11:17     START TECH<00706> - Announcement & Resumption of Trading (3)        

    iv)     the remaining balance of RMB8,800,000                             
    (equivalent to approximately HK$8,302,000) ("Third                        
    Payment") shall be deposited into a bank account,                         
    which can only be operated jointly by the Company and                     
    Smart Eastern, within three business days from the                        
    date of receiving notice from the Company of the                          
    obtaining approval of the Equity Transfer Agreement                       
    by the shareholders of the Company. The Third Payment                     
    shall be released to the Company within three business                    
    days after the completion of the independent review                       
    of the net asset values of the Plastics Companies as                      
    at 31 December 2004 by Smart Eastern. In the event                        
    that the Consideration shall be adjusted based on the                     
    Final NAV, the amount of the Third Payment to be                          
    released to the Company shall be adjusted                                 
    accordingly.                                                              
                                                                              
    Corporate reorganisation                                                  
    In order to facilitate the transfer of the Group's                        
    interests in the Plastics Companies to Smart Eastern,                     
    subject to the payment of the Deposit, the First                          
    Payment and the Second Payment by Smart Eastern, the                      
    Group will undertake an internal reorganisation                           
    pursuant to which Start-Tech (Fujian) will transfer                       
    its 39% interests in Fuqing Plastics to Chatex within                     
    six months after the receipt of the Deposit, the First                    
    Payment and the Second Payment. Such transfer is                          
    required to be approved by the relevant PRC government                    
    authority. After the completion of such internal                          
    reorganisation, the simplified corporate structure                        
    of the Group showing the Group's interest in the                          
    Plastics Companies will be as follows:                                    
                                                                              
    Within five business days after the completion of such                    
    internal reorganisation, the Company will transfer                        
    its 100% interests in Chatex to Smart Eastern whereby,                    
    in substance, transfer the Group's entire interest                        
    in the Plastics Companies to Smart Eastern. There is                      
    no restriction under the Equity Transfer Agreement                        
    on Smart Eastern on the subsequent sale of Chatex or                      
    the Plastics Companies.                                                   
                                                                              
    INFORMATION ON THE PLASTICS COMPANIES AND CHATEX                          
    The Plastics Companies                                                    
    i.      Fuqing Plastics                                                   
    Fuqing Plastics is a wholly foreign-owned enterprise                      
    established in the PRC on 4 July 1997 with a registered                   
    capital of HK$36,700,000 (equivalent to                                   
    approximately RMB38,902,000). The registered capital                      
    of Fuqing Plastics increased from HK$29,700,000                           
    (equivalent to approximately RMB31,482,000) to the                        
    existing amount of HK$36,700,000 (equivalent to                           
    approximately RMB38,902,000) in September 2004.                           
    Fuqing Plastics is principally engaged in the                             
    manufacture of plastic casings for computer related                       
    products. Prior to the completion of the Equity                           
    Transfer Agreement, Fuqing Plastics is owned as to                        
    39% by Start-Tech (Fujian), as to 26% by Chatex and                       
    as to 35% by Batco. In July 1997, the Group established                   
    Fuqing Plastics and owned 100% interests in Fuqing                        
    Plastics. In August 2000, the Group disposed of 35%                       
    interests in Fuqing Plastics to Batco. Pursuant to                        
    an internal reorganisation, the Group has effectively                     
    disposed of 4.76% interests in Fuqing Plastics.                           
    Subsequently, in February 2005, through the                               
    acquisition of 12.2% interests in Start-Tech (Fujian),                    
    the Group became interested in 65% interests in Fuqing                    
    Plastics.                                                                 
                                                                              
    The unaudited net profit of Fuqing Plastics (prepared                     
    in accordance with Hong Kong GAAP) for