09:02     CHI CHEUNG<00112> - Results Announcement (3)                        

    3.      The Chenghai Bureau, upon the application from SPV for the        
    termination of the Contract, refunds the Amount Paid without interest     
    after successfully selling the Land to third parties by the Chenghai      
    Bureau.                                                                   
                                                                              
    Based on the opinion from a legal firm in the PRC, which has taken into   
    consideration the recent PRC policy for the granting of land issued by the
    Ministry of Land Resources, the Group is in doubt as to whether the       
    Chenghai Bureau can perform any of the alternatives (2) and (3).  Further 
    if SPV accepts any alternatives as suggested, then SPV will be deemed to  
    have waived its rights in the Amount Claimed.                             
                                                                              
    The Group, after seeking advice from the law firm, prepares not to accept 
    any of the above alternatives as suggested by the Chenghai Bureau and has 
    instructed the law firm to initiate legal action against the Chenghai     
    Bureau for its entitlements under the Contract including but not limited  
    to the Amount Claimed.                                                    
                                                                              
    Having considered the uncertainty in the recoverability of the Amount     
    Claimed and any other entitlements under the Contract, the Group decided  
    to make a full provision for an impairment loss of HK$183,381,000 in the  
    financial statements for the year ended 31st December, 2004.              
                                                                              
    5.       Provision  for a litigation claim                                
                                                                              
                                                                              
                                                                              
                                          Year ended 31 December,             
                                            2004            2003              
                                            HK$'000         HK$'000           
    Litigation claim                        8,427           -                 
                                            =======         ========          
                                                                              
    A creditor of the Company, C.A. Pacific Finance Limited (in liquidation)  
    (the "C.A. Pacific"), has served a writ and claimed against the Company   
    for an amount of approximately HK$8,427,000.  The claim relates to a      
    margin loan granted to the Company by C.A. Pacific for the dealing of     
    listed securities of Capital Asia Ltd (Stock code #283) (the "Capital     
    Asia") (now called Matsunichi Communication Holdings Limited) comprises of
    the aggregate principal sum as at 19th January, 1998 and accrued interest 
    thereon up to 15th October, 2004 of approximately HK$4,905,000 and HK$3,  
    522,000 respectively.                                                     
                                                                              
    The Company has filed Defence and Counterclaim on 9th December 2004 to    
    deny its liability to pay the said sums while C.A. Pacific has filed their
    Reply and Defence to Counterclaim on 6th January 2005.                    
                                                                              
    As a result of the foregoing, the Group made a provision for approximately
    HK$8,427,000 for the above litigation claim.                              
                                                                              
                                                                              
    6.   Loss per share                                                       
                                                                              
    The calculation of the basic loss per share is based on the loss          
    attributable to shareholders of approximately HK$167,678,000 (HK$204,000) 
    and on 282,305,987 (2003: weighted average number of 93,010,746) ordinary 
    shares in issue during the year.                                          
                                                                              
    For more details, please refer to the press announcement today.