09:08     HAYWOOD INV<00905> - Announcement (2)                               

    Change in the substantial shareholder of the Company                      
                                                                              
    The Board announces that the Company has been notified by Mr.             
    Lee Wing On Samuel , a substantial shareholder of the Company,            
    that he has disposed of 32,790,400 Shares to Xiyang on 30 May             
    2005, representing approximately 20.49% of the total issued               
    share capital of the Company, at a consideration of HK$2,295,328          
    (equivalent to HK$0.07 per Share)and upon such disposal, Mr.              
    Lee Wing On Samuel and his associates do not hold any Shares.             
    To the best knowledge of the Company, save for the acquisition            
    of 32,790,400 Shares from Mr. Lee Wing On Samuel, Xiyang has              
    also acquired 9,920,000 Shares at a price of HK$0.065 per Share           
    through the Stock Exchange as at the date of this announcement,           
    and accordingly, Xiyang are interested in 42,710,400 Shares,              
    representing approximately 26.69% of the total issued share               
    capital of the Company, and become the new substantial                    
    shareholder of the Company.                                               
                                                                              
    Immediately before the acquisition of Shares, Xiyang and its              
    ultimate beneficial owners are independent third parties and              
    not connected persons (as defined in the Listing Rules) of the            
    Company. Xiyang is principally engaged in investments in                  
    properties in Hong Kong.                                                  
                                                                              
    The Board confirms that the change of substantial shareholder             
    as aforesaid will not have any material impact on the operation           
    of the Company. It is the intention of the Company to invite              
    the representatives of Xiyang to join the Board. Further                  
    announcement will be made by the Company in compliance with the           
    Listing Rules if there is any change in the composition of the            
    Board.                                                                    
                                                                              
    Disposal of Shares by Mr. Cui Zanming                                     
                                                                              
    The Board also wishes to announce that the Company has been               
    notified by Mr. Cui Zanming, a non executive director of the              
    Company, that he has disposed of 9,600,000 Shares at a price              
    of HK$0.065 per Share through the Stock Exchange today.                   
                                                                              
    The following is the shareholding structure of the Company                
    immediately before and after the acquisition of Shares from Mr.           
    Lee Wing On Samuel and through the market by Xiyang ("the                 
    Acquisition") and the disposal of Shares by Mr. Cui Zanming:              
            Immediately before      Immediately after                         
            the Acquisition and     the Acquisition and                       
            the disposal of Shares  the disposal of Shares                    
            by Mr. Cui Zanming      by Mr. Cui Zanming                        
            Shares  Percentage      Shares  Percentage                        
    Mr. Lee Wing On Samuel  32,790,400      20.49%  -       -                 
    Mr. Cui Zanming, a non-executive                                          
      director of the Company       9,600,000       6.0%    -       -         
    Xiyang  -       -       42,710,400      26.69%                            
    Public Shareholders     117,609,600     73.51%  117,289,600     73.31%    
                                                                              
                                                                              
    Total    160,000,000    100.00% 160,000,000     100.00%                   
                                                                              
                                                                              
    Save for disclosed above, the Board confirms that there are no            
    negotiations or agreements relating to intended acquisitions              
    or realizations, which are discloseable under rule 13.23,                 
    neither is the Board aware of any matter discloseable under the           
    general obligation imposed by rule 13.09, which is or may be              
    of a price-sensitive nature.                                              
                                                                              
    Made by the order of the Board, the directors of which                    
    individually and jointly accept responsibility for the accuracy           
    of this statement.                                                        
                                                                              
    Definitions