Sun.King Technology Group Limited — Earnings Release 1999

Aug 3, 1999

Listed Company Information

MAANSHAN IRON<0323> - Announcement 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. Maanhan Iron & Steel Company Limited Announcement Impact of Steel Product Prices on Profits of the Company The directors noted the recent market speculations on the operating results of steel production enterprises and wish to advise the public that the Company has to date not made any forecast on its interim results. During the first half year, as pressures on steel product prices in the PRC persisted, the average selling price of the Company's steel products dropped by approximately 5%. The directors expect that losses are to be incurred for the interim period ended 30 June 1999. The Company's interim results will be announced by late August. In the mean time, investors are reminded to exercise caution in the dealings of the Company's shares. A series of measures are being taken to lower costs and increase income. Further details will be disclosed in the Company's interim report. Despite the possible interim losses, the directors are of the opinion that, based on the unaudited financial statement of the Company for the period ended 30 June 1999, the financial position of the Company remains normal. Pursuant to the Listing Rules of the Shanghai Stock Exchange, A Shares shall be suspended for half a day on the day information is disclosed. Trading for H Shares remains normal on The Stock Exchange of Hong Kong Limited. Maanshan Iron & Steel Company Limited By order of the Board Su Jiangang Wang Dapeng Company Secretaries 2 August 1999