Shenzhou International Group Holdings Limited (“Shenzhou International”) and its subsidiaries (the “Group”) represent the largest vertically integrated knitwear manufacturer in China. The Group is principally engaged in the manufacture of high-end knitwear on an OEM basis. The Group was also
the largest exporter of knitwear and the largest PRC textile supplier to Japan according to the 2004 report on the development of China’s textile industry and the 2004 annual report on China’s international trade in textiles and clothing. According to the China Knitting Industry Association,the Group ranked first in terms of profit before taxation and second in terms of sales among China’s knitwear manufacturers in 2004.