11:08     TAI FOOK SEC<00665> - Announcement (3)                              

    2003 and the percentages of such fees and commissions bear to             
    the Group's total turnover for the corresponding periods are              
    set out as follows:                                                       
                                    Period from                               
    Financial year          Financial year          1 April 2003 to           
    ended 31 March 2002             ended 31 March 2003             31        
    December                                                                  
    2003                                                                      
                                    (Note)                                    
                                                                              
    Amount of fee and commission    4,135           1,660           1,190     
      (Amounts in HK$'000)                                                    
                                                                              
    % of the Group's total turnover 1.5%            0.6%            0.5%      
                                                                              
    Note:   As referred to in the Company's announcement dated 30             
    December 2003, the financial year end date of the Group was               
    changed from 31 March to 31 December commencing from the                  
    financial year 2003.                                                      
                                                                              
    The gross underlying value of securities of the Listed Connected          
    Clients placed, underwritten or sub-underwritten by the Group             
    for the two financial years ended 31 March 2003 and the period            
    from 1 April 2003 to 31 December 2003 and the percentages of              
    such gross underlying values bear to the Group's audited total            
    assets as at the end of the corresponding periods are set out             
    as follows:                                                               
                                    Period from                               
    Financial year          Financial year          1 April 2003 to           
    ended 31 March 2002             ended 31 March 2003             31        
    December                                                                  
    2003                                                                      
                                                                              
    Gross underlying value of securities    68,040          47,825          0 
      (Amounts in HK$'000)                                                    
                                                                              
    % of the Group's audited total assets   3.3%            2.2%              
            0%                                                                
                                                                              
    Fee and commission income annual cap                                      
                                                                              
    The Directors have noted the recent improvements in the economy           
    and stock market sentiment of Hong Kong, which may give rise              
    to an increase in corporate finance transactions in Hong Kong             
    and may provide more business opportunities to the Group. In              
    light of the above, the Directors consider that the Group is              
    able to provide more financial advisory services to the Connected         
    Clients as compared with the previous financial periods. Having           
    considered the historical amounts of financial advisory services          
    income generated from the Connected Clients and the anticipated           
    increase in corporate finance activities of the Connected                 
    Clients, in particular, the Listed Connected Clients, the                 
    Directors expect that the Group would continue to provide more            
    financial advisory services to the Connected Clients for the              
    three financial years ending 31 December 2007. The Directors,             
    therefore, propose that the annual cap for fees and commissions           
    income received by the Group pursuant to transactions                     
    contemplated under the Master Agreements shall be HK$35 million           
    for each of the three financial years ending 31 December 2007.            
                                                                              
    Such proposed annual cap is based on:                                     
                                                                              
    (i)     the advisory fee, placing, underwriting and sub-underwriting      
    commission income derived from the Connected Clients or the               
    Listed Connected Clients (as the case may be) from 1 January              
    2005 up to and including the date of this announcement;                   
                                                                              
    (ii)    the anticipated advisory fee income and placing,                  
    underwriting and sub-underwriting commission derived