Announcement Of The Twentieth Meeting Of The Fourth Board Of Directors Of Anhui Huamao Textile Co., Ltd.

　 Securities code: 000850 securities short: Hua Mao shares announcement number: 2010-044

　　 Announcement of the twentieth meeting of the Fourth Board of directors of Anhui Huamao textile Limited by Share Ltd

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 twentieth meeting of the Fourth Board of directors of Anhui Huamao textile Limited by Share Ltd was held in the boardroom of the company on the morning of November 26, 2010. The notice of this meeting was sent to all directors by written personnel and by e-mail in November 15, 2010. The meeting should be attended by 9 directors and 9 members of the board of directors (including 4 independent directors). The convening and convening of the meeting is in conformity with the relevant laws and regulations and the provisions of the articles of association. The meeting is chaired by Ms. Zhan Lingzhi, chairman of the board. After deliberation, the participating Directors voted by name, and adopted the following resolution:

1. The motion on the general election of the board of directors was deliberated and adopted.

In view of the expiration of the term of office of the Fourth Board of directors in November 2010, the board of directors nominated Zhan Lingzhi, Wang Gong, Ni Junlong, Zuo Zhipeng, Jiang Fusheng, Yang Jizhao, Wang Yuchun, Wang Yuchun, and "9" as candidates for the Fifth Board of directors of the company on the basis of the relevant provisions of the People's Republic of China company law and the relevant provisions of the Anhui company law and the Anhui Huamao textile Limited by Share Ltd regulations. (see the annex for the director's candidate)

9 votes were agreed, 0 against and 0 abstentions.

Two, the bill on investment and construction of 400 high-grade dyed fabric items was deliberated and approved.

According to the company's development plan, improve the industrial chain and enhance the main value chain, the company intends to invest in the construction of 400 high-grade yarn dyed fabric production lines by setting up a joint venture company. The company intends to invest in the construction of 400 high-grade yarn dyed production lines by setting up a joint venture company. The registered capital of the joint venture company is RMB 200 million yuan, the company accounts for 85%, and the total investment of the project is 300 million yuan. (see company investment bulletin, Notice No. 2010-047)

9 votes were agreed, 0 against and 0 abstentions.

Three, deliberation and adoption of the proposal to invest in GD securities [48.28 -1.97%] Limited by Share Ltd private placement.

Based on the development strategy of the company based on its main business and diversified operation, on the basis of controlling and guarding against risks,

Anhui Huamao textile Limited by Share Ltd four twenty resolutions of the board of directors announcement

The company intends to invest no less than 800 million of the total net assets of the audited book in the last fiscal year, and the total investment will not exceed 800 million yuan. The investment will take part in the stock non-public offering of Limited by Share Ltd of GF Securities in 2010. The source of funds is raised by its own funds and by way of issuing 800 million yuan letter of credit plan of GF Securities. The board drew the company's third provisional shareholders' meeting in 2010 to consider the motion and Licensing companies's management to participate in the related procedures of Limited by Share Ltd's private placement and financing. For the progress of the project, the company will fulfill the obligation of continuous disclosure. (see company investment bulletin, Notice No. 2010-047)

9 votes were agreed, 0 against and 0 abstentions.

Four, the motion of the internal control system for corporate securities investment was deliberated.

9 votes were agreed, 0 against and 0 abstentions.

Five, we have deliberated and adopted the motion of the company to receive specific object interview system.

9 votes were agreed, 0 against and 0 abstentions.

Six, the motion on holding the third extraordinary shareholders meeting of the company in 2010 was deliberated and adopted.

The board of directors of the company decided to convene the third extraordinary shareholder meeting of the company in 2010 at 10:00 a.m. on December 14, 2010. For details, see the notice of Anhui Huamao textile Limited by Share Ltd on the third extraordinary shareholders meeting held in 2010.

The above 1, 2, 3 and 4 motions still need to be submitted to the third provisional shareholders' meeting in 2010.

9 votes were agreed, 0 against and 0 abstentions.

Notice hereby.

