09:38     CHEUNG KONG<00001> - Announcement (2)                               

    Works Agreement in respect of the Beijing Land for development            
    into residential properties. JVCo, a new joint venture to be              
    owned 50/50 through Rassin, will be established for the purpose           
    of owning and developing the Beijing Land (after resettlement             
    and site formation works).                                                
                                                                              
    Pursuant to the Bei Xin Jia Yuan Land Transfer, Resettlement              
    and Site Formation Works Agreement and subject to the terms and           
    conditions set out therein, Rassin agreed, inter alia, to (i)             
    acquire the Beijing Land and its existing structures known as             
    Bei Xin Jia Yuan for a consideration of RMB184,448,037                    
    (approximately HK$173,381,155) payable by instalments; (ii)               
    appoint Beijing Fortunecn for carrying out the resettlement and           
    site formation works as regards the people staying on the Beijing         
    Land and structures thereon at the fee of RMB200,000,000; and             
    (iii) grant the Loan of RMB64,000,000 (as part of the aforesaid           
    consideration) for payment of the outstanding amounts in respect          
    of the Beijing Land including but not limited to the land cost,           
    tax charges and penalty for late payment so that Beijing                  
    Fortunecn may obtain the required land title documentation for            
    transferring the Beijing Land to Rassin.                                  
                                                                              
    To fund the payment of land cost, construction costs and other            
    project costs for the development of the Beijing Land, the total          
    investment and registered capital of JVCo are proposed to be              
    US$63,857,000 (approximately HK$498,084,600) and US$22,350,000            
    (approximately HK$174,330,000) respectively. Any contribution             
    to the registered capital of, and any shareholders' loans to,             
    JVCo is expected to be made equally by indirect subsidiaries              
    of CKH and HWL in proportion to their respective equity interests         
    in JVCo. It is expected that any profit of JVCo is to be ultimately       
    shared equally by indirect subsidiaries of CKH and HWL in                 
    proportion to their respective indirect equity interests in               
    JVCo.                                                                     
                                                                              
    Reasons for the transaction                                               
                                                                              
    The principal activities of the CKH Group are investment holding,         
    property development and investment, hotel and serviced suite             
    operation, property and project management, and investments in            
    securities.                                                               
                                                                              
    The HWL Group operates and invests in five core businesses: ports         
    and related services; property and hotels; retail and                     
    manufacturing; energy, infrastructure, finance and investments;           
    and telecommunications.                                                   
                                                                              
    The addition of the Beijing Land to the landbank for development          
    into residential properties is consistent with one of the core            
    business strategies for CKH.                                              
                                                                              
    Connected transaction                                                     
                                                                              
    HWL is a substantial shareholder of certain subsidiaries of CKH           
    and hence is a connected person of CKH within the meaning of              
    the Listing Rules. The joint venture arrangement for the purpose          
    of effecting the acquisition and development of the Beijing Land          
    constitutes a connected transaction for CKH under Listing Rule            
    14A.13(6). The Stock Exchange rules that the amount of total              
    capital commitment of each of CKH and HWL in connection with              
    the establishment of JVCo is equal to 50% of the proposed total           
    investment of JVCo for the purpose of Listing Rule 14.15(2).              
    As the relevant percentage ratios represented by such                     
    "commitment" amount for CKH are more than 0.1% but less than              
    2.5%, such establishment of JVCo is according to Listing Rule             
    14A.32 exempt from the independent shareholders' approval                 
    requirements and is subject to the reporting and announcement             
    requirements set out in Listing Rules 14A.45 to 14A.47.