11:17     START TECH<00706> - Announcement & Resumption of Trading (2)        

    As at the date of this announcement, the simplified                       
    corporate structure of the Group showing the Group's                      
    interests in Chatex and the Plastics Companies is as                      
    follows:                                                                  
                                                                              
    Note:   Before February 2005, the Group was                               
    interested in 87.8% interests in Start-Tech (Fujian).                     
    As disclosed in the Company's announcement dated 21                       
    February 2005, in February 2005, the Group entered                        
    into an equity transfer agreement to acquire the                          
    remaining 12.2% interest in Start-Tech (Fujian).                          
                                                                              
    Consideration                                                             
    The Consideration of RMB33,800,000 (equivalent to                         
    approximately HK$31,887,000) was determined after                         
    arm's length negotiation between the Company and                          
    Smart Eastern and on normal commercial terms with                         
    reference to the aggregate of the audited net asset                       
    value of of Fuqing Plastics of RMB54,096,000 as at                        
    31 December 2004 (prepared in accordance with the GAAP                    
    of the PRC) and the unaudited deficiency in net asset                     
    of Wuhan Plastics of HK$920,000 (prepared in                              
    accordance with Hong Kong GAAP) as at 31 December 2004.                   
    Smart Eastern shall have the right to undertake an                        
    independent review of the net asset value of the                          
    Plastics Companies as at 31 December 2004.                                
                                                                              
    In the event that the aggregate net asset value of                        
    the Plastics Companies (based on the GAAP of the PRC)                     
    as at 31 December 2004 after such review ("Final NAV")                    
    falls short of RMB46,070,000, Smart Eastern shall                         
    have the right to request an adjustment to the                            
    Consideration based on the Final NAV. The final                           
    Consideration shall be agreed between the Company and                     
    Smart Eastern. Further announcement will be made by                       
    the Company should the Consideration be adjusted                          
    after such review. As advised by Smart Eastern, the                       
    independent review has been started and undertaken                        
    by its own accounting staff after the signing of the                      
    Equity Transfer Agreement, and is expected to be                          
    completed by early June 2005.                                             
                                                                              
    As at 31 December 2004, the unaudited aggregate net                       
    asset value of the Plastics Companies is                                  
    approximately HK$72,978,000 (prepared in accordance                       
    with Hong Kong GAAP) and the unaudited aggregate net                      
    asset value of the Plastics Companies attributable                        
    to the Group is approximately HK$42,258,000 (prepared                     
    in accordance with Hong Kong GAAP).                                       
                                                                              
    The Consideration shall be paid by Smart Eastern to                       
    the Company in the following manner:                                      
                                                                              
    i)      a deposit of RMB5,000,000 (equivalent to                          
    approximately HK$4,717,000) ("Deposit") has been                          
    paid upon the signing of the Memorandum of                                
    Understanding on 23 March 2005;                                           
                                                                              
    ii)     RMB10,000,000 (equivalent to approximately                        
    HK$9,434,000) ("First Payment") shall be paid within                      
    three business days from the date of receiving a                          
    notice from the Company of the obtaining clearance                        
    of this announcement by the Stock Exchange;                               
                                                                              
    iii)    RMB10,000,000 (equivalent to approximately                        
    HK$9,434,000) ("Second Payment") shall be paid within                     
    three business days from the date of receiving a                          
    notice from the Company of the obtaining the approval                     
    of the Equity Transfer Agreement by the shareholders                      
    of the Company; and