09:27     NIPPON ASIA INV<00603>-Announcement&Resumption of Trading(11        

    identified or targeted. Further announcement will be made as              
    and when appropriate.                                                     
                                                                              
    The Directors consider that the issue of the Convertible Notes            
    is in the best interest of the Company and the Shareholders as            
    a whole, which provides lower cost of capital to the Company,             
    and there is no immediate dilution effect. The net proceeds from          
    the issue of the Convertible Notes will strengthen the financial          
    position and enhance the capital base of the Company, and enable          
    the Company to make the Acquisition.                                      
                                                                              
    FUNDS RAISED BY THE COMPANY DURING THE 12 MONTHS PERIOD                   
    IMMEDIATELY BEFORE THE DATE OF THIS ANNOUNCEMENT                          
                                                                              
    The following table summarises the capital raising activities             
    of the Group for the 12 months period immediately before the              
    date of this announcement:                                                
                                                                              
    Gross   Date of mandate         Intended use of proceeds                  
    Date                                                                      
    of relevant                                                               
    Description     Amount raised   granted as announced    Actual use        
    of proceeds     announcement                                              
                                                                              
    Issue of the ICP Convertible Notes in   US$2 million    Granted           
    at annual       Net proceeds of approximately   Intended for the          
    acquisition     7.10.2004                                                 
    principal amount of US$2 million        (equivalent to  general           
    meeting held    HK$15.5 million for future      of Shanghai Holdfast      
    at conversion price of HK$0.025 approximately   on                        
    23.12.2003      investment or development of    but not yet               
    utilised (Note 1)                                                         
    per Share (assuming full conversion,    HK$15.6 million)                  
            suitable projects related to the                                  
    the maximum no. of Shares to be                 principal business of     
    the                                                                       
    issued is 624 million)                  Company when opportunities        
    (Note 1)                        are identified and the Directors          
                    think appropriate                                         
                                                                              
    Issue of the CPC and icoupon    HK$25 million   Granted at                
    annual  Net proceeds of approximately   HK$6 million was                  
    utilised for the        11.10.2004                                        
    Convertible Notes in principal amount           general meeting           
    held    HK$24.9 million for future      acquisition of a company          
    engaged                                                                   
    of HK$25 million at conversion price            on 23.12.2003             
            investment or development of    in information technology         
    business,                                                                 
    of HK$0.025 per Share (assuming full                    natural gas       
    projects or other       HK$3.7 million was utilised                       
    conversion, the maximum no. of Shares                   suitable          
    projects        in existing business, and                                 
    to be issued is 1,000 million)                          HK$12.3 million   
    was                                                                       
    utilised for                                                              
    (Note 2)                                securities investments, and the   
                            remaining HK$2.9 million has                      
                            not yet been applied which will                   
                            be utilised for the acquisition of                
                            Shanghai Holdfast (Notes 2 & 3)                   
                                                                              
    Issue of 2,048,368,284 rights Shares at         HK$51.2 million           
            Approved at special     Net proceeds of approximately             
            HK$20.5 million was utilised    25.10.2004                        
    HK$0.025 per Share on the basis of two          general meeting           
    held    HK$50 million is intended to be         on 24 December 2004 to    
    rights Shares for every ten existing Shares             on                
    1.12.2004       fully applied for the possible  redeem the FHL CN,        
    and the                                                                   
    with bonus Shares issued with rights                    acquisition of a  
    majority stake in       balance of