10:19     GOLIK HOLDINGS<01118> - Announcement (5)                            

    (2)     Party A as the PRC party.                                         
                                                                              
    Registered capital      :       The registered capital of                 
    Bridon Tianjin JV will be US$2,000,000 (equivalent                        
    to approximately HK$15.6 million), to be contributed                      
    as to 75.5% by China Rope (in the amount of                               
    US$1,510,000) (equivalent to approximately HK$11.78                       
    million) and to be contributed as to 24.5% by Party                       
    A (in the amount of US$490,000) (equivalent to                            
    approximately HK$3.82 million).                                           
                                                                              
    Party A, being a joint venture party to Tianjin Golik                     
    has already made its share of capital contribution                        
    to Tianjin Golik in the amount of US$490,000                              
    (equivalent to approximately HK$3.82 million).                            
                                                                              
    Upon completion of the Transfer and the registration                      
    of China Rope as holder of 51% equity interest in                         
    Tianjin Golik, China Rope would be taken to have                          
    contributed to the registered capital of Bridon                           
    Tianjin JV in the amount of US$510,000 (equivalent                        
    to approximately HK$3.98 million). The remaining US$1                     
    million (equivalent to approximately HK$7.8 million)                      
    will be contributed by China Rope in cash within three                    
    months of the fulfillment of the conditions precedent                     
    of the Equity Joint Venture Contract.                                     
                                                                              
    The relationship between Tianjin Golik and Bridon                         
    Tianjin JV is set out in the paragraph headed                             
    "Information on Tianjin Golik and Bridon Tianjin JV"                      
    below.                                                                    
                                                                              
    Total investment        :       The total investment of Bridon            
    Tianjin JV will be US$2,850,000. The difference                           
    between the registered capital and the total                              
    investment may be funded by borrowings by Bridon                          
    Tianjin JV.                                                               
                                                                              
    Conditions precedent    :       The obligations of China                  
    Rope to make the additional capital contribution is                       
    conditional upon the fulfillment or waiver of, among                      
    others, the following conditions:                                         
                                                                              
    a)      the signing of the New JV Documents and the Equity                
    Interest Transfer Agreement and the approval of the                       
    documents by the relevant authorities;                                    
                                                                              
    b)      the issue of a business licence in the name of                    
    "Tianjin Bridon Rope Ltd. (#)" with                                       
    a registered capital of US$2 million and China Rope                       
    and Party A as its equity interest holders.                               
                                                                              
    Business scope  :       The scope of business of Bridon                   
    Tianjin JV is (1) to manufacture, market, sell and                        
    distribute steel wire ropes for elevators, steel wire                     
    ropes for hoists, galvanised steel wires and other                        
    kinds of steel wire ropes and steel wires of different                    
    specifications and related products; (2) to carry out                     
    research and development on the products referred to                      
    in (1); and (3) to provide technical services, testing                    
    services and after-sales services for any of all of                       
    the products referred to in (1).                                          
                                                                              
    Board representation    :       The board of directors of                 
    Bridon Tianjin JV will comprise seven directors, five                     
    of which are to be nominated by China Rope and two                        
    of which are to be nominated by Party A.                                  
                                                                              
    INFORMATION ON TIANJIN GOLIK AND BRIDON TIANJIN JV                        
    Tianjin Golik is a sino-foreign joint venture                             
    established in the PRC on 11 January 2002. The equity                     
    interest of Tianjin Golik is held as to 51% by CMTH