[Guarantee] China Textile Share (600448) Announcement On Mutual Loan Guarantee With Binzhou Matt Towel

China Textile Limited by Share Ltd

Notice on mutual loan guarantee with Binzhou Matt towel

All members of the company and the board of directors guarantee the authenticity, accuracy and completeness of the announcement, and are jointly and severally liable for false statements, misleading statements or major omissions of the announcement.

Important note:

The guarantor of Shandong Binzhou Yaguang towel Co., Ltd.

The guarantee amount is RMB 30 million yuan, and its guarantee is 110 million yuan.

This time there is a counter guarantee.

The cumulative external guarantee amount of the company and its subsidiaries is 282 million 410 thousand yuan.

I. summary of the guarantee situation:

In order to optimize the loan structure and reduce financial expenses, the third meeting of the board of directors of the twenty-sixth meeting of the company in September 17, 2008 decided to increase the guarantee amount of RMB 30 million yuan with the Shandong Binzhou Yaguang towel Co., Ltd. (hereinafter referred to as Matt towel) on the basis of the original mutual provision of 80 million yuan guarantee.

At present, the cumulative external guarantee amount of the company is 282 million 410 thousand yuan, accounting for 54.53% of the company's net assets. There is no overdue external guarantee. This guarantee still needs to be implemented after the shareholders' meeting of the company is deliberated and passed.

Two. The basic conditions of the guarantor:

The guarantor Shandong Binzhou Yaguang towel Co., Ltd. is not related to the company. The location of registration is: No. two, No. 8, Beizhen Road, Binzhou, Bincheng District; the legal representative is Wang Yanping; the registered capital is 110 million 720 thousand yuan; the business scope is: towel and towel products, cotton textile, clothing and technology export business, cotton acquisition and processing; the bank credit rating is AA; by the end of 2007, total assets 2 billion 505 million 330 thousand yuan, total liabilities 1 billion 569 million 400 thousand yuan, total loans 980 million 100 thousand yuan, net assets 914 million 170 thousand yuan, net profit 9498

At the end of August 2008, the total assets amounted to 2 billion 671 million 370 thousand yuan, total liabilities amounted to 1 billion 686 million yuan, total loans amounted to 1 billion 79 million 680 thousand yuan, net assets amounted to 963 million 620 thousand yuan, and net profit was 60 million 830 thousand yuan.

The company's assets, equipment, products, management and other aspects have a good foundation in the same industry, and have a strong ability of continuous operation.

Three. The main contents of the guarantee agreement are:

The guarantee provided by the company is joint and several liability, with a term of three years.

Four, the board of directors:

The guarantee was made at the twenty-six meeting of the third board of directors in September 17, 2008 to optimize the loan structure and reduce financial costs.

Binzhou Yaguang towel Co., Ltd. has strong profitability, good financial condition, and guarantees for each other. The guarantee risk is relatively low. This guarantee is conducive to improving the profitability of the company after its technological pformation and enhancing its continuous operation capability.

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

The accumulated external guarantee amount of the company and the controlling shareholder is 282 million 410 thousand yuan, which accounts for the company's net assets.

54.53%, there is no overdue guarantee.

Six. Reference documents:

The twenty-sixth meeting of the third board of directors of China Textile Limited by Share Ltd; Binzhou Yaguang towel Co., Ltd. business license; Binzhou Yaguang towel Co., Ltd. August 2008 financial statements.

Notice hereby.