China Gaoxian to resume trading September 18

As Fleur's first tranche investment kicks in.

Singapore Exchange Mainboard listed, China Gaoxian Fibre Fabric Holdings Ltd. (China Gaoxian) announced that the first tranche of the Proposed Investment by Fleur Capital (s) Pte. Ltd. (Fleur) is scheduled to be completed on 18 September 2013 as the conditions precedent under the Implementation Agreement between the Investor and the Company have been fulfilled and/or waived.

The Group has also obtained an in-principle approval from SGX-ST for the resumption of the trading of the Company's Shares on the SGX-ST on the same day as Completion Date, subject to the completion of the first tranche of the Proposed Investment.

Mr Jerome Tham Wan Loong, Interim Chief Executive Officer (CEO) of China Gaoxian commented: “This is a momentous milestone for the Company. The journey over the past two and a half years has been challenging. I would like to thank our shareholders for their patience and unwavering support throughout this period. We can now look forward to a new chapter and I wish the new management success in bringing the Company to greater heights.”

In conjunction with the completion of the First Trance of the Proposed Investment, Shareholders of the Company will be issued Warrants based on the terms set out in the Company’s Circular dated 29 May 2013. Books closure for determining Shareholders' entitlement to the Warrants will be 5 pm on 10 September 2013 and on Completion Date, Fleur will also be issued 117,500,000 Warrants in accordance with the terms of the Circular. All the Warrants will be listed and quoted on the SGX-ST on or about 20 September 20131.

KSD (or its nominees), as the registered holder of the Shares underlying the KDRs, will be issued the Warrants to hold on the KDR Holders’ behalf and KSD will determine the KDR holders’ entitlement to the Warrants two business days after the delisting of the KDRs. Conversion of the Company’s KDRs into Shares and vice versa will be restricted from SGX Record Date to the KDR Record Date in accordance with the Circular.

As the amount of time needed to finalise the KDR Record Date cannot be predicted, KDR holders who wish to trade the Shares underlying the KDRs and the Warrants on SGX-ST and/or exercise their rights with respect to the Warrants as soon as possible after Resumption of Trading are advised to have their KDRs converted into Shares prior to 10 September 2013. As crediting of the converted Shares to the KDR holder’s designated CDP account will take time (please see Annex 1 for more details), KDR holders who wish to do so should contact their brokers immediately.

Upon completion of the KDR conversion process, the KSD or its nominees will credit the relevant Shares underlying the KDRs to the KDR holders' respective CDP accounts. In connection with the Resumption of Trading, a new Board of Directors will be constituted on Completion Date (see Annex 2 for the composition of the new Board).

Mr Cao Xiangbin and his associates, including Mr Liu Yilin and Mr Chen Fen have also stepped down from their positions as directors, general managers, legal representatives and/or bank signatories of the Group companies.

In accordance with the Circular, Fleur will be putting in place a new management team and the Company will be appointing Mr Liu Dehuang as new Chief Executive Officer and Ms Liu Minqin as new Chief Financial Officer, respectively, on the Completion Date. New legal representatives and general managers have also been appointed at the Company's subsidiaries in China.

“I have full confidence in the new management as they are experts and professionals in their own fields. When they take over, I believe that the shareholders can expect the Company to be steered towards a brighter future. I would like to thank the Board members for their leadership and the professionals who have assisted us in our efforts to revive China Gaoxian successfully and give it a second chance”, Mr Tham concluded.