09:18     GUANGNAN (HOLD)<01203>-Announcement&Resumption of Trading(2)        

    be despatched to the Shareholders as soon as                              
    practicable.                                                              
                                                                              
    There was also an increase in the total investment                        
    and the registered capital of Zhongyue Tinplate from                      
    US$58,064,200 and US$26,906,200 to US$73,064,200                          
    (equivalent to approximately HK$569,900,760) and                          
    US$41,906,200 (equivalent to approximately                                
    HK$326,868,360) respectively pursuant to a                                
    supplemental agreement dated 8th June, 2004. The                          
    transaction was announced by the Company on 11th June,                    
    2004 and a circular was issued to the Shareholders                        
    on 2nd July, 2004. Thus the total investment and the                      
    registered capital of Zhongyue Tinplate have been                         
    increased twice during the past 12 months.                                
                                                                              
    At the request of the Company, trading in the Shares                      
    on the Stock Exchange has been suspended from 9:30                        
    a.m. on Tuesday, 1st February, 2005 pending the                           
    release of this announcement. Application has been                        
    made by the Company to the Stock Exchange for                             
    resumption of trading in the Shares on the Stock                          
    Exchange with effect from 9:30 a.m. on Wednesday, 2nd                     
    February, 2005.                                                           
                                                                              
    Principal terms of the Supplement Contract                                
    Pursuant to the Supplement Contract, Zhongyue                             
    Industry Material and Zhongshan Torch have                                
    conditionally agreed, inter alia, that the total                          
    investment of Zhongyue Tinplate will increase from                        
    US$73,064,200 to US$113,064,200 (equivalent to                            
    approximately HK$881,900,760) and the registered                          
    capital (being part of the total investment) of                           
    Zhongyue Tinplate will increase from US$41,906,200                        
    to US$63,706,200 (equivalent to approximately                             
    HK$496,908,360). The increase of US$21,800,000                            
    (equivalent to approximately HK$170,040,000) in the                       
    registered capital of Zhongyue Tinplate will be                           
    contributed as to US$20,710,000 (equivalent to                            
    approximately HK$161,538,000) by Zhongyue Industry                        
    Material and as to US$1,090,000 (equivalent to                            
    approximately HK$8,502,000) by Zhongshan Torch and                        
    is in proportion to the existing percentage of                            
    shareholding in Zhongyue Tinplate held by Zhongyue                        
    Industry Material and Zhongshan Torch. The remaining                      
    portion of the increase in the total investment of                        
    Zhongyue Tinplate in the amount of US$18,200,000                          
    (equivalent to approximately HK$141,960,000) will be                      
    financed by Zhongyue Tinplate. Except as disclosed                        
    in this announcement, neither the Company nor                             
    Zhongyue Industry Material has any further capital                        
    commitment in respect of the total investment and the                     
    registered capital of Zhongyue Tinplate.                                  
                                                                              
    Zhongyue Industry Material and Zhongshan Torch are                        
    currently interested in 95% and 5% of the entire                          
    registered capital of Zhongyue Tinplate.                                  
                                                                              
    Conditions                                                                
    The Supplement Contract is conditional upon the                           
    obtaining of the relevant approvals from the                              
    government authorities of the PRC. Zhongyue Tinplate                      
    anticipates that approvals will need to be obtained                       
    from * (Zhong Shan Bureau of Foreign Trade and Economic Cooperation) and  
    * (Department of Foreign Trade and Economic Cooperation of Guangdong      
    Province).                                                                
                                                                              
    Capital Increase                                                          
    Upon fulfillment of the conditions in the Supplement                      
    Contract, the interest of Zhongyue Industry Material                      
    and Zhongshan Torch in the