10:20     WEIQIAO TEXTILE<02698> - Announcement (6)                           

    The terms and conditions of the Transaction have been negotiated on       
    an arm's length basis and are on normal commercial terms. The Board       
    considers the Transaction to be fair and reasonable, and is in the        
    interests of the Company and the Shareholders, taken as a whole.          
                                                                              
    The Company will convene an EGM for the purpose of seeking the            
    approval of the Independent Shareholders of the Transaction               
    (including the relevant proposed annual caps). According to the           
    Listing Rules, Holding Company and its associates will abstain from       
    voting in respect of the resolution relating to the Transaction. The      
    votes to be taken at the EGM in relation to approval of the               
    Transaction (including the relevant proposed annual caps) will be         
    taken by poll.                                                            
                                                                              
    The Independent Board Committee will be established to advise the         
    Independent Shareholders in relation to the Transaction. Watterson        
    Asia Limited has been appointed as the Independent Financial Adviser      
    to advise the Independent Board Committee and the Independent             
    Shareholders in relation to the Transaction.                              
                                                                              
    A circular containing, inter alia, further details of the                 
    Transaction, the letter from the Independent Board Committee to the       
    Independent Shareholders, the letter of advice from the Independent       
    Financial Adviser to the Independent Board Committee and the              
    Independent Shareholders; and the notice of EGM will be despatched to     
    the Shareholders as soon as practicable.                                  
                                                                              
    Particulars of the Transaction will also be disclosed in the              
    Company's 2005 annual report and accounts.                                
                                                                              
    8.                                                                        
    Definitions                                                               
    In this announcement, the following expressions shall have the            
    respective meanings set opposite thereto:                                 
                                                                              
    `associates'                   has the meaning as ascribed                
                                   to it under the Listing                    
                                   Rules                                      
    `Board'                        the board of directors of the              
                                   Company                                    
    `Company'                       (Weiqiao Textile Company                  
                                   Limited*)                                  
    `Domestic Shares'              ordinary shares issued by the              
                                   Company, with a                            
                                   RMB-denominated par value of               
                                   RMB1.00 each, which are                    
                                   subscribed for and paid up in              
                                   RMB                                        
    `EGM'                          the extraordinary general                  
                                   meeting of the Company                     
                                   proposed to be convened to                 
                                   approve the Transaction                    
                                   (including the relevant                    
                                   proposed annual                            
                                   caps)                                      
    `Directors'                    the directors of the Company               
    `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                                        
    `Independent Board Committee'  an independent board                       
                                   committee comprising of all                
                                   the independent non-executive              
                                   Directors                                  
    `Independent Financial         an independent financial                   
    Adviser'                       adviser to the Independent                 
                                   Board Committee and the                    
                                   Independent Shareholders for               
                                   advising, among other                      
                                   matters, as to whether the                 
                                   terms of the Transaction are               
                                   fair and                                   
                                   reasonable                                 
    `Independent Shareholders'     the shareholders of the                    
                                   Company other than Holding                 
                                   Company and its                            
                                   associates                                 
    `Listing Rules'                Rules Governing the Listing                
                                   of Securities on The Stock                 
                                   Exchange of Hong Kong                      
                                   Limited                                    
    `PRC'                          People's Republic of China                 
    `Shareholders'                 holder(s) of the shares of                 
                                   the