09:16 BEIJING YANHUA<00325>-Announcement&Resumption of Trading(3) There were 999,210,000 Beijing Yanhua H Shares (being the number of the total issued shares of Beijing Yanhua less the number of Beijing Yanhua Shares held by Sinopec Corp. and parties acting in concert with Sinopec Corp. (including Morgan Stanley, persons controlling, controlled by or under the same control as Morgan Stanley), Lehman Brothers Asia Limited and parties acting in concert with Lehman Brothers Asia Limited, Bear Stearns Asia Limited and parties acting in concert with Bear Stearns Asia Limited) entitling the holder to attend and vote for or against the special resolution proposed at the Special General Meeting of the Independent Beijing Yanhua Shareholders. As explained in the Circular, Sinopec Corp. and parties acting in concert with Sinopec Corp. (including Morgan Stanley, persons controlling, controlled by or under the same control as Morgan Stanley), Lehman Brothers Asia Limited and parties acting in concert with Lehman Brothers Asia Limited, Bear Stearns Asia Limited and parties acting in concert with Bear Stearns Asia Limited were required to, and did, abstain from voting in respect of the special resolution in relation to the Proposal proposed at the Special General Meeting of the Independent Beijing Yanhua Shareholders. There were no shares entitling the holder to attend and vote only against the special resolution proposed at the Special General Meeting of the Independent Beijing Yanhua Shareholders. More than 75% of the votes attaching to the Beijing Yanhua H Shares held by the Independent Beijing Yanhua Shareholders present in person or by proxy at the Special General Meeting of the Independent Beijing Yanhua Shareholders were cast in favour of the above special resolution. In addition, the number of votes which were cast against the above special resolution at the Special General Meeting of the Independent Beijing Yanhua Shareholders amounted to not more than 10% of all the votes attached to the Beijing Yanhua H Shares held by the Independent Beijing Yanhua Shareholders, in compliance with the Takeovers Code. Hence, the above resolution was duly passed as a special resolution. SUSPENSION AND RESUMPTION OF TRADING OF BEIJING YANHUA H SHARES AND BEIJING YANHUA ADSs At the request of Beijing Yanhua, trading in the Beijing Yanhua H Shares on the Hong Kong Stock Exchange was suspended from 9:30 a.m. on 4 March 2005 pending the issue of this announcement. Trading in the Beijing Yanhua ADSs on New York Stock Exchange Inc. (`New York Stock Exchange') was also suspended from 9:30 a.m. on 4 March 2005 (United States Eastern Standard Time). Application has been made by Beijing Yanhua to the Hong Kong Stock Exchange for the resumption of trading in the Beijing Yanhua H Shares with effect from 9:30 a.m. on 7 March 2005 and application will be made to the New York Stock Exchange for the resumption of trading in the Beijing Yanhua ADSs with effect from 9:30 a.m. on 7 March 2005 (United States Eastern Standard Time). GENERAL According to the information provided by Sinopec Corp., save as in relation to: (i) non-concert party dealings of Morgan Stanley and persons controlling, controlled by or under the same control as Morgan Stanley; and (ii) dealings for the account of non-discretionary clients by the brokerage division of a subsidiary of CICC, none of the parties acting in concert with Sinopec Corp., or parties which are presumed to be acting in concert with Sinopec Corp. under the Takeovers Code had dealt for value in any Beijing Yanhua Shares during the period from the date of the Announcement to the date of this announcement. Save as disclosed below and in the Circular, no professional advisor to Beijing Yanhua as specified in class (2) of the definition of associate in the Takeovers Code, but excluding exempt principal traders, had dealt for value in any Beijing Yanhua Shares either on a proprietary basis or on account of clients for whom they had a discretionary management mandate during the period commencing from the date of the Announcement and ending on the date of this announcement. From the date of the Announcement to the date of this announcement (both dates inclusive), Lehman Brothers Asia Limited or persons controlling, controlled by or under the same control as Lehman Brothers Asia Limited had acquired 1,353,500 Beijing Yanhua H Shares and disposed of 1,461,750 Beijing Yanhua H Shares. From the date of the Announcement to the date of this announcement (both dates inclusive), Bear Stearns & Co. Inc. (an associated company of BSAL) had acquired 20,000 Beijing Yanhua ADSs (equivalent to 1,000,000 Beijing Yanhua H Shares). The above information in respect of dealings in Beijing Yanhua Shares by BSAL or its associated companies and Lehman Brothers Asia Limited or persons controlling, controlled by or under the same