09:58     COMPASS PACIFIC<01188>-Announcement&Resumption of Trading-8         

    (Guangzhou Shen Ao Automobile Sales and Services Co., Ltd.*) (PRC) (note  
    3)                                                                        
    (Guangdong Jiama Automobile Sales and Services Co., Ltd.*) (PRC) (note    
    3)                                                                        
    (Shanghai Yitong Automobile Services Co., Ltd*) (PRC) (note 1)            
    (Ningbo Huadu Real Estate Co., Ltd*) (PRC) (note 5)                       
    75%                                                                       
    55%                                                                       
    25%                                                                       
    (Guangzhou Shenfe Tongli Automobile Sales and Service Co., Ltd*) (PRC)    
    (note 3)                                                                  
    (Jinhua Huadu Property Co., Ltd.*)  (PRC) (note 5)                        
    * English transliteration only                                            
                                                                              
    Notes:                                                                    
                                                                              
    The notes denote the principal operating activities of the member of the  
    APG Group:                                                                
                                                                              
    1:        sale of automobiles and parts                                   
                                                                              
    2:        international trade                                             
                                                                              
    3:        sale of automobiles (excluding passenger cars) and parts        
                                                                              
    4:        sale of automobiles and sales of Volkswagen auto parts          
                                                                              
    5:        property development                                            
                                                                              
    Ningbo Phoenix was incorporated in the PRC in September 2002. The         
    registered capital of Ningbo Phoenix was RMB85,000,000 and has been       
    increased to RMB135,357,883 in December 2003. It established its first    
    subsidiaries in October 2003 in Shanghai and followed by the              
    establishment of a further 7 subsidiaries and acquisition of interest in  
    6 companies in other major cities in the PRC such as Guangzhou and        
    Ningbo.                                                                   
                                                                              
    Businesses of the APG Group                                               
                                                                              
    The principal operating activities of the subsidiaries of Ningbo Phoenix  
    are the dealership of motor vehicles and spare parts, operating auto      
    malls in Guangzhou and property development in the PRC. Ningbo Phoenix    
    is the intermediate holding company of the APG Group.                     
                                                                              
    The APG Group currently has a total of 14 distribution outlets for        
    automobiles located in Shanghai, Ningbo and Guangzhou and 9 repairs       
    centers. For the year ended 31 December 2004, the APG Group distributed   
    15 brands of passenger cars (on a non-exclusive basis), including MG      
    Rover, GM Buick, Volkswagen, Ford and Audi and sold a total of 9,800      
    passenger cars.                                                           
                                                                              
    The APG Group also operates 6 auto malls in Guangzhou through(English     
    transliteration: Guangzhou Shenfei Automotive Sales and                   
    Services Co. Ltd), a 63.3% subsidiary. The malls have a total area of     
    22,914 square metres.                                                     
                                                                              
    The APG Group also undertakes property development in Ningbo through (    
    English transliteration: Ningbo Huadu Real Estate Co., Ltd), a 50%        
    subsidiary. The development project comprises of a residential project    
    in Ningbo, the PRC with a site area of approximately 10,300 square        
    meters. Construction commenced in May 2004. It is expected that the       
    development will be completed by October 2005 and out the total           
    estimated investment cost for the project of RMB38 million (equivalent    
    to HK$35.85 million), approximately RMB12.5 million (equivalent to        
    HK$11.8 million) has been paid up.                                        
                                                                              
    The Group did not commit any financial obligations in relation to the     
    businesses of APG Group as a result of the Acquisitions.                  
                                                                              
    Financial information of APG Group                                        
                                                                              
    The audited consolidated financial statements of APG are under            
    preparation and is expected to be finalized in April 2005. The relevant   
    audited figures will be included in the circular containing further       
    details of the Acquisitions to be despatched to Shareholders for          
    consideration. For the purposes of the Acquisitions, the Group relied on