09:51     COSCO INTL HOLD<00517> - Announcement (1)                           

    The Stock Exchange of Hong Kong Limited takes no responsibility for the   
    contents of this announcement, makes no representation as to its          
    accuracy or completeness and expressly disclaims any liability            
    whatsoever for any loss howsoever arising from or in reliance upon the    
    whole or any part of the contents of this announcement.                   
                                                                              
                                                                              
    COSCO International Holdings Limited                                      
    (Incorporated in Bermuda with limited liability)                          
    (Stock Code: 0517)                                                        
                                                                              
    Connected Transactions                                                    
                                                                              
                                                                              
    Summary                                                                   
                                                                              
    On 31st March 2005, the Purchaser, a 51% non-wholly-owned subsidiary of   
    the Company, entered into the Agreement with the Vendor for the sale and  
    purchase of the Construction Materials with a maximum purchase and        
    credit limits of RMB30,000,000 (approximately HK$28,184,000).             
                                                                              
    As a term of the Agreement, the Company as one of the guarantors          
    provided the Guarantee guaranteeing the Purchaser's due performance of    
    the obligations under the Agreement.                                      
                                                                              
    The Vendor is a Connected Person of the Company and the Agreement         
    constitutes a connected transaction of the Company under Chapter 14A of   
    the Listing Rules. The provision of the Guarantee by the Company to an    
    associate of the substantial shareholder of the Company also constitutes  
    a connected transaction of the Company under Chapter 14A of the Listing   
    Rules.                                                                    
                                                                              
    The Agreement and the Guarantee were on normal commercial terms and the   
    respective amounts under the Agreement and the Guarantee are less than    
    2.5% of each of the appropriate percentage ratios calculated in           
    accordance with the Listing Rules. Accordingly, the Agreement and the     
    Guarantee are only subject to the reporting and announcement              
    requirements set out in Chapter 14A of the Listing Rules and are          
    exempted from the independent shareholders' approval requirements set     
    out in Chapter 14A of the Listing Rules.                                  
                                                                              
    General Information Of The Agreement                                      
                                                                              
    Date:                                                                     
                                                                              
    31st March 2005                                                           
                                                                              
    Parties:                                                                  
                                                                              
    (i)        Purchaser        :        (#)                                  
    (Shenyang COSCO Yihe Property Development Company Limited*), a company    
    incorporated in the PRC with limited liability and a 51%                  
    non-wholly-owned subsidiary of the Company (the remaining 49%             
    shareholding being held as to 29% by (#) (COSCO                           
    Guangzhou Construction Industry Company*), being a company established    
    in the PRC and a wholly-owned subsidiary of COSCO and as to 20% by (#)    
     (Guangzhou Yihe Group Co., Ltd.*), being a company                       
    incorporated in the PRC).                                                 
                                                                              
    (ii)        Vendor        :        (#) (COSCO International               
    Trading Company*), a company incorporated in the PRC with limited         
    liability, an associate of the controlling shareholder of the Company     
                                                                              
    Brief description of the transactions contemplated under the Agreement    
                                                                              
    The Purchaser has agreed to purchase the Construction Materials from the  
    Vendor on a non-exclusive basis. Upon receipt of purchase order(s) from   
    the Purchaser, the Vendor shall source the Construction Materials from    
    the relevant supplier(s) as suggested by the Purchaser and sell the       
    Construction Materials to the Purchaser at cost together with a           
    management fee equivalent to 3% of the aggregate cost of the              
    Construction Materials (the "Price for the Construction Materials").      
    Such management fee was determined on the basis of normal market rate     
    charged by companies engaging in similar transactions in the PRC.         
                                                                              
    The Agreement is not continuing in nature. The maximum amount of the      
    Construction Materials to be purchased by the Purchaser under the         
    Agreement is RMB30,000,000 (approximately HK$28,184,000).                 
                                                                              
    The Vendor shall provide a credit period to the Purchaser so that the     
    Purchaser may settle the Price for the Construction Materials within 6    
    months from the date on which the Vendor receives the relevant purchase   
    confirmation from the Purchaser and pays for the relevant Construction    
    Materials. The Vendor will charge interest on the Price for the           
    Construction Materials at the interest rate as quoted by the People's