09:44     GUO XIN GROUP<01215> - Announcement (5)                             

    balance of the relevant Consideration on the respective due dates,        
    the relevant Vendor shall be entitled to a default interest of            
    3% per day calculated on the relevant Deposit or the balance              
    of the relevant Consideration unpaid by the Purchaser for the             
    period from the respective due date until payment.  If the                
    relevant Deposit or the balance of the relevant Consideration             
    is unpaid for more than 60 days, the relevant Vendor shall be             
    entitled to terminate the relevant S&P Agreement.  Upon                   
    termination of the relevant S&P Agreement, the relevant Vendor            
    shall return the relevant Deposit to the Purchaser forthwith              
    but the Purchaser shall pay the relevant Vendor a liquidated              
    damages in the sum equivalent to 20% of the relevant Deposit              
    or the balance of the relevant Consideration unpaid by the                
    Purchaser.  If such liquidated damages is not sufficient to               
    settle the actual economic loss of the relevant Vendor, the               
    Purchaser shall be liable to pay a further amount to indemnify            
    the relevant Vendor against his/her actual economic loss.                 
                                                                              
                                                                              
    PROPOSED ACQUISITIONS                                                     
                                                                              
    The Company's target is to acquire all the units on the Basement          
    Level 1, the Ground Floor and the First Floor.  Pursuant to the           
    Acquisitions, the Company acquires all the units on the Basement          
    Level 1 and some of the units on the Ground Floor.  The remaining         
    units on the Ground Floor and the First Floor of a total gross            
    floor area of approximately 3,064.81 square meters are not                
    acquired by the Company.  The Company proposes to continue to             
    acquire all such remaining units on the Ground Floor and the              
    First Floor on same calculation basis for the consideration and           
    same principal terms of the S&P Agreements.                               
                                                                              
    Despite the Company's willingness in the Proposed Acquisitions,           
    there may be external factors and change of market conditions             
    which make the Proposed Acquisitions may not proceed.  An                 
    announcement and circular in compliance with the Listing Rules            
    will be made and shareholders' approval requirements under the            
    Listing Rules will be complied with as and when appropriate if            
    any agreement of the Proposed Acquisitions is signed.                     
                                                                              
                                                                              
    REASONS FOR THE ACQUISITIONS                                              
                                                                              
    The Company is an investment holding company, the subsidiaries            
    of which are principally engaged in trade related operations,             
    travel related operations and property investments.                       
                                                                              
    It has been the Company investment strategy to acquire high               
    quality properties at prime locations, such as the Dong Cheng             
    District, Beijing.  The Board considers the Acquisitions will             
    enable the Company to appreciate capital gain from the blooming           
    property market in Beijing.  The Company has no intention to sell         
    the Properties upon Completion of the S&P Agreements. The                 
    Properties will be retained as long term investment of the                
    Company.  The Board considers that acquisition of the Properties          
    is to better utilize the resources of the Group to give a                 
    reasonable return.  In addition, as a result of the Acquisitions,         
    there is no material effect on the assets and liabilities of              
    the Company.                                                              
                                                                              
    The Board believes that the Acquisitions are fair and reasonable          
    and in the best interests of the Company and the Shareholders             
    as a whole.                                                               
                                                                              
                                                                              
    GENERAL                                                                   
                                                                              
    The Acquisitions constitute a major transaction for the Company           
    under the Listing Rules.  The Acquisitions will