10:07     HUA YI COPPER<00559>&SOLARTECH INT'L<01166>-J.Ann.&Resume-7         

    the parties agree otherwise.                                              
                                                                              
    Application will be made by Hua Yi Copper to the Stock                    
    Exchange granting listing of, and permission to deal                      
    in, the New Placing Shares.                                               
                                                                              
    Termination:    The New Shares Placing is subject to                      
    termination by notice given by either party on or                         
    before 9:30 a.m. on the third Business Day prior to                       
    the date of the SGM.                                                      
                                                                              
    Completion:     Completion shall take place two weeks                     
    after satisfaction of the conditions to the New Shares                    
    Placing (or such later date as may be agreed between                      
    the New Shares Placing Agent and Hua Yi Copper), but                      
    in any event is expected to occur not later than 15                       
    June 2005.                                                                
                                                                              
    Reasons for the New Shares Placing and Use of Proceeds                    
    In view of the current market conditions, the                             
    directors of Hua Yi Copper consider that the New                          
    Shares Placing represents a good opportunity to raise                     
    further working capital for Hua Yi Copper while at                        
    the same time broadening its shareholder and capital                      
    base. The net proceeds from the New Shares Placing,                       
    of approximately HK$72.40 million (assuming the New                       
    Share Placing is undertaken in full), will be used                        
    by the Group as follows: (i) up to HK$30 million to                       
    acquire machinery and other equipment in anticipation                     
    of the completion of construction of its                                  
    manufacturing plant in Kunshan, Jiangxu province, the                     
    PRC, so as to meet customer demand in that area; and                      
    (ii) the remainder as general working capital for the                     
    Group.                                                                    
                                                                              
    EFFECTS ON SHAREHOLDING STRUCTURE                                         
    The existing shareholding structure of Hua Yi Copper                      
    and the shareholding structure of Hua Yi Copper                           
    immediately upon completion of the Top-Up Placing,                        
    Subscription and New Shares Placing (assuming the New                     
    Share Placing is undertaken in full) are set out                          
    below:                                                                    
                                                                              
    Immediately after the                                                     
    Top-Up Placing,                                                           
    Subscription and                                                          
    New Shares Placing                                                        
    Immediately after       (assuming the New                                 
    Immediately after the   the Top-Up Placing      Share                     
    Placing is                                                                
    Existing        Top-Up Placing  and Subscription                          
            undertaken in full)                                               
    Shares          %               Shares          %               Shares    
         %                                                                    
            Shares          %                                                 
                                                                              
    Vendor  397,121,875             74.99%          371,209,875               
            70.10%          397,121,875             71.49%          397,121,  
    875                                                                       
            62.49%                                                            
    Mr. Chau Lai Him        50,000          0.01%           50,000            
            0.01%           50,000          0.01%           50,000          0 
    .01%                                                                      
    Placees of the Top-Up                                                     
      Placing Shares        -               -               25,912,000        
         4.89%                                                                
            25,912,000              4.66%           25,912,000              4 
    .08%                                                                      
    Placees of the                                                            
      New Shares                                                              
      Placing Shares        -               -               -               - 
                 -               -                                            
            80,000,000              12.59%                                    
    Other public                                                              
      shareholders of                                                         
      Hua Yi Copper 132,390,625             25.00%                            
            132,390,625             25.00%          132,390,625               
    23.84%                                                                    
            132,390,625             20.83%