09:43     CHIA TAI ENT<00121> - Announcement (2)                              

    DETAILS OF THE CONTINUING CONNECTED TRANSACTIONS                          
    The Continuing Connected Transactions comprise                            
    transactions carried out by the CTEI Supermarket                          
    Subsidiaries with the respective CPP Subsidiaries                         
    pursuant to the following agreements:-                                    
                                                                              
    (1)   Xian Lotus Edible Oil Purchase Agreement                            
                                                                              
    (2)   Zhengzhou Lotus Edible Oil Purchase Agreement                       
                                                                              
    (3)   Taian Lotus Chicken and Processed Meat Purchase                     
    Agreement                                                                 
                                                                              
    (4)   Zhengzhou Lotus Chicken and Processed Meat                          
    Purchase Agreement                                                        
                                                                              
    (5)   Jinan Lotus Chicken and Processed Meat Purchase                     
    Agreement                                                                 
                                                                              
    (6)   Beijing Lotus Duck and Processed Meat Purchase                      
    Agreement                                                                 
                                                                              
    (7)   Tianjin Lotus Duck and Processed Meat Purchase                      
    Agreement                                                                 
                                                                              
    (8)   Xian Lotus Eggs, Chicken and Processed Meat                         
    Purchase Agreement                                                        
                                                                              
    (9)   Zhengzhou Lotus Eggs, Chicken and Processed Meat                    
    Purchase Agreement                                                        
                                                                              
    The Continuing Connected Transactions also include                        
    transactions carried out by the CTEI Supermarket                          
    Subsidiaries with Shanghai Lotus pursuant to the                          
    following agreements:-                                                    
                                                                              
    (10)   Beijing Lotus Merchandise Purchase Agreement                       
                                                                              
    (11)   Tianjin Lotus Merchandise Purchase Agreement                       
                                                                              
    (12)   Taian Lotus Merchandise Purchase Agreement                         
                                                                              
    (13)   Xian Lotus Merchandise Purchase Agreement                          
                                                                              
    (14)   Zhengzhou Lotus Merchandise Purchase Agreement                     
                                                                              
    (15)   Jinan Lotus Merchandise Purchase Agreement                         
                                                                              
    (16)   Taian Lotus Merchandise Supply Agreement                           
                                                                              
    CONTINUING CONNECTED TRANSACTION AGREEMENTS                               
    (1)   Xian Lotus Edible Oil Purchase Agreement                            
    Date   :   15th February, 2005                                            
                                                                              
    Parties   :   (i)   Xian 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 Xian                   
    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 Xian Lotus; and (iii) the possibility of the                           
    revaluation of RMB in the coming years.