09:57     BESTWAY INT'L<00718> - Announcement (3)                             

    existing revolving loan advanced by Beijing                               
    Agricultural Cooperative to Beijing William Shun. If                      
    the conditions precedent are not fulfilled by 30 June                     
    2005, the Vendor and the Purchaser shall further                          
    negotiate in relation to a feasible manner of transfer                    
    of the 51% equity interests in Beijing William Shun.                      
                                                                              
    In relation to the condition mentioned in (2) above,                      
    a machinery for the manufacturing of PVC floor                            
    coverings which has been used by Beijing William Shun                     
    was purchased by the Group under a hire-purchase                          
    arrangement, under which, an outstanding amount of                        
    approximately HK$1.4 million as at the date of this                       
    announcement remains unpaid by the Group to CIT. As                       
    the machinery is vital to the operation of Beijing                        
    William Shun, the Purchaser requires that the Group                       
    shall fully repay the CIT Loan so that the machinery                      
    will be released from the hire-purchase arrangement                       
    when completion of the Disposal takes place.                              
                                                                              
    In relation to the condition mentioned in (3) above,                      
    since Beijing William Shun has an existing revolving                      
    loan which will expire in April this year, the                            
    Purchaser requires that the loan shall continue to                        
    be extended to Beijing William Shun after completion                      
    of the Disposal.                                                          
                                                                              
    INFORMATION ON THE GROUP AND THE PURCHASER                                
    Beijing William Shun is a sino-foreign equity joint                       
    venture company established in the PRC in 1992                            
    principally engaged in the production and sale of PVC                     
    floor coverings. After the Disposal, the Group shall                      
    have no more interests in the registered capital of                       
    Beijing William Shun and hence it will cease to be                        
    a subsidiary of the Company.                                              
                                                                              
    The latest audited negative net book value of the                         
    Company's interest in Beijing William Shun is                             
    approximately HK$4,240,000 as at 31 March 2004 and                        
    the Board expects that a loss of approximately HK$4.7                     
    million shall be accrued to the accounts of the Group                     
    as a result of the Disposal. The latest audited net                       
    loss before and after taxation and extraordinary                          
    items attributable to Beijing William Shun in the                         
    Group's accounts amounted to approximately                                
    HK$3,874,000 and HK$6,193,000 for the years ended 31                      
    March 2003 and 31 March 2004 respectively.                                
                                                                              
    To the best of the knowledge, information and belief                      
    of the Directors and having made all reasonable                           
    enquiries, the principal business activities of the                       
    group of companies which comprises the Purchaser are                      
    construction and application of e-business and                            
    telecommunication business.                                               
                                                                              
    The Directors (including the independent                                  
    non-executive Directors) are of the view that the                         
    Disposal is on normal commercial terms which are fair                     
    and reasonable and is in the interest of the Company                      
    and its shareholders as a whole.                                          
                                                                              
    As the latest audited value of the total assets of                        
    Beijing William Shun as at 31 March 2004 represents                       
    more than 5% but less than 25% of the latest unaudited                    
    consolidated total assets of the Company as at 30                         
    September 2004, the Disposal constitutes a                                
    discloseable transaction for the Company under the                        
    Listing Rules. A circular containing, among other                         
    things, details of the Share Transfer Agreement and                       
    the Disposal will be sent to the shareholders of the                      
    Company in accordance with the requirements of the                        
    Listing Rules within 21 days