10:14     SHIMAO CHINA<00649> - Announcement & Resumption (2)                 

    with the Listing Rules. Overseas Investment and its                       
    associates (who together hold approximately 74.74%                        
    of the Company's issued share capital) are connected                      
    persons of the Company and will abstain from voting                       
    on the resolutions to approve the Undertaking. The                        
    voting at the SGM will be conducted by way of a poll.                     
                                                                              
    Trading in the Shares was suspended with effect from                      
    9:30 a.m. on 21 February 2005 pending the publication                     
    of this announcement. Application has been made to                        
    the Stock Exchange for resumption of trading in the                       
    Shares with effect from 9:30 a.m. on 24 February 2005.                    
                                                                              
    Shareholders and potential investors of the Company                       
    are advised to exercise extreme caution when dealing                      
    in the securities of the Company.                                         
                                                                              
    Shareholders should also refer to another                                 
    announcement issued by the Company today.                                 
    BACKGROUND                                                                
    The Group's Current Principal Business                                    
    The Group's current principal business is property                        
    development and investment. The Group currently has                       
    the following two property development projects:                          
                                                                              
    *       Mainland China: Shimao Lakeside Garden, Shanghai,                 
    is a 50-50 joint venture with the A Share Company,                        
    is a residential property development in Shanghai.                        
    The project company of the Shimao Lakeside Garden is                      
    a 50% jointly-owned entity with the A Share Company.                      
    (The Group's interest in Shimao Lakeside Garden is                        
    not consolidated into the Group's financial                               
    statements.) Most of the properties of Shimao                             
    Lakeside Garden have been sold and this development                       
    is expected to be completed in mid-2005.                                  
                                                                              
    *       Hong Kong: The Genesis, Hong Kong is a luxury                     
    residential development located at The Peak, Hong                         
    Kong. The Genesis is 100% owned by the Group. The site                    
    was originally acquired by the Group in 2001 for                          
    HK$230 million. The Genesis has recently been                             
    redeveloped and now comprises a main building held                        
    for own-use and two houses for sale.                                      
                                                                              
    The following table sets out the Group's turnover and                     
    profit/(loss) and the contribution from its Mainland                      
    China business segment, for the two years ended 31                        
    December 2003 and the six months ended 30 June 2004:                      
                                                                              
    Turnover from                           Profits (or loss)                 
    Mainland China          As % of Group           from Mainland             
            As % of Group                                                     
    Year or period ended:   business                turnover                  
    China                                                                     
    business                profits (or loss)                                 
    HK$'000                         HK$'000                                   
                                                                              
    31 December 2002        107,490         100.0%          (131,310        ) 
            80.9%                                                             
    31 December 2003        579,041         100.0%          170,829           
            118.4%                                                            
    30 June 2004    296,635         100.0%          108,744                   
            110.9%                                                            
                                                                              
    Note:   Of the Group's two property developments, The                     
    Genesis in Hong Kong was only recently completed. If                      
    the two houses of the Genesis were sold during 2005,                      
    the sales proceeds would be recognised as turnover                        
    during the 2005 financial year. No sales or pre-sale                      
    amounts were recorded in respect of The Genesis during                    
    the years or period in the above table.