RNS Number:9449L
Pokphand (C.P.) Co Ltd
05 June 2003


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.

                             C.P. Pokphand Co. Ltd.

                (Incorporated in Bermuda with limited liability)

                                  Announcement

The Directors of the Company report on the adverse impact of SARS-related and
other factors affecting the Group's business activities and operating 
environment in Mainland China.

Shareholders and potential investors in the Company are advised to exercise
caution when dealing in the shares of the Company.

This announcement is made pursuant to paragraph 2 of the Listing Agreement.

Following the review of the recent business activities of and operating
environment affecting C.P. Pokphand Co. Ltd. ("Company") and its subsidiaries
and joint ventures in Mainland China (together the "Group"), the directors of
the Company ("Directors") would like to draw the attention of the shareholders
of the Company and the public to the following developments which may be
material in their appraisal of the position of the Group:

1.  The Group is principally engaged in the trading of agricultural
products, feedmill and poultry operations, the manufacturing and sale of
motorcycles and accessories for automotives and property and investment holding.
The outbreak of severe acute respiratory syndrome ("SARS") in part of Mainland
China has had an adverse effect on the Group's agri-businesses operating across
the country. The turnover of the Group's agri-business operations in the PRC
accounted for approximately 91.8% of the total turnover of the Group for the
year ended 31st December, 2002. The business-related travelling of our
purchasing and sales staff, the movement of raw materials required for
production and the delivery of the finished feeds, poultry and meat products of
these businesses have been suffering interruption at some locations and sales
have also been retarded due to lowered consumption. These adverse factors have
complicated an already challenging operating environment due to the increased
costs of the raw materials required for feed production since December 2002. As
a result, these businesses are experiencing declining gross margins and the
dividend stream emanating from these businesses to their holding companies and,
ultimately, the Company has been curtailed.

The severity of the overall impact of the SARS outbreak on the Group's business
operation and its financial position cannot presently be accurately assessed as
external factors such as how soon the SARS outbreak can be entirely brought
under control in Mainland China will be decisive.

2.  The Group's wholly-owned operation in Qingdao in Shandong province
engaged in the production and sale of animal feeds, chickens and processed meat
suffered a severe fire in April 2003 which resulted in the closure of its meat
further processing plant. The net profit of such wholly-owned operation for the
year ended 31st December, 2002 amounted to approximately RMB1.9 million. Based
on presently available information, the Directors have assessed the total loss,
after allowance for the proceeds estimated to be recoverable from insurance
claims, to amount to some RMB26 million. The actual amount of such total loss
will be reflected in the financial statements of the Group for the year ending
31st December, 2003. The Directors expect the production of the further
processed meat to be resumed in full scale by the end of the first quarter in
2004.

3.  Japan has since 12th May, 2003 re-introduced an import ban on poultry
products from Mainland China. The ban was first introduced in June 2001 and was
later lifted in August 2001. On 13th May, 2003, the Japanese authorities further
announced that a short list of Mainland Chinese enterprises from which imports
of processed poultry meat were allowed on a limited basis. Although one of the
subsidiaries in the Group is on the list, the latest move by the Japanese
authorities will adversely affect the Group's chicken meat export business, for
which Japan has represented the primary market. For the year ended 31st
December, 2002, approximately 3.6% of the Group's total sales was attributable
to the sales of poultry products to the Japanese market.


The Company will keep its shareholders and the market informed on any material
developments as and when required in accordance with the disclosure obligations
under the Listing Rules.

Shareholders and potential investors in the Company are advised to exercise
caution when dealing in the shares of the Company.


                             By Order of the Board

                              Dhanin Chearavanont

                      Chairman and Chief Executive Officer


Hong Kong, 3rd June, 2003





                      This information is provided by RNS
            The company news service from the London Stock Exchange

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