09:53     YANION INT'L<00082> - Announcement & Resumption (17)                

    to the Shareholders' approval under the Listing                           
    Rules.                                                                    
                                                                              
    CONTINUING CONNECTED TRANSACTIONS                                         
    Following the implementation of the Acquisition and                       
    the Capital Increase, the Steel Plant will become a                       
    non-wholly owned subsidiary of the Company. The Steel                     
    Plant has in prior years involved in the following                        
    transactions and upon completion of the Acquisition                       
    and the Capital Increase will continue to (i) purchase                    
    raw materials from the Minmetals Group and Yingkou                        
    Middle Plate Factory, (ii) sell products to the                           
    Minmetals Group, (iii) receive trade financing from                       
    the Minmetals Group, (iv) receive shareholders' loan                      
    from Yingkou Middle Plate Factory, and (v) lease                          
    certain land/property for its operation from Yingkou                      
    Middle Plate Factory. Since Yingkou Middle Plate                          
    Factory will be a substantial shareholders of Yingkou                     
    Steel JV and the Minmetals Group will be substantial                      
    shareholders of the Steel Plant upon completion of                        
    the Acquisition and the Capital Increase, such                            
    transactions would constitute Continuing Connected                        
    Transactions and will be subject to the approval of                       
    the Independent Shareholders at the SGM by way of a                       
    poll. As such, the Company intends to enter into the                      
    agreements governing the Continuing Connected                             
    Transactions shortly before the despatch of the                           
    circular relating to the Acquisition and a separate                       
    announcement containing further details of the                            
    Continuing Connected Transactions will be made as                         
    soon as practicable and before the despatch of the                        
    circular in relation to the Acquisition and the                           
    Placing.                                                                  
                                                                              
    GENERAL                                                                   
    A circular containing, among other things, further                        
    information in relation to the Acquisition, the                           
    Placing, the Continuing Connected Transactions, the                       
    pro forma financial information for Guohua                                
    International group (including the accountants'                           
    reports on Guohua International, Yingkou Steel JV and                     
    the Steel Plant (if any)), the pro forma financial                        
    information of the enlarged Group and a notice of SGM                     
    will be despatched to the Shareholders as soon as                         
    practicable.                                                              
                                                                              
    Under Rule 14.38 of the Listing Rules, the Company                        
    is required to despatch a circular within 21 days                         
    after the publication of this announcement. Since it                      
    is expected that more time is required for preparation                    
    of and audit for the audited accounts for Guohua                          
    International, Yingkou Steel JV and the Steel Plant                       
    and other information to be included in the circular,                     
    the Directors estimate that there would be a delay                        
    in despatch of such circular. An application will be                      
    made to the Stock Exchange for a waiver in relation                       
    to the delay in despatch of the circular.                                 
                                                                              
    The Board noted the increase in the trading price of                      
    the Shares on 7 February 2005. The Board confirms that                    
    save for the negotiations relating to the Acquisition                     
    and the proposed Placing, there are no other                              
    negotiations or agreements relating to intended                           
    acquisitions or realisations which are discloseable                       
    under Rule 13.23 of the Listing Rules. Save for the                       
    above negotiations, the Board is not aware of any                         
    reasons for such increase nor any other matter                            
    discloseable under the general obligation imposed by                      
    Rule 13.09 of the Listing Rules, which is or may be                       
    of a price-sensitive nature.                                              
                                                                              
    In this announcement, for purpose of illustration                         
    only, amounts quoted in RMB have been converted into