09:19 UNITY INV HOLD<00913> - Announcement & Resumption (3) The Company is of the view that it is beneficial to effect the Subscription to raise funds in the current market conditions as well as introducing a passive investor whose shares will be subject to a 12 months non-disposal undertaking. The Investor is introduced to the Company by the Placing Agent. The gross proceed of the Subscription is HK$2,239,720. The net price to the Company of each Subscription Share, after deduction 2% placing fee of approximately HK$44,794 to the Placing Agent as well other miscellaneous expenses involved, is approximately HK$0.136. The below summarises the capital raising activities of the Group for the 12 months immediately before the date of this Announcement. Percentage of Number of Shares issued/ Use of Number of total number proceeds Placees/ Shares issued existing Shares of according to Use of proceeds Date of Date of Nature of subscriber/ Amount of from the of the Company Intended use of the intended other than the announcement agreement transaction allottee fund raised activities (approximately) proceeds use intended use 4 March 2004 27 February 2004 Placing of Independent Approximately 48,000,000 16.67% General working Repayment of Nil 48,000,000 Shares third parties HK$9.35 million Shares capital and bank loans at a price of repayment of and investment HK$0.2 per Share borrowing of under the general the Company mandate 2 November 1 November 2004 Right issue of Shareholders Approximately 96,000,001 25.0% Repayment of Repayment of Nil 2004 shares and HK$12.2 million Shares borrowings of borrowings underwriters the Company and general working capital The entire funds raised in the past 12 months have been applied pursuant to their intended usage as announced. Use of Proceeds The net proceeds of the Subscription of approximately HK$2,180,000 shall be used for the general working capital of the Company. Exceptional Price Movement This statement is made at the request of The Stock Exchange of Hong Kong Limited. We have noted the decrease in the price of the Shares on 7th January 2005 before the suspension of dealings of the Shares and wishes to state that we are not aware any reasons for such decrease. Save as (i) The Proposed Capital Reorganisation and Refreshment of Share Option Mandate Limited as described in the announcement of the Company of even date; and (ii) Issue of Shares under AGM Issue Mandate described at above. We also confirm that there are no negotiations or agreements relating to intended acquisitions or realisations which are discloseable under rule 13.23, neither is the Board aware of any matter discloseable under the general obligation imposed by rule 13.09, which is or may be of a price sensitive nature. Made by the order of the Board, the Directors of which individually and jointly accept responsibility for the accuracy of this statement. Resumption Of Dealings In Shares At the request of the Company, dealings in the Shares on the Stock Exchange were suspended with effect from 2:30 p.m. on 7th January 2005 pending the release of this announcement. Application has been made by the Company for the resumption of dealings in the Shares on the Stock Exchange with effect from 9:30 a.m. on 11th January 2005. DEFINITIONS The following terms are used in this announcement within the meanings set opposite them:- "AGM Issue Mandate" the mandate granted to Directors at the annual general meeting held on 30th April 2004 to issue and allot new Shares; Details of the Tenancy Agreements will be disclosed in the annual reports of each of LCR and HCL for each of the relevant financial years in accordance with Rules 14A.45 and 14A.46 of the Listing Rules. INTRODUCTION The respective boards of directors of Lippo China Resources Limited ("LCR") and Hongkong Chinese Limited ("HCL") announce that the following tenancy agreements (collectively the "Tenancy Agreements") were entered into on 10th January, 2005: DETAILS OF THE TENANCY AGREEMENTS 1. Tenancy Agreement between Lippo and Superform Principal terms: Tenant: Lippo Limited ("Lippo"), a company incorporated in Hong Kong with limited liability and whose shares are listed on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") Landlord: Superform Investment Limited ("Superform") Date of tenancy 10th January, 2005 agreement: Premises: Portion of 24th Floor, Tower One, Lippo Centre, 89 Queensway, Hong Kong with a gross floor area of approximately 11,028 square feet, to be used as office space (the "Superform Premises") Term: Two years commencing from 1st January, 2005 to 31st December, 2006, both days inclusive Rental: HK$248,100 per month (equivalent HK$2,977,200 per annum), exclusive of rates, service charges and all other outgoings The aggregate rentals payable under the tenancy agreement entered into between Lippo and Superform (the "Superform Tenancy Agreement") for each of the two financial years ending 31st December, 2006 are as follows: for the financial for the financial year ending year ending 31st December, 31st December, 2005 2006 HK$ HK$ Estimated annual rental 2,977,200 2,977,200 Listing Rules implications: Superform is a wholly-owned subsidiary of LCR and Lippo is the controlling shareholder of LCR as to approximately 71.13 per cent. of LCR's entire issued share capital as at the date of this announcement and therefore a connected person of LCR under the Listing Rules. Accordingly, the Superform Tenancy Agreement constitutes a continuing connected transaction for LCR under Chapter 14A of the Rules Governing the Listing of Securities on the Stock Exchange ("Listing Rules"). The Superform Tenancy Agreement does not constitute a connected transaction for Lippo under the exemption set out in Rule 14A.31(1) of the Listing Rules as no connected person (as defined under the Listing Rules) of Lippo (other than at the level of its subsidiaries) is entitled to exercise, or