10:19     SHIMAO CHINA<00649> - Announcement & Resumption (13)                

    Given that the geographical space of Mainland China                       
    is limited to its Mainland boundary, the Group will                       
    be able to explore opportunities in a significantly                       
    larger geographical coverage area than the other                          
    property development interests held by Mr. Hui and                        
    its associates. Whilst a larger geographical coverage                     
    area would not, of itself, give the Group                                 
    opportunities for new projects, the Board believes                        
    that as economies around Asia have recovered,                             
    potential opportunities would arise if the Group                          
    actively pursued such opportunities. In view of the                       
    opportunities afforded to the Group through the                           
    potential geographical coverage area for the Group,                       
    the restrictions on Mr. Hui and his associates within                     
    Mainland China under the proposed delineation, as                         
    well as the proposed injection of the Suifenhe Shimao                     
    Development Project as a springboard to the                               
    international strategy, the Board believes that the                       
    Group would be able to effectively develop its markets                    
    outside of Mainland China (including the Hong Kong                        
    market) to build on its first foray into the markets                      
    outside of Mainland China, namely the Hong Kong market,                   
    with its redevelopment of The Genesis.                                    
                                                                              
    -      The Group's conditional acquisition of the                         
    Suifenhe Shimao Development Project further                               
    underlines Mr. Hui's commitment: As stated in the                         
    Suifenhe Announcement, Mr. Hui has offered the Group                      
    the opportunity to acquire the Suifenhe Shimao                            
    Development Project, a property development project                       
    which is located in a region designated for the                           
    development of cross-border commerce and tourism                          
    between Russia and Mainland China, which is planned                       
    to include a mixture of residential, commercial and                       
    retail space and warehousing and logistics facilities.                    
    The Suifenhe Project Company is wholly-owned by Mr.                       
    Hui.                                                                      
                                                                              
    The Group has been considering and evaluating the                         
    opportunity to acquire the Suifenhe Shimao                                
    Development Project offered by Mr. Hui and commenced                      
    legal and financial due diligence on the Suifenhe                         
    Shimao Development Project in September 2004.                             
    Announcements were made by the Company on 26 October,                     
    2 November and 11 November 2004 to confirm the                            
    existence of discussions with Mr. Hui. As stated in                       
    the Suifenhe Announcement, the Company has entered                        
    into an agreement with the holding company of the                         
    Suifenhe Shimao Development Project, which is                             
    wholly-owned by Mr. Hui, to acquire its entire                            
    interest in the Suifenhe Shimao Development Project.                      
    Please refer to the Suifenhe Announcement for further                     
    details of the Suifenhe Shimao Development Project                        
    as well as the conditions of the acquisition.                             
                                                                              
    Approximately two-thirds of the aggregate site of                         
    phases one and two of the Suifenhe Shimao Development                     
    Project is situated in Russian territory and, as such,                    
    would be different from the locations of the Group's                      
    past projects which have been within the PRC. The                         
    parties to the Undertaking agreed that the Suifenhe                       
    Shimao Development Project does not constitute                            
    property business in Mainland China for the purposes                      
    of the Undertaking. Further, the Suifenhe Shimao                          
    Development Project will involve warehousing,                             
    logistics and leisure and entertainment facilities                        
    in addition to the more traditional property                              
    development components of residential, hotel, office                      
    and retail space. The Group's two main development                        
    projects described above were residential                                 
    developments. The Suifenhe Shimao Development                             
    Project is planned to offer a variety of facilities                       
    and in a region designated