10:44     CHEUNG TAI HONG<00199> - Announcement & Resumption (14)             

    Subscription Convertible Notes and Placing                                
    Convertible Notes, on which vote will be taken by poll.                   
    An Independent Board Committee comprising Mr. Wong                        
    Chi Keung, Alvin and Mr. Zhang Shichen will be                            
    established to consider the Subscription and the                          
    Placing and to advise the independent Shareholders                        
    regarding the Subscription and the Placing. An                            
    independent financial adviser will be appointed to                        
    advise the Independent Board Committee and the                            
    independent Shareholders regarding the Subscription                       
    and the Placing.                                                          
                                                                              
    The following sets out the capital raising activity                       
    of the Company for the 12 months immediately before                       
    the date of this announcement:                                            
                                                                              
    Date    Event   Price   Net proceeds    Intended use                      
            Actual use                                                        
            (HK$)   (HK$ 'm)        of net proceeds of net proceeds           
                                                                              
    6 May 2004      Issue of        0.45    15      The entire proceeds to    
            The entire proceeds were                                          
      Pacific Wins                  be used as part of the                    
    consideration   used as part of the                                       
      Convertible                   for the acquisition of 50%                
    interest        consideration for the acquisition                         
      Notes                  in Pacific Wins Development Ltd.,                
            of 50% interest in Pacific                                        
                            the principal business of which Wins              
    Development Ltd.                                                          
                            is the production, sales and                      
                            distribution of western                           
                            pharmaceutical products                           
                                                                              
    13 January 2005 Issue of        0.81    19      Additional                
    general working Additional general working                                
      25,000,000                    capital of the Company  capital           
    of the Company                                                            
      new Shares                                                              
                                                                              
    23 February 2005        Issue of        0.40    155     HK$35 million     
    of the net proceeds     Approximately HK$2 million                        
      150,000,000                   would be used for the repayment           
            of the net proceeds were                                          
      new Shares                    of certain short-term borrowings,         
            used as general working                                           
                            approximately HK$90 million     capital of the    
    Group while                                                               
    Issue of 2005   0.421           would be reserved for                     
    expansion       the remaining approximately                               
      February                      of the Group's investment                 
            HK$153 million is deposited                                       
      Convertible                   properties portfolio when       at        
    the bank, no repayment                                                    
      Notes                 opportunities arise and the     of                
    short-term borrowings                                                     
                            remaining balance of approximately      have      
    been made yet as                                                          
                            HK$30 million would be used     such              
    borrowings have not been                                                  
                            for the additional general working      due as    
    at the date of                                                            
                            capital of the Company  this announcement         
                                                                              
    Notes:                                                                    
                                                                              
    1.      represents the conversion price before any                        
    adjustments which may be made in relation to the                          
    Subscription and the Placing                                              
                                                                              
    2.      all the Pacific Wins Convertible Notes have been                  
    fully converted as at the date of this announcement                       
                                                                              
    A circular containing, among other things, (i)