09:53     YANION INT'L<00082> - Announcement & Resumption (18)                

    HK$ at the rate of RMB1.06 to HK$1.00 and amounts                         
    quoted in US$ have been converted in HK$ at the rate                      
    of US$1 to HK$7.8. Such exchange rates have been used,                    
    where applicable, for purposes of illustration only                       
    and do not constitute a representation that any                           
    amounts were or may have been exchanged at this or                        
    any other rates or at all.                                                
                                                                              
    At the request of the Company, trading in Shares on                       
    the Stock Exchange was suspended from 2:30 p.m. on                        
    7 February 2005 pending the release of this                               
    announcement. Application has been made by the                            
    Company to the Stock Exchange for resumption of                           
    trading in Shares on the Stock Exchange with effect                       
    from 9:30 a.m. on 8 March 2005.                                           
                                                                              
    Shareholders and potential investors should note that                     
    the Acquisition and the Placing, which are subject                        
    to a number of conditions, may or may not be completed.                   
    Shareholders and potential investors are reminded to                      
    exercise caution when dealing in the Shares.                              
                                                                              
    DEFINITIONS                                                               
    In this announcement, the following expressions have                      
    the following meanings unless the context requires                        
    otherwise:                                                                
                                                                              
    "Acquisition"   the purchase by the Company of the Sale                   
    Shares pursuant to the Sale and Purchase Agreement                        
                                                                              
    "associate(s)"  has the meaning ascribed to it under                      
    the Listing Rules                                                         
                                                                              
    "BaoSteel"      *(Shanghai Baosteel Group                                 
    Corporation) and its subsidiaries and associates, a                       
    state-owned enterprise in the PRC and one of the                          
    leading steel enterprises in the world                                    
                                                                              
    "Board" the board of Directors                                            
                                                                              
    "BVI"   the British Virgin Islands                                        
                                                                              
    "business day"  a day (other than Saturday and                            
    Sunday and any day on which a tropical cyclone warning                    
    No.8 or above is hoisted or remains hoisted between                       
    9:00 a.m. and 12:00 noon and is not lowered at or before                  
    12:00 noon or on which a "black" rainstorm warning                        
    signal is hoisted or remains in effect between 9:00                       
    a.m. and 12:00 noon and is not discontinued at or                         
    before 12:00 noon) on which licensed banks are open                       
    for business in Hong Kong                                                 
                                                                              
    "Capital Increase"      the increase in the registered                    
    capital of the Steel Plant from RMB600,000,000                            
    (approximately HK$566,000,000) to RMB1,530,000,000                        
    (approximately HK$1,443,000,000) approved by the                          
    shareholders of the Steel Plant whereby the                               
    RMB620,000,000 (approximately HK$585,000,000) and                         
    RMB310,000,000 (approximately HK$292,000,000)                             
    constituting the entire RMB930,000,000                                    
    (approximately HK$877,000,000) new registered                             
    capital shall be contributed respectively by Yingkou                      
    Steel JV and the other shareholder(s) of the Steel                        
    Plant                                                                     
                                                                              
    "Capital Injection"     the transfer of approximately                     
    30.8% interests in the Steel Plant by Yingkou Middle                      
    Plate Factory and the injection of such foreign                           
    currency equivalent to RMB632,330,000 (approximately                      
    HK$600,000,000) by Guohua International to Yingkou                        
    Steel JV as fulfillment of their respective                               
    obligations to pay up the registered capital of                           
    Yingkou Steel JV pursuant to