Shenzhou Int'l (02313) in talks to sell non-core business

    Shenzhou International (02313) said it is currently in negotiation with potential purchasers in relation to the disposal of the entire issued share capital in Maxwin (B.V.I.) Limited.
  Maxwin and its subsidiaries are engaged in retail business in China which is a relatively new non-core business of the Group and is not in competition with the Group's principal business. The retail business is currently at a preliminary stage of development. Shenzhou International wishes to focus its resources on strengthening its core business of the manufacturing of knitwear (sports product, casual wear and lingerie wear for major international renowned clients) on an original equipment manufacturer (OEM) basis.
  Shenzhou International also agreed to purchase Shenzhou New Century Gui Garden at Rmb134 million. The property is located at the land lot east of New Century Road and south of East Ring Road, Cheng District, Wangjiang County, Anhui Province, the PRC with a total land area of 33,240.5 square metres and a total gross floor area of 59,368.66 square metres. As there is a shortage of affordable and suitable residential units in the vicinity, in order to recruit and retain staff, Shenzhou International considers it necessary to reassign the dormitories amongst the employees and provide better accommodation to its staff.