09:29     CHEVALIER INT'L<00025> - Announcement (3)                           

    (i)   to assist the JV Partner, if necessary, in obtaining the            
    relevant approvals from the relevant PRC authorities;                     
                                                                              
    (ii)   within one month after the issue of the business license           
    of the Joint Venture Company, the Group has to provide                    
    additional funding of RMB77.0 million (equivalent to                      
    approximately HK$72.6 million), in the form of shareholder's              
    loan, to the Joint Venture Company for its development in the             
    Xi Ling Project;                                                          
                                                                              
    (iii)   to further provide RMB50.0 million (equivalent to                 
    approximately HK$47.2 million) to the Joint Venture Company               
    as shareholder's loan within one month after the land use right           
    for the Xi Ling Project has been granted;                                 
                                                                              
    (iv)   to assist the Joint Venture Company in purchasing                  
    necessary equipments and building material in the                         
    international market.                                                     
                                                                              
    Pre-emptive rights                                                        
    The transfer of interest in the Joint Venture Company by either           
    Citiway or the JV Partner is subject to their respective                  
    pre-emptive right. The pre-emptive right of each party to the             
    Joint Venture Agreement will expire (i) 60 days after the issue           
    of a written notice from either party regarding the transfer              
    of its interest in the Joint Venture Company or (ii) upon the             
    issue of a written confirmation by either party for the                   
    surrender of the pre-emptive right.                                       
                                                                              
    Other terms of the Joint Venture Agreement                                
    Advance to the Joint Venture Company                                      
    It is agreed that, in addition to the shareholder's loan of               
    RMB127.0 million (equivalent to approximately HK$119.8                    
    million), the Group will advance an amount of RMB50.0 million             
    (equivalent to approximately HK$47.2 million) from the Group's            
    internal resources to the Joint Venture Company as part of the            
    cost for the demolition work for phase two of the Xi Ling Project         
    so as to obtain the relevant development rights. The JV Partner           
    will pledge its 54% interest in the Xi Ling Project as collateral         
    for such advance provided by the Group. In the event that the             
    land use right for the project cannot be obtained within six              
    months after the advance was made to the Joint Venture Company,           
    the JV Partner will replace the Group as the lender of the                
    shareholder's loan by repaying the Group RMB50.0 million                  
    (equivalent to approximately HK$47.2 million).                            
                                                                              
    Property management                                                       
    It is agreed between the JV Partner and Citiway to grant priority         
    to a property management company in respect of the property               
    management right of Xi Ling Project and Cui Tian Project. The             
    property management company will be established and is expected           
    to be equally owned by the JV Partner and Citiway. The Directors          
    expect the capital contribution on the Group's part will not              
    be significant, the exact amount, however is yet to be agreed             
    between the JV Partner and Citiway.                                       
                                                                              
    THE PROPERTY DEVELOPMENT PROJECTS                                         
    It is intended that the Joint Venture Company will engage in              
    four property development projects in Shenzhen, the PRC. As               
    at the date of this announcement, development plans for two               
    of the four projects, namely the Xi Ling Project and Cui Tian             
    Project, have been decided. The Directors have confirmed that,            
    the remaining two projects are still at the early stage of their          
    plannings and there are no concrete plans as to the total                 
    investment and capital commitment amount and development plan             
    have been agreed between the Group and the JV Partner.                    
                                                                              
    The Directors confirm that when further funding is to be made             
    to the Joint Venture Company in relation to the four property             
    development projects as mentioned above, the Company will fully           
    comply with the relevant reporting and disclosure requirements            
    in the Listing Rules as and when appropriate.                             
                                                                              
    Information on Xi Ling Project and Cui Tian Project                       
    Xi Ling Project                                                           
    Development                                                               
    A commercial/residential complex with gross floor area of                 
    approximately 40,280 sq. m. situated at Xi Ling village in Lo             
    Wu, Shenzhen. As at the date of this announcement, it is                  
    estimated that the total investment for the Xi Ling Project               
    will amount to approximately RMB276.2 million (equivalent to              
    approximately HK$260.6 million).