09:55     SHIMAO CHINA<00649> - Announcement & Resumption (8)                 

    total site area of 453 hectares (equivalent to                            
    4,530,000 sq.m.), of which 153 hectares (equivalent                       
    to 1,530,000 sq.m.) fall within the Chinese border                        
    and the remaining 300 hectares (equivalent to                             
    3,000,000 sq.m.) fall within the Russian border. The                      
    property development in the Intertrading Zone is                          
    planned to facilitate a wide range of functions                           
    including, inter alia, international trade, retail                        
    and wholesale businesses, exhibitions, bonded                             
    warehouses, logistics, resorts, cultural and                              
    entertainment facilities.                                                 
                                                                              
    Pursuant to an agreement dated 19 January 2004 entered                    
    into between the Municipal Government of Suifenhe and                     
    Shimao Jianshe, a company beneficially and wholly                         
    owned by Mr. Hui, the Municipal Government of Suifenhe                    
    granted an exclusive right to Shimao Jianshe for the                      
    development of the Intertrading Zone on the Chinese                       
    border of the Municipality of Suifenhe for a                              
    consideration of RMB125,000,000 (equivalent to                            
    approximately HK$117,924,528) and agreed, among                           
    others, that Suifenhe Shimao has the right to acquire                     
    153 hectares (equivalent to 1,530,000 sq.m.) of land                      
    for the project development. The consideration of                         
    RMB125,000,000 (equivalent to approximately                               
    HK$117,924,528) was apportioned as to RMB59,054,289                       
    (equivalent to approximately HK$55,711,593) to the                        
    Land with a site area of 722,824.5 sq.m. and as to                        
    RMB65,945,711 (equivalent to approximately                                
    HK$62,212,935) to the remaining portion of land with                      
    a site area of around 807,175 sq.m. in the Chinese                        
    border of the Intertrading Zone. Pursuant to a                            
    transfer agreement dated 21 October 2004 entered into                     
    among the Municipal Government of Suifenhe, Shimao                        
    Jianshe and Suifenhe Shimao, all the rights and                           
    obligations of Shimao Jianshe were transferred to                         
    Suifenhe Shimao. The cost of this transfer to Suifenhe                    
    Shimao was RMB125,000,000 (equivalent to                                  
    approximately HK$117,924,528). For the purpose of the                     
    first phase of development of the Intertrading Zone,                      
    Suifenhe Shimao has acquired the Land with a total                        
    site area of 722,824.5 sq.m. within the Chinese border                    
    of the Intertrading Zone. It is the intention of the                      
    Directors that, after completion of the construction                      
    of the first phase of development, the Group will                         
    proceed to negotiate with the relevant governmental                       
    authority of the Municipality of Suifenhe in relation                     
    to the acquisition of the remaining portion of land                       
    of a site area of around 807,175 sq.m. within the                         
    Chinese border of the Intertrading Zone. The Land                         
    currently owned by Suifenhe Shimao is planned to be                       
    developed in phases and the first phase of development                    
    includes Shimao International Commercial and                              
    Exhibition Centre (Phase I) and a five-star hotel.                        
    Shimao International Commercial and Exhibition                            
    Centre (Phase I) is planned to be developed into a                        
    3/4-storey commercial building which will                                 
    accommodate 1,767 units and comprise a gross floor                        
    area of approximately 79,914 sq.m. The five-star                          
    hotel is planned to be developed into a six-storey                        
    hotel with a gross floor area of approximately 42,767                     
    sq.m. and 301 rooms erected over one podium floor and                     
    one basement floor, with restaurants, car parking                         
    spaces and other ancillary facilities provided                            
    therein. Construction of Shimao International                             
    Commercial and Exhibition Centre (Phase I) and the                        
    five-star hotel is in progress and is scheduled to                        
    be completed in September 2005 and December 2005                          
    respectively. Subject to the development plan which                       
    is to be determined upon completion of construction                       
    of Shimao International Commercial and Exhibition                         
    Centre (Phase I) and the five-star hotel, the                             
    remaining development on the