09:53 E-LIFE INT'L<00370> - Announcement (5) expected to commence operation by the end of August 2005. The new coal preparation plant, which will be used to process raw coal into clean coal which will be further refined into metallurgical coke by Shanxi Changxing's coking facilities, is expected to commence operation by the end of May 2005. Financial information The table below sets out the financial information of Shanxi Changxing as extracted from the unaudited management account of Shanxi Changxing prepared according to the PRC GAAP for the two years ended 31 December 2004: For the year ended 31 December RMB million 2003 2004 Profit/(loss) before tax (2.49 ) (1.16 ) Profit/(loss) after tax (2.49 ) (1.16 ) Total asset 56.32 133.76 Net asset value (6.39 ) 7.49 As at 31 December 2004, major assets of Shanxi Changxing comprise of the construction work in progress of new production facilities of approximately RMB45.37 million, inventories of approximately RMB15.5 million and prepayment of approximately RMB20.00 million. Major liabilities of Shanxi Changxing comprise of bank loan and other borrowing of approximately RMB26.64 million, trade and bills payable and other payable of RMB65.1 million and long term loans of approximately RMB20.00 million. According to the management of Shanxi Changxing, the losses recorded for the past two years were mainly attributable to the finance costs incurred for the construction of new production facilities, which amounted to approximately RMB3.56 million in total for the two years ended 31 December 2004. The management of Shanxi Changxing has indicated that the performance of Shanxi Changxing is expected to be improving in 2005 upon the commencement of the operation of the new coking production facilities. INFORMATION ON THE COMPANY The Group is principally engaged in international air and sea freight forwarding including the provision of related global logistics services, and development of biotechnological genetic products, and securities investment. Funeway is an investment holding company and Shanxi Changxing will be its sole investment. Following the subscription in Shanxi Changxing, Shanxi Changxing will be the Group's principal operating subsidiary engaging in the manufacture and sale of coke in the PRC. While the Group will continue to operate the current business activities as stated above, no major capital investment will be made to these businesses. REASONS FOR AND BENEFITS OF THE SUBSCRIPTION China is the world's leading producer and exporter of coke. According to the National Bureaus of Statistics of China, Shanxi province is the largest coke producing province in China for the eight months period ended 31 August 2004. It is the Group's long term strategy to extend its business to coking business in the PRC. With the continuous growth in the coking industry, the Directors believe that the Subscription will enable the Group to diversity its business and strengthen the profitability of the Group. The Directors including the independent non executive Directors, consider that the terms and conditions of the Subscription and the Subscription Agreement are fair and reasonable and are in the interests of the Company and its Shareholders taken as a whole. CHANGE OF THE COMPANY'S NAME To reflect the Group's focus in the PRC coking industry following the completion of the Subscription, the Board proposes that upon approval by the Shareholders, and subject to and conditional upon the approval of the Registrar of Companies in Bermuda, to change the name of the Company to "China Best Group Holding Limited" and, for the purpose of identification only, "*" as the new Chinese name. The proposed name change is to reflect the changes in the new corporate strategy of the Company and shall take effect from the date on which the new name is entered on the register by the Registrar of Companies in Bermuda in place of the current name. The Company will carry out the necessary filing procedures with the Registrar of Companies in Hong Kong. The existing share certificates of the Company under the name of "E-LIFE International Limited" shall after the proposed change of name becoming effective continue to be evidence of title to the Shares and will be valid for trading, settlement and delivery for the same number of Shares