10:30     HON PO GROUP<00228> - Announcement (6)                              

    Convertible Notes shall be entitled to demand for immediate repayment of  
     the principal amount outstanding under the relevant Convertible Note.    
                                                                              
    Effects on Shareholding Structure                                         
                                                                              
    The table below shows the shareholding structure of the Company as at     
    the date of this announcement together with the dilution effect on such   
    shareholding if the conversion rights attached to First Convertible       
    Notes and/or Convertible Notes were exercised in full at their            
    respective initial conversion prices:-                                    
                                                                              
                   Assuming that the             Assuming that the            
                 Assuming                                                     
                   First Convertible             Convertible Notes            
                 both the                                                     
                   Notes are issued             are issued and                
    First Convertible                                                         
                   and converted             converted in             Notes   
    and the                                                                   
                   in full and             full and no First                  
    Convertible Notes                                                         
       Existing issued             no Convertible             Convertible     
                 are issued and                                               
       share capital      %      Notes are issued      %      Notes are       
    issued      %      converted in full      %                               
                                                                              
    Hon Po Investment                                                         
      Limited   76,000,000      50.26      76,000,000      13.79              
    76,000,000      3.53      76,000,000      2.98                            
    Public:                                                                   
      Holders of the                                                          
        First Convertible                                                     
        Notes   -      -      400,000,000      72.57      -      -            
    400,000,000      15.68                                                    
      Holders of the                                                          
        Convertible Notes   -      -      -      -      2,000,000,000         
    92.97      2,000,000,000      78.39                                       
      Others   75,200,000      49.74      75,200,000      13.64               
    75,200,000      3.50      75,200,000      2.95                            
                                                                              
                                                                              
    Total   151,200,000      100.00      551,200,000      100.00              
    2,151,200,000      100.00      2,551,200,000      100.00                  
                                                                              
                                                                              
    Note:   The table above assumes conversion of the relevant convertible    
    notes at their initial conversion price and there being no changes to     
    the issued share capital of the Company other than as a result of such    
    conversion.                                                               
                                                                              
    In view of the potential dilution effect on existing Shareholders on      
    conversion of the First Convertible Notes and Convertible Notes, for so   
    long as any these convertible notes are outstanding                       
                                                                              
    (a)   the Company will make a monthly announcement (the "Monthly          
    Announcement") on the website of the Stock Exchange. Such announcement    
    will be made on or before the fifth business day following the end of     
    each calendar month and will include the following details in a table     
    form:                                                                     
                                                                              
    (i)   whether there is any conversion of the First Convertible Notes      
    and/or (as the case may be) the Convertible Notes during the relevant     
    month. If yes, details of the conversion(s), including the conversion     
    date, number of new Shares issued, conversion price for each conversion.  
     If there is no conversion during the relevant month, a negative          
    statement to that effect;                                                 
                                                                              
    (ii)   the outstanding principal amount of the First Convertible Notes    
    and/or (as the case may be) the Convertible Notes after the conversion,   
    if any;                                                                   
                                                                              
    (iii)   the total number of Shares issued pursuant to other               
    transactions, including Shares issued pursuant to exercise of options     
    under any share option scheme(s) of the Company;                          
                                                                              
    (iv)   the total issued share capital of the Company as at the            
    commencement and the last day of the relevant month; and                  
                                                                              
    (b)   in addition to the Monthly Announcement, if the cumulative amount   
    of new Shares issued pursuant to the conversion of the First Convertible  
     Notes and/or (as the case may be) the Convertible Notes reaches 5% of    
    the issued share capital of the Company as disclosed in the then latest   
    announcement made by the Company in respect of the First Convertible      
    Notes and/or (as the case may be) the Convertible Notes (and thereafter   
    in a multiple of such 5% threshold), the Company will as soon as