directors - The Lion Group

(ii) Affecting Amsteel Corporation Berhad (“Amsteel”) (prior to the disposal of the joint-venture
companies to Lion Diversified Holdings Berhad on 1 June 2004)
No. Issues Joint-Venture Steps taken or to be Status as at
Company (“JV Co”) taken to resolve the Issues 30 September 2005
1. Land Use Right(s) for Xian Lucky King The Management of The LUR certificate
land(s) (“LUR”) to be Parkson Plaza Co Ltd Amsteel Group had liaised for the transfer of the
transferred by the (Amsteel Group’s with the PRC Party, Li Feng land had been issued
PRC Party to the equity holding : 51%) * (Xian) Real Estate and registered in the
JV Co as PRC Party’s Development Co Ltd name of the JV Co.
contribution to the (“LFXR”), to transfer the This issue was resolved
capital of the JV Co LUR of the land located as at 11 March 2005.
in accordance with the at No. 119, Dong Da Jie,
terms of the joint- Bei Lin District, Xian,
venture agreement. Shanxi Province,
PRC to the JV Co.
2. The PRC party has not Sichuan Hezheng The Management of In additon to SHC’s
obtained the LUR or Parkson Plaza Co Ltd Amsteel Group had liaised letter dated 20 February
POR certificate in (Amsteel Group’s with the PRC Party, 2004 confirming that
its favour for property equity holding : 90%) * Sichuan Hezheng Company the JV Co may use
leased by the PRC Party Limited by Shares (“SHC”), the POR pending the
to the JV Co or the lease to obtain the POR certificate said transfer, SHC’s
of the LUR or POR to for the building located at holding company,
the JV Co has not been No. 31, Zong Fu Lu, Zong Fu Industrial
registered with the Jinjiang District, (Group) Co Ltd
relevant authorities Chengdu City, Sichuan (“ZFI”) had confirmed
in the PRC. Province, PRC, leased by that SHC had
the PRC Party to the JV Co. purchased the building
from ZFI and that
SHC has the right to
exercise all rights
as the owner of the
building including
leasing and operation
of the building. This
issue was resolved
as at 14 February 2005.
* As from 1 June 2004, these JV Cos became subsidiaries of Lion Diversified Holdings Berhad (“LDHB”) following the disposal
of the entire equity interests in the companies holding interests in the said JV Cos (“Disposed Companies”) to LDHB. The
respective vendors of the Disposed Companies had undertaken to the Securities Commission (“SC”) that they shall indemnify
LDHB for any losses incurred by LDHB as a result of any non-compliance with the laws and regulations of the PRC.
122