09:51     YANION INT'L<00082> - Announcement & Resumption (12)                

    Plate Factory. Pursuant to the Capital Injection,                         
    Yingkou Middle Plate Factory will transfer                                
    approximately 30.8% interests in the Steel Plant and                      
    Guohua International will inject such foreign                             
    currency equivalent to RMB632,330,000 (approximately                      
    HK$600,000,000) to Yingkou Steel JV as fulfillment                        
    of their respective obligations to pay up the                             
    registered capital of Yingkou Steel JV pursuant to                        
    the joint venture contract dated 3 December 2004.                         
                                                                              
    After completion of the Capital Injection, the                            
    Acquisition, the Placing and the Capital Increase                         
                                                                              
    The Board, which currently consists of nine members,                      
    is expected to be augmented through the nomination                        
    by the Vendors of up to two new Directors pursuant                        
    to the provisions of the Sale and Purchase Agreement,                     
    and details of which is yet to be determined.                             
                                                                              
    The Company recognises the need to strengthen the                         
    Board with executives having the relevant                                 
    qualifications and experience in the steel industry                       
    and will, at appropriate times, nominate suitable                         
    executives to join the Board and/or management team                       
    to assist in the management of Guohua International,                      
    Yingkou Steel JV and the Steel Plant. So far as the                       
    Company is aware, it is currently contemplated that                       
    at least one of the nominees will be a key management                     
    staff of the Steel Plant.                                                 
                                                                              
    INFORMATION ON THE GROUP                                                  
    The Group's principal activities include the                              
    manufacture, distribution and development of                              
    medicines. As stated in the Company's annual reports                      
    for the previous two years, the Company's business                        
    focus and development are directed to the Greater                         
    China region. The Company has explicitly adopted a                        
    diversification policy of investing into markets or                       
    industries through acquisition of PRC                                     
    projects/businesses with high growth potentials.                          
    Further information on the Group will be included in                      
    the circular to the Shareholders in relation to the                       
    Acquisition and the Placing.                                              
                                                                              
    The following is a summary of the audited results of                      
    the Group for the three years ended 31 December 2003.                     
                                                                              
    Year ended 31 December                                                    
    2001            2002            2003                                      
    HK'000          HK'000          HK'000                                    
                                                                              
    Turnover        175,486         185,187         177,949                   
    Loss before tax (75,822 )       (316,615        )       (62,141 )         
    Tax     (69     )       31              (188    )                         
    Minority interests      (310    )       (6,134  )       9,723             
                                                                              
    Net loss from ordinary activities attributable to                         
    shareholders    (76,201 )       (322,718        )       (52,606 )         
                                                                              
    Total assets    505,553         319,137         215,545                   
    Total liabilities       (72,237 )       (87,890 )       (48,953           
            )                                                                 
    Minority interests      (871    )       (52,237 )       (40,805 )         
                                                                              
    Net assets      432,445         179,010         125,787                   
                                                                              
    The Company does not currently have the intention to                      
    give up its existing pharmaceutical business after                        
    completion of the Acquisition, and hence, the                             
    Directors consider there is no change in the business                     
    focus of the Company. However, the