09:36 CHINA HEALTH<00673> - Announcement & Resumption (5) Group. Upon conversion of the Convertible Bonds, the capital base of the Company will be enlarged and strengthened which will benefit the Group's future growth and developments. It is the present intention of the Directors to use the net proceeds from the issue of the Convertible Bonds for general corporate purposes in developing medical, pharmaceutical and healthcare business. 4. SUSPENSION AND RESUMPTION OF TRADING At the request of the Company, trading in the Shares on the Stock Exchange was suspended with effect from 9:30 a.m. on 26 April 2005 pending the release of this announcement, and application has been made by the Company for the resumption of trading in the Shares on the Stock Exchange with effect from 9:30 a.m. on 3 May 2005. Owing to the price-sensitive nature of the transactions contemplated in this announcement, Shareholders and prospective investors are advised to exercise caution when dealing in the shares of the Company. 5. GENERAL INFORMATION As at the date of this announcement, the Executive Directors are Dr. Li Zhong Yuan, Mr. Lee Jong Dae, Dr. Ni Aimin, Mr. Deng Ku Hon, the Non-executive Directors are Mr. Robin Willi and Mr. Martin Treffer, and the Independent Non-executive Directors are Dr. Ma Yin Ming, Mr. Li Xiao Ru and Mr. Mu Xiangming. The Company has not carried out any fund raising activity through the issue of equity securities or securities which are convertible into equity securities in the past 12 months. The Company is an investment holding company. The principal activities of the Company's subsidiaries comprise (1) investment holding; and (2) medical, pharmaceutical and healthcare business. DEFINITIONS "Agent" Hanasset, Inc., a financial advisory firm incorporated and based in Korea and that introduced certain Bondholders to the Company "Bondholder(s)" holder(s) of the Convertible Bonds, comprising eleven independent professional, institutional and individual investors who are not connected persons of the Company "Business Day" a day on which banks are generally open for business for more than five hours in Hong Kong "Company" China HealthCare Holdings Limited, a company incorporated in Bermuda with limited liability, and the shares of which are listed on the main board of the Stock Exchange "connected person(s)" has the meaning ascribed to it under the Listing Rules "Convertible Bond(s)" United States dollar-denominated convertible bond(s) with an aggregate principal amount of US$6.6 million to be issued by the Company to the Bondholders pursuant to the Subscription Agreements "Conversion Price" The price at which each Conversion Shares will be issued upon a conversion of all or part of the Convertible Bonds "Conversion Share(s)" the new Share(s) to be issued by the Company upon conversion of the Convertible Bonds at the Conversion Price "Directors" the directors of the Company "Existing Bonds" HK$17,300,000 3% unlisted convertible bonds with the conversion price at HK$1.00 each due on 27 June 2005 issued by the Company on 27 June 2003, 17,300,000 new Shares will be issued upon conversion of which, details are disclosed in the announcement and the circular of the Company dated 29 January 2003 and 24 February 2003 respectively "Group" the Company and its subsidiaries "Hong Kong" The Hong Kong Special Administrative Region of the People's Republic of China "Stock Exchange" The Stock Exchange of Hong Kong Limited "Listing Rules" the Rules Governing the Listing of Securities on the Stock Exchange "Share(s)" ordinary share(s) of HK$0.10 each in the share capital of the Company