09:45 CHIA TAI ENT<00121> - Announcement (8) (12) Taian Lotus Merchandise Purchase Agreement Date : 15th February, 2005 Parties : (i) Taian Lotus as purchaser (a CTEI Supermarket Subsidiary) (ii) Shanghai Lotus as supplier Subject : Packaged food, beverage, condiments and clothing Term : With effect from 1st January, 2005 to 31st December, 2007 Price : To be determined by reference to the prevailing market price of packaged food, beverage, condiments and clothing 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 packaged food, beverage, condiments and clothing by Taian Lotus from Shanghai Lotus 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 packaged food, beverage, condiments and clothing amounting to approximately HK$2,287,000 purchased by Taian Lotus from Shanghai Lotus 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. (13) Xian Lotus Merchandise Purchase Agreement Date : 15th February, 2005 Parties : (i) Xian Lotus as purchaser (a CTEI Supermarket Subsidiary) (ii) Shanghai Lotus as supplier Subject : Packaged food, beverage and condiments Term : With effect from 1st January, 2005 to 31st December, 2007 Price : To be determined by reference to the prevailing market price of packaged food, beverage and condiments 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 packaged food, beverage and condiments by Xian Lotus from Shanghai Lotus 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 packaged food, beverage and condiments amounting to approximately HK$3,907,000 purchased by Xian Lotus from Shanghai Lotus in 2004; (ii) the possible price increases in line with consumer prices in the PRC generally; (iii) the projected growth of business of Xian Lotus; and (iv) the possibility of the revaluation of RMB in the coming years.