Ge Long Hui June 27th *ST 002072.SZ announced that in August 11, 2015, the shareholders' meeting of the company passed the relevant motion on the report on the sale of major assets of the company (Draft) and its summary motion. Since October 10, 2015, the company has issued monthly announcement on the implementation of major asset sales in accordance with relevant regulations.

In view of the fact that the sale of major assets has not been fully implemented, according to the relevant provisions of the management measures of major asset reorganization of listed companies, the progress made in the implementation of this major asset sale is described as follows:

As of the announcement date, the company received a total sale of major textile assets to the price of about 539 million yuan, and about 277 million yuan remaining balance failed to recover.

In April 28, 2019, the fifth largest industrial company of Zhejiang, the largest shareholder of the company, signed the contract with the company and its subsidiary Dezhou Jinmian Textile Co., Ltd., which voluntarily undertook the obligation to pay for the remaining arrears. The fifth quarter of Zhejiang's debts would be beneficial to the company's maximum recovery of assets. The transaction constitutes a related transaction and is required to be submitted to the shareholders' general meeting for deliberation before it becomes effective. But the deal was not voted on at the 2018 annual general meeting held in June 14, 2019.

The board of directors and management of the company are verifying the actual performance payment ability of the parties involved in the sale of major textile assets, and strive to urge relevant parties to implement repayment measures to maximize the interests of the company and shareholders. The company reminds investors to pay attention to investment risk.