Green Energy Group Limited — Capital/Financing Update 2004

Mar 22, 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.

China Nan Feng Group Limited 中 國 南 峰 集 團 有 限 公 司[*]

(incorporated in Bermuda with limited liability)

(Stock code: 979)

UPDATE ON THE PROGRESS OF THE RESTRUCTURING PROPOSAL AND CHANGE OF REGISTERED OFFICE

The Creditors’ Scheme has been sanctioned by the Hong Kong Court and the Bermuda Court at the court hearings held at 9:30 a.m. on 16th March, 2004 and in the morning of 19th March, 2004 (Bermuda time) respectively.

The Creditors’ Scheme and the Restructuring Proposal are still subject to other conditions including, among others, the Open Offer becoming unconditional. It is expected that the Prospectus Documents for the Open Offer would be posted to Shareholders on or about 8th April, 2004.

The registered office of the Company has been changed to Clarendon House, 2 Church Street, Hamilton HM11, Bermuda with effect from 18th March, 2004.

Update on the progress of the Restructuring Proposal

Reference is made to the previous announcements of China Nan Feng Group Limited (the “Company”) and the circular of the Company dated 6th November, 2003 (the “Circular”) relating to, among others, the Company’s Restructuring Proposal involving Share Consolidation, Capital Reorganisation, Creditors’ Scheme, Open Offer and the Whitewash Waiver. Capitalised terms used in this announcement shall have the same meanings as defined in the Circular unless stated herein otherwise.

The Board is pleased to announce that the Creditors’ Scheme has been sanctioned by the Hong Kong Court and the Bermuda Court at the court hearings held at 9:30 a.m. on 16th March, 2004 and in the morning of 19th March, 2004 (Bermuda time) respectively.

The Creditors’ Scheme and the Restructuring Proposal are still subject to other conditions including, among others, the Open Offer becoming unconditional. It is expected that the Prospectus Documents for the Open Offer would be posted to Shareholders on or about 8th April, 2004. The following indicative timetable for the Restructuring Proposal remains unchanged from the one set out in the Company’s announcement dated 29th December, 2003:

2004 Last day of dealings in the Shares on a cum-entitlements basis . . . . . . . . . . . . . . . . . . . Wednesday, 31st March Commencement of dealings in the Shares on an ex-entitlements basis . . . . . . . . . . . . . . . . . Thursday, 1st April Latest time for lodging transfers of Shares to be entitled for the Open Offer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4:00 p.m. on Friday, 2nd April Book closure period (both days inclusive) . . . . . . . . . . . . . . . . . . . . . Tuesday, 6th April to Thursday, 8th April Record Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Thursday, 8th April Prospectus Documents posted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Thursday, 8th April Latest time for application for Offer Shares and payment thereof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4:00 p.m. on Thursday, 22nd April Open Offer becomes unconditional, Capital Reorganisation becomes effective and completion of Creditors’ Scheme . . . . . . . . . . . . . . . . . . . . . . . 9:30 a.m. on Tuesday, 27th April Announcement on completion of Restructuring Proposal and results of the Open Offer appears on newspaper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wednesday, 28th April Share certificates for Offer Shares posted on or before . . . . . . . . . . . . . . . . . . . . . . . . . . . Wednesday, 28th April Last day of free exchange of existing pink share certificates for new purple share certificates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Monday, 10th May

Shareholders would be informed by press notice should there be any significant changes to the above indicative timetable for the Restructuring Proposal.

The Company will keep the public informed of the progress of the Restructuring Proposal and further announcement will be made by the Company as and when appropriate.

– 1 –

Change of registered office

The Board also announces that, with effect from 18th March, 2004, the registered office of the Company has been changed to Clarendon House, 2 Church Street, Hamilton HM11, Bermuda.

By Order of the Board China Nan Feng Group Limited Tao Ke Wei Executive Director

Hong Kong, 22nd March, 2004

* For identification only

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

– 2 –