09:10 BUILDMORE INT'L<00108>-Announcement&Resumption of Trading(2) Completion The Disposal is unconditional. Completion will take place on or before 17 September 2004. INFORMATION ON THE PROPERTY The Property is a residential unit situated at Flat H, 21st Floor, Tower 19, South Horizons, No. 19, South Horizon Drive, Ap Lei Chau, Hong Kong. The gross floor area of the Property is approximately 1,078 square feet. The Property is currently charged to a bank to secure banking facilities granted to the Group. Upon Completion, the Company will apply the proceeds from the Disposal to repay the bank indebtedness and procure the release of the charge. The Property will be sold free from encumbrances but together with the benefits of its existing tenancy. The Company will cease to have any obligations over the Property after Completion. REASONS FOR THE DISPOSAL The Group is principally engaged in property development and trading. The property market environment in Hong Kong has been recovering since the end of last year. However, the upward trend cannot sustain and the trading volume of real properties have been decreasing over the last few months. Facing the current uncertain climate in the property market in Hong Kong, the Directors consider that it will be beneficial to the Company and the Shareholders to dispose of the Property upon the terms and consideration offered by the Purchasers and to realise the value of its investment in the Property. Further, the net proceeds from the Disposal will be applied for the repayment of bank indebtedness secured by the Property and as such, the Company's obligation on interest payment can be lessen after the Disposal. FINANCIAL EFFECT OF THE DISPOSAL The Property has been valued by Norton Appraisals Limited, an independent professional valuer, at HK$4,150,000 on an open market basis as at 31 January 2004. The audited net book value of the Company's interests in the Property as at 31 January 2004 was HK$4,150,000. The excess of the consideration for the Property of HK$4,350,000 over the net book value of the Company's interests in the Property as at 31 January 2004, amounts to HK$200,000. Based on the consideration for the Property of HK$4,350,000 and after deducting the expenses in relation to the Disposal, it is expected that no net gain or loss will accrue to the Company and there will be no effect on the net asset value of the Group as a result of the Disposal. The net proceeds of the Disposal of about HK$4,150,000 will be used as to approximately HK$4,020,000 for the repayment of bank indebtedness secured by the Property and as to the remaining HK$130,000 for the Group's general working capital. LISTING RULES IMPLICATION The Disposal constitutes a major transaction on the part of the Company under Rule 14.06 of the Listing Rules and will be subject to the approval of the Shareholders at the EGM. A circular containing details of the Disposal, information regarding the Group, valuation report on the Property and notice of the EGM will be despatched to the Shareholders within 21 days after the publication of this announcement. EGM The EGM will be convened and held to consider and, if thought fit, to approve the Disposal and the transactions contemplated thereunder. RESUMPTION OF TRADING Trading in Shares on the Stock Exchange was suspended at the request of the Company from 12:08 p.m. on 2 August 2004 pending the release of this announcement. Application has been made to the Stock Exchange for the resumption of trading in Shares at 9:30 a.m. on 4 August 2004. DEFINITIONS In this announcement, unless the context otherwise requires, the following expressions shall have the following meanings: "Company" Buildmore International Limited, a company incorporated in Hong Kong with limited liability and the issued Shares of which are listed on the main board of the Stock Exchange