09:42     TEXHONG TEXTILE<02678> - Announcement                               

    This announcement is for information purpose only and                     
    does not constitute an invitation or offer to acquire,                    
    purchase or subscribe for securities. This                                
    announcement is made pursuant to the requirement                          
    under Section 9(2) of the Securities and Futures                          
    (Price Stabilising) Rules.                                                
                                                                              
    The Stock Exchange of Hong Kong Limited takes no                          
    responsibility for the contents of this announcement,                     
    makes no representation as to its accuracy or                             
    completeness and expressly disclaims any liability                        
    whatsoever for any loss howsoever arising from or in                      
    reliance upon the whole or any part of the contents                       
    of this announcement.                                                     
                                                                              
    Unless the context requires otherwise, terms used in                      
    this announcement shall have the same meanings as                         
    defined in the prospectus dated 30 November 2004                          
    issued by Texhong Textile Group Limited (the                              
    "Company").                                                               
                                                                              
    TEXHONG TEXTILE GROUP LIMITED                                             
    (incorporated in the Cayman Islands with limited                          
    liability)                                                                
    (Stock Code: 2678)                                                        
                                                                              
    STABILISING ACTIONS AND END OF STABILISING PERIOD                         
                                                                              
    *       The Company announces that the stabilising period                 
    in connection with the Share Offer ended on 8 January                     
    2005.                                                                     
                                                                              
    *       Stabilising actions undertaken by Goldbond                        
    Securities Limited during the stabilising period                          
    included: (i) the borrowing of an aggregate of                            
    32,700,000 Shares from New Green Group Limited to                         
    cover over-allocations in the Placing; and (ii) the                       
    purchase of an aggregate of 32,700,000 Shares in the                      
    secondary market at a price range from HK$1.13 to                         
    HK$1.15 per Share to return the borrowed Shares to                        
    New Green Group Limited. The Over-allotment Option                        
    has not been exercised and had lapsed on 30 December                      
    2004.                                                                     
                                                                              
    The Company announces that the stabilising period in                      
    connection with the Share Offer ended on 8 January                        
    2005. As advised by Goldbond Securities Limited,                          
    acting in its capacity as stabilising manager for the                     
    Share Offer (the "Stabilising Manager"), during the                       
    stabilising period, stabilising actions undertaken                        
    by the Stabilising Manager included: (i) the                              
    borrowing of an aggregate of 32,700,000 Shares from                       
    New Green Group Limited pursuant to the Stock                             
    Borrowing Agreement to cover over-allocations in the                      
    Placing; and (ii) the purchase of an aggregate of                         
    32,700,000 Shares in the secondary market at a price                      
    range from HK$1.13 to HK$1.15 per Share to return the                     
    borrowed Shares to New Green Group Limited. The                           
    Stabilising Manager has also advised that 20,500,000                      
    Shares were purchased in the secondary market at the                      
    Offer Price of HK$1.15 and the last purchase of Shares                    
    in the course of the stabilising actions was made on                      
    9 December 2004 at a price of HK$1.14 per Share.                          
                                                                              
    The Over-allotment Option has not been exercised and                      
    had lapsed on 30 December 2004.                                           
                                                                              
    By order of the Board                                                     
    TEXHONG TEXTILE GROUP LIMITED                                             
    Hong Tianzhu                                                              
    Chairman                                                                  
                                                                              
    Hong Kong, 10 January 2005                                                
                                                                              
    As at the date of this announcement, the directors                        
    of the Company are as follows:                                            
                                                                              
    Executive Directors:                                                      
    Mr. Hong Tianzhu                                                          
    Mr. Zhu Yongxiang                                                         
    Mr. Tang Daoping                                                          
    Mr. Gong Zhao                                                             
                                                                              
    Independent non-executive Directors:                                      
    Ms. Zhu Lanfen                                                            
    Mr. Cheng Longdi                                                          
    Mr. Ting Leung Huel, Stephen