09:04     SOUTH EAST GP<00726> - Announcement (2)                             

    DEFINITIONS                                                               
    "Agreement"   an unconditional agreement entered into between South       
    Perfect and Yimin which took effect on 21st January 2003 involving        
    (i) the assignment of the Bank Loan from Yimin to Fushiwang, (ii)         
    transfer of ownership of the Assets from Yimin to Fushiwang and           
    (iii) writing off of the Debt owing to Yimin                              
                                                                              
    "Assets"   assets in the aggregate net book value of RMB3,110,000         
    (per the unaudited management accounts of Yimin as at 30th November       
    2002) beneficially owned by Yimin, comprising (i) yeasting                
    facilities and warehouse space valuing at RMB998,000 currently            
    provided by Yimin to Fushiwang for use free of charge and (ii)            
    inventory of grape juice in good condition valuing at RMB2,112,000        
    procured by Yimin using its own funds                                     
                                                                              
    "Bank Loan"   a secured 1-year term loan amounting to RMB4,750,000        
    first granted to Yimin by a bank in the PRC in 21st December 2000,        
    the interests accrued therefrom have been fully paid when due and         
    the principal amount has been rolling over since then                     
                                                                              
    "Company"   South East Group Limited                                      
                                                                              
    "Debt"   A debt amounting to RMB1,640,000 due from Fushiwang to           
    Yimin (per the unaudited management accounts of Yimin as at 30th          
    November 2002)                                                            
                                                                              
    "Directors"   the existing directors of the Company, including            
    independent non-executive directors of the Company                        
                                                                              
    "Fushiwang"   Qingdao Fushiwang Grape Wine Co., Ltd., a joint             
    venture enterprise in the PRC owned as to 55% by South Perfect and        
    45% by Yimin                                                              
                                                                              
    "Group"   the Company and its subsidiaries                                
                                                                              
    "Listing Rules"   the Rules Governing the Listing of Securities on        
    The Stock Exchange of Hong Kong Limited                                   
                                                                              
    "PRC"   the People's Republic of China                                    
                                                                              
    "RMB"   Renminbi, the lawful currency in the PRC                          
                                                                              
    "South Perfect"   South Perfect International Limited, a company          
    incorporated in Hong Kong, which is wholly owned by the Company           
                                                                              
    "Transaction"   the arrangement between South Perfect and Yimin           
    pursuant to the agreement reached on 21st January 2003 for the            
    assigning of the Bank Loan from Yimin to Fushiwang in consideration       
    of Yimin transferring the Assets to Fushiwang and writing off of the      
    Debt due from Fushiwang                                                   
                                                                              
    "Yimin"   Qingdao Yimin Putaojiu Chang *, a state                         
    owned enterprise established in the PRC                                   
                                                                              
    By Order of the Board                                                     
    South East Group Limited                                                  
    Kwan Kei Chor, Samuel                                                     
    Director                                                                  
                                                                              
    Hong Kong, 23rd January 2003                                              
                                                                              
    (* For the chinese name, please refer to the press announcement today).