09:24     KIN YAT HOLD<00638> - Announcement (2)                              

     etc). The Directors confirmed that no valuation report has been made by  
     the parties specially for the Disposal.                                  
                                                                              
    INFORMATION OF THE PURCHASER                                              
                                                                              
    To the best of the Directors' knowledge, information and belief having    
    made all reasonable enquiry, the Purchaser is a company incorporated in   
    Hong Kong and whose principal business activity is property holding, and  
     to the best of the Directors' knowledge, information and belief having   
    made all reasonable enquiry, the Purchaser and its ultimate beneficial    
    shareholders are independent of the Company and its connected persons     
    (as defined in the Listing Rules).                                        
                                                                              
    REASONS FOR THE DISPOSAL                                                  
                                                                              
    The Group purchased the Property on 6 April, 2000 at a consideration of   
    HK$22,900,000. The Property is currently used by the Group as office and  
     showroom. As a result of the Disposal, the office and the showroom will  
     be re-allocated back to the Company's head office in Hong Kong at 7th    
    Floor, Galaxy Factory Building, 25-27 Luk Hop Street, San Po Kong,        
    Kowloon, Hong Kong. Having regard to the recent improvement in the Hong   
    Kong economy and the property market and the insignificant effect of the  
     Disposal on the Group's operation, the Directors consider the terms of   
    the Disposal are fair and reasonable and the Disposal is made in the      
    best interest of the shareholders of the Company as a whole, in           
    particular, from the aspect of the purchase price, which represents       
    approximately 71% over the book value of the Property as at 31 March,     
    2004.                                                                     
                                                                              
    USE OF PROCEEDS                                                           
                                                                              
    The total amount of net proceeds, after deducting all relevant fees and   
    expenses, from the Disposal is HK$35,980,000, all of which will be used   
    as the Group's general working capital. The Directors confirmed that no   
    specific projects in which the net proceeds of the Disposal are to be     
    invested have been identified by the Group as at the date of this         
    announcement.                                                             
                                                                              
    GENERAL                                                                   
                                                                              
    The Group is principally involved in the design, manufacture and sale of  
     toys, motors and electrical household appliances.                        
                                                                              
    The Disposal constitutes a discloseable transaction of the Company under  
     Chapter 14 of the Listing Rules and is subject to the announcement       
    requirement under Chapter 14 of the Listing Rules.                        
                                                                              
    A circular containing details of the Disposal will be despatched to the   
    shareholders of the Company as soon as practicable.                       
                                                                              
    DEFINITIONS                                                               
                                                                              
    In this announcement, the following expressions shall have the following  
     meanings unless the context requires otherwise:                          
                                                                              
    "Board"   the board of Directors                                          
                                                                              
    "Company"   Kin Yat Holdings Limited, an exempted company incorporated    
    in Bermuda and whose securities are listed on the Stock Exchange          
                                                                              
    "Disposal"   the disposal of the Property by the Group pursuant to the    
    Provisional Agreement                                                     
                                                                              
    "Directors"   the directors of the Company from time to time              
                                                                              
    "Group"   the Company and its subsidiaries                                
                                                                              
    "Hong Kong"   the Hong Kong Special Administrative Region of the          
    People's Republic of China                                                
                                                                              
    "Kin Yat (HK)"   Kin Yat (HK) Holdings Limited, a company incorporated    
    in Hong Kong and is an indirect wholly-owned subsidiary of the Company    
                                                                              
    "Listing Rules"   the Rules Governing the Listing of Securities on the    
    Stock Exchange                                                            
                                                                              
    "Property"   the whole of Units 16 and 17 on the 16th Floor, Seapower     
    Tower, Concordia Plaza, No.1 Science Museum Road, Tsimshatsui East,       
    Kowloon, Hong Kong, currently used by the Group as office and showroom    
                                                                              
    "Provisional Agreement"   the provisional agreement for sale and          
    purchase of the Property dated 22 February, 2005 and entered into         
    between Kin Yat (HK) and the Purchaser                                    
                                                                              
    "Purchaser"   a company incorporated in Hong Kong and to the best of the