09:51     YANION INT'L<00082> - Announcement & Resumption (13)                

    Directors may reassess the situation (including the                       
    business environment and prospects of pharmaceutical                      
    industry) from time to time and will adopt appropriate                    
    business strategies by taking into account the                            
    interests of the Company and Shareholders as a whole.                     
                                                                              
    INFORMATION ON GUOHUA INTERNATIONAL, YINGKOU STEEL                        
    JV AND THE STEEL PLANT                                                    
    Guohua International and Yingkou Steel JV                                 
    Guohua International is a company incorporated in the                     
    BVI with limited liability in July 2001 and is an                         
    investment holding company. In May 2004, the Vendors                      
    acquired the entire issued share capital (as to 70%                       
    by Mr. Chen Nien Chong and 30% by Mr. Tran Dinh) of                       
    Guohua International as the investment vehicle in                         
    contemplation of the Acquisition and the Capital                          
    Injection. Before May 2004, Guohua International was                      
    a shell company.                                                          
                                                                              
    On 3 December 2004, Guohua International and Yingkou                      
    Middle Plate Factory entered into a joint venture                         
    contract pursuant to which Guohua International and                       
    Yingkou Middle Plate Factory have agreed to establish                     
    Yingkou Steel JV with a registered capital of                             
    US$99,500,000 (approximately HK$776,100,000) owned                        
    as to approximately 77.4% and approximately 22.6% by                      
    Guohua International and Yingkou Middle Plate Factory                     
    respectively. Pursuant to the joint venture contract,                     
    Yingkou Middle Plate Factory has undertaken to                            
    transfer its approximately 30.8% interests in the                         
    Steel Plant (which will be diluted to approximately                       
    12.1% interests in the Steel Plant upon completion                        
    of the Capital Increase) and its committed portion                        
    under the Capital Increase to Yingkou Steel JV as                         
    capital contribution (which will represent                                
    approximately 40.5% interests in the Steel Plant upon                     
    completion of the Capital Increase). According to                         
    representation made by the Vendors, the transfer of                       
    interest in the Steel Plant by Yingkou Middle Plate                       
    Factory is required to be approved by more than 50%                       
    of the shareholders of the Steel Plant in accordance                      
    to the articles of association (*) of the Steel                           
    Plant. As represented by the Vendors, the Capital                         
    Increase is required to be approved by more than                          
    two-thirds of the shareholders of the Steel Plant.                        
    The Company has further been given to understand that                     
    shareholders representing not less than two-thirds                        
    of the registered capital of the Steel Plant have                         
    agreed in principle to the Capital Increase and                           
    control by Yingkou Steel JV upon completion of the                        
    Capital Injection. Such confirmation will be included                     
    in the shareholders' agreement to be entered into                         
    which is one of the conditions of the Acquisition.                        
    To the best knowledge of the Directors, the                               
    registration of the transfer of equity interest in                        
    the Steel Plant from Yingkou Middle Plate Factory as                      
    its capital contribution to Yingkou Steel JV is still                     
    in process as at the date of this announcement. Upon                      
    completion of the Capital Injection and the Capital                       
    Increase, Yingkou Steel JV will own approximately                         
    52.6% interests in the Steel Plant as enlarged by the                     
    Capital Increase.                                                         
                                                                              
    Mr. Chen Nien Chong is the independent non-executive                      
    director of Ming Fung Jewellery Group Limited since                       
    August 2002 and is currently involved in structuring                      
    and implementing the Acquisition. Mr. Chen graduated                      
    from the University of Liaoning in the PRC. Mr. Chen                      
    was a senior manager of Bank of China from 1974 to                        
    1998, responsible for corporate accounts with                             
    businesses in Hong Kong and the PRC. He has a number                      
    of years of experience in