09:52     YANION INT'L<00082> - Announcement & Resumption (15)                

    December 2002 and the year ended 31 December 2003,                        
    the Steel Plant sold approximately 256,000 tonnes and                     
    692,000 tonnes respectively of hot rolled medium                          
    steel plate products. To cope with the demand for its                     
    products, the Steel Plant has undergone and will                          
    continue to undergo expansion. The expansion plan of                      
    installation of a production line was commercially                        
    put in service in August 2004, which increased the                        
    annual production capability of the Steel Plant to                        
    approximately 1,000,000 tonnes of steel products. It                      
    is currently intended to install an additional                            
    production line and hence, expand the annual                              
    production capability of the Steel Plant in the second                    
    half of 2005 to approximately 2,000,000 tonnes of                         
    steel products. In order to finance such expansion,                       
    the Steel Plant will implement the Capital Increase.                      
                                                                              
    Competitive advantages of the Steel Plant                                 
    (1)     Experienced management team                                       
    The core management team of the Steel Plant has over                      
    three decades of steel industry experience and they                       
    possess in depth production know-how in the                               
    production of hot rolled steel plates.                                    
                                                                              
    (2)     Strategic location                                                
    The Steel Plant is situated near a strategically                          
    important seaport city, namely Yingkou Port in the                        
    province of Liaoning, which can enjoy deep sea docking                    
    facilities and easy access to long-range railways and                     
    express highways for transportation of materials and                      
    products to and from the Steel Plant in the PRC. As                       
    a result, it can reduce transportation costs and                          
    shorten delivery lead time.                                               
                                                                              
    (3)     Continuing relationship with Minmetals Group                      
    and BaoSteel                                                              
    The Steel Plant has entered into annual contract                          
    (renewable annually) with Minmetals Group (which is                       
    principally engaged in import and export trading and                      
    domestic trading of raw materials such as coal, steel                     
    and iron) for materials sourcing and sale of products                     
    to Minmetals Group since 2002. In addition, the Steel                     
    Plant has also entered into long-term contract for                        
    a term of 5 years (to expire at the end of 2007) with                     
    BaoSteel (a state-owned enterprise in the PRC and one                     
    of the leading steel enterprises in the world) for                        
    materials sourcing and sale of products to BaoSteel.                      
    Through their networks, the Steel Plant's material                        
    supply and products delivery chain can be better                          
    enhanced.                                                                 
                                                                              
    Financial information of the Steel Plant                                  
    Based on the PRC audited accounts, for the period                         
    commenced from 21 June 2002 (the date of establishment)                   
    to 31 December 2002 and the year ended 31 December                        
    2003, the Steel Plant generated an audited turnover                       
    of approximately RMB586,000,000 (approximately                            
    HK$553,000,000) and RMB2,049,000,000 (approximately                       
    HK$1,933,000,000) respectively. For the period                            
    commenced from 21 June 2002 (the date of establishment)                   
    to 31 December 2002, the Steel Plant recorded audited                     
    net profit before and after taxation of approximately                     
    RMB44,840,000 (approximately HK$42,302,000) and                           
    RMB25,417,000 (approximately HK$23,978,000)                               
    respectively. For the year ended 31 December 2003,                        
    the Steel Plant recorded audited net profit before                        
    and after taxation of approximately RMB132,297,000                        
    (approximately HK$124,808,000) and RMB88,024,000                          
    (approximately HK$83,042,000) respectively. Based on                      
    the management accounts of the Steel Plant for the                        
    11 months ended 30 November 2004, the Steel Plant                         
    recorded an unaudited net profit before and after                         
    taxation of RMB211,054,000 (approximately