CTF Services Limited — Capital/Financing Update 2004

Jan 20, 2004

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.

CENTRAL CHINA ENTERPRISES LIMITED

(Incorporated in Hong Kong with limited liability)

PROGRESS OF THE CAPITAL REORGANISATION AND REVISED EXPECTED TIMETABLE

SUMMARY

The Company attended the hearing of the summons for directions before the Court on 6th January, 2004 and pursuant to the directions given by the Court at the said hearing, among other things, the Petition is now scheduled to be heard by the Court on Tuesday, 3rd February , 2004. If the Court makes the Confirming Order and assuming all the other conditions set out in the Circular have been fulfilled, the Capital Reorganisation will take effect immediately following the registration of the Confirming Order and the Minute. On such basis, the trading arrangements in respect of dealings in the Company’s existing Shares and the Adjusted Shares on the Stock Exchange will be implemented in accordance with the indicative timetable set out below.

Warning: Shareholders and investors should note that the outcome of the hearing of the Petition is entirely within the jurisdiction of the Court, which may exercise its discretion to grant or not grant the Confirming Order as it sees fit. The timetable below will not be implemented if the Petition is not heard by the Court or the Court does not make the Confirming Order on 3rd February, 2004.

Further announcement(s) will be made by the Company on the outcome of the Court hearing and/or the precise timetable for the implementation of the Capital Reorganisation, where appropriate.

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CENTRAL CHINA ENTERPRISES LIMITED – Announcement

20 January, 2004

Reference is made to the joint announcements dated 1st August, 2003, 22nd August, 2003, 29th August, 2003 and 23rd September, 2003 made by the Company and Aimstar Holdings Limited (the “Announcements”) and the circular of the Company dated 29th August, 2003 (the “Circular”) all in relation to, among other things, the subscription of 29,500,000 Subscription Shares by the Investor. Terms defined in the Announcements shall have the same meanings when used herein unless the context requires otherwise.

PETITION

The Company attended the hearing of the summons for directions before the Court on 6th January, 2004 and pursuant to the directions given by the Court at the said hearing, among other things, the amended petition for the confirmation of the Capital Reduction (the “Petition”) is now scheduled to be heard by the Court on Tuesday, 3rd February, 2004. The Capital Reorganisation is conditional, among other things, on the confirmation of the Capital Reduction by the Court (the “Confirming Order”) and the Capital Reorganisation will take effect upon the registration by the Company with the Registrar of Companies in Hong Kong an office copy of the Confirming Order and the minute containing the particulars required under Section 61 of the Companies Ordinance (the “Minute”).

INDICATIVE TIMETABLE FOR IMPLEMENTATION OF THE CAPITAL REORGANISATION

Assuming the Court makes the Confirming Order on Tuesday, 3rd February, 2004, set out below is the expected timetable for the implementation of the Capital Reorganisation, including the trading arrangement for the existing Shares and the Adjusted Shares and the free exchange of the certificates for the Adjusted Shares.

Shareholders and investors should note that the outcome of the hearing of the Petition is entirely within the jurisdiction of the Court, which may exercise its discretion to grant or not grant the Confirming Order as it sees fit. The timetable below will not be implemented if the Petition is not heard by the Court or the Court does not make the Confirming Order on 3rd February, 2004.

==> picture [26 x 10] intentionally omitted <==

Hearing of the Petition for confirmation of

the Capital Reduction by the Court . . . . . . . . . . . . . . . . . . . 9:30 a.m. Tuesday, 3rd February

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CENTRAL CHINA ENTERPRISES LIMITED – Announcement

20 January, 2004

Publishing of an announcement on the outcome of the Petition hearing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wednesday, 4th February Effective date of the Capital Reorganisation . . . . . . . . . . . . . . . . . . . Wednesday, 4th February Dealings in the Adjusted Shares commence . . . . . . . . . . . 9:30 a.m. Wednesday, 4th February Designated broker starts to stand in the market to provide matching services . . . . . . . . . . . . . . . . . . . . . . 9:30 a.m. Wednesday, 4th February Closure of original counter for trading in existing Shares (represented by existing share certificates) in board lots of 2,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9:30 a.m. Wednesday, 4th February Temporary counter for trading in the Adjusted Shares (represented by existing share certificates) in board lot of 20 opens . . . . . . . . . . . . . . . . . . . . . . . . . . 9:30 a.m. Wednesday, 4th February First day for free exchange of existing share certificates for the Shares for new share certificates for the Adjusted Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9:00 a.m. Wednesday, 4th February Original counter for trading in the Adjusted Shares (represented by new share certificates) in board lot of 4,000 re-opens . . . . . . . . . . . . . . . . . . . . . . 9:30 a.m. Wednesday, 18th February Parallel trading commences . . . . . . . . . . . . . . . . . . . . . . . . 9:30 a.m. Wednesday, 18th February Closure of temporary counter for trading in the Adjusted Shares (represented by existing share certificates) in board lot of 20 . . . . . . . . . . . . . . . . . . . . . . 4:00 p.m. Wednesday, 10th March Parallel trading ends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4:00 p.m. Wednesday, 10th March Last day for the designated broker to stand in the market to provide matching services . . . . . . . . . . . 4:00 p.m. Wednesday, 10th March

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CENTRAL CHINA ENTERPRISES LIMITED – Announcement

20 January, 2004

Last day for free exchange of existing share

certificates for new share certificates . . . . . . . . . . . . . . . . 4:00 p.m. Wednesday, 17th March

By Order of the board of Central China Enterprises Limited Chung Chi Shing Director

Hong Kong, 20th January, 2004

Please also refer to the published version of this announcement in The Standard.

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CENTRAL CHINA ENTERPRISES LIMITED – Announcement

20 January, 2004