited to loan principal, interest, default interest, compound interest and liquidated damages under the loan agreement; The fees to be paid by the borrower as agreed in the loan agreement; All expenses incurred by the lender and the security agent to realize or protect the creditor's rights and/or rights under the security agreement; Other expenses, fees and losses that shall be paid by the Borrower and the Guarantor to the Lender and the Security Agent as agreed in the Loan Agreement or the Security Agreement.

（5） Guarantee period: from the effective date of the guarantee agreement to any and/or all debts under the loan agreement

Two years from the date of expiration of the performance period.

4、 Accumulated external guarantees and overdue guarantees

As of the date of this announcement, the accumulated balance of external guarantee principal of the Company (including this time) is 480 million yuan, accounting for 17.60% of the audited net assets of the Company in 2019. In addition to this guarantee, the Company and its holding subsidiaries did not provide guarantee for enterprises other than those in the consolidated statements. The Company and its holding subsidiaries have no overdue external guarantee, no external guarantee involving litigation, and should bear losses due to the loss of the guarantee.

5、 Documents for future reference

Guarantee Contract of Syndicated Loan for the Industrialization Project of Polarizer for Oversize TV (Line 7)

It is hereby announced that

Shenzhen Textile (Group) Co., Ltd

Board of Directors October 24, 2020