09:54     CHINESE EST H<00127>-Announcement & Resumption of Trading-7         

    The following table summarises the effects on the                         
    shareholding structure of the Company as a result of the                  
    Bonds Issue:                                                              
                                                                              
    Name of                                                                   
    Shareholder                                                               
                                                                              
    No. of Shares                                                             
                                                                              
    Existing (as at the date                                                  
    of this announcement)                                                     
    % of issued                                                               
    share capital of                                                          
    the Company                                                               
                                                                              
    No. of Shares                                                             
                                                                              
    Assuming the Bonds (including                                             
    the Optional Bonds) are fully                                             
    converted into Shares at                                                  
    the initial conversion price                                              
    of HK$7.37 each                                                           
    % of enlarged                                                             
    share capital of                                                          
    the Company                                                               
                                                                              
    Mr. Joseph Lau, Luen-hung and his associates                              
    1,275,143,456   62.81   1,275,143,456   55.40                             
                                                                              
    Mr. Thomas Lau, Luen-hung and his associates                              
    199,207,187     9.81    199,207,187     8.66                              
                                                                              
    Public  555,863,357     27.38   555,863,357     24.15                     
                                                                              
    Bondholders*    0       0.00    271,370,420     11.79                     
                                                                              
    Total   2,030,214,000   100.00  2,301,584,420   100.00                    
                                                                              
    * Assuming both Firm Bonds and Optional Bonds are fully                   
    converted                                                                 
                                                                              
    USE OF PROCEEDS                                                           
                                                                              
    The estimated net proceeds of the Bonds Issue (excluding                  
    the Optional Bonds), after deduction of commission and                    
    administrative expenses (amounting to approximately                       
    HK$31,600,000), are approximately HK$1,468,400,000.  The                  
    proceeds are currently intended to be used by the Company                 
    for working capital purposes.  The Company has been seeking               
    and exploring, and will continue to seek and explore,                     
    investment and business opportunities in Greater China.                   
    In the process of doing so, the Company has from time to                  
    time come across a wide range of potential investment and                 
    business opportunities.  However, the Company currently                   
    does not have any definitive plans to pursue any of those                 
    opportunities.  The proceeds or part of the proceeds may                  
    be used to finance investments should suitable                            
    opportunities arise in the future.                                        
                                                                              
    REASONS FOR AND BENEFITS OF THE BONDS ISSUE                               
                                                                              
    The Bonds Issue will enlarge the capital base of the Company.             
    Taking into account that the Conversion Price represents                  
    a premium to the closing price of the Shares as quoted on                 
    the Stock Exchange on 9 March 2005, the Directors are of                  
    the view that the terms and conditions of the Bonds are fair              
    and reasonable and are in the interest of the Group as a                  
    whole.                                                                    
                                                                              
    ISSUE OF SECURITIES IN THE PREVIOUS 12-MONTH PERIOD                       
                                                                              
    The Company has not issued any securities in the previous                 
    12-month period.                                                          
                                                                              
    At the annual general meeting of the Company held on 18 May               
    2004, a general mandate was given to the Directors to allot,              
    issue and deal with the Shares not exceeding 20% of the                   
    issued share capital of the Company at the date of the                    
    passing of the resolution.  As at the date of this                        
    announcement, no Shares have been allotted and issued by                  
    the Directors pursuant to the general mandate.