10:35     KONG SUN HOLD<00295> - Announcement (3)                             

    issue their respective audited accounts until the end of November         
    2004, and therefore the Company's auditors required more time             
    to clear certain audit queries with the associated companies'             
    auditors; and                                                             
                                                                              
    (b)     the Company required more time to obtain legal advice from        
    its Hong Kong and overseas legal advisers in respect of certain           
    legal issues in respect of the outstanding litigations,                   
    totalling approximately HK$37 million, initiated by various               
    creditors against the Group.                                              
                                                                              
    The above matters have been resolved just recently.                       
                                                                              
    The Company will make further announcement(s) regarding the               
    outcome of the said application and the date of despatch of the           
    Annual Report.                                                            
                                                                              
    Delay in publication of the Interim Results and despatch of the           
    Interim Report                                                            
    Pursuant to Rule 13.49 of the Listing Rules, the Company is               
    required to publish the Interim Results not later than three              
    months after the end of the first six months of its financial             
    year on 30 June 2004. Further, the Company is required under              
    Rule 13.48 of the Listing Rules to despatch to the shareholders           
    the Interim Report not later than three months after such                 
    six-month period. The Company announces that due to the delay             
    in the publication of the Annual Results, the publication of              
    the Interim Results could not be made on 30 September 2004 and            
    will be delayed to on or before 28 February 2005.                         
                                                                              
    The Company will make further announcement(s) regarding the date          
    of despatch of the Interim Report.                                        
                                                                              
    Breaches of the Listing Rules                                             
                                                                              
    The delay in publication of the Annual Results and the Interim            
    Results and the despatch of the Annual Report and the Interim             
    Report constitute breaches of Rules 13.49(1) and 13.49(6) and             
    13.46(1) and 13.48(1) of the Listing Rules by the Company,                
    respectively. In addition, note 2 of Rule13.46(b) notes that              
    section 122 of the Companies Ordinance requires the annual                
    accounts of a Hong Kong issuer which are laid before the issuer           
    at its annual general meeting to be made up to a date falling             
    not more than 6 months before the date of the meeting. The Stock          
    Exchange reserves its rights to take further action against the           
    Company and the Directors for such breaches.                              
                                                                              
    Appointment of independent non-executive Director                         
                                                                              
    The Company also announces that Mr. Chan Shing Hoi Alfred has             
    been appointed as an independent non-executive Director and a             
    member of the audit committee of the Company with effect from             
    10 January 2005.                                                          
                                                                              
    Mr. Chan, aged 53, is currently the director of finance of a              
    private company. He has over 30 years of experience in accounting         
    and banking. He obtained a master degree in professional                  
    accounting from the University of Western Sydney, Nepean, New             
    South Wales, Australia and a master degree in finance from the            
    City University of Hong Kong. He is an associate member of the            
    Institute of Chartered Secretaries and Administrators of the              
    United Kingdom, The Hong Kong Institute of Company Secretaries            
    and Australian Society of CPAs. He is also a member of the Hong           
    Kong Securities Institute.                                                
                                                                              
    Mr. Chan was employed by the Company as the financial controller          
    from 1 April 2001 to 16 January 2002. Save as disclosed above,            
    he has not held any position with the Company, any of its                 
    subsidiaries or associated companies. He has not held any                 
    directorship in listed public companies in the last three years           
    prior to the date of this announcement.