THE STOCK EXCHANGE OF HONG KONG LIMITED
(A wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited)

ANNOUNCEMENT

In relation to the matter of CIL Holdings Limited
(Stock Code: 479)

Proceeding to the cancellation of listing
as stipulated under Rule 6.10 of the
Rules Governing the Listing of Securities on
The Stock Exchange of Hong Kong Limited (the Listing Rules)

The Stock Exchange of Hong Kong Limited (the Exchange) proposes to exercise its rights to cancel the listing of the shares of CIL Holdings Limited (the Company) on the Exchange pursuant to Rule 6.10 of the Listing Rules.

Dealing in the shares of the Company has been suspended since 1 April 2004.  As at the date of this announcement, the Company has yet to address the Exchange’s concern on the Company’s failure to meet its continuing obligations under the Listing Rules.  Trading in the Company’s shares has remained suspended as the Company fails to keep the market informed of its developments and financial results pursuant to the Listing Rules and the Company’s shareholders do not have the necessary information to appraise the position of the Group.  The circumstances of this case also suggest that the Company has failed to put in place adequate financial reporting system and internal control procedures to enable the Company to meet its obligation under the Listing Rules.  There is also a concern about the management capability to ensure the Company’s compliance with the Listing Rules.  The Company is considered unsuitable for listing for material breaches of the Listing Rules.  Given the continued suspension for a prolonged period without the Company taking adequate action to obtain a restoration of listing, the Exchange proposes to exercise its right to cancel the listing of the shares of the Company on the Exchange pursuant to Rule 6.10 of the Listing Rules. 

The Company is given a period of six months to remedy those matters that gave rise to the Exchange’s proposal to cancel the listing.  In this connection, the Company should demonstrate its compliance with the Listing Rules and fulfill the following conditions for resumption to the satisfaction of the Exchange: (i) address the issues that have previously been raised by the Exchange to the Company; (ii) publish all outstanding financial results of the Group as required under the Listing Rules and address the concerns raised by the auditors of the Company through the qualification of their audit report on the financial statements of the Group published after the suspension; and (iii) demonstrate the management capability to ensure the Company’s compliance with the Listing Rules and that the Company has in place adequate financial reporting system and internal control procedures to enable the Company to meet its obligations under the Listing Rules.

The Company is required to provide a detailed submission to demonstrate that the above conditions have been fulfilled to the satisfaction of the Exchange.  Such submission should be provided to the Exchange at least 10 business days as defined in the Listing Rules before the expiry of the six-month period.  If the Company fails to take adequate action to meet the conditions for resumption as required and obtain a restoration of listing, the Exchange intends to cancel the listing of the Company on the expiry of the six-month period from the date of this announcement (i.e. 12 June 2008).

The Exchange will make a further announcement in due course if the cancellation of the listing takes place.