10:07 CAPITAL STRAT<00497> - Announcement & Resumption (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. CAPITAL STRATEGIC INVESTMENT LIMITED (Incorporated in Bermuda with limited liability) (Stock Code : 497) ANNOUNCEMENT DISPOSAL OF PROPERTY An indirect wholly-owned subsidiary of the Company, Sennor Holdings Limited, entered into a provisional agreement dated 31st December, 2004 for the disposal of the Property at a price of HK$296,000,000.00 with completion date scheduled to be on or before 13th April, 2005. The Disposal is within the ordinary and usual course of business of the Company and is of a revenue nature. At the request of the Company, trading in the shares of the Company on the Stock Exchange was suspended from 9:30 a.m. on 3rd January, 2005 pending the release of this announcement. Application has been made by the Company to the Stock Exchange for the resumption of trading in the shares of the Company on the Stock Exchange with effect from 9:30 a.m. on 5th January, 2005. The board of directors (the "Board") of Capital Strategic Investment Limited (the "Company") announced that an indirect wholly-owned subsidiary of the Company, Sennor Holdings Limited (the "Seller"), entered into a provisional agreement dated 31st December, 2004 with an independent third party (the "Purchaser") for the disposal (the " Disposal") of a 19-storey commercial building known as "Fullcorp Centre" (the "Property"), which is situated at 53-55 Chatham Road South, Tsim Sha Tsui, Kowloon, at a price of HK$296,000,000.00 (the "Sale Price") with completion date scheduled to be on or before 13th April, 2005. The Property has a total floor area of approximately 47,793.06 square feet. The Disposal is within the ordinary and usual course of business of the Company and is of a revenue nature. The estimated gain before tax derived from the Disposal is approximately HK$58 million which represented approximately 161.1% of the profit before taxation of the Group for the year ended 31st March, 2004 and the carrying value of the Property being approximately HK$235 million represented approximately 26% and 33% of the total assets and the net assets of the Group respectively for the year ended 31st March, 2004. Out of the net proceeds of approximately HK$292.7 million, an amount of approximately HK$143.35 million will be used to repay a bank loan and the balance will be used for conducting the principal activities of the Company and its subsidiaries (the "Group") and as working capital of the Group. Unaudited Adjusted Net Tangible Assets Statement of the Group The unaudited adjusted net tangible assets statement of the Group has been prepared as if the valuation of investment properties of the Group at 30th November, 2004 and the Disposal had been recognised at 30th September, 2004. The unaudited adjusted net tangible assets statement of the Group is prepared for illustrative purpose only and by its nature, may not be able to give a true picture of the financial position of the Group. HK$'000 Net Assets Value at 30th September, 2004 741,904 Add: Negative goodwill of an associate 3,440 Add: Surplus arising from revaluation of investment properties at 30th November, 2004 72,446 Adjusted net assets value per Composite Offer Document 817,790 Add: Estimated surplus before taxation on Disposal (Note) 32,700 850,490 The unaudited adjusted net tangible assets per Share as at the date of the announcement is approximately HK$2.22. Note: Net proceeds from the Disposal of HK$292.7 million less the open market value of the Property of HK$260 million. Save as above, the Board confirmed that there are no negotiations or