CLARIFICATION OF NEWSPAPER ARTICLES

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					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.




                                      (Incorporated in Cayman Islands with limited liability)

                            CLARIFICATION OF NEWSPAPER ARTICLES
 The board of directors of Wing Shing Chemical Holdings Limited would like to make clarification in relation to certain
 newspaper articles published on 30th January, 2003 regarding a possible investment in a new joint venture and the
 possible dividend distribution.

This announcement is made at the request of The Stock                  company in relation to the possible formation of a new joint
Exchange of Hong Kong Limited (the “Stock Exchange”).                  venture but only a letter of intent, which is non-legally
                                                                       binding, has been entered into between the Company and a
Background                                                             Swiss company on 27th November, 2002 regarding the
The board (the “Board”) of directors (the “Directors”) of              technological support with respect to the production of
Wing Shing Chemical Holdings Limited (the “Company”,                   non-stick paints for use in home appliances. The Directors
together with its subsidiaries the “Group”) would like to              currently estimate that if the concerned joint venture
make clarification in relation to the articles in various              materializes, the total investment of the joint venture
newspapers published on 30th January, 2003 (the “Articles”)            (including the part of the Swiss company) is expected to be
regarding the cooperation between the Company and a Swiss              several millions Hong Kong dollars, subject to finalization of
company and the possible dividend distribution. It was stated          the discussion. As such letter of intent is a non-legally
in the Articles that there was a possible investment of the            binding document and has been entered into by the Company
Company in a new joint venture with a Swiss company and                two months ago, the Directors do not consider such
there might be possible dividend distribution.                         information to be of a price-sensitive nature. Nevertheless,
                                                                       the Board would make further announcement in this regard as
At 20:09 on 27th January, 2003 and at 20:26 on 29th January,           and when necessary and required. In addition, the Directors
2003, the Directors in response to the Stock Exchange’s                do not consider their estimation on full year turnover of the
queries made on the same day stated in the teletext that they          Company, which was based upon the interim results for the
had noted the recent decrease in price of the shares of the            six months ended 30th September, 2002 announced on 2nd
Company and wished to state that they were not aware of any            January, 2003, to be of a price sensitive nature and to be a
reasons for such decrease. The Directors also confirmed that           profit forecast for the year ending 31st March, 2003. The
there were no negotiations or agreements relating to intended          Directors do not consider that there was any causal link
acquisitions or realizations which were discloseable under             between the holding of the press interview on 29th January,
paragraph 3 of the Listing Agreement, neither was the Board            2003 and the decrease in the price of the Shares on that day
aware of any matter discloseable under the general obligation          and therefore has not stated such letter of intent and the
imposed by paragraph 2 of the Listing Agreement, which was             interview in its teletext alert on 29th January, 2003.
or might be of a price-sensitive nature.
The Company was arranged an interview (“Interview”) with               Further, the Board confirmed that it has not decided as to
reporters of various newspapers at around 11:00 on 29th                whether or not the Company would declare any dividend for
January, 2003. During the Interview, Mr. Poon Sum                      the year ending 31st March, 2003, which is subject to a
mentioned that a letter of intent was entered into between the         number of factors including, but not limited to, financial
Company and a Swiss company, an independent third party                performance of the Company for the year ended 31st March,
not connected with any Director, chief executive or                    2003 and its cash position as at the financial year end.
substantial shareholder of the Company or any of its                   General
subsidiaries, or associate of any of them, on 27th November,
2002 regarding technological support with respect to                   Nevertheless, the Stock Exchange has informed the
production of non-stick paints for use in home appliances.             Company that it will consider whether there has been a
Depending on the performance and progress of such                      breach of paragraph 2 of the Listing Agreement on the
technological support cooperation, the Company might                   part of the Company by selectively disclosing price
consider to explore further cooperation with such Swiss                sensitive information to the press on 29th January, 2003
company in future including establishing a joint venture               and whether the teletext announcement made on 29th
company, the discussion of which may possibly commence                 January, 2003 was misleading. The Stock Exchange
after Chinese New Year.                                                reserves the right to take action against the Company
                                                                       and/or its directors for any breach of the Listing Rules.
During the Interview, Mr. Poon Sum was asked how the
business of the Group would be for the financial year ending           The Board has noted the recent movement in the price of the
31st March, 2003. He answered that based on the interim                share of the Company and confirm that, save as disclosed as
results for the six months ended 30th September, 2002, it was          above, there are no negotiations or agreements relating to
expected that the Company would achieve a double digit                 intended acquisitions or realizations which are discloseable
growth in turnover for the whole year.                                 under paragraph 3 of the Listing Agreement, neither is the
                                                                       Board aware of any matter discloseable under the general
During the Interview, Mr. Poon Sum was asked whether the               obligation imposed by paragraph 2 of the Listing Agreement,
Company would propose any dividend payment. He replied                 which is or may be of price-sensitive nature.
that the Company would consider dividend distribution but
yet to determine depending on a number of factors including            In the meantime, shareholders and public investors are
the financial position and performance and future plan of the          urged to exercise extreme caution in dealing in the
Group. Mr. Poon Sum only said that should there be                     securities of the Company, and are recommended to
declaration of dividend at the year end, the Company would             consult their own professional advisers if they are in
try to determine the dividend policy with reference to that as         doubt as to their investment position.
disclosed in the prospectus (the “Prospectus”) of the
Company dated 31st October, 2002. It was stated in the                 At the request of the Company, trading in the securities of the
Prospectus that assuming the Company had been a listed                 Company on the Stock Exchange was suspended from
company for the entire year ended 31st March, 2002, the                10:22a.m. on 30th January, 2003 pending release of this
Directors would have recommended a dividend of                         announcement. The Company has made an application to the
approximately HK$0.02 per share of the Company for the                 Stock Exchange for the resumption of trading in the
entire year ended 31st March, 2002, which would represent              securities of the Company following publication of this
a prospective yield of approximately 4.0% based on the offer           announcement with effect from 9:30a.m. on 5th February,
price of HK$0.50.                                                      2003.
                                                                                                             By order of the Board
Clarification                                                                                                       Poon Sum
The Board hereby wishes to clarify that the Company has not                                                         Chairman
reached any agreement or understanding with the Swiss                  Hong Kong, 4th February, 2003

				
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