GoFintech Quantum Innovation Limited — M&A Activity 2002

May 22, 2002

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.

Voluntary Conditional Cash Offer by

TINGKONG - REXCAPITAL SECURITIES INTERNATIONAL LIMITED

on behalf of

KANDY PROFITS LIMITED

to acquire all the shares in the issued share capital of,

and to cancel all outstanding share options granted by

PACIFIC CHALLENGE HOLDINGS LIMITED

Financial Adviser to Kandy Profits Limited

REXCAPITAL (Hong Kong) Limited

The Offer Document together with the form of acceptance and transfer, containing details of the Share Offer, will be despatched to the Shareholders on 23 May, 2002. The Offer Document will also be despatched to the Optionholders on 23 May, 2002. The Form of Renunciation, containing details of the Option Offer, can be obtained by the Optionholders from 23 May, 2002 at the principal place of business of Pacific Challenge Holdings Limited in Hong Kong at Room 2201-6, 22nd Floor, Worldwide House, 19 Des Voeux Road Central, Hong Kong.

Under the Takeovers Code, the Offeree Document which will contain, amongst other things, a letter from the independent board committee of the Company formed to advise the Shareholders on the Offers and a letter of advice from the independent financial adviser appointed to advise the independent board committee of the Company in respect of the Offers, will be sent to the Shareholders as soon as practicable, and in any event, no later than 14 days from the date of posting of the Offer Document. Shareholders and Optionholders are strongly advised to read the Offeree Document before deciding whether or not to accept the Offers.

Unless otherwise stated, terms used in this announcement shall have the same meanings as those defined in the Offer Document.

Reference is made to the announcements dated 25 April, 2002, 30 April, 2002 and 15 May, 2002 made by the Offeror in relation to the Offers.

The sole director of the Offeror wishes to announce that the Offer Document, together with the form of acceptance and transfer, containing details of the Share Offer, will be despatched to the Shareholders on 23 May, 2002. The Offer Document will also be despatched to the Optionholders on 23 May, 2002. The Form of Renunciation, containing details of the Option Offer, can be obtained by the Optionholders from 23 May, 2002 at the principal place of business of the Company at Room 2201-6, 22nd Floor, Worldwide House, 19 Des Voeux Road Central, Hong Kong.

Under the Takeovers Code, the Offeree Document which will contain, amongst other things, a letter from the independent board committee of the Company formed to advise the Shareholders on the Offers and a letter of advice from the independent financial adviser appointed to advise the independent board committee of the Company in respect of the Offers, will be sent to the Shareholders as soon as practicable, and in any event, no later than 14 days from the date of posting of the Offer Document. Shareholders and Optionholders are strongly advised to read the Offeree Document before deciding whether or not to accept the Offers.

By order of the Board

Kandy Profits Limited

Cheong Tin Yau

Director

Hong Kong, 22 May, 2002

The sole director of the Offeror accepts full responsibility for the accuracy of the information contained in this announcement and confirms, having made all reasonable enquiries, that to the best of his knowledge, opinions expressed in this announcement have been arrived at after due and careful consideration and there are no other facts not contained in this announcement the omission of which would make any statements in this announcement misleading.

"Please also refer to the published version of this announcement in the China Daily"