Institutional Investors Increased Stake in GZI

(Hong Kong - 28 January 2004) Yue Xiu Enterprises (Holdings) Limited ("Yue Xiu Enterprises") announced that it has completed a placement of 500 million issued shares of Guangzhou Investment Company Limited ("GZI"; stock code: 123) to institutional investors through CitiGroup today. The shares were placed at HK$0.95 per share (the closing price on Tuesday was HK$0.99).

GZI completed its business restructuring by the end of last year. Through the disposal of its non-core business and the acquisition of Guangzhou City Construction to expand its property business, profit after tax of GZI increased significantly by 600% to HK$108 million. Through the sale of shares, Yue Xiu Enterprises will be able to enlarge GZI’s shareholder base of institutional investors as well as to finance its cement business development. Upon completion of the transaction, Yue Xiu Enterprises’ shareholding in GZI will decrease from 58.54% to 50.59%.

After the signing of CEPA in mid-June of last year, the economic development of both the Pearl River Delta and Hong Kong has accelerated. Yue Xiu Enterprises is fully confident in the future prospects of GZI and its property business.

                                                                                          - End -

For media enquiries, please contact:
iPR ASIA LTD.
www.iprasia.com
Ellen Zee/ Jane Yip/ Mavis Yim
Tel: 2136 6184/ 2136 6175/ 2136 6957
Fax: 2136 6068