09:51     WAI YUEN TONG<00897> - Announcement (4)                             

    The Company will bear all costs and expenses in connection with           
    the Placing and the Subscription. The net proceeds from the               
    Subscription of about HK$34.8 million will be used as to (i)              
    HK$10 million for opening new retail shops; (ii) HK$10 million            
    for the repayment of bank borrowings; and (iii) HK$14.8 million           
    for general working capital.                                              
                                                                              
    The net proceeds raised per Subscription Share is about HK$0.063.         
                                                                              
    REASONS FOR THE PLACING AND THE SUBSCRIPTION                              
                                                                              
    The Directors consider that the Placing and the Subscription              
    represent an opportunity to raise capital for the Company while           
    broadening the shareholder base and the capital base of the               
    Company.                                                                  
                                                                              
    GENERAL                                                                   
                                                                              
    The Directors consider the terms of the Placing Agreement and             
    the Subscription Agreement to be fair and reasonable and in the           
    interest of the Company and the Shareholders as a whole.                  
                                                                              
    The following table summaries the capital raising activities              
    of the Group for the 12 months immediately before the date of             
    this announcement:                                                        
                                                                              
    Date of Announcement    Event   Net proceeds    Intended use of net       
    proceeds Actual use of net proceeds as at the date of this                
    announcement                                                              
                                                                              
    23 February 2004        Placing of existing shares and top-up             
    subscription of 92,000,000 shares at a price of HK$0.55 per share         
            Approximately HK$48.5 million   i) approximately HK$5             
    million for repayment of bank loan; ii) approximately HK$35               
    million for repayment of loans advanced by the Vendor; iii)               
    approximately HK$5 million for open new retail shops and                  
    expansion of production facilities; and iv) approximately HK$3.5          
    million for general working capital     i) approximately HK$5             
    million for repayment of bank loan; ii) approximately HK$35               
    million for repayment of loans advanced by the Vendor; iii)               
    approximately HK$5 million for open new retail shops and                  
    expansion of production facilities; and iv) approximately HK$3.5          
    million for general working capital.                                      
                                                                              
    Date of announcement    Event   Net proceeds    Intended use of net       
    proceeds        Actual use of net proceeds as at the date of this         
    announcement                                                              
                                                                              
    20 April 2004   Rights issue of 552,773,845 Shares at a price             
    of HK$0.16 per share    Approximately HK$250 million    i)                
    approximately HK$15 million for repayment of bank loan; ii)               
    approximately HK$64 million for redemption of the Convertible             
    Notes; iii) approximately HK$64.5 million for acquisition of              
    the entire issued share capital of WOD Investments Limited; iv)           
    approximately HK$25 million for opening new retail shops and              
    production plant upgrade; and v) approximately 35 million for             
    possible investment in new business; vi) approximately HK$46.5            
    million for general working capital             i) approximately          
    HK$15 million for repayment of bank loan; ii) approximately HK$64         
    million for redemption of the Convertible Notes; iii)                     
    approximately HK$64.5 million for acquisition of the entire               
    issued share capital of WOD Investments Limited; iv)                      
    approximately HK$25 million for opening new retail shops and              
    production plant upgrade; v) approximately HK$14.5 million for            
    investment in the acquisition of CNT Health Food Limited and              
    approximately HK$20.5 million for partial satisfaction for the            
    acquisition of Huzhou Wai Yuen Tong Biological Medicine Co.,              
    Ltd vi) approximately HK$46.5 million for general working                 
    capital