09:41     NE ELECTRIC<00042> - 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 however arising from or in reliance upon the      
    whole or any part of the contents of this announcement.                   
                                                                              
    Northeast Electric Development Co., Ltd                                   
                                                                              
    (A joint stock limited company incorporated in the People's Republic      
    of China with limited liability)                                          
    (Stock Code: 0042)                                                        
                                                                              
    POSTPONEMENT IN DESPATCH OF CIRCULAR IN RELATION TO                       
    MAJOR TRANSACTION:                                                        
    SALE OF JINZHOU POWER CAPACITORS LIMITED                                  
                                                                              
    The despatch of the Circular will be postponed from 20 January 2005 to    
    on or before 3 February 2005.                                             
                                                                              
    Reference is made to the announcement dated 29 December 2004 by the       
    Company in relation to the Major Transaction: Sale of Jinzhou Power       
    Capacitors Limited (the "Announcement"). Unless the context otherwise     
    requires, terms used herein shall have the same meanings as defined in    
    the Announcement.                                                         
                                                                              
    Pursuant to Rule 14.38 of the Listing Rules, the Company is required      
    to despatch a circular in relation to the Major Transaction: Sale of      
    Jinzhou Power Capacitors Limited (the "Circular") to its shareholders     
    within 21 days after the publication of the Announcement, which is 20     
    January 2005. However, since more time is needed for the Company and      
    its  auditors to prepare the financial information which will be set      
    out in the Circular, including the indebtedness statement and the         
    statement as to sufficiency of working capital, the finalization of       
    the Circular has accordingly been impeded and the despatch of the         
    Circular will be postponed. After taking into account the time needed     
    for the Company and its auditors to prepare the aforesaid information     
    and the time needed for bulk printing, the Company has applied to the     
    Stock Exchange for a waiver from strict compliance with Rule 14.38 of     
    the Listing Rules and extension of the deadline for the despatch of       
    the Circular on or before 3 February 2005.                                
                                                                              
    The date of the extraordinary general meeting will be postponed in        
    accordance with the articles of the Company and the PRC laws. Separate    
    notice of extraordinary general meeting will be made in due course.       
    Details of the extraordinary general meeting will be set out in the       
    Circular.                                                                 
                                                                              
    By Order of the Board of                                                  
    NORTHEAST ELECTRIC                                                        
    DEVELOPMENT CO., LTD.                                                     
    Qu Lin                                                                    
    Chairman                                                                  
                                                                              
    Hong Kong, 20 January 2005                                                
                                                                              
    As at the date of this announcement, the Board comprises of (1)           
    Executive Directors: Qu Lin, Wang Shou Guan, Tian Li, Zhang Bin, Su       
    Wei Guo, Li Hong Liang, Liu Qing Min, Niu Wen Jun; (2) Independent Non    
    -Executive Directors: Lin Wenbin, Gao Chuang, Kang Jinjiang, Liang        
    Jie, Liu Hongguang.