TNAG-2088-FCO40-2973-Diplomatic-representation-of-third-countries-in-Hong-Kong-1990 — Page 114

In 1986, Novel Enterprises Ltd and Xing Xia Company Ltd of Xiamen set up a joint venture in Xiamen Special Economic Zone, Xiamen Newcott Textile Ltd is expected to manufacture finely combed cotton yarns. Its production capacity has been subsequently expanded by adding 2,000. open-end spindles to its existing 10,000 traditional spindles. In the same year, Novel Textiles Ltd was set up in Macau for manufcaturing denim fabrics. The new factory has facilities for weaving, dyeing, and finishing. This year also saw the establishing of the Fashion Holdings Group of companies, which include most of Mr. Chao's business interests in Europe and the U.S.A.

In early 1987, Mr. Chao re-organized the Novel Group as the first step towards floating its shares in the Hong Kong Stock Exchange. The Group is now divided into a textile are under the original name of Novel Enterprises Ltd. Most of the non-textile business are now held nder a named K.P. Holdings Ltd. Since 8th April 1987, the shares of Novel Enterprises Ltd have been listed in the Hong Kong Stock Exchange.

Mr. Chao is also the Chairman of Tylfull Company Ltd, another company listed in the Hong Kong Stock Exchange. The principal activities of Tylfull are investment, holding and property development.

In June 1987, Mr. Chao was awarded the Commendatory Medal from the Order of Agricultural and Industrial Superiority by the Portuguese Govenment.

To further develop the textile industry of Mauritius, Mr. Chao concluded a joint venture agreemet in August 1987 to establish a denim weaving factory in Port Louis, Mauritius. With an initial paid-up capital of about Rupees 45.5 million, Union Textiles Limited is a joint venture between Novei Enterprises Ltd, China National Textiles Import and Export Corporation; and China Textile Machinery and Technology Import and Export Corporation.

The plant now occupies a space of 150,000 sq. ft.

and is capable of producing 4.2 million metres of denim per year. The paid-up capital of Union Textiles Ltd will shortly be increased to Rupees 90 million in order to establish a new cotton spinning line so that it may use its own cotton yarn for producing denim.