09:39     HUALING<00382> - Announcement (4)                                   

    "Midea International"   Midea International Corporation Company           
    Limited, a company incorporated in Hong Kong with limited                 
    liability                                                                 
                                                                              
    "PRC"   The People's Republic of China                                    
                                                                              
    "Provision of OEM       the manufacture of goods by the Group for,        
    and sale                                                                  
      Goods Arrangement"    of goods by the Group to, the Midea Group         
    on an OEM (original equipment manufacturing) basis, certain               
    details of which are disclosed under the paragraph headed "The            
    Provision of OEM Goods Arrangement" of this announcement                  
                                                                              
    "RMB"   Renminbi, the lawful currency of the PRC                          
                                                                              
    "Sale and Purchase      the sale and purchase agreement dated 31          
    October                                                                   
      Agreement"    2004 and entered into between Midea International         
    and Able Profit Investment Limited in relation to the sale by             
    Able Profit Investment Limited and the purchase by Midea                  
    International of certain Shares, as referred to in the joint              
    announcement dated 3 November 2004 and issued by the Company              
    and Midea International                                                   
                                                                              
    "Share(s)"      share(s) of HK$0.10 each in the share capital of          
    the Company                                                               
                                                                              
    "Shareholder(s)"        holder(s) of the Shares                           
                                                                              
    "Stock Exchange"        The Stock Exchange of Hong Kong Limited           
                                                                              
    By order of the Board                                                     
    Hualing Holdings Limited                                                  
    Zhang Quan                                                                
    Director                                                                  
                                                                              
    Hong Kong, 4 January 2005                                                 
                                                                              
    As at the date of this announcement, the executive Directors              
    are Mr. Fang Hongbo, Mr. Liu Liang, Mr. Zhang Quan, Mr. Chen              
    Xiao Shi and Mr. Liang Wei Wen ; the non-executive Directors              
    are Mr. Li Jianwei, Ms. Yuan Liqun, Mr. Zhang Xin Hua and Mr.             
    Chen Yu Hang; the independent non-executive Directors are Mr.             
    Chan Wai Dune, Mr. Lam Ming Yung and Ms. Chen Chunhua.                    
                                                                              
    An exchange rate of HK$1 = RMB1.06 has been adopted in this               
    announcement for reference purpose only.