PUBLIC CENSURE ANNOUNCEMENT -- Nam Fong International Holdings Limited (the "Company") and Mr. Wong Wah (ceased to be Executive Director on 20 April 2001), Ms. Wong Siu Mui (ceased to be Executive Director on 20 April 2001), Mr. Tsang Hin Cho and Mr. Hung Hin Cheung, Dominic (resigned effective from 9 September 2000) (collectively the "Relevant Directors")

Regulatory

14 Aug 2001

PUBLIC CENSURE ANNOUNCEMENT

Nam Fong International Holdings Limited
(the "Company")
and
Mr. Wong Wah
(ceased to be Executive Director on 20 April 2001)
Ms. Wong Siu Mui
(ceased to be Executive Director on 20 April 2001)
Mr. Tsang Hin Cho
Mr. Hung Hin Cheung, Dominic
(resigned effective from 9 September 2000)
(collectively the "Relevant Directors")

The Stock Exchange of Hong Kong Limited (The Exchange) hereby publicly censures the Company and each of the Relevant Directors for breaches of the Listing Agreement and the Declaration and Undertaking with regard to Directors (the "Directors Undertaking") given by the Relevant Directors to the Exchange in the form set out in Appendix 5B to the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (the "Exchange Listing Rules").

At the disciplinary hearing held on 15 May 2001, (the "Disciplinary Hearing"), the Listing Committee of the Exchange conducted a hearing into the conduct of, among others, the Company and the Relevant Directors, namely Mr. Wong Wah and Ms. Wong Siu Mui (ceased to be Executive Directors on 20 April 2001), Mr. Tsang Hin Cho (Executive Director) and Mr. Hung Hin Cheung, Dominic (former Executive Director, who resigned on 9 September 2000).

The Disciplinary Hearing was conducted in respect of the failure of the Company to observe the requirements of the then paragraphs 8(1) and 11(1) of the Listing Agreement with respect to the late despatch by the Company of its annual report and accounts for the financial year ended 31 December, 1999, and the late publication of its interim results for the six months ended 30 June 2000, respectively. Such delays had previously been the subject of announcements by the Company dated 31 May 2000 and 9 October 2000. The Company and each of the Relevant Directors have acknowledged the said breaches of the Listing Agreement.

The Committee is of the view that the obligations imposed by the then paragraphs 8(1) and 11(1) of the Listing Agreement that require a listed issuer to despatch its annual report and accounts within five months of the financial year end of the Company and to publish its interim results no later than three months following the interim financial period end of the issuer are aimed at ensuring the prompt dissemination of essential financial information on the affairs of the Company which the Companys shareholders and investing public are entitled to receive in order to properly appraise the position of the Company.

The Company was required under the then paragraph 8(1) of the Listing Agreement to despatch its annual report and audited accounts for the financial year ended 31 December 1999 by no later than 31 May 2000 but did not do so until 29 May 2001. The Company was further required under the then paragraph 11(1) of the Listing Agreement to publish its interim results by no later than 30 September 2000 but did not do so until 28 February 2001.

The Listing Committee concluded, among other things, that:

the Company was in breach of the then paragraphs 8(1) and 11(1) of the Listing Agreement;
each of Mr. Wong Wah, Ms. Wong Siu Mui and Mr. Tsang Hin Cho breached the Director's Undertaking to use his best endeavours to procure the Company complied with the Exchange Listing Rules in connection with the Companys said breaches of the then paragraphs 8(1) and 11(1) of the Listing Agreement; and
Mr. Hung Hin Cheung, Dominic breached the Director's Undertaking to use his best endeavours to procure the Company complied with the Exchange Listing Rules in connection with the Companys said breach of only the then paragraph 8(1) of the Listing Agreement.

Accordingly, the Company and each of the Relevant Directors are hereby publicly censured by the Listing Committee for their respective breaches as set out in items (1), (2) and (3) above.

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

Updated 14 Aug 2001