09:43     CHIA TAI ENT<00121> - Announcement (3)                              

    (2)   Zhengzhou Lotus Edible Oil Purchase Agreement                       
    Date   :   15th February, 2005                                            
                                                                              
    Parties   :   (i)   Zhengzhou Lotus as purchaser (a                       
    CTEI Supermarket Subsidiary)                                              
                                                                              
    (ii)   Ningbo Oil as supplier (a CPP Subsidiary)                          
                                                                              
    Subject   :   Edible oil                                                  
                                                                              
    Term   :   With effect from 1st January, 2005 to 31st                     
    December, 2007                                                            
                                                                              
    Price   :   To be determined by reference to the                          
    prevailing market price of edible oil in the PRC, the                     
    prevailing market demand and the quotations obtained                      
    from various potential suppliers, and no less                             
    favourable to this CTEI Supermarket Subsidiary than                       
    those available from independent suppliers.                               
                                                                              
    Payment terms   :   Credit terms of up to 60 days.                        
    Payment for the purchases shall be made by telegraphic                    
    transfer, bank-issued bills payable within three                          
    months or other payment methods acceptable in the PRC.                    
                                                                              
    The annual value of the purchases of edible oil by                        
    Zhengzhou Lotus from Ningbo Oil for the financial                         
    years ending 31st December, 2005, 31st December, 2006                     
    and 31st December, 2007 will not exceed HK$8,000,000,                     
    HK$8,800,000 and HK$9,680,000 respectively. The caps                      
    have been determined by reference to (i) the possible                     
    price increases in line with consumer prices in the                       
    PRC generally; (ii) the projected growth of business                      
    of Zhengzhou Lotus; and (iii) the possibility of the                      
    revaluation of RMB in the coming years.                                   
                                                                              
    (3)   Taian Lotus Chicken and Processed Meat Purchase                     
    Agreement                                                                 
    Date   :   15th February, 2005                                            
                                                                              
    Parties   :   (i)   Taian Lotus as purchaser (a CTEI                      
    Supermarket Subsidiary)                                                   
                                                                              
    (ii)   Qingdao Chia Tai as supplier (a CPP Subsidiary)                    
                                                                              
    Subject   :   Chicken and processed meat                                  
                                                                              
    Term   :   With effect from 1st January, 2005 to 31st                     
    December, 2007                                                            
                                                                              
    Price   :   To be determined by reference to the                          
    prevailing market price of chicken and processed meat                     
    in the PRC, the prevailing market demand and the                          
    quotations obtained from various potential suppliers,                     
    and no less favourable to this CTEI Supermarket                           
    Subsidiary than those available from independent                          
    suppliers.                                                                
                                                                              
    Payment terms   :   Credit terms of up to 60 days.                        
    Payment for the purchases shall be made by telegraphic                    
    transfer, bank-issued bills payable within three                          
    months or other payment methods acceptable in the PRC.                    
                                                                              
    The annual value of the purchases of chicken and                          
    processed meat by Taian Lotus from Qingdao Chia Tai                       
    for the financial years ending 31st December, 2005,                       
    31st December, 2006 and 31st December, 2007 will not                      
    exceed HK$8,000,000, HK$8,800,000 and HK$9,680,000                        
    respectively. The caps have been determined by                            
    reference to (i) the aggregate value of chicken and                       
    processed meat amounting to approximately HK$728,000                      
    purchased by Taian Lotus from Qingdao Chia Tai in 2004;                   
    (ii) the possible price increases in line with                            
    consumer prices in the PRC generally; (iii) the                           
    projected growth of business of Taian Lotus; and (iv)                     
    the possibility of the revaluation of RMB in the coming                   
    years.