09:42     BEAUFORTE INV<00021> - Announcement (2)                             

    (2)                                                                       
    the balance amount of HK$2 million, representing 17% of the total         
    capital contribution amount, shall be paid within 24 months from the      
    day on which Century Energy has obtained a new business licence.          
                                                                              
    The total capital contribution amount of HK$12 million will be            
    funded by the proceeds from the disposal of Grand Noble Group Limited     
    received by the Group up to the date of this announcement (reference      
    is made to the Company's announcement dated 19 October 2004, 8            
    December 2004 and 15 December 2004 and the circular dated 19 November     
    2004). As stated in the announcement of the Company dated 19 October      
    2004, the net proceeds from the disposal of Grand Noble Group Limited     
    of approximately HK$270 million were intended to be applied as to         
    HK$250 million for treasury and investment, and HK$18 million for         
    additional working capital.                                               
                                                                              
    Board representation                                                      
    After the Investment, the board of directors of Century Energy will       
    comprise seven directors. Eastern Energy is entitled to appoint one       
    director to the board of directors of Century Energy.                     
                                                                              
    Length of joint venture period                                            
    The joint venture period is 50 years from date of incorporation of        
    Century Energy.                                                           
                                                                              
    2. INFORMATION ON CENTURY ENERGY                                          
                                                                              
    Century Energy was incorporated on 25 December 2001 with limited          
    liability in the PRC and is intended to engage in the development of      
    coal and chemical products related projects and sales of paper            
    related products. It is stipulated in the JV Agreement that Century       
    Energy will undertake a project in relation to the recycle of the         
    afterheat generated by the coke to generate electricity.                  
                                                                              
    The business of development of coal and chemical products related         
    projects is a new business goal of Century Energy and up to the date      
    of this announcement, Century Energy has not generated any revenue in     
    respect of such new business.                                             
                                                                              
    Registered capital and total investment                                   
    The registered capital of Century Energy is, and upon completion of       
    the Investment, will be, held by the parties as follows:                  
                                                                              
                                  Before                        Immediate     
                                  the                           ly after      
                                  Investmen                     the           
                                  t                             Investmen     
                                                                t             
    Sharehold           Capital   Percentag           Capital   Percentag     
    ers                 amount    e of                amount    e of          
                                  holding                       holding       
              RMB       HK$                 RMB       HK$                     
              million   million             million   million                 
                                                                              
    Shangdong 40.0      38.1      40%       40.0      38.1      35.5%         
     Risen                                                                    
    Shenyang  20.0      19.0      20%       20.0      19.0      17.8%         
    Tianqin                                                                   
    Shenzhen  40.0      38.1      40%       40.0      38.1      35.5%         
    Tianqin                                                                   
    Eastern   -         -         -         12.6      12.0      11.2%         
    Energy                                                                    
                                                                              
              100.0     95.2      100%      112.6     107.2     100%          
                                                                              
                                                                              
    The amount of the total investment of Century Energy as stipulated        
    in the JV Agreement is RMB142.4 million (equivalent to approximately      
    HK$135.6 million). It is the intention of the joint venture partners      
    of Century Energy that the difference between the total investment        
    and the registered capital will be made up by bank financings.            
                                                                              
    Accordingly, no further capital commitment is expected to be              
    incurred by the Group in respect of the Investment (other than the        
    HK$12 million referred to above) for the time being. Should the joint     
    venture parties agree to increase the amount of the total investment      
    and/or the registered capital of Century Energy in the future, the        
    Company will comply with the necessary reporting, publication and/or      
    shareholders' approval requirements under Chapters 14 and 14A of the      
    Listing Rules.                                                            
                                                                              
    Financial information                                                     
    The unaudited net profit and total assets as set out in the               
    management accounts of Century Energy for the two years ended 31          
    December 2003 and the eleven months ended 30 November 2004 (as            
    prepared in accordance with generally accepted accounting principles      
    in the PRC) are as follows: