09:43     WEIQIAO TEXTILE<02698> - Announcement (4)                           

    As certain applicable percentage ratios (as defined in Listing            
    Rule 14.07) are more than 0.1% but less than 2.5%, the entering into      
    of the Promoters' Agreement constitutes a connected transaction for       
    the Company under Listing Rule 14A.32. The Transactions are therefore     
    only subject to the reporting and announcement requirements set out       
    in Chapter 14A of the Listing Rules. No independent shareholders'         
    approval of the Transactions is required under the Listing Rules.         
    Relevant details will be included in the next published annual report     
    and accounts of the Company in accordance with Listing Rule 14A.45.       
                                                                              
                                                                              
    6. General                                                                
    The Group is principally engaged in the production, sale and              
    distribution of cotton yarn, grey fabric and denim. Industrial Park       
    is principally engaged in the production and sale of cotton yarn and      
    grey fabric. Weihai Weiqiao is principally engaged in the production      
    of cotton yarn and grey fabric.                                           
                                                                              
    Holding Company is principally engaged in the processing and sale of      
    cotton, lint cotton, cotton seed oil, fabrics, cotton yarn, print         
    cloth and retail and distribution of garment. Weiqiao Dyeing is           
    principally engaged in the production and sale of denim, and grey         
    fabric. Weilian Print is principally engaged in the production and        
    sale of print cloth.                                                      
                                                                              
    7. DEFINITIONS                                                            
    In this announcement, the following expressions shall have the            
    respective meanings set opposite thereto:                                 
                                                                              
    `AIC'                          (Administration for Industry               
                                   and Commerce)                              
    `Company'                      (Weiqiao Textile Company                   
                                   Limited), a joint stock                    
                                   limited company established                
                                   in the PRC on 6 December                   
                                   1999, the H shares of which                
                                   are listed on the Stock                    
                                   Exchange                                   
    `Directors'                    the directors of the Company               
    `Domestic Share(s)'            ordinary share(s) issued by                
                                   the Company, with a                        
                                   Renminbi-denominated par                   
                                   value of RMB1.00 each, which               
                                   are subscribed for and paid                
                                   up in Renminbi                             
    `Group'                        the Company and its                        
                                   subsidiaries                               
    `Holding Company'               (Shandong Weiqiao Chuangye                
                                   Group Company Limited), a                  
                                   limited liability company                  
                                   established in the PRC, being              
                                   a promoter and the                         
                                   controlling shareholder of                 
                                   the Company                                
    `Hong Kong'                    The Hong Kong Special                      
                                   Administrative Region of the               
                                   PRC                                        
    `Industrial Park'               (Binzhou Weiqiao Technology               
                                   Industrial Park Co. Ltd.), a               
                                   limited liability company                  
                                   established by Holding                     
                                   Company and Binzhou Weiqiao                
                                   Textile Company Limited on 26              
                                   November 2001 in the PRC with              
                                   a registered capital of                    
                                   RMB600,000,000 and owned as                
                                   to 98.5% by the Company and                
                                   1.5% by Holding Company                    
    `Listing Rules'                Rules Governing the Listing                
                                   of Securities on the Stock                 
                                   Exchange                                   
    `PRC'                          People's Republic of China                 
    `Promoters' Agreement'          (Capital Contribution                     
                                   Agreement in relation to the               
                                   establishment of SWCF)                     
                                   entered into by and among the              
                                   Company, Holding Company,                  
                                   Industrial Park, Weiqiao                   
                                   Dyeing, Weihai Weiqiao and                 
                                   Weilian Print on 17 March                  
                                   2005                                       
    `Shareholder(s)'               registered holder(s) of the                
                                   shares of the Company                      
    `Stock Exchange'               The Stock Exchange of Hong                 
                                   Kong Limited                               
    `Transactions'                 the transactions contemplated              
                                   under the Promoters'                       
                                   Agreement                                  
    `HK$'                          Hong Kong dollars, the lawful              
                                   currency of Hong Kong                      
    `RMB'                          Renminbi, the lawful currency              
                                   of the PRC