Huamao (000850): Change Of Investment Project

Huamao Co., Ltd. (000850) announced on the evening of April 15 that in recent years, the company has been focusing on improving and strengthening its main business, constantly optimizing and adjusting its product structure according to market demand. On August 28, 2020, the second board of directors of the 8th session of the company deliberated and passed the proposal of "wholly owned subsidiary investing in textile manufacturing project for new functional fiber composite industry". Anqing Huaxin Industrial cloth Co., Ltd., a wholly-owned subsidiary of the company, plans to invest in the construction of new functional fiber composite industrial textile manufacturing project.

Due to the profound changes in market demand, it is necessary to further adjust the product structure of enterprises, better adapt to the needs of diversified markets and enhance the competitiveness of enterprises. The board of directors agreed to terminate the textile manufacturing project for new functional fiber composite industry. After the deliberation and approval of the 12th meeting of the 8th board of directors of the company, it is proposed to change the above-mentioned "textile manufacturing project for new functional fiber composite industry" into "functional high-grade chemical fiber fabric construction project", with the total investment increased from the original estimated RMB 341.06 million to RMB 428.79 million.