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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported) MAY 29, 1996
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CHINA INDUSTRIAL GROUP, INC.
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(Exact name of registrant as specified in its charter)
COLORADO
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(State or other jurisdiction of incorporation)
0-16365 84-0974043
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(Commission File Number) (IRS Employer Identification No.)
SUITE 2101-2 CENTRAL PLAZA, 18 HARBOUR ROAD, WAN CHAI, HONG KONG
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (8522) 877-3857
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ITEM 5. OTHER EVENTS
On May 29, 1996, China Industrial Group, Inc. (the "Registrant")
disposed of its interest in Nimrod (Hong Kong) Limited ("NHKL"), a
wholly-owned subsidiary of the Registrant. NHKL primary business involves
purchase of wool products for sale within the People's Republic of China
("China") and purchase of chemicals and other industrial materials within
China for export and sale outside of China. In its continuing efforts to
reorganize its business, the Registrant is shifting its operations to focus
primarily on the manufacture of high-end woolen products, such as cashmere,
and is disposing of its non-core assets.
The acquisition of Cashmere International Holdings Limited on
May 18, 1996 marks the beginning of the Registrant's change of its business
focus to the manufacture of cashmere products. The Registrant expects to
capitalize on its experience in reviving traditional inefficient
government-owned manufacturing facilities in China and anticipates a steady
growth in revenues and earnings after the initial period of establishing
itself as a cashmere manufacturer in China and its exporter to markets
overseas. In addition, Registrant is confident that the production
capability of its manufacturing facilities is as competitive as other foreign
manufacturing facilities, both in quality production and cost-effectiveness.
Since China is one of the largest producers of cashmere, the Registrant also
has an advantage of local supply of raw materials.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Dated: June 12, 1996 CHINA INDUSTRIAL GROUP, INC.
By: /s/ Benthony Ip
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Benthony Ip
Chief Financial Officer
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