09:34     SHOUGANG GRAND<00730> - Announcement (3)                            

    Based on the audited accounts of South China Leasing                      
    for the year ended 31 December 2003, the company                          
    incurred loss of approximately US$261,000                                 
    (approximately HK$2,036,000) for the year ended 31                        
    December 2003 (2002: profit of approximately                              
    US$337,000 (approximately HK$2,629,000)). The total                       
    assets and total liabilities of South China Leasing                       
    amounted to approximately US$5,373,000                                    
    (approximately HK$41,909,000) (2002: approximately                        
    US$6,303,000 (equivalent to approximately                                 
    HK$49,163,000)), and US$2,608,000 (approximately                          
    HK$20,342,000) (including outstanding shareholders'                       
    loans in the amount of US$2,600,000 (approximately                        
    HK$20,280,000)) (2002: approximately US$3,277,000                         
    (approximately HK$25,561,000)), respectively. The                         
    net tangible liabilities of South China Leasing as                        
    at 31 December 2003 was approximately US$1,853,000                        
    (approximately HK$14,453,000) after adjustment for                        
    the provision for the amount due from certain                             
    receivable under finance leases in the amount of                          
    US$4,618,000 (approximately HK$36,020,000), which                         
    recoverability was considered as doubtful by the                          
    auditors).                                                                
                                                                              
    Since the acquisition of a 40% interest in South China                    
    Leasing by the Company in September 2004, South China                     
    Leasing has applied to the relevant PRC approval                          
    authorities for approval of the change in shareholder.                    
    Such approval has been obtained in January 2005. The                      
    company has also been preparing for the                                   
    re-commencement of business operations by actively                        
    exploring the market for potential financial lease                        
    contracts during the period.                                              
                                                                              
    Reason for the Capital Increase                                           
    South China Leasing currently has no fund to continue                     
    its operations and the Capital Increase is required                       
    to facilitate South China Leasing to re-start and                         
    continue its operations and was determined after                          
    having taken into account the funding requirements                        
    of South China Leasing based on the financial lease                       
    contracts that the company currently has under                            
    preliminary discussions with potential clients and                        
    its target business volume.                                               
                                                                              
    The Group has confidence in the future of the financial                   
    leasing market in the PRC and South China Leasing                         
    intends to expand in order to seize the opportunities                     
    presented in the this market. It is envisaged that                        
    South China Leasing will focus on the leasing of                          
    machinery, equipment, electrical equipment, meters,                       
    motor vehicles and the leasing of immovable properties                    
    in the PRC. The capital contributed by the parties                        
    to South China Leasing will principally be used by                        
    South China Leasing to purchase equipment for the                         
    financial lease contracts that it may secure and as                       
    general working capital.                                                  
                                                                              
    Under the Capital Increase Agreement, the                                 
    responsibilities of the parties in respect of their                       
    contribution to the Capital Increase are as follows:                      
                                                                              
    Jeckman Holdings   :   US$11,400,000                                      
    Valuework   :   US$3,800,000                                              
    Shenzhen Jiayinda   :   US$3,800,000                                      
                                                                              
    Given that each of the shareholders of South China                        
    Leasing will contribute to the Capital Increase in                        
    proportion to their interests in the company, the                         
    Directors consider that the terms of the Capital                          
    Increase Agreement are fair and reasonable and the                        
    Capital Increase is in the interests of the                               
    Shareholders as a whole.                                                  
                                                                              
    General                                                                   
    The Company is an investment holding company and its                      
    subsidiaries are principally engaged in property                          
    investment and management. During the year 2004, the                      
    Group has disposed certain of its properties and the                      
    Directors consider the Group's resources could be                         
    better applied in investments that offer better return,                   
    including investment in the financial leasing sector                      
    in the PRC.