10:26     HUALING<00382> - Announcement & Resumption (5)                      

    amounted to approximately HK$202 million as at 31 December 2004.          
    In view of the recent financial conditions of the Group and taking        
    the theoretical ex-rights price per Share into consideration,             
    in order to increase the attractiveness of the Rights Issue to            
    Qualifying Shareholders, the Directors consider that the                  
    discount on the Subscription Price to the current market price            
    of the Shares as proposed is appropriate. Each Qualifying                 
    Shareholder is entitled to subscribe for the Rights Shares at             
    the same price in proportion to his or her shareholding in the            
    Company held on the Record Date. The Directors consider the               
    Subscription Price to be fair and reasonable and to be in the             
    interests of the Company and the Shareholders as a whole.                 
                                                                              
    Status of the Rights Shares                                               
                                                                              
    The Rights Shares, when allotted and fully-paid, will rank pari           
    passu with the then existing Shares in issue on the date of               
    allotment of the Rights Shares in fully-paid form. Holders of             
    such Rights Shares will be entitled to receive all future                 
    dividends and distributions which are declared after the date             
    of allotment and issue of the Rights Shares.                              
                                                                              
    Application for excess Rights Shares                                      
                                                                              
    Qualifying Shareholders are entitled to apply for any unsold              
    Rights Shares created by adding together fractions of the Rights          
    Shares and any nil-paid Rights Shares provisionally allotted              
    but not accepted.                                                         
                                                                              
    Applications may be made by completing the form of application            
    for excess Rights Shares and lodging the same with a separate             
    remittance for the excess Rights Shares. The Directors will               
    allocate the excess Rights Shares at their discretion on a fair           
    and equitable basis.                                                      
                                                                              
    Fractional entitlements                                                   
                                                                              
    Fractional entitlements for the nil-paid Rights Shares will not           
    be issued but will be aggregated and sold, if a premium (net              
    of expenses) can be obtained, for the benefit of the Company.             
                                                                              
    Share certificates for the Rights Shares                                  
                                                                              
    Subject to the fulfilment of the conditions of the Rights Issue,          
    certificates for all fully-paid Rights Shares are expected to             
    be posted to Qualifying Shareholders who have accepted and                
    applied for (where appropriate), and paid for the Rights Shares           
    by Friday, 15 July 2005 at their own risk.                                
                                                                              
    Qualifying Shareholders                                                   
                                                                              
    The Company will send the Rights Issue Documents to Qualifying            
    Shareholders only.                                                        
                                                                              
    To qualify for the Rights Issue, the Shareholder must be                  
    registered as a member of the Company on the Record Date. The             
    Company is in the process of considering the rights of the                
    Overseas Shareholders and the relevant arrangements in respect            
    of the Rights Issue for them, including whether it is necessary           
    to exclude the Overseas Shareholders to the Rights Issue. Further         
    information in this connection will be included in the Company's          
    circular containing, among other things, details of the Rights            
    Issue to be despatched to the Shareholders within 21 days from            
    the day of publication of this announcement.                              
                                                                              
    In order to be registered as a member of the Company on the Record        
    Date, the Shareholders must lodge any transfers of Shares (with           
    the relevant Share certificate(s)) with the Company's branch              
    share