09:14     GUANGZHOU SHIP<00317> - Announcement                                

    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.                   
                                                                              
    Guangzhou Shipyard Intl' Co., Ltd.                                        
    (a joint stock company with limited liability incorporated in the         
    People's Republic of China)                                               
    Stock Code: 0317                                                          
                                                                              
    ANNOUNCEMENT                                                              
                                                                              
    The Stock Exchange has granted the Company a conditional waiver from the  
    strict compliance with Rule 3.24 of the Listing Rules for a period of 3   
    years from 31 December 2004.                                              
                                                                              
    The Stock Exchange of Hong Kong Limited ("Stock Exchange") has granted    
    Guangzhou Shipyard International Company Limited ("Company") a            
    conditional waiver from the strict compliance with Rule 3.24 of the       
    Rules Governing the Listing of Securities on the Stock Exchange           
    ("Listing Rules") for a period of 3 years from 31 December 2004.          
                                                                              
    According to Rule 3.24 of the Listing Rules, the Company must ensure      
    that, at all times, it employs on a full time basis an individual whose   
    responsibility includes oversight of the Company and its subsidiaries in  
    connection with its financial reporting procedures and internal           
    controls and compliance with the requirements under the Listing Rules     
    with regard to financial reporting and other accounting related issues.   
    Such individual must be a member of the senior management of the          
    Company, and must be a qualified accountant and a fellow or associate     
    member of the Hong Kong Society of Accountants (now known as Hong Kong    
    Institute of Certified Public Accountants ("HKICPA")) or a similar body   
    of accountants recognized by the HKICPA for the purpose of granting       
    exemptions from the examination requirement for membership of the HKICPA  
    ("HKICPA Qualifications").                                                
                                                                              
    Mr. Zeng Xiangxin ("Mr. Zeng"), the chief accountant of the Company,      
    meets all the requirements of qualified accountant of the Company as set  
    out in Rule 3.24 of the Listing Rule, except he does not possess the      
    HKICPA Qualifications. The Company will therefore engage Mr. Li Chi Sing  
    ("Mr. Li"), a practicing member of HKICPA, to assist Mr. Zeng in the      
    discharge of the duties in the oversight of the Company's financial       
    reporting procedures and internal controls.                               
                                                                              
    Subject to the arrangement as mentioned above being in place, the Stock   
    Exchange has granted a waiver from the strict compliance with Rule 3.24   
    of the Listing Rules in favor of the Company. The waiver granted by the   
    Stock Exchange will cease on the earliest of (i) 31 December 2007; (ii)   
    the date Mr. Lis' service contract terminates; or (iii) the date when     
    Mr. LI is no longer able to assist Mr. Zeng. In any of the situations     
    mentioned, the Company is required to immediately inform the Stock        
    Exchange and take remedial steps to comply with Rule 3.24 of the Listing  
    Rules.                                                                    
                                                                              
    By Order of the Board                                                     
    Guangzhou Shipyard Intl' Co., Ltd.                                        
    Li Zhidong                                                                
    Company Secretary                                                         
                                                                              
    Guangzhou, January 17 2005                                                
                                                                              
    As at the date of this announcement, the Board of Directors of the        
    Company is composed of eleven directors, namely executive directors       
    Messrs. Hu Guoliang, Yu Baoshan, Han Guangde, Wang Yi, non-executive      
    directors Messrs. Zhong Jian, Li Junfeng, Miao Jian, and independent      
    non-executive directors Messrs. Wu Fabo, Bu Miaojin, David Hon To, Yu     
    and Philip Pak Yiu, Yuen.