10:10     LIPPO<00226> & LIPPO CHINA RES<00156> - Joint Ann. (11)             

    (v)     Mr. Wong Senior is the father of Mr. Sean Wong                    
    and therefore, would also be considered an associate                      
    of a connected person of Lippo and LCR under Rule                         
    14A.11(4)(b) of the Listing Rules.                                        
                                                                              
    Under the Previous Rules and the Listing Rules, the                       
    transactions contemplated under the Trading                               
    Arrangements, the Distribution Agreement and the                          
    Manufacturing Agreement constituted non exempt                            
    connected transactions and therefore, subject to the                      
    disclosure and shareholders' approval requirements                        
    as part of the Aggregate Connected Transactions.                          
    However, after the Changed Shareholding Date and upon                     
    completion of the Auric Changed Shareholding whereby                      
    SFSB's shareholding interest in each of ACY and APFP                      
    shall have decreased from 30 per cent. to 25 per cent.,                   
    neither of ACY nor APFP constituted associates of a                       
    connected person of Lippo and LCR under the Listing                       
    Rules as a result of the Auric Changed Shareholding.                      
    Accordingly, such transactions entered into pursuant                      
    to the Trading Arrangements, the Distribution                             
    Agreement and the Manufacturing Agreement ceased to                       
    constitute connected transactions under the Listing                       
    Rules.                                                                    
                                                                              
    CONNECTED TRANSACTIONS FROM THE COMPLETION DATE UNTIL                     
    31ST DECEMBER, 2006                                                       
    Particulars of the Tenancy Agreements:                                    
    (i)     two Tenancy Agreements were entered into                          
    between ACY as the tenant and each of Mr. Wong Senior                     
    and Chun Yip Realty as the respective landlords on                        
    4th November, 2003 in relation to certain properties                      
    in Malaysia to be used as warehouse and a factory with                    
    office premises with gross floor areas of                                 
    approximately 2,400 and 33,867 square feet                                
    respectively and which are required for the business                      
    operations of ACY after the Completion Date, in each                      
    instance, for a period of three years commencing from                     
    1st December, 2003 at monthly rentals of RM2,800                          
    (equivalent to approximately HK$5,600), and                               
    RM37,253.70 (equivalent to approximately HK$74,507)                       
    respectively. The relevant Tenancy Agreements also                        
    contain options for the tenant, that is, ACY to renew                     
    the period of the relevant lease for a further three                      
    years after expiry of the initial three year term                         
    subject to rent payable at the prevailing market value                    
    of similar properties which shall not exceed 10 per                       
    cent. over and above the existing rent.                                   
                                                                              
    (ii)    a Tenancy Agreement was entered into between                      
    APFP as the tenant and HSB as the landlord on 4th                         
    November, 2003 in relation to a property in Malaysia                      
    to be used as a factory with gross floor area of 8,221                    
    square feet and which is required for the business                        
    operations of APFP after the Completion Date for a                        
    period of two years commencing from 1st December, 2003                    
    at a monthly rental of RM6,165.75 (equivalent to                          
    approximately HK$12,332). The relevant Tenancy                            
    Agreement contain an option for the tenant, that is,                      
    APFP to renew the period of such lease for a further                      
    two years after expiry of the initial two year term                       
    subject to rent payable at the prevailing market value                    
    of similar properties which shall not exceed 10 per                       
    cent. over and above the existing rent.                                   
                                                                              
    The monthly rentals payable under the Tenancy                             
    Agreements were arrived at after arm's length                             
    negotiations between the relevant parties on normal                       
    commercial terms and was determined by reference to                       
    such negotiations and prevailing market rents in                          
    respect of similar properties in similar locations                        
    and uses as provided by independent