CIL HOLDINGS<0479> - 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.

CIL Holdings Limited
(incorporated in Bermuda with limited liability)

FURTHER DELAY IN THE PUBLICATION
OF THE RESULTS OF THE GROUP
FOR THE YEAR ENDED 30 JUNE 1999
AND
DESPATCH OF THE ANNUAL REPORT

The announcement of the final results of CIL Holdings 
Limited for the year ended 30 June, 1999 will be further 
deferred for the reasons set out below.

The delay in the publication of the audited consolidated 
final results has constituted a breach of the Listing 
Rules. In this regard, The Stock Exchange of Hong Kong 
Limited (the "Stock Exchange") has expressly reserved its 
rights to take appropriate action against the Company 
and/or the Directors. The Company will apply for the 
sanction of the Bermuda Registrar for the holding of a 
general meeting to put the affairs of the Company in order.

It is anticipated that the interim results for the period 
ended 31 December 1999 will be announced between the 
period from 29 April 2000 and 13 May 2000. This will also 
constitute a breach of the Listing Rules and the Stock 
Exchange has expressly reserved its rights to take 
appropriate action against the Company and/or the 
Directors.

Subject to the decision of the Bermuda Registrar, the 1999 
Annual General Meeting of the Company is proposed to be 
convened and held on or before 31 May 2000.

Further to our announcements of 30 November 1999, 23 
December, 1999 and 31 January 2000 respectively regarding 
the publication of the final results for the year ended 
30 June, 1999, the board of directors (the "Directors") 
of CIL Holdings Limited (the "Company", which together 
with its subsidiaries, the "Group") announces that due 
to the fact that the auditors have not yet obtained all 
the information they consider necessary for the purpose 
of finalising their audit of the Company's accounts for 
the year ended 30 June, 1999, including the confirmation 
from one client in respect of our substantial claims in 
a construction contract in particular, the final results 
for publication have been further delayed. A request 
arising from audit confirmation from such client in 
respect of an amount of approximately HK$50,000,000 was 
made in writing by a subsidiary of the Company on 4 
December 1999. The client is a construction company in 
Hong Kong.

Accordingly, it is expected that the final results for 
the year ended 30 June 1999 will be published on or before 
28 April, 2000. The annual report of the Company is 
expected to be sent to shareholders on or before 8 May, 
2000.

Since the Listing Agreement requires the annual report 
to be despatched to the Company's shareholders within 
five months of the year end, the Company is in breach of 
this requirement and the Stock Exchange has indicated 
that the extension of time will not be granted and has 
expressly reserved its rights to take appropriate action 
against the Company and/or the Directors for such breach. 

The Company has received legal advice from Bermuda 
lawyers to the extent that the failure to hold a 1999 
Annual General Meeting no later than 31 March 2000 (at 
which the results of the Group for the year ended 30 June 
1999 would be expected to be considered) will constitute 
a breach of the Bye-Laws of the Company. The Company will 
take steps to apply for the sanction of the Registrar
of Companies in Bermuda ("Bermuda Registrar") for the 
holding of a general meeting to put the affairs of the 
Company in order, as the holding of an Annual General 
Meeting after 31 March, 1999 is beyond the statutory time 
set by the Companies Act 1981 of Bermuda (as amended). 
Upon receipt of such an application, the Bermuda 
Registrar may in its discretion make an order allowing 
the application under such conditions as it deems fit to 
impose, including ordering the date by which the affairs 
of the Company shall be put in order.

Subject to the outcome of the application with the Bermuda 
Registrar, the 1999 Annual General Meeting of the Company 
is proposed to be convened and held on or before 31 May 
2000. 

The Directors are of the view that as more resources of 
the Group should be diverted in concentrating the 
completion of the final results, it is also anticipated 
that the interim results of the Company for the period 
ended 31 December 1999 will have to be delayed and will 
be announced between the period from 29 April 2000 and 
13 May 2000. This will also constitute a breach of the 
Listing Rules and the Stock Exchange has expressly 
reserved its rights to take appropriate action against 
the Company and/or the Directors.

The Directors acknowledge that a director dealt in the 
Shares of the Company on 24 January 2000 and that such 
dealing constituted a breach of the undertakings given 
in the Company's announcements dated 30 November 1999 and 
21 January 2000 respectively. In this connection, the 
Stock Exchange has indicated that it reserved the right 
to take appropriate actions against the Company and/or 
the Directors for such breach. The Directors have not 
dealt in any Shares since 25 January 2000 and undertake 
to the Stock Exchange that they will not deal in any Shares 
until the audited consolidated final results for the year 
ended 30 June 1999 and the interim results for the period 
ended 31 December 1999 are published.

In the meantime, shareholders and investors are urged to 
exercise extreme caution in dealing in the shares of the 
Company.

By Order of the Board
CIL Holdings Limited
Joseph Szeto
Chairman and Managing Director
Hong Kong, 14 March 2000