10:43     CHEUNG TAI HONG<00199> - Announcement & Resumption (10)             

    Notes at the Initial Conversion Price; (iii) the                          
    Company's shareholding structure upon completion of                       
    the Placing and full conversion of the Placing                            
    Convertible Notes at the Initial Conversion Price;                        
    (iv) the Company's shareholding structure upon                            
    completion of the Subscription and the Placing and                        
    full conversion of the Subscription Convertible Notes                     
    and Placing Convertible Notes at the Initial                              
    Conversion Price; and (v) the Company's shareholding                      
    structure upon completion of the Subscription and the                     
    Placing and full conversion of the Subscription                           
    Convertible Notes and Placing Convertible Notes at                        
    the Initial Conversion Price and 2005 February                            
    Convertible Notes at HK$0.42 per Share, assuming that                     
    (a) all the Placing Convertible Notes in an aggregate                     
    principal amount of HK$44 million are successfully                        
    placed by the Placing Agent; and (b) there will be                        
    no change to the existing issued share capital of the                     
    Company after the date of this announcement save as                       
    mentioned above:                                                          
                                                                              
                                    Upon completion of                        
                                    the Subscription and                      
                            Upon completion of the  the Placing and full      
                            Subscription and the    conversion of the         
            Upon completion of      Upon completion of the                    
            Placing and full conversion     Subscription                      
    Convertible                                                               
            the Subscription and     Placing and     of the                   
    Subscription    Notes  and Placing Convertible                            
            full conversion of the  full conversion                           
            Convertible Notes       Notes at the Initial                      
    Conversion                                                                
            Subscription Convertible        of the Placing   and              
    Placing Convertible     Price and 2005 February                           
    As at the date of       Notes at the Initial                              
            Convertible Notes at the        Notes at the                      
            Convertible Notes at                                              
    this announcement       Conversion Price        Initial                   
    Conversion Price        Initial Conversion Price        HK$0.42           
    per Share                                                                 
    number of                               number of                         
         number of                                                            
                            number of                               number of 
    shares          %                shares         %               shares    
         %                                                                    
            shares                  %       shares          %                 
                                                                              
    Lunghin Enterprise Inc.                                                   
      (Note 1)      28,558,196              7.9             28,558,196        
            1.1             28,558,196              6.2             28,558,196
                                                                              
            1.1             28,558,196              1.0                       
    Subscribers                                                               
      Four Fund Subscribers                                                   
        (Note 3)    -               -               443,181,818               
    17.5            -                                                         
            -               443,181,818             16.8            443,181,  
    818             15.6                                                      
      Other Fund Subscribers        -               -               365,909,  
    092                                                                       
            14.4            -               -               365,909,092       
         13.9                                                                 
            365,909,092             12.8                                      
      Loyal Concept -               -               1,022,727,272             
    40.4                                                                      
            -               -               1,022,727,272           38.8      
            1,022,727,272           35.9                                      
      Kopola        -               -               340,909,090               
    13.5            -               -                                         
            340,909,090             13.0            340,909,090               
    12.0                                                                      
                                                                              
    Subtotal        -               -               2,172,727,272             
    85.8            -                                                         
            -               2,172,727,272           82.5            2,172,727 
    ,272                                                                      
            76.3                                                              
    Placees -               -               -               -                 
    100,000,000             21.7                                              
            100,000,000             3.8             100,000,000             3 
    .5                                                                        
    Public  332,437,311             92.1            332,437,311               
    13.1                                                                      
            332,437,311             72.1            332,437,311