10:23     SMI CORP<00198> - Announcement & Resumption of Trading (8)          

    Set out below are the unaudited financials of Stellar Cinema              
    for the period between the date of its incorporation to                   
    31 December 2003 and for the year ended 31 December 2004:                 
                                                                              
    For the year ended 31 December 2004                                       
                                                                              
    For the period from 14 February 2003 (the date of                         
    incorporation) to 31 December 2003                                        
                                                                              
                                                                              
       RMB'000      RMB'000                                                   
                                                                              
    Turnover   7,084      4,133                                               
    Loss before tax   (1,638   )   (2,520   )                                 
    Net loss for the year/period   (1,638   )   (2,520   )                    
    Net assets   96,736      98,299                                           
                                                                              
    Note:   As it is not a PRC statutory requirement to prepare               
    audited financials of a domestic owned enterprise, no                     
    audited financial information of Stellar Cinema is                        
    available.                                                                
                                                                              
    Following completion of the Stellar Cinema S&P Agreement,                 
    the Company will become the holder of 60% of Stellar Cinema               
    and Stellar Cinema will be treated as an indirectly held                  
    subsidiary of the Company. Hence, the financial results                   
    of Stellar Cinema will be consolidated into the Group.                    
                                                                              
    7.   GENERAL                                                              
    The transaction contemplated under the Stellar Cinema S&P                 
    Agreement constitutes a major transaction for the Company                 
    under Chapter 14 of the Listing Rules. Accordingly, a                     
    circular containing (i) details of the transaction; and                   
    (ii) the notice for convening the special general meeting                 
    of the Company in which the necessary resolution will be                  
    proposed in order to seek Shareholders' approval, will be                 
    dispatched to the Shareholders as soon as possible in                     
    accordance with the requirements of Chapter 14 of the                     
    Listing Rules.                                                            
                                                                              
    8.   SUSPENSION AND RESUMPTION OF TRADING                                 
    At the request of the Company, trading in the Shares was                  
    suspended with effect from 9:30 a.m. on 15 March 2005                     
    pending the issue of this announcement. The Company has                   
    requested for a resumption of trading with effect from 9:30               
    a.m. on 17 March 2005 following the publication of this                   
    announcement.                                                             
                                                                              
    9.   DEFINITIONS                                                          
    "associate(s)"   in relation to a director, chief                         
    executive or substantial shareholder of a company listed                  
    on the Stock Exchange, has the same meaning ascribed thereto              
    in the Listing Rules                                                      
                                                                              
    "Board"   the board of directors of the Company                           
                                                                              
    "business day"   a day on which the Stock Exchange is open                
    for transaction of business                                               
                                                                              
    "Charter"   Charter Capital Investment & Holding Co., Ltd.                
    (*), a company registered in Beijing, the                                 
    PRC with limited liability, of which 80%, 10% and 10% are                 
    held by Mr. Qu Jifa, Ms. Rao Weiping and Ms. Qin Jian,                    
    respectively                                                              
                                                                              
       All of Stellar, Charter, Chongqing Harvest                             
    Communication Co., Ltd. (*) and their                                     
    respective ultimate beneficial owner(s) are independent                   
    of and not connected to the directors, chief executive,                   
    substantial shareholders of the Company or its subsidiaries               
    and their respective associates                                           
                                                                              
       Charter is an independent third party not connected with               
    the directors, chief executives or substantial                            
    shareholders of the Company or any of its subsidiaries or                 
    any of their respective associates                                        
                                                                              
    "Company"    SMI Corporation Limited, a company                           
    incorporated in Bermuda with limited liability whose shares               
    are listed on the Stock Exchange                                          
                                                                              
    "Directors"   the directors of the Company                                
                                                                              
    "Group"   the Company and its subsidiaries                                
                                                                              
    "Hong Kong"   the Hong Kong Special Administrative Region                 
    of the PRC