 Sino's Comments: Re: Wong Tai Seen Temple (WTS) Successful Opening: Earnings Upgrade Pending Please find attached an announcement made by Canada Land Ltd (CDL) on the official opening ceremony of the Wong Tai Seen Temple held on 6 February, 1999. We are pleased with the successful opening of WTS and particularly prior to the commencement of the Chinese New Year celebrations. We are confident that visitations to WTS will significantly improve during the Chinese New Year holiday period. The exposure WTS will receive from the opening and leading up to the Chinese New Year period will underpin CDL's memorial plate marketing efforts. With the successful opening of WTS, CDL can now concentrate on the sale of the memorial plates which will begin in March. The key to the recovery of the company's earnings, in our opinion, is the commencement of the memorial plate sale. The very impressive number of paid visitations, 30,000 on day two, indicates that entrance fee may become an important contributor to WTS' total revenue. In our previous earnings projections, we had not allowed for any contribution to revenue other than from the memorial plate sale. Although we do not expect a significant contribution from WTS in the current financial year ending 31 March, 1999, we forecast a profitable 1999/2000 financial year. WTS will provide CDL with a significant and recurring source of earnings over the next several years. In view of the very successful opening of WTS, we are considering upgrading our earnings estimate of A$2 million for the financial year ending 31 March, 2000. We will advise clients when our next research update on CDL becomes available. STRONG BUY is recommended at current prices. ASX Announcement: Wong Tai Seen Temple opened The Canada Land Limited Group of companies is pleased to announce that the Wong Tai Seen Temple, Guangzhou, which has been under construction since November 1997, was officially and successfully opened on February 6, 1999. This achievement by Canada Land marks the completion of the first Temple to be constructed in China with overseas investment since 1949. Those familiar with Chinese culture will understand particularly the importance of Wong Tai Seen to the Chinese people at all times, but in particular at Chinese New Year and other festivals throughout the year. Some 800 invited guests attended the official Opening Ceremony, including distinguished guests from overseas, Hong Kong, and the People's Republic of China. The Temple was opened to the general public after the Opening Ceremony. According to the Police Department responsible for security there were an estimated 100,000 visitors on the first day. On the following day an entrance fee of RMB-Yen-2 per adult was charged and some 30,000 paid visitors were recorded. The success of the opening of Wong Tai Seen bodes well for even more additional community interest in Wong Tai Seen for the forthcoming Chinese New Year which will commence on February 16, 1999. Before the Opening Ceremony a "First Incense Burning" ritual was performed, Donations to charity totalling RMB-Y-500,000 (A$95,000) were received and this was distributed to a hospital and an old people's home during the Opening Ceremony. The Temple has been designated as one where religious activities can be carried out in accordance with all the beliefs of Taoism, Buddhism and Confucianism. It is customary for people to place memorial plates in such a Temple so as to be able to pay their respects to their ancestors. The sale of these memorial plates will begin in March 1999. The opening of Wong Tai Seen has been widely covered by news media (television, newspapers and magazines) both in China and in Hong Kong. Wong Tai Seen is quickly establishing itself as a landmark tourist destination for both local and overseas visitors to Guangzhou.
R N Ling Li
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