Pursuant to the Land Use Right Grant Contract, Project                          
Co agreed to pay a total consideration of approximately                         
RMB2,453 million (approximately HK$2,478 million) to                            
acquire the land use rights of CQN Land. The consideration                      
will be payable by instalments and subject to the other                         
terms and conditions set out therein.                                           
                                                                                
To fund the payment of land costs, construction costs and                       
the development costs (including the cost of demolition                         
of the existing structures and compensation for the                             
settlement of the original occupiers) in relation to CQN                        
Land, the total investment and registered capital of                            
Project Co are proposed to be increased from RMB690 million                     
(approximately HK$697 million) and RMB230 million                               
(approximately                                                                  
HK$232 million) respectively to RMB4,542 million                                
(approximately HK$4,587 million) and RMB2,156 million                           
(approximately HK$2,178 million) respectively in stages.                        
                                                                                
The contribution to the registered capital of, and any                          
shareholders' loans to, Project Co is expected to be made                       
by CKH and HWL (or their respective subsidiaries) in                            
proportion to their respective effective equity interest
in Project Co. The respective interest in Forton will be                        
accounted for by CKH and HWL using equity accounting method.                    
It is currently expected that each of CKH and HWL will                          
provide its contribution for the land costs and portion                         
of the construction costs and the development costs of                          
CQN Land using its internal resources and that Project                          
Co may obtain loans from banks or financial institutions                        
or corporations for the remaining portion of the                                
construction costs and development costs of CQN Land.                           
                                                                                
Project Co was established in 2004 for owning and                               
developing another piece of land also located at                                
 "*"  (Nanan District, Chongqing) at a distance                                 
of about 3 kilometres from the CQN Land and currently the                       
principal activities of Project Co are to own and develop                       
such land as well as the CQN Land.                                              
                                                                                
Reasons for the transactions                                                    
                                                                                
The entering into the Land Use Right Grant Contract and                         
the acquisition of the land use rights in CQN Land for                          
the development into residential and commercial                                 
properties is consistent with one of the core business                          
strategies for both CKH and HWL. The respective Boards                          
of CKH and HWL, including the respective Independent    
Non-executive Directors of CKH and HWL, consider the terms                      
for the acquisition of CQN Land and the land use rights                         
thereof and for the increase in the total investment of                         
Project Co for the Acquisition and Development to be in                         
the respective interests of CKH and HWL and their                               
respective shareholders, on normal commercial terms and                         
fair and reasonable so far as CKH and HWL and their                             
respective shareholders are concerned.                                          
                                                                                
Connected transactions                                                          
                                                                                
HWL is a substantial shareholder of certain subsidiaries                        
of CKH and hence is a connected person of CKH within the                        
meaning of the Listing Rules. CKH is a substantial                              
shareholder of HWL and hence is a connected person of HWL                       
within the meaning of the Listing Rules. Accordingly, the                       
financial assistance provided or to be provided by way                          
of contribution to increase the registered capital of,                          
and any shareholders' loans, to Project Co in relation                          
to the Acquisition and Development constitute connected                         
transactions for both CKH and HWL under Listing Rule                            
14A.13(2). As one or more of the relevant percentage ratios                     
represented by the funding contribution of each of CKH                          
and HWL is or are more than 0.1% but less than 2.5%, in                         
accordance with Listing Rule 14A.66(2), such funding    
contribution is exempt from the independent shareholders'                       
approval requirements and is only subject to the reporting                      
and announcement requirements set out in Listing Rules                          
14A.45 to 14A.47.                                                               
                                                                                
General                                                                         
                                                                                
The principal activities of the CKH Group are investment                        
holding, property development and investment, hotel and                         
serviced suite operation, property and project management                       
and investments in securities. The HWL Group operates and                       
invests in five core businesses: ports and related                              
services; property and hotels; retail; energy,                                  
infrastructure, finance & investments and others; and                           
telecommunications.                                                             
                                                                                
The directors (Note) of CKH as at the date of this                              
announcement are Mr. LI Ka-shing (Chairman),                                    
Mr. LI Tzar Kuoi, Victor (Managing Director and Deputy                          
Chairman), Mr. KAM Hing Lam (Deputy Managing Director),                         
Mr. IP Tak Chuen, Edmond (Deputy Managing Director), Mr.                        
CHUNG Sun Keung, Davy,