Huafang Textile Intends To Increase Huaan Stock 40 Million Shares By 71 Million 200 Thousand Yuan

         Huafang textile (600273.SH) April 4th evening announcement that the company intends to Increase Holdings Huaan Securities Co., Ltd. (hereinafter referred to as " Huaan Securities "40 million shares, the increase price is 1.78 yuan / share, the amount of investment is 71 million 200 thousand yuan.

According to the announcement, the company recently and Huaan Securities The limited company has signed the equity interest. Capital increase Agreements and related shares Huaan Securities Agreement on instructions and commitments and subsequent measures for capital raising and stock expansion.

This equity interest Increase Holdings Upon completion, the company will hold Huaan Securities The 60 million share shares account for about 2%-2.5% of the total share capital of Huaan stock. The proportion of the total capital stock can be determined according to the Huaan securities subscription.

Statistics show that Huaan securities was established in January 8, 2001, mainly based on the original Anhui securities company and the Anhui Securities Exchange Center, and was established by means of capital raising and restructuring, with a registered capital of 2 billion 405 million yuan. The company has 77 business outlets in Anhui province and Beijing, Shanghai, Shenzhen and Guangzhou, and investment banking, securities investment, asset management, fixed income and other business departments, all kinds of businesses are based on the province and radiate the main regions of the country.

By the end of 2011, Huaan securities company had a total assets of 10 billion 617 million yuan and a net assets of 3 billion 439 million yuan.

Huafang textile suggests that the profits of Huaan securities are mainly derived from brokerage revenue. Therefore, the profitability of the company has a strong positive correlation with the prosperity of the securities market. Brokerage business is in the bull market year, with an average annual profit of around 400 million yuan. In the normal stock market, the annual profit is about 200 million yuan. In the case of poor stock market, the annual profit is about 100 million yuan.

Huafang textile reported 7.49 yuan in March 30th, down 0.40%.