CHINESE authorities were last night unsure how to transport five luxury yachts stolen from Hong Kong to the site of an official handover ceremony to the territory's police. Sources said a decision had not been reached on whether to take the boats by sea or road. It is understood they will be removed today from a port in Guangdong, where they are reported all to be in poor condition, to Shekou, a shipping town near Deep Bay. But there is concern the boats could be further damaged in this phase of the trip. A team of police and insurance agents inspected the fleet last week and were reportedly unimpressed with their seaworthiness. Because of this, once they are returned to Hong Kong, a decision will be made on whether the vessels should be renovated or put to auction. All but one of the vessels are now effectively owned by a prominent insurance company, all claims being previously settled with the owners. Last month, the Organised Crime and Triad Bureau questioned six Hong Kong men in relation to the theft of nine boats in a four-month period last year from the Aberdeen and Causeway Bay typhoon shelters. However, no charges have yet been laid. The bureau has assumed full responsibility for handling the vessels and are also in charge of marine policing arrangements. ''Our investigation is continuing,'' a police source said, ''but it is now, obviously, at a fairly sensitive stage. ''We are still actively pursuing this matter and continue to look for co-operation from the Chinese authorities.'' The boats to be returned are Cannon VIII, YY, Sea Link, Ocean Alexander and Tuk Fat. None possesses its original markings and all are said to be in poor shape.