Announcement Of China Garments Limited By Share Ltd On The 51% Equity Interest Of Shanghai Sinopec Textile Garments Co., Ltd.

Stock short: "Chinese clothing" Stock Code: 000902 announcement number: 2008 - 0

China Fashion Limited by Share Ltd on Shanghai China Textile Association

Announcement of 51% equity sale of textile and Garments Co., Ltd.

All members of the company and the board of directors guarantee the authenticity, accuracy and completeness of the information disclosure. There is no false record, misleading statement or major omission.

1. Summary of pactions

The company's subsidiary, Sino spinning joint import and export Limited by Share Ltd (hereinafter referred to as "China spinning union") intends to sell its 51% stake in Shanghai Zhongfang Textile Garments Co., Ltd. (hereinafter referred to as "China United").

The matter was examined and approved by the thirty-ninth meeting of the third board of directors of the company.

China Textile Alliance intends to sell 51% stake in the Shanghai joint stock exchange.

Two, the introduction of the paction

Because the pfer of shares is publicly listed, the counterparty is not yet sure.

Three, the basic situation of paction targets

The basic situation of upper China Alliance: upper China alliance was established in 2000, with a registered capital of 5 million yuan, and the shareholding structure is: China Textile alliance holds 2 million 550 thousand yuan in equity, accounting for 51% of the total equity; Shanghai poly Textile Co., Ltd. holds 2 million 450 thousand yuan, accounting for 49% of the total equity.

By the end of 2007, the company's operating scale was 3500-4000 yuan in annual import and export volume, and its profit was around 1 million 800 thousand yuan.

Audited by Shanghai Consulting Company Limited (issued by the Advisory Committee on audit 2 [2008] 648th audit report), the assets of the Shang Lian in May 31, 2008 are as follows:

Project 2008.5.31

Total assets 5718.52

Total liabilities 4863.24

Net assets 855.28

Main business income 12504.22

Operating profit -146.02

Net profit -166.55

Assessed by the Shanghai silver credit and Assets Appraisal Co., Ltd. (issued the evaluation report of Shanghai silver trust industry [2008] No. 1069th evaluation report), the total shareholder equity assessment value of the upper China Alliance in May 31, 2008 was RMB yuan (8186716.49 yuan).

Summary of assessment results

Unit of value: RMB 10000 yuan

After book value adjustment, the book value is increased or decreased by%.

Current assets 5638.13 5638.13 5579.19 -58.94 -1.05

Fixed assets 68.79, 68.79, 91.10, 22.31 32.43

Other assets 11.61 11.61 11.61 11.61

Assets totalling 5718.53 5718.53 5681.90 -36.63 -0.64

Current liabilities 4863.24 4863.24 4863.23 -0.01

Liabilities Total 4863.24 4863.24 4863.23 -0.01

Net assets 855.28 855.28 818.67 -36.61 -4.28

Four, trading pricing policy:

Based on the net assets of the above audited and assessed assets, the 51% equity interest of the upper China alliance will be sold on the stock exchange of Shanghai with a price of 4 million 641 thousand yuan.

Five. Other arrangements related to sale.

The sale of shares does not involve other personnel resettlement, land leasing and other arrangements.

Seven, the purpose of selling assets and its impact on the company.

Objective: in order to cope with increasingly fierce market competition, focus on limited funds to open up new business areas.

Impact on the company: if the above shares were successfully pferred on the basis of the listing price this year, it would have little impact on the profits of China Textile Alliance and the company.

Enclosure:

1. The audit report issued by Shanghai consulting firm Limited (2) [2008] 648th.

2, Shanghai silver credit and Assets Appraisal Co., Ltd. issued the "Shanghai textile textile Co., Ltd. China Textile Co., Ltd. business valuation report" (Shanghai silver letter industry comment [2008] 1069th]

Notice hereby.

China apparel Limited by Share Ltd

July 10, 2008

Stock short: "Chinese clothing" Stock Code: 000902&nbs