09:42     SEWCO INT'L<00209> - Announcement (3)                               

    to HK$41,208,716.21, represented approximately 27.62% of the              
    Market Capitalisation (being HK$149,184,666) on 16 July 2004              
    which has been increased for more than 3% compared with that              
    as at 13 July 2004.                                                       
                                                                              
    As at 26 July 2004, the Mattel Trade Receivables increased to             
    HK$41,394,324.24, represented approximately 30.80% of the                 
    Market Capitalisation (being HK$134,400,600) on 26 July 2004              
    which has been increased for more than 3% compared with that              
    as at 16 July 2004.                                                       
                                                                              
    As at 30 July 2004, the Mattel Trade Receivables increased to             
    HK$44,506,775.20, represented approximately 33.91% of the                 
    Market Capitalisation (being HK$131,264,586) on 30 July 2004              
    which has been increased for more than 3% compared with that              
    as at 26 July 2004.                                                       
                                                                              
    As at 15 April 2005, being the latest practicable date for the            
    Company to ascertain the information contained in this                    
    announcement, the Mattel Trade Receivables amounted to                    
    HK$32,184,786.34, represented approximately 20.18% of the                 
    Market Capitalisation (being HK$159,488,712) on 15 April 2005.            
                                                                              
    All of the above increases in the Percentage Ratio of the TMSW            
    Trade Receivables and Mattel Trade Receivables gave rise to the           
    various disclosure obligations on the part of the Company under           
    Rule 13.14 and Rule 13.15 of the Listing Rules on various dates           
    during the period from 14 May 2004 to 4 February 2005.                    
                                                                              
    Interpretation of Rules 13.13, 13.14 and 13.15 of the Listing             
    Rules                                                                     
                                                                              
    As the Directors misinterpreted that the nature of interest-free          
    and unsecured trade receivables is different from that of                 
    advances to entity stipulated under the Listing Rules, the                
    Directors therefore considered that the TMSW Trade Receivables            
    and the Mattel Trade Receivables did not constitute advances              
    to entity under Chapter 13 of the Listing Rules. Under this               
    misapprehension of the nature of trade receivables, the Company           
    failed to release announcements in relation to the TMSW Trade             
    Receivables and the Mattel Trade Receivables in a timely manner.          
                                                                              
    In or about mid of April 2005, the Directors became aware of              
    their misapprehension as to the Listing Rules after consultation          
    with auditors who were in the course of preparation of the annual         
    report for the financial year ended 31 December 2004.                     
                                                                              
    In order to prevent the reoccurrence of similar incident, in              
    the event that the Directors have doubts as to the interpretation         
    of the Listing Rules, the Directors will consult the professional         
    parties so as to ensure that their apprehension of the Listing            
    Rules are correct.                                                        
                                                                              
    Save as disclosed above, as at the date of this announcement,             
    the Company does not have any other disclosure obligations under          
    Rules 13.13, 13.14 and 13.15 of the Listing Rules.                        
                                                                              
    The Company will ensure its due compliance with the continuing            
    disclosure obligations under Rule 13.20 of the Listing Rules              
    in its subsequent interim and annual reports.                             
                                                                              
    General                                                                   
                                                                              
    The principal activities of the Group are manufacture and sale            
    of a wide range of hard toys and stuffed toys on an OEM basis.            
                                                                              
    The Mattel Trade Receivables and TMSW Trade Receivables