09:45 CHINA VELOCITY<00149> - Announcement (3) recorded profit before and after tax of HK$970,000 for the year ended 31 December 2003, based on its consolidated management accounts for the same year. The loss of More Cash and its subsidiaries before and after tax as recorded in its consolidated management accounts for the year ended 31 December 2004 was HK$195,000,967. The loss arose as a result of provisions made to reflect the decrease in value of the Property and hence More Cash's investment value in Jiang Nan Property. More Cash and its subsidiaries recorded turnover of approximately HK$9,185,000 and HK$8,942,096 respectively for the years ended 31 December 2003 and 2004, based on its consolidated management accounts for the two years. The total expenses of More Cash and its subsidiaries as recorded in its consolidated management accounts for the year ended 31 December 2004 was approximately HK$3.8 million. More Cash has not prepared any audited accounts since it is not a requirement to do so under the laws of BVI where it is incorporated. Information on the Property The Property is beneficially owned by Jiang Nan Property which is owned as to 75% by Eventic Limited, a wholly owned subsidiary of More Cash and whose sole asset comprises interest in Jiang Nan Property. It comprises a development site with an area of 10,603 square metres, which is designated for a commercial or office development called "Paul Y. Plaza". Upon completion, the development will be a 47-storey office building surrounding a 5-level commercial podium with 3 basements underneath, the total gross floor area of which will be 114,028.69 square metres. As at the date of this announcement, the 5-level commercial podium with gross floor area of approximately 19,878 square metres and 3 basements with total gross floor area of approximately 19,807 square metres have been completed and are being used for retail and car parking purposes respectively, while the construction work of the superstructure of the office building is up to level 32. The construction work had been on hold prior to the takeover of the Company in December 2003. No timetable has been fixed to recommence construction as the Group wants to ensure that it has sufficient working capital before making such commitment, although no estimate of the required capital has been made by the Group at this time. It is intended that should construction recommence, the Group will inject capital in proportion to its shareholding. The 3 basements have been leased to a single tenant, an Independent Third Party, at a currently monthly rent of RMB753,550. Reasons for and benefits of the Disposal The Directors wish to take the opportunity of having located a willing buyer to realise the Company's property investment for cash, given that buildings of the size as Paul Y. Plaza in the PRC are not always easy to dispose of, and that the Company has no immediate intention to continue the remaining construction of the building. The Disposal represents a gain of approximately HK$207 million for the Group, based on the negative net tangible asset value of More Cash of HK$417.5 million as at 31 December 2004 as recorded in the consolidated management accounts of More Cash. The gain will be recognised in the consolidated accounts of the Company for the year ending 31 December 2005. General The net proceeds from the Disposal is proposed to be used as general working capital of the Company. The Disposal constitutes a discloseable transaction of the Company under the Listing Rules. A circular of the Company in relation to the Agreement and the Disposal will be dispatched to shareholders of the Company as soon as reasonably practicable. Definitions: In this announcement, the following terms have the following meanings:- "Agreement" The agreement dated 25 February 2005 in relation to the sale and purchase of the Sale Shares entered into between the Vendor and the Purchaser