09:07     CITIC 21CN<00241> - Announcement & Resumption of Trading (2)        

    with effect from 2:30 p.m. on 17 January 2005 pending                     
    the release of this announcement. Application has                         
    been made by the Company for the resumption of trading                    
    in its shares with effect from 9:30 a.m. on 24 January                    
    2005.                                                                     
                                                                              
    A circular containing, among others, further details                      
    of the establishment of the JV Company will be                            
    despatched by the Company to the Shareholders as soon                     
    as practicable in accordance with the Listing Rules.                      
                                                                              
    THE JV AGREEMENT                                                          
    Date                                                                      
    20 January 2005                                                           
                                                                              
    Parties                                                                   
    1.      CITIC 21CN Telecom, a wholly owned subsidiary of                  
    the Company;                                                              
                                                                              
    2.      AQSIQ. AQSIQ is a state-owned enterprise and is                   
    wholly owned by General Administration of Quality                         
    Supervision, Inspection and Quarantine of the PRC.                        
    AQSIQ and its ultimate beneficial owner(s) are                            
    independent third parties not connected with the                          
    directors, chief executives and substantial                               
    shareholders of the Company, any of its subsidiaries,                     
    and their respective associates; and                                      
                                                                              
    3.      China Huaxin Telecom. China Huaxin Telecom is                     
    wholly owned by China Telecom, a 28% shareholder of                       
    Dongfang Cutoms Technology Company Limited, which the                     
    Group holds 30% interests. China Huaxin Telecom and                       
    its ultimate beneficial owner(s) are independent                          
    third parties not connected with the directors, chief                     
    executives and substantial shareholders of the                            
    Company, any of its subsidiaries, and their                               
    respective associates.                                                    
                                                                              
    Shareholding structure of the JV Company                                  
    The JV Company will be owned as to 50% by CITIC 21CN                      
    Telecom, 30% by AQSIQ and the remaining 20% by China                      
    Huaxin Telecom.                                                           
                                                                              
    Term of the JV Company                                                    
    30 years commencