09:28     CHEVALIER INT'L<00025> - Announcement (1)                           

    The Stock Exchange of Hong Kong Limited takes no responsibility           
    for the contents of this announcement, makes no representation            
    as to its accuracy or completeness and expressly disclaims any            
    liability whatsoever for any loss howsoever arising from or               
    in reliance upon the whole or any part of the contents of this            
    announcement.                                                             
                                                                              
    CHEVALIER INTERNATIONAL HOLDINGS LIMITED                                  
     (Incorporated in Bermuda with limited liability)                         
    (Stock code: 025)                                                         
                                                                              
    DISCLOSEABLE TRANSACTION                                                  
    FORMATION OF A JOINT VENTURE COMPANY                                      
                                                                              
    On 11th December, 2004, Citiway, a wholly-owned subsidiary of             
    the Company, entered into the Joint Venture Agreement with the            
    JV Partner for the establishment of the Joint Venture Company,            
    an equity joint venture company established in the PRC. Upon              
    the establishment, the Joint Venture Company will be owned as             
    to 46% by the Group and as to 54% by the JV Partner. Pursuant             
    to the Joint Venture Agreement, the Joint Venture Company will            
    carry out four property development projects.                             
                                                                              
    Pursuant to the Joint Venture Agreement, the total investment             
    of the Joint Venture Company will amount to RMB125.0 million              
    (equivalent to approximately HK$117.9 million) with registered            
    capital of RMB50.0 million (equivalent to approximately                   
    HK$47.2 million). The registered capital of the Joint Venture             
    Company will be contributed as to RMB23.0 million in cash                 
    (equivalent to approximately HK$21.7 million) by the Group and            
    as to RMB27.0 million in cash (equivalent to approximately                
    HK$25.5 million) by the JV Partner. The Group and the JV Partner          
    will contribute their own share of registered capital in cash             
    within one month after the issue of the Joint Venture Company's           
    business license.                                                         
                                                                              
    The Group and the JV Partner also agreed to provide                       
    shareholder's loan to the Joint Venture Company of amount                 
    RMB127.0 million in cash (equivalent to approximately HK$119.8            
    million) and RMB149.2 million in a form of parcel of land                 
    (equivalent to approximately HK$140.8 million) respectively               
    for the Xi Ling Project. In addition, the Group will also advance         
    an amount of RMB50.0 million (equivalent to approximately                 
    HK$47.2 million) to the Joint Venture Company as part of the              
    cost for the demolition work under phase two of the Xi Ling               
    Project.                                                                  
                                                                              
    The entering into of the Joint Venture Agreement constitutes              
    a discloseable transaction of the Company under the Listing               
    Rules. A circular containing further details of the Joint                 
    Venture Agreement will be despatched to the shareholders of               
    the Company as soon as practicable.                                       
                                                                              
    THE JOINT VENTURE AGREEMENT DATED 11TH DECEMBER, 2004                     
    Parties:                                                                  
                                                                              
    The foreign party:   Citiway, a wholly-owned subsidiary of the            
    Company                                                                   
                                                                              
    The PRC party:   Shenzhen Golden Peak Investment Development              
    Co., Ltd., a company established in the PRC with limited                  
    liability which is principally engaged in the property                    
    investment. To the best knowledge, information and belief of              
    the Directors and after making all reasonable enquiries, as               
    at the date of announcement, the JV Partner and its ultimate              
    beneficial owners are not connected persons of the Company (as            
    defined under the Listing Rules) and are third parties                    
    independent of and not connected with the Company and its                 
    connected persons (as defined under the Listing Rules).                   
                                                                              
    The Joint Venture Company                                                 
    Pursuant to the terms and conditions of the Joint Venture                 
    Agreement, Citiway and the JV Partner have agreed to set up               
    the Joint Venture Company as an equity joint venture company              
    in the PRC for a term of 50 years commencing from the date of             
    issue of business license of the Joint Venture Company. As at             
    the date of this announcement, the business license of the Joint          
    Venture Company has not been issued yet.                                  
                                                                              
    The scope of business of the Joint Venture Company includes               
    property development, management of service apartment,                    
    shopping mall, hotel, motel and guesthouse, property                      
    management, sale and lease of properties and other related                
    services.