Anhui Huamao textile Limited by Share Ltd board of directors

November 26th, two

Anhui Huamao textile Limited by Share Ltd four twenty resolutions of the board of directors announcement {page_break}

　 Annex: resume of directors

Zhan Lingzhi: female, born in February 1956, is an engineer in graduate school. In 1975, he took part in the work. He served as Deputy Secretary of the general branch of the Anqing textile workshop, the head of the biotechnology laboratory, the Party branch secretary of the production department, the first factory director, and the director, deputy general manager and general manager of Anhui Huamao textile Limited by Share Ltd. He is the chairman, general manager, Secretary of the Party committee and chairman of Anhui Huamao textile Limited by Share Ltd, Anhui Huamao Group Co., Ltd.

Wang Gong: male, born in December 1955, master's degree, economist. In 1976, he took part in the work. He served as chairman of the Education Department of Anqing textile mill, chairman of the branch of the trade union branch, deputy director, director and deputy director of the factory office, director of Anhui Huamao textile Limited by Share Ltd, Secretary of the board of directors and deputy general manager. He is currently the director and Deputy Secretary of Anhui Huamao Group Co., Ltd. and director and general manager of Anhui Huamao textile Limited by Share Ltd.

Ni Junlong: male, born in May 1965, graduate student, senior engineer. In 1989, he took part in the work, served as deputy general manager of Fenghua textile Limited by Share Ltd of Anhui Province, deputy director of Technology Department of Anqing textile mill, deputy director, technical director, director, deputy general manager of Anhui Huamao textile technology quality department. He is currently the managing director and deputy general manager of Anhui Huamao textile Limited by Share Ltd.

Zuo Zhipeng: male, born in January 1970, a university degree, senior accountant, and a non practicing member of the Chinese Institute of certified public accountants. In 1989, he was a member of the Finance Department of Anqing textile mill, assistant director of finance department, deputy director of finance department, director of Anhui Huamao textile Limited by Share Ltd and director of finance department. He is currently the director, deputy general manager, Secretary of the board of directors and chief financial officer of Anhui Huamao textile Limited by Share Ltd.

Jiang Fusheng: male, born in March 1954, university degree, registered senior human resource manager. In 1970, he took part in the work. He served as deputy chief of dry Department of Anqing textile mill group, deputy section chief of personnel department, deputy director and director of labor and personnel department, and director of Anhui Huamao textile Limited by Share Ltd. He is currently the director of the Anhui Huamao textile Limited by Share Ltd and director of the labor and personnel department.

Anhui Huamao textile Limited by Share Ltd four twenty resolutions of the board of directors announcement

　 Resume of independent directors

Yang Jizhao: male, born in 1954, took part in work in 1974. He has a university degree, senior engineer and a member of the Communist Party of China. He has been the deputy director of the Ministry of textile production, deputy director of textile production development center, director of economic and Trade Department of China Textile Federation, chief engineer of Tibet economic and Trade Reform Commission, director of planning and Development Department of State Textile Industry Bureau, director of China Textile Information Center, director of information Department of China Textile Industry Association, Deputy Secretary General of China Textile Industry Association, and Secretary General of China Textile Industry Association.

Wang Yuchun: male, born in December 1956, graduate degree, accounting professor, master tutor, and graduated from Anhui Finance and Economics University in 1983. After graduation, he stayed in teaching and research work, and served as vice dean of Accounting School of Anhui Finance and Economics University. He is currently the director of the Institute of Finance and accounting, School of accounting, Nanjing University of Finances and Economics.

Cheng Longdi: male, born in September 1959, graduate student, professor and doctoral supervisor of Donghua University. In September 1978, he graduated from the textile engineering major of East China Textile Institute of technology. He worked as a researcher in the Textile Science Research Institute of the Ministry of textile industry and an associate professor of China Textile University. He is currently Deputy Director of the Key Laboratory of textile and Textile Technology Education Ministry of Donghua University.

Chen Jiemiao: male, born in January 1966, master of law, Anhui University law professor, vice president of law school, master tutor. He graduated from University of Shanghai for Science and Technology in June 1988 with a bachelor's degree in engineering, and graduated from Sichuan University's law department in June 1993 with a master's degree in law.

He worked as an assistant engineer in Wuhu optical instrument factory. Since July 1993, he has been working as a lecturer, associate professor and professor at Law School of Anhui University. He is currently vice president of Anhui University law school and master's supervisor.