10:14     KAMBOAT<00318> - Announcement & Resumption (9)                      

    of the Company will be changed to reflect the change                      
    in control of the Company and the anticipated future                      
    development of the Company. The change of name is                         
    subject to approval by the Shareholders at a special                      
    general meeting. A new name for the Company has not                       
    been decided yet, and further announcement will be                        
    made as to the name change when appropriate.                              
                                                                              
    7.      THE CAPITAL REORGANISATION                                        
    The Directors propose that the nominal value of all                       
    of the issued and unissued Shares will be reduced from                    
    HK$0.25 to HK$0.001 each. On the basis of 100,065,900                     
    Shares presently in issue, a credit of HK$24,916,409                      
    will arise as a result of the Capital Reduction. The                      
    Subscription Shares can only be issued at not less                        
    than their nominal value, therefore a reduction in                        
    the nominal value of the Shares will be a condition                       
    to the Subscription and Completion. As at 31 October                      
    2004 the unaudited balance standing to the credit of                      
    the Company's share premium account amounted to                           
    approximately HK$81,093,000. Such balance, when                           
    combined with the aggregate credits to be transferred                     
    to the share premium account as a result of the                           
    reduction in nominal value of the Shares as described                     
    above, is expected to amount to approximately                             
    HK$106,009,409. The Directors intend to utilise a                         
    portion of such sum to eliminate the accumulated                          
    losses of the Company, which totalled approximately                       
    $14,211,000 on an unaudited basis as at 31 October                        
    2004.                                                                     
                                                                              
    The Directors also propose that each Share in the                         
    authorised but unissued capital of the Company upon                       
    completion of the Capital Reduction would be                              
    subdivided into 250 New Shares, and that the                              
    authorised but unissued capital of the Company would                      
    be further increased by 24,916,409,100 New Shares,                        
    so that the aggregate authorised share capital of the                     
    Company of HK$200,000,000 remains unchanged.                              
                                                                              
    The Capital Reorganisation will have no effect upon                       
    the consolidated net assets, the underlying assets                        
    or the business of the Company. The Capital                               
    Reorganisation is subject to approval by the                              
    Shareholders at the Special General Meeting.                              
                                                                              
    8.      TAKEOVERS CODE IMPLICATIONS                                       
    During the six-month period immediately preceding the                     
    date of this Announcement, there were no dealings in                      
    the Shares by the Subscribers and parties acting in                       
    concert with any of them. At present, none of the                         
    Subscribers and parties acting in concert with any                        
    of them holds any Shares.                                                 
                                                                              
    Upon issuance of the Subscription Shares, Vongroup                        
    Holdings will be interested in approximately 93.27%                       
    of the enlarged issued share capital of the Company.                      
    Under the Takeovers Code, Vongroup Holdings would be                      
    obliged to make an unconditional general offer to                         
    acquire all the Shares other than those already owned                     
    by it, by Capital Beijing, and by parties acting in                       
    concert with either of them.                                              
                                                                              
    An application will be made by Vongroup Holdings to                       
    the Executive for a Whitewash Waiver, which, if                           
    granted, would normally be subject to the approval                        
    of the Independent Shareholders on a vote taken by                        
    way of a poll. The Executive may or may not grant the                     
    Whitewash Waiver. Completion is conditional upon,                         
    inter alia, the granting of the Whitewash Waiver by                       
    the Executive. Under the Subscription Agreement, the                      
    Whitewash Waiver condition can be waived by Vongroup                      
    Holdings. If the Whitewash Waiver is not obtained,                        
    Vongroup Holdings may