Huafeng Textile International Group to Continue Seeking Korea Stock Exchange Listing

Huafeng Textile International Group
2007-03-23 15:36 1364

HONG KONG, March 23 /Xinhua-PRNewswire/ -- Leading Chinese fabric processor, the Huafeng Textile International Group (stock code HK:0364), today confirmed its intention to continue to seek a listing on the Korea Exchange (KRX).

Further to Huafeng's previous disclosure regarding the company's intent to list its securities on the Korean Exchange, the company's management has reviewed the listing requirements and begun the application process to list the group's common shares on the KRX.

Speaking at the company's Extraordinary General Meeting (EGM) today, Huafeng's Chairman, Mr. Cai Zhenrong stated that the potential listing on Korea's national exchange would both increase the profile of the textile manufacturer amongst the investment community, plus help attract further private and institutional investors from across the region.

He expressed that the listing could prove to be a significant milestone in the development of Huafeng for many years to come. "Not only would the KRX listing present an opportunity for Huafeng to broaden its shareholder base, it would also significantly aid our planned expansion and growth through new international investment," stated Mr. Zhenrong.

In addition, Mr. Zhenrong expressed that he felt that the timing for the proposed listing was right. "As a company, we are in good shape. Our shares have quadrupled in value since our initial public offering on the Hong Kong stock market in 2002, and our stock has risen 17.5 per cent this year alone.

"As a result, we feel ready to introduce the company and our fabric processing services to a wider, more international audience," Mr. Zhenrong continued.

Aside from providing shareholders with greater liquidity and better market access, the potential listing is expected to enhance Huafeng's credibility amongst existing and new partners and customers.

Explained Mr. Zhenrong, "This is particularly significant given our future ambitions to aggressively and strategically expand our reach into new global markets."

Subsequently, to progress its listing activities, the Chairman confirmed that the company had appointed the services of stock exchange specialists Daewoo Securities.

However, he stated that the approval of the listing of Huafeng's common stock on the Korea Exchange would, inevitably, be contingent upon the company's compliance with all applicable KRX listing standards.

Huafeng initially announced that it planned to make a pre-application to the Korea Exchange for the establishment of the Korean Depository Receipt (KDR) Programme on the Korea Exchange on December 27, 2006, which was followed by the aforesaid pre-application on December 28,2006.

On February 16, 2007, the company also confirmed that no more than 300 million New Shares would be listed under the KDR Programme.

About Huafeng Textile International

Huafeng Textile International is a leader in fabric processing in China with an annual processing capacity of over 100,000 tonnes. Established in 1988, Huafeng provides top-notch fabric processing services ranging from bleaching, dyeing, setting, and finishing. In 2004, Huafeng made a significant expansion move and integrated a cotton yarn spinning business by building its own production lines and acquisition which has attributed to a substantial increase in turnover for the company. With a worldwide customer base, Huafeng's major production facilities are strategically located in Shishi City, Fujian Province in China, world renowned as the major casual wear manufacturing center in China. In an environmentally sensitive industry, Huafeng pays particular attention to preservation and has its own reservoir, fresh water processing plant and waste water treatment plant.

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Source: Huafeng Textile International Group
Keywords: Machinery