09:01     NAN FENG GROUP<00979>-Announcement&Resumption of Trading(5)         

    HK$ 20.9 million                                                          
                                                                              
    Not applicable                                                            
                                                                              
    About HK$12 million for payment to the creditors of the Group             
    and the remaining balance of approximately HK$8.9 million                 
    for the general working capital of the Group                              
                                                                              
    Used as intended use                                                      
                                                                              
    SUSPENSION AND RESUMPTION OF TRADING                                      
    At the request of the Company, trading in the Shares on the               
    Stock Exchange was suspended with effect from 9:30 a.m. on                
    Thursday, 24 March 2005 pending the release of this                       
    announcement. Application has been made by the Company for the            
    resumption of trading in the Shares on the Stock Exchange with            
    effect from 9:30 a.m. on Tuesday, 29 March 2005.                          
                                                                              
    TERMS AND DEFINITION                                                      
    "Board"   The board of directors of the Company                           
                                                                              
    "Companies Act"   Companies Act 1981 of Bermuda                           
                                                                              
    "Companies Ordinance"   Companies Ordinance (Chapter 32 of the            
    Laws of Hong Kong)                                                        
                                                                              
    "Company"    China Nan Feng Group Limited, a limited liability            
    company incorporated in Bermuda and the shares of which are               
    listed on the main board of the Stock Exchange                            
                                                                              
    "Director(s)"   director(s) of the board of the Company                   
                                                                              
    "Executive"   The Executive Director of the Corporate Finance             
    Division of the SFC or any of his delegates                               
                                                                              
    "Group"   the Company and its subsidiaries                                
                                                                              
    "Hong Kong"   Hong Kong Special Administrative Region of the              
    People's Republic of China                                                
                                                                              
    "Last Trading Date"   23 March 2005, being the last trading               
    day for the Shares before this announcement                               
                                                                              
    "Listing Rules"    the Rules Governing the Listing of                     
    Securities on the Stock Exchange                                          
                                                                              
    "Placing"   the placing of 98,900,000 existing Shares                     
    beneficially owned by the Vendor pursuant to the terms of the             
    Placing Agreement                                                         
                                                                              
    "Placing Agent"   Kingston Securities Limited, a licensed                 
    corporation to carry on business in type 1 regulated activity             
    (dealing in securities) under the Securities and Futures                  
    Ordinance (Chapter 571 of the Laws of Hong Kong)                          
                                                                              
    "Placing Agreement"    the placing agreement between the                  
    Vendor and the Placing Agent dated 23 March 2005 in relation              
    to the Placing                                                            
                                                                              
    "Placing Price"   HK$0.08 per Shares                                      
                                                                              
    "Placing Shares"    An aggregate of 98,900,000 existing Shares            
    beneficially owned by the Vendor and to be placed pursuant to             
    the Placing Agreement                                                     
                                                                              
    "SFC"   The Securities and Futures Commission                             
                                                                              
    "Shareholder(s)"   holder(s) of the Share(s)                              
                                                                              
    "Share(s)"    ordinary share(s) of HK$0.01 in the share                   
    capital of the Company                                                    
                                                                              
    "Stock Exchange"    The Stock Exchange of Hong Kong Limited               
                                                                              
    "Takeovers Code"   The Hong Kong Code on Takeovers and Mergers            
                                                                              
    "Top-Up Subscription Price"   HK$0.08 per Shares                          
                                                                              
    "Top-Up Subscription Shares"    a total of 98,900,000 new                 
    Shares to be subscribed for by the Vendor pursuant to the Top-            
    Up Subscription Agreement                                                 
                                                                              
    "Top-Up Subscription"   the subscription of 98,900,000 new                
    Shares pursuant to the terms of Top-Up Subscription Agreement