09:31     NEW CENTURY GP<00234> - Announcement (2)                            

    Existing Sub-charter Agreements                                           
    On 17th October, 2002, the Group entered into the                         
    Existing Sub-charter Agreements with Evervalue, an                        
    Independent Third Party, pursuant to which, Evervalue                     
    sub-chartered the Vessels from the Group at relevant                      
    daily charges (subject to review after the expiration                     
    of the fifth year) for an indefinite period of time                       
    until termination by either party serving on the other                    
    party not less than 60 days' written notice of                            
    termination or on the termination of the Existing                         
    Charter Agreements.                                                       
                                                                              
    Management Agreements                                                     
    On 17th October, 2002, the Group entered into the                         
    Management Agreements with Huang Shipmanagement to                        
    appoint Huang Shipmanagement as the manager of the                        
    Vessels providing operational services including                          
    crewing, technical management, management services,                       
    procurement services and accounting for relevant                          
    daily charges (subject to review after the expiration                     
    of the fifth year). The Management Agreements shall                       
    continue until termination by either party serving                        
    on the other party written notice of termination. In                      
    November 2004, Huang Shipmanagement served a written                      
    notice to the Group to terminate the Management                           
    Agreements with effect from January 2005. Accordingly,                    
    the Group entered into two new management agreements                      
    with an Independent Third Party in December 2004 to                       
    appoint such Independent Third Party to be the new                        
    manager of the Vessels to provide the above                               
    operational services for the Vessels. The new                             
    management agreements have similar terms to the                           
    Management Agreements.                                                    
                                                                              
    Existing Waiver                                                           
    On 22nd November, 2002, the Company was granted a                         
    waiver from strict compliance with the then Listing                       
    Rules in respect of the disclosure and approval                           
    requirements relating to the Existing Charter                             
    Agreements and the Management Agreements for a period                     
    of three years ending on 31st March, 2005 provided                        
    that, among other things, the aggregate values of the                     
    charter fee and management charge do not exceed the                       
    amounts in accordance with the terms prescribed in                        
    the Existing Charter Agreements and the Management                        
    Agreements respectively. The Directors confirm that                       
    all the conditions to which the Existing Waiver is                        
    subject have been complied with by the Company.                           
                                                                              
    THE NEW CHARTER AGREEMENTS                                                
    Pursuant to the New Charter Agreements which were                         
    entered on 8th March, 2005, the Subsidiary will                           
    charter the Vessels from Queenston and Jackston                           
    commencing on 1st April, 2005 until 24th November,                        
    2007 (the end of the fifth year from the commencement                     
    date i.e. 25th November, 2002 under the Existing                          
    Charter Agreements) provided that either party may                        
    terminate the New Charter Agreements by serving on                        
    the other party not less than 60 days' written notice                     
    of termination or the New Charter Agreements shall                        
    also terminate on the termination of the New                              
    Sub-charter Agreements.                                                   
                                                                              
    Queenston is an investment holding company whose                          
    principal asset is the vessel "Leisure World". Its                        
    principal business is chartering the vessel "Leisure                      
    World".                                                                   
                                                                              
    Jackston is an investment holding company whose                           
    principal asset is the vessel "Amusement World". Its                      
    principal business is chartering the vessel                               
    "Amusement World".                                                        
                                                                              
    Save for the duration of the charters which has been                      
    fixed under the New Charter Agreements, the terms of                      
    the New Charter Agreements and the Existing Charter                       
    Agreements are substantially the same. Set out below                      
    are the principal terms of the New Charter Agreements:                    
                                                                              
    Duration of the New Charter Agreements                                    
    Effective from 1st April, 2005 to 24th November, 2007.                    
                                                                              
    Charter fees                                                              
    The Subsidiary will pay a daily charter fee of S$50,000                   
    (approximately HK$230,000) and S$32,500                                   
    (approximately HK$149,500) to Queenston and Jackston,                     
    respectively, which remain the same with those under                      
    the Existing Charter Agreements.