09:49     SHELL ELECTRIC<00081> - Announcement (1)                            

    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.                                                     
                                                                              
    SHELL ELECTRIC MFG. (HOLDINGS) COMPANY LIMITED                            
    *                                                                         
    (incorporated in Hong Kong with limited liability                         
    under the Companies Ordinance)                                            
    (Stock Code: 81)                                                          
                                                                              
    DISCLOSEABLE TRANSACTION                                                  
    ACQUISITION OF SHARES IN YUE TIAN DEVELOPMENT LIMITED                     
    GENERAL DISCLOSURE UNDER RULE 13.13 OF THE LISTING                        
    RULES                                                                     
                                                                              
    The Board announces that on 7 January 2005, the                           
    Purchasers, being Allright Investments, an indirect                       
    wholly-owned subsidiary of the Company, Red Empire                        
    and Wise Gain, the Vendor and the Warrantor entered                       
    into the Acquisition Agreement, pursuant to which the                     
    Purchasers have agreed to acquire a total of 75% of                       
    the issued share capital of Yue Tian from the Vendor.                     
    The Sale Shares to be acquired by Allright Investments                    
    represent 20% of the issued share capital of Yue Tian                     
    and the Consideration payable by Allright Investments                     
    for the Sale Shares shall be HK$3,814,400 which will                      
    be satisfied entirely in cash.                                            
                                                                              
    Simultaneously with the execution of the Acquisition                      
    Agreement, Allright Investments and Yue Tian have                         
    entered into the Loan Agreement, pursuant to which                        
    Allright Investments has agreed to advance the Loan                       
    in the sum of HK$60 million to Yue Tian.                                  
                                                                              
    Particulars of the Acquisition Agreement and the Loan                     
    Agreement are respectively set out in the paragraphs                      
    headed "Acquisition Agreement" and "Loan Agreement"                       
    of this announcement.                                                     
                                                                              
    The Acquisition constitutes a discloseable                                
    transaction of the Company under the Listing Rules                        
    and the Loan constitutes an advance to an entity which                    
    exceeds 8% of the market capitalisation of the Company                    
    in accordance with Rule 13.13 of the Listing Rules.                       
    Accordingly, the Acquisition and the Loan are subject                     
    to the disclosure requirements under the Listing                          
    Rules. A circular containing further information on                       
    the Acquisition and other relevant information will                       
    be despatched to the Shareholders for their                               
    information as soon as possible.                                          
                                                                              
    ACQUISITION AGREEMENT                                                     
                                                                              
    The principal terms of the Acquisition Agreement are                      
    as follows:                                                               
                                                                              
    Date                                                                      
                                                                              
    7 January 2005                                                            
                                                                              
    Parties                                                                   
                                                                              
    Vendor: Poly Tianyu (Guangzhou) Limited                                   
                                                                              
    Purchasers:     (1)     Red Empire                                        
    (2)     Wise Gain                                                         
    (3)     Allright Investments, an indirect