09:39     HK CHINESE LTD<00655> - Announcement (2)                            

    LCR is interested in approximately 72.26 per cent.                        
    and 51.2 per cent. of the issued share capital of HKC                     
    and Auric Pacific, respectively. Lippo is interested                      
    in approximately 71.13 per cent. of the issued share                      
    capital of LCR.                                                           
                                                                              
    Subject matter of the Sale and Purchase Agreement:                        
    HKCL Investments shall sell and Auric Property shall                      
    purchase an aggregate of 1,000,000 Shares in the                          
    issued share capital of HKCL Pte, representing the                        
    entire issued share capital of HKCL Pte, and, by way                      
    of assignment, the related shareholder's loan due                         
    from HKCL Pte to HKCL Investments in the aggregate                        
    amount of S$1,404,549.11 (equivalent to                                   
    approximately HK$6,630,000). The Shareholder's Loan                       
    is advanced by HKCL Investments to HKCL Pte on an                         
    interest free basis and repayable on demand, and no                       
    security or guarantee has been provided for the                           
    Shareholder's Loan.                                                       
                                                                              
    Completion Date:                                                          
    It is anticipated that Completion shall take place                        
    on 17th June, 2005, or such other date as may be agreed                   
    by Auric Property and HKCL Investments. HKC will issue                    
    a further announcement if Completion does not take                        
    place on 17th June, 2005.                                                 
                                                                              
    Purchase Price:                                                           
    The Purchase Price for the Sale Shares and the                            
    Shareholder's Loan amounts to, in aggregate,                              
    S$2,400,000 (equivalent to approximately                                  
    HK$11,329,000) and shall be payable by Auric Property                     
    to HKCL Investments in cash on Completion. The                            
    Purchase Price was determined by reference to the                         
    unaudited net asset value of HKCL Pte and the                             
    outstanding amount of the Shareholder's Loan as at                        
    30th April, 2005. Since the entire issued share                           
    capital of HKCL Pte will be transferred to Auric                          
    Property at net asset value, no gain or loss will                         
    accrue to or will be incurred by HKC as a result of                       
    the disposal of HKCL Pte.                                                 
                                                                              
    The Purchase Price was negotiated and determined on                       
    an arms' length basis and normal commercial terms.                        
                                                                              
    Other Terms:                                                              
    The Sale and Purchase Agreement is subject to the                         
    satisfaction of the following conditions:                                 
                                                                              
    (1)     HKC and/or any of its holding company(ies)                        
    having complied with the requirements under the                           
    listing rules of the relevant stock exchanges on which                    
    the shares of HKC and/or any of its holding                               
    company(ies) are respectively listed;                                     
                                                                              
    (2)     Auric Pacific having obtained the approval of                     
    its shareholders for the acquisition of the Property                      
    by HKCL Pte under the Property Acquisition Agreement                      
    at an extraordinary general meeting of Auric Pacific;                     
    and                                                                       
                                                                              
    (3)     HKCL Investments having obtained the approval                     
    of HKC for the transactions envisaged by and the                          
    performance of the obligations by HKCL Investments                        
    pursuant to the Sale and Purchase Agreement.                              
                                                                              
    Business activity of HKCL Pte:                                            
    HKCL Pte has entered into the Property Acquisition                        
    Agreement dated 18th February, 2005 with the Property                     
    Vendors (being the 30 proprietors of the Property who                     
    collectively own all of the apartment units and the                       
    common areas comprised in the Property, and who, to                       
    the best of the Directors' knowledge,