09:28     TEXHONG TEXTILE<02678> - Ann. & Resumption of Trading (3)           

    Suspension and resumption of trading in the Shares                        
    Trading of the Shares on the Stock Exchange was                           
    suspended at the request of the Company with effect                       
    from 9:30 a.m. on 31 January 2005 pending the release                     
    of this announcement, which the Directors believe is                      
    price sensitive. Application has been made by the                         
    Company for the resumption of trading in the Shares                       
    with effect from 9:30 a.m. on 1 February 2005.                            
                                                                              
    BOARD OF DIRECTORS                                                        
    As at the date of this announcement, the Directors                        
    include Mr. Hong Tianzhu, Mr. Zhu Yongxiang, Mr. Tang                     
    Daoping, Mr. Gong Zhao, Executive Directors and; Ms.                      
    Zhu Lanfen, Mr. Cheng Longdi, Mr. Ting Leung Huel,                        
    Stephen, Independent non-executive Directors.                             
                                                                              
    DEFINITIONS                                                               
    "Board" the board of Directors                                            
                                                                              
    "Company"       Texhong Textile Group Limited                             
                                                                              
    "Directors"     the directors of the Company                              
                                                                              
    "Group" the Company and its subsidiaries                                  
                                                                              
    "Jiangsu Yinyu" *,                                                        
    (Liquidation Committee of Jiangsu Yinyu Sanlian Group                     
    Limited*)                                                                 
                                                                              
    "Lease Agreement"       an agreement dated 28 January                     
    2005 between the Texhong BVI, Jiangsu Yinyu and Xuzhou                    
    Textile in respect of the lease of the manufacturing                      
    and production facilities of Jiangsu Yinyu                                
                                                                              
    "Leased Assets" the captioned assets under the Lease                      
    Agreement                                                                 
                                                                              
    "Listing Rules" the Rules Governing the Listing of                        
    Securities on the Stock Exchange                                          
                                                                              
    "Share(s)"      Share(s) of HK$0.10 each in the share                     
    capital of the Company                                                    
                                                                              
    "Stock Exchange"        The Stock Exchange of Hong Kong                   
    Limited                                                                   
                                                                              
    "Texhong BVI"   Texhong Textile Holdings Limited, a                       
    direct wholly owned subsidiary of the Company                             
                                                                              
    "Xuzhou Textile"        *,                                                
    (Xuzhou Textile Holdings (Group) Limited*)                                
                                                                              
    "HK$"   Hong Kong dollars, the lawful currency of Hong                    
    Kong                                                                      
                                                                              
    "RMB"   Renminbi, the lawful currency of the PRC                          
                                                                              
    *  For identification purposes only.                                      
                                                                              
    Translation of Renminbi into Hong Kong dollars is                         
    based on the exchange rate of RMB1.06 to HK$1.00 for                      
    information purpose only. Such translation should not                     
    be construed as a representation that the relevant                        
    amounts have been, could have been, or could be,                          
    converted at that or any other rate or at all.                            
                                                                              
    By order of the Board                                                     
    TEXHONG TEXTILE GROUP LIMITED                                             
    Hong Tianzhu                                                              
    Chairman                                                                  
                                                                              
    Hong Kong, 31 January 2005