WAH YIK HOLD<0862> - 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.

WAH YIK HOLDINGS COMPANY LIMITED
(incorporated in Cayman Islands with limited liability)

ANNOUNCEMENT

POSSIBLE FAILURE TO COMPLY WITH THE PUBLIC FLOAT REQUIREMENT

Summary

As at 27 July 1999, the issued share capital of Wah Yik Holdings Company 
Limited (the "Company") comprised 200,000,000 shares (each a "Share") of 
HK$0.10 each in the capital of the Company. It has come to the attention 
of the directors (the "Directors") of the Company that the 50,000,000 
Shares (the "Public Shares") in the issued share capital of the Company 
and which are not held by Jun Jing Developments Limited, the controlling 
shareholder of the Company were concentrated in the hands of 5 
shareholders (the "Public Shareholders"). The Public Shares represent 
25 per cent. of the issued share capital of the Company. As at 27 July 
1999, the largest Public Shareholder was interested in approximately 9.2 
per cent. of the issued share capital of the Company and the three largest 
Public Shareholders were interested in approximately 21 per cent. of the 
issued share capital of the Company. 

The Directors are mindful to ensure that the Company is in compliance with 
the requirement (the "Public Float Requirement") as set out in Rule 8.08 
of the Rules Governing the Listing of Securities on The Stock Exchange of 
Hong Kong Limited (the "Stock Exchange") which provides that not less than 
25 per cent. of the Shares must be in the hands of the public. 
Accordingly, the Company will conduct an investigation under section 18 of 
the Securities (Disclosure of Interests) Ordinance, Chapter 396 of the 
laws of Hong Kong, into whether or not the Company is in compliance with 
the Public Float Requirement.

The Company has been informed by the Stock Exchange that it will monitor 
closely all trading in the Shares to ensure that an open market exists for 
the Shares and will suspend the trading in the Shares promptly if there is 
any unusual price movement.

The Company will inform the public of the results of the above 
investigation as soon as practicable following its completion.

In the meantime, shareholders and public investors should exercise caution 
in dealing in the shares of the Company.

As at 27 July 1999, the issued share capital of the Company comprised 
200,000,000 Shares (each a "Share"). As at 27 July 1999, controlling 
shareholder of the Company, Jun Jing Developments Limited, was interested 
in 150,000,000 Shares, representing 75 per cent. of the issued share 
capital of the Company. The Company has been advised by Jun Jing that 
on 8 June 1999, 120,000,000 Shares beneficially owned by Jun Jing were 
pledged in favour of a financial institution to secure a loan for the 
amount of HK$25 million granted by such financial institution to Jun Jing 
for its own investment and working capital purposes.

It has come to the attention of the Directors that the Public Shares 
(representing 25 per cent. of the issued share capital of the Company) 
were concentrated in the hands of the Public Shareholders . As at 27 July 
1999, the largest Public Shareholder was interested in approximately 9.2 
per cent. of the issued share capital of the Company and the three largest 
Public Shareholders were interested in approximately 21 per cent. of the 
issued share capital of the Company. 

The Directors are mindful to ensure that the Company is in compliance with 
the Public Float Requirement. The Directors consider that it is in the 
interests of the Company and its shareholders to ensure that the Public 
Shares are held in the hands of the public. Accordingly, the Company will 
conduct an investigation under section 18 of the Securities (Disclosure of 
Interests) Ordinance, Chapter 396 of the laws of Hong Kong into whether or 
not the Company is in compliance with the Public Float Requirement.

The Company has been informed by the Stock Exchange that it will monitor 
closely all trading in the Shares to ensure that an open market exists for 
the Shares and will suspend the trading in the Shares promptly if there is 
any unusual price movement.

The Company will inform the public of the results of the above 
investigation as soon as practicable following its completion.

In the meantime, shareholders and public investors should exercise caution 
in dealing in the shares of the Company.

By order of the board of directors of
Wah Yik Holdings Company Limited
Hui Mang Mang
Chairman

Hong Kong, 28 August 1999

* For identification only