09:55     SHIMAO CHINA<00649> - Announcement & Resumption (7)                 

    expected to be in the amount of around RMB100 million                     
    (equivalent to approximately HK$94 million).                              
    Currently, Suifenhe Shimao has no outstanding bank                        
    borrowings.                                                               
                                                                              
    The land and property interests of Suifenhe Shimao                        
    are valued by Savills (Hong Kong) Limited, the                            
    independent property valuer, at an aggregate of                           
    RMB750,600,000 (equivalent to approximately                               
    HK$708,113,000) as at 31 December 2004.                                   
                                                                              
    Based on the unaudited consolidated financial                             
    statements of Value Ahead Group for the three years                       
    ended 31 December 2002, 2003 and 2004, Value Ahead                        
    Group recorded loss before and after taxation of                          
    approximately HK$14,000, profit before and after                          
    taxation of approximately HK$12,000 and loss before                       
    and after taxation of approximately HK$3,899,000 for                      
    the three years ended 31 December 2002, 2003 and 2004                     
    respectively. Based on the unaudited consolidated                         
    balance sheet of Value Ahead Group as at 31 December                      
    2004, the net deficit of Value Ahead Group as at 31                       
    December 2004 were approximately HK$3,620,000. Based                      
    on the valuation of the land and property interests                       
    of Suifenhe Shimao of RMB750,600,000 (equivalent to                       
    approximately HK$708,113,000) as at 31 December 2004                      
    and the corresponding book value as at 31 December                        
    2004, the valuation surplus after deferred taxation                       
    effect attributable to the land and property                              
    interests of Suifenhe Shimao amounted to                                  
    approximately HK$305,229,000.                                             
                                                                              
    THE POGRANICHNY-SUIFENHE INTERTRADING ECONOMIC ZONE                       
    The Municipality of Suifenhe is a city situated in                        
    the south-eastern part of Heilongjiang Province of                        
    the PRC and adjoining the national border between the                     
    PRC and Russia. As a result of its geographical                           
    advantages, the Municipality of Suifenhe has become                       
    one of the major ports for Chinese-Russian trades.                        
    According to the data of the bureau of statistics of                      
    Suifenhe, the gross domestic products of the                              
    Municipality of Suifenhe for the year ended 31                            
    December 2003 amounted to approximately RMB1,399.5                        
    million (equivalent to approximately HK$1,320.3                           
    million) whilst the gross domestic product per capita                     
    of the Municipality of Suifenhe for the year ended                        
    31 December 2003 amounted to approximately RMB25,248                      
    (equivalent to approximately HK$23,819). The total                        
    imports/exports were approximately US$1,906.73                            
    million (equivalent to approximately HK$14,872.49                         
    million) which comprise imports of approximately                          
    US$921.78 million (equivalent to approximately                            
    HK$7,189.88 million) and exports of approximately                         
    US$984.95 million (equivalent to approximately                            
    HK$7,682.61 million). In particular, the trades with                      
    Russia amounted to approximately US$1,842.1 million                       
    (equivalent to approximately HK$14,368.4 million),                        
    representing approximately 96.6% of the total                             
    imports/exports of the Municipality of Suifenhe. In                       
    2003, approximately 345,000 visitors travelled to and                     
    from the Municipality of Suifenhe.                                        
                                                                              
    In 1998, the Chinese and the Russian governments                          
    reached an agreement to develop Sino-Russian cross                        
    border trading zones and simplify the customs                             
    formalities for entry into the trading zones such as                      
    exemption of entry visa. The development includes,                        
    inter alia, a trading economic zone known as                              
    Pogranichny-Suifenhe Intertrading Economic Zone                           
    which is located across the national border between                       
    the Municipality of Suifenhe and the Municipality of                      
    Pogranichny. The Intertrading Zone comprises a