09:11     BUILD KING HOLD<00240> - Announcement (1)                           

    The Stock Exchange of Hong Kong Limited takes no                          
    responsibility for the contents of this announcement,                     
    makes no representation as to its accuracy or                             
    completeness and expressly disclaims any liability                        
    whatsoever for any loss howsoever arising from or in                      
    reliance upon the whole or any part of the contents                       
    of this announcement.                                                     
                                                                              
    BUILD KING HOLDINGS LIMITED                                               
    (incorporated in Bermuda with limited liability)                          
    (Stock Code: 240)                                                         
                                                                              
    DISCLOSEABLE TRANSACTION                                                  
                                                                              
    The Company has during the period from 2 August, 2004                     
    to 26 May, 2005 (both dates inclusive) acquired on the                    
    market an aggregate of 6,538,000 shares in Van Shung                      
    Chong Holdings Limited for a total consideration of                       
    HK$7,133,600.                                                             
                                                                              
    The Investments constitute a discloseable transaction                     
    under Chapter 14 of the Listing Rules as the revenue                      
    attributable to the assets being acquired exceeds 5%                      
    but less than 25% of the total revenue of the Group.                      
                                                                              
    A circular containing, inter alia, further details of                     
    the Investments will be dispatched to Shareholders as                     
    soon as practicable.                                                      
                                                                              
    THE INVESTMENTS                                                           
    The Group, through Smart Start, acquired an aggregate                     
    of 6,538,000 Van Shung Chong Shares (representing                         
    approximately 1.77% of the issued share capital of Van                    
    Shung Chong, based on the issued share capital of                         
    368,605,251 Van Shung Chong Shares as at 30 April, 2005)                  
    during the period from 2 August, 2004 to 26 May, 2005                     
    (both dates inclusive). The total consideration for                       
    the Investments was HK$7,133,600 (exclusive of                            
    transaction costs) which was fully satisfied in cash                      
    and funded by the internal resources of the Group. The                    
    consideration represented the then market price of the                    
    Van Shung Chong Shares. The range of the acquisition                      
    price per Van Shung Chong Shares was HK$0.86 to                           
    HK$1.203 and its weighted average price per share was                     
    HK$1.091. The highest and lowest price of the Van Shung                   
    Chong Shares as quoted on the Stock Exchange on 26 May,                   
    2005, being the last trading day prior to the issue                       
    of this announcement, were HK$0.87 and HK$0.84 per                        
    share, respectively.                                                      
                                                                              
    As the Investments were all conducted on the market                       
    operated by the Stock Exchange, the Company is not                        
    aware of the identities of the vendors of the Van Shung                   
    Chong Shares and accordingly, to the best of the                          
    Directors' knowledge, information and belief, having                      
    made all reasonable enquiries, the vendors of the Van                     
    Shung Chong Shares are third parties independent of                       
    the Group and the connected persons of the Company.                       
    Van Shung Chong is not a connected person of the                          
    Company.                                                                  
                                                                              
    REASONS FOR THE INVESTMENTS                                               
    The Company is an investment holding company. Its                         
    subsidiaries are principally engaged in the                               
    undertaking of civil engineering projects in Hong Kong,                   
    the PRC and Taiwan and carry on the other business                        
    activities as stated in the annual report of the                          
    Company for the year ended 31 December, 2004.                             
                                                                              
    The Investments were fully funded by the internal cash                    
    resources of the Group. As part of the Group's treasury                   
    management activities, the Group has, from time to                        
    time, made investments and divestments of listed                          
    securities in order to enhance the returns of spare                       
    cash on hand by the Group before its deployment for                       
    new projects. Taking into account the track record of                     
    Van Shung Chong, the Company considered that the                          
    Investments have potential. In addition, as the                           
    Investments were purchased at market prices, the                          
    Directors believe that the Investments are fair and                       
    reasonable and in the interests of the Shareholders                       
    as a whole. The Investments will be booked as short                       
    term investments by the Company.