Hua Sheng Shares (600156): To Provide Loans To Subsidiaries.

Hunan Huasheng Limited by Share Ltd

Notice on providing loans to a controlling shareholder

All members of the company and the board of directors guarantee the authenticity, accuracy and completeness of the information disclosure, without any false record, misleading statement or major omission.

I. summary of loan matters

(1) the basic situation of borrowing matters

To support the operation and development of Hunan Huasheng Dongting Hemp Industry Co., Ltd. (hereinafter referred to as "dongma company"), the Hunan Hua Sheng Limited by Share Ltd (hereinafter referred to as "the company") provides 10 million yuan of loans with its own funds to dongma company, a subsidiary holding company. The loan interest rate is the interest rate of the same period of the bank, and the borrowing period is 6 months.

(two) procedures for examination and approval of performance

At the sixteenth meeting of the seventh board of directors held in January 28, 2019, the company passed the motion to provide loans to its controlling subsidiaries. The motion does not need to be submitted to the shareholders' meeting for deliberation.

Two, the basic situation of borrowers

(1) basic situation

Company name: Hunan Huasheng Dongting Hemp Industry Co., Ltd.

Category: limited liability company

Residence: the legal representative of the north ring spinning office building in the Yueyang Tower District of Yueyang City: the registered capital of Yi Zhang Yuan: the date of establishment of 100 million yuan yuan: the operation range in September 14, 2006: the production, sale, purchase, processing and sale of the raw materials of textile, textile, textile, clothing and clothing, textile materials, chemical products, knitwear, general equipment, policy allowed agricultural and sideline products, textile production scientific research and consulting services.

(legally approved projects can be launched after approval by the relevant departments).

(two) as of September 30, 2018, the total assets of Dong Ma company were 257 million 790 thousand yuan, net assets 130 million 570 thousand yuan, and asset liability ratio 49.35%.

(three) the borrowing amount is RMB 1, 000 yuan (four), and the interest rate of the loan is the interest rate of the bank in the same period.

Three, the loan authorization matters the company board of directors authorizes the management management to handle the concrete matter of the loan.

Four. The purpose of this loan and its impact on the company.

This loan will help to ensure that Dong Ma company needs to carry out production and business operations and maintain the normal operation of the company.

Notice hereby.

Hunan Huasheng Limited by Share Ltd board of directors

January 29, 2019