China Textile Machinery Limited By Share Ltd Announcements On Stock Trading Cancellation Of Other Risk Warnings

A share Securities: 600610 A shares short: SST

[10.25 0%] No.: pro 2012-016

B share code: 900906 B share securities short: ST China spinning B[0.37 0.00%]

China Textile Machinery Limited by Share Ltd announcements on stock trading cancellation of other risk warnings

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.

I. summary of the basic situation

Due to the company's losses for 2005 consecutive years in 2006 and 2006, according to the relevant provisions of the Shanghai Stock Exchange Listing Rules (revised in 2006), the company's stock trading was specially handled by the Shanghai stock exchange in May 8, 2007. The company's A and B share short changed from S spinning machine and Sino spinning B-share to S*ST spinning and *ST spinning B, and the daily trading range of stock trading was limited to 5%.

Audited by Shanghai Zhonghua Shanghai Banking Corporation Limited, the net profit attributable to parent company owners in 2007 was 65 million 107 thousand and 100 yuan.

According to the relevant provisions of the Shanghai Stock Exchange Listing Rules (2006 Revision), the risk of stock delisting has been lifted. After the company's application and the Shanghai stock exchange's approval, since May 30, 2008, the company's A and B-share stocks have been changed from S*ST spinning and ST spinning B to SST spinning and ST spinning, B, A and B shares are still 600610 and 900906, and the daily limit of stock trading is still 5%.

Shanghai Zhonghua Shanghai silver certified public accountants Co., Ltd. issued a standard unqualified audit report for the company's 2011 financial report. The net profit of the company attributing to the parent company in 2011 was 5 million 643 thousand and 300 yuan. The net profit attributable to the shareholders of the listed company after deducting the non operating profit and loss was -2912.59 million, and the company's equity attributable to the owners of the parent company was 174 million 30 thousand and 100 yuan at the end of 2011.

The net profit of the unaudited company belonging to the parent company in 2012 is 1 million 822 thousand and 100 yuan. The net profit attributable to the shareholders of the listed company after deducting the non operating profit and loss is -849.30 million, and the company's equity attributable to the parent company in 2012 is 173 million 170 thousand yuan at the end of the half year.

The company's main business is to produce textile machinery products. The company's operating income in the 2011 year was 99 million 146 thousand and 100 yuan, down 14.82% from the same period last year. The company's half yearly operating income in 2012 was 46 million 148 thousand and 900 yuan, down 15.14% from the same period last year.

At present, the company's production and operation activities are normal. There is no freezing of bank accounts. The meetings of the board of directors of the company are normally convened and a resolution is formed. There is no "company's controlling shareholder or related party's non operating capital or violation of the provisions of decision-making procedures to provide external insurance, which is serious."

In the case of the company's original controlling shareholder and its associated party's non operating capital appropriation, the company's largest shareholder has implemented a conditional compensation and clearance plan (see the important contents of the company's 2011 Annual Report).

The company considers that the company does not relate to the delisting risk warning and other risk warnings specified in the Shanghai Stock Exchange Listing Rules (2012 Revision).

Two, the company meets other risk warning conditions.

According to the provisions of article 13.2.1 of the Shanghai Stock Exchange Listing Rules (2012 Revision), the company's net profit, net assets, business income and other indicators are not related to the warning conditions for delisting risks, nor do they touch other conditions specified in the terms of the 2011 Annual Report, which is disclosed by the company. According to the Shanghai stock exchange,

The Listing Rules (2012 Revision) "13.3.1" stipulates that there is no other risk warning.

Therefore, the company's stock pactions meet the requirements of other risk warnings.

According to the relevant provisions of the Shanghai Stock Exchange Listing Rules (2012 Revision), in view of the fact that the company does not involve other risk warnings, the company formally submitted to the Shanghai stock exchange an application for cancellation of other risk warning processing on the stock exchange after its suspension in August 23, 2012.

With the consent of the Shanghai stock exchange, the company's stock was suspended for one day in August 27, 2012 and resumed in August 28, 2012. The company's stock was changed from "SST China spinning" and "ST spinning B" to "S spinning machine" and "China spinning B shares", with stock code 600610 and 900906 unchanged.

The A share trading has been restored to 10% due to the 5% day day trading limit and the daily limit of B share trading.

Three, risk warning

The audited net profit of the company in 2011 and the first half of 2012 is positive, but net profit after deducting the non operating profit and loss is still negative. The company is actively taking various measures to improve the profitability of the main business, and invite the majority of investors to pay attention to investment risk.

This is hereby announced.

China

Mechanical Limited by Share Ltd

August 27, 2012