09:40     COFCO INTL<00506> - Announcement (3)                                

    COFCO Finance by the Group was on normal commercial terms and             
    in the ordinary and usual course of the business of the Company,          
    and the terms of the transactions were fair and reasonable and            
    in the interests of the shareholders. Throughout the Relevant             
    Period, there had been no detriment to either the Company or              
    its shareholders as a whole in connection with or in relation             
    to the deposits.                                                          
                                                                              
    INFORMATION ABOUT THE GROUP                                               
                                                                              
    The principal activity of the Company is investment holding of            
    its subsidiaries and associates comprising the Group. The                 
    principal activities of the Group involve five food-related core          
    businesses, including edible oils, soyabean meal and related              
    products; wineries; confectionery; flour milling; and trading.            
                                                                              
    INFORMATION RELATING TO COFCO AND COFCO FINANCE                           
                                                                              
    COFCO is the indirect controlling shareholder of the Company              
    with a beneficial interest of approximately 68.52% of the                 
    existing issued share capital of the Company.                             
                                                                              
    COFCO is one of the 44 enterprises under the direct                       
    administration of the central government of the PRC. Since 1999,          
    COFCO has undertaken reform and reorganization programmes, and            
    has established a corporate structure and corporate governance            
    system which is in line with international practices.                     
                                                                              
    COFCO Finance is a beneficially wholly-owned subsidiary of COFCO.         
    It was approved by PBOC in August 2002 and was established in             
    September 2002. It is a non-banking financial institution                 
    regulated by PBOC and CBRC. The operations of COFCO Finance are           
    subject to the on-going supervision of PBOC and CBRC.                     
                                                                              
    The registered capital of COFCO Finance is RMB465.2 million               
    (approximately HK$438.9 million). COFCO is a direct controlling           
    shareholder of COFCO Finance, holding a 72% interest. The other           
    shareholders of COFCO Finance are all wholly-owned members of             
    the COFCO Group, being COFCO Grain & Oil Import & Export Co.,             
    Ltd., COFCO Futures Co., Ltd., Mingcheng Investment Consultation          
    Co., Ltd., and COFCO Shanghai Import & Export Co., Ltd., holding          
    a 13%, 7%, 7% and 1% interest in COFCO Finance respectively.              
                                                                              
    The business scope of COFCO Finance includes taking deposits              
    from COFCO member companies, arranging internal account transfer          
    and settlement, issuing corporate bond, engaging in lending and           
    borrowing between financial institutions, providing loans and             
    finance leases to COFCO member companies, extending consumer              
    loans, buyers' credit and finance lease credits for the products          
    from COFCO member companies, accepting and discounting business           
    drafts for COFCO member companies, arranging trust loans and              
    trust investments for COFCO member companies, investing in                
    securities and equity investment in financial institutions and            
    COFCO member companies, selling corporate bonds of COFCO member           
    companies, providing financial consultation, credit                       
    certification and other consultation agency services for COFCO            
    member companies, providing guarantee for COFCO member companies,         
    arranging overseas foreign exchange borrowings, and other                 
    business activities approved by PBOC and CBRC.                            
                                                                              
    Pursuant to Measures on the Administration of Financial                   
    Companies in Enterprises Groups promulgated by CBRC in 2004,              
    "COFCO member companies" includes COFCO, any subsidiary in which          
    COFCO owns an equity interest of 51% or more, any company in              
    which COFCO and its subsidiaries own, individually or in the              
    aggregate, an equity interest of over 20% and any company in              
    which COFCO and its