Wholly owned by CR Enterprise, CR Textiles is one of China¡¯s leading textile manufacturers and distributors. It wholly owns or partly owns a controlling stake in 16 Mainland companies, forming a comprehensive import, export and sales network with customers worldwide. In July 2003, CR Textiles acquired a 51% stake in a Shenzhen-listed company, which was later renamed China Resources Jinhua Co., Ltd (CR Jinhua). CR Jinhua provides CR Textiles with a platform for further development through China¡¯s capital market. CR Textiles also currently owns one million spindles, 10,000 looms and 13 printing and dyeing lines. Its annual production reaches 120,000 metric tons of yarn, 260 million metres of gray fabric and 130 million metres of finished fabric.

CR Textiles Deeply Involved in Reforming State-Owned Enterprises
At the beginning of 1998, CR Textiles successively acquired several state-owned textile companies that were on the verge of closing down in Shandong Province. The company also purchased joint textile enterprises previously funded by CR Textiles at increased prices, and by the year 2000, a rough framework had been established. Later, in the same way, CR Textiles extended its production capacity by purchasing more textile companies in Shandong, Hebei, Jiangsu, Sichuan, and Shanxi.

After these acquisitions, CR Textile enhanced its own operational and managerial performance by instituting China Resources¡¯ management model and adopting an effective corporate culture. These fundamental changes have allowed all CR Textile-owned companies to enjoy strong profitability and sound governance. The Chinese Government as well has praised this transformation and the management model they now employ.