09:30     GOLIK HOLDINGS<01118> - Announcement (4)                            

    Interest C, being HK$7,800,000 shall be payable by                        
    Purchaser C to Vendor C as follows:                                       
                                                                              
    (i)     HK$200,000, was paid in cash prior to the                         
    signing of Agreement C;                                                   
                                                                              
    (ii)    HK$580,000, was paid in cash on signing of                        
    Agreement C on 28 January 2005; and                                       
                                                                              
    (iii)   the remaining portion being HK$7,020,000, shall                   
    be payable in cash on completion of the disposal of                       
    Property Interest C which is on or before 30 April                        
    2005 on or such other date as Vendor C and Purchaser                      
    C may agree in writing.                                                   
                                                                              
    Purchaser C's offer was the only offer for Property                       
    Interest C since it was on sale in year 2002, as such                     
    the Director's believe that the value of the                              
    consideration represents the prevailing market value                      
    of Property Interest C.                                                   
                                                                              
    The value of the consideration was arrived at after                       
    arm's length negotiations with reference to the                           
    prevailing market value of Property Interest C.                           
                                                                              
    All the respective purchasers and their ultimate                          
    shareholders of the Disposals are independent third                       
    parties not connected with the directors, chief                           
    executive and substantial shareholders of the Company                     
    and any of its subsidiaries or any of their respective                    
    associates.                                                               
                                                                              
    Reasons for the Disposals                                                 
                                                                              
    The Group is principally engaged in trading and                           
    manufacturing of value-added steel and metal products                     
    including welded mesh, decoiling centre, wire rope                        
    and other building materials. As set out in the 2004                      
    interim report of the Company, the Group's operations                     
    in Hong Kong had gone through persistent hardships                        
    for the past few years and the fluctuation in steel                       
    price had contributed a significant negative impact                       
    on the Group's performance, however, the Group's                          
    businesses were benefiting from the rapid economic                        
    growth and vast market demand in the PRC, the Group's                     
    businesses in the mainland market achieved an                             
    outstanding performance during the first half of 2004.                    
    Hence, the Directors believe the performance and                          
    prospect in the PRC market will be promising in the                       
    future and it is the Company's policy to place more                       
    resources for further development of the PRC market                       
    in the coming years, which will require additional                        
    working capital for the Group.                                            
                                                                              
    The existing occupants in Property Interest A and C                       
    are members within the Group and they will move to                        
    other premises within the Group upon completion. As                       
    such, the Directors believe such disposals provide                        
    an opportunity for the Group to achieve cost                              
    efficiency and streamlining of operations by                              
    consolidate its resources, as well as increasing the                      
    level of cash-flow. On the other hand, given the                          
    revenue generated from Property Interest B only                           
    represents an immaterial amount of the Group's total                      
    turnover and income and property investment is not                        
    a core business of the Group, the disposals enable                        
    the Group to liquidate its investment asset into                          
    working capital by realizing its investment in the                        
    property market. The proceeds from the Disposals                          
    thereof could strengthen both the cash-flow and                           
    working capital position for the operations of the                        
    core businesses of the Group and for further                              
    enhancement in the development of the PRC market as                       
    stated above and accordingly maximize Shareholders                        
    value. Taking into account the above