10:45     SHELL ELECTRIC<00081>-Announcement&Resumption of Trading (8)        

    approximately HK$43 million) and approximately RMB42                      
    million (equivalent to approximately HK$40 million)                       
    based on the PRC generally accepted accounting                            
    principles. The unaudited net asset value of                              
    Tigerlily and its subsidiaries for the year ended 31                      
    December 2004 was approximately RMB119 million                            
    (equivalent to approximately HK$112 million) based                        
    on the PRC generally accepted accounting principles.                      
                                                                              
    REASONS FOR AND BENEFITS OF ESTABLISHMENT OF THE                          
    ACQUISITION                                                               
    The principal activities of the Group are production                      
    of electrical household appliances, property                              
    investments and high technology businesses. The                           
    principal activity of the Purchaser is investment                         
    holding.                                                                  
                                                                              
    The Group has been engaging in property development                       
    and currently owns property investment portfolio in                       
    Tian He District, Guangzhou, the PRC, Futian District,                    
    Shenzhen, the PRC, Hong Kong, USA and Canada. Profit                      
    from property leasing and property development                            
    accounts for approximately 63% of the Group's profit                      
    before taxation and minority interests for the year                       
    ended 31 December 2004. As at 31 December 2004,                           
    approximately 45% of the Group's total assets comes                       
    from the property sector. The Board is of the view                        
    that the property development business of Tigerlily                       
    will strengthen the Group's property portfolio and                        
    income base in the fast growing and profitable PRC                        
    market. Tigerlily offers access of over 5 high quality                    
    on-going real estate projects in one shot. This                           
    portfolio will deliver a combination of short, medium                     
    and long term, low risk returns which combines nicely                     
    with the current property investment activities of                        
    the Group.                                                                
                                                                              
    The Directors consider that the terms and conditions                      
    of the Agreement are on normal commercial terms and                       
    are fair and reasonable as far as the Shareholders                        
    are concerned as a whole.                                                 
                                                                              
    REQUIREMENTS OF THE LISTING RULES                                         
    The Acquisition constitutes a major transaction of                        
    the Company under the Listing Rules and is conditional                    
    on approval by the Shareholders.                                          
                                                                              
    No Shareholder has a material interest in the                             
    Acquisition and is thus required to abstain from                          
    voting.                                                                   
                                                                              
    A circular containing, among other things, details                        
    of the Acquisition and the financial information of                       
    the Group will be despatched to the Shareholders as                       
    soon as practicable.                                                      
                                                                              
    SUSPENSION AND RESUMPTION OF TRADING OF THE SHARES                        
    Trading in the Shares was suspended at the request                        
    of the Company with effect from 9:30 a.m. on 29 April                     
    2005 pending issue of this announcement. Application                      
    has been made by the Company to the Stock Exchange                        
    for the resumption of trading in the Shares with                          
    effect from 9:30 a.m. on 11 May 2005.                                     
                                                                              
    DEFINITIONS                                                               
    In this announcement, unless the context requires                         
    otherwise, the following expressions have the                             
    following meanings:-                                                      
                                                                              
    "Acquisition"   the acquisition of the Sale Shares by                     
    the Purchaser from the Vendor pursuant to the terms                       
    and conditions of the Agreement