10:21     139 HOLDINGS<00139>-Announcement & Resumption of Trading (6)        

    HK$'000         HK$'000                                                   
                                                                              
    Turnover        65,067          49,887                                    
    Profit before tax       18,952          11,476                            
    Profit after tax        18,952          9,918                             
                                                                              
    Total asset     555,502         508,060                                   
    Loan from shareholder   447,640         444,912                           
    Net asset       99,676          15,008                                    
    Net current assets      56,156          29,690                            
                                                                              
    INFORMATION ON HOTEL GRANDEUR MACAU                                       
                                                                              
    Hotel Grandeur Macau is a four star hotel located at Rua de Pequim,       
    No. 199, Macau, and it only takes approximately 15 minutes                
    traveling to the Macau International Airport and 5 minutes                
    traveling to the New Macau Maritime Ferry Terminal.                       
                                                                              
    Hotel Grandeur Macau is a 26-storey hotel with two levels of              
    basement and has a total gross floor area of approximately                
    267,472 square feet, with about 350 guest rooms and commenced             
    its operation on 8 September, 1993. There are also facilities             
    in Hotel Grandeur Macau including fitness centre, health centre,          
    indoor heated swimming pool, hair salon, business centre,                 
    karaoke, multipurpose function room and restaurants, including            
    a revolving restaurant. There is no casino operation in the hotel.        
    The Directors currently has no intention to engage in the casino          
    business.                                                                 
                                                                              
    FINANCIAL EFFECTS OF THE PROPOSED ACQUISITION ON THE GROUP                
                                                                              
    According to the annual and interim reports of the Company, the           
    Group recorded an audited consolidated profit of approximately            
    HK$1.2 million for the fiscal year ended 31 March, 2004 and an            
    unaudited consolidated loss of approximately HK$2.6 million for           
    the six months ended 30 September, 2004. Given the profitable             
    track record of Hotel Grandeur Macau and the prospects of the             
    tourism industry in Macau, the Directors consider that the                
    Proposed Acquisition would be beneficial to the Group                     
    financially.                                                              
                                                                              
    REASONS FOR THE PROPOSED ACQUISITION AND ENTERING INTO THE                
    MANAGEMENT AGREEMENT                                                      
                                                                              
    The Company is an investment holding company and the principal            
    activities of its subsidiaries are manufacturing, trading and             
    distribution of car audio equipment and other merchandise and             
    the trading of securities.                                                
                                                                              
    In the midst of intense market competition and price pressures,           
    the Group has experienced a steady sales decline and loss in              
    its car audio business. In order to react to this adversity,              
    the Group has continuously pursued a prudent strategy to explore          
    into suitable investment opportunities so as to diversify its             
    business and enhance profitability.                                       
                                                                              
    With the relaxation of restrictions on PRC mainland tourist to            
    Hong Kong and Macau, the hotel, catering, retails sales business          
    sectors have achieved a robust recovery and significant rebound.          
    The increase in business travel and mainland individuals' visit           
    to Macau have created a huge demand for hotel rooms, catering             
    and other traveler/tourist-related services in Macau such as              
    restaurants, bars, theme parks, sport events, casinos, racing             
    parks, shopping malls and other tourist attractions.                      
                                                                              
    The Directors believe that the economic boom in these business            
    sectors will generate an abundance of investment