PUBLIC STATEMENT

in respect of
Siu-Fung Ceramics Holdings Limited (In Liquidation)
and
Mr. Lee Siu Fung, Siegfried
Dr. Benjamin Xiao Yi Li

The Stock Exchange of Hong Kong hereby publicly criticises the Company and each of the Relevant Directors for breaches of the Listing Agreement and the Declaration and Undertaking with regard to Directors (the Director's Undertaking) given by the Relevant Directors to the Exchange in the form set out in Appendix 5B to the Exchange Listing Rules.

The Listing Committee of the Exchange (the Listing Committee) recently concluded a disciplinary hearing into the conduct of the Company and the Relevant Directors, being executive directors of the Company, in connection with, among other things, the failure of the Company to observe the requirements of: (i) the then paragraph 8 of the Listing Agreement in failing to publish the audited results of the Company for the year ended 31 December 1998 within the time frame required by the Listing Agreement; and (ii) the then paragraph 11 of the Listing Agreement in failing to publish the unaudited interim results of the Company for the six-months period ended 30 June 1999 within the period required by the Listing Agreement.

The Listing Committee noted that in two announcements made "By Order of the Board" dated 10 June 1999 and 26 October 1999 the Company acknowledged that it has not been able to comply with the relevant requirements of the Listing Agreement. The Listing Committee also noted a further announcement made by the Company by way of teletext announcement on 26 January 2000. The Company attributed the failure to publish financial information as required by the Listing Agreement to the Company's financial difficulties and the need to allocate limited resources to other tasks.

The Listing Committee concluded that there were breaches of the then paragraphs 8 and 11 of the Listing Agreement.

The Listing Committee also concluded, as a result of the above breaches, the Relevant Directors collectively and individually acted in breach of their respective Director's Undertaking, under which they undertook to use their best endeavours to procure that the Company would comply with the Exchange Listing Rules.

Accordingly, the Company and each of the Relevant Directors are hereby publicly criticised by the Listing Committee for:

(i) the Company's breaches of the then paragraphs 8 and 11 of the Listing Agreement; and

(ii) the Relevant Directors' breach of the Director's Undertaking.

For the avoidance of doubt the Exchange confirms that in relation to this matter it is not publicly criticising any former member of the Board of Directors of the Company, save for those named herein.

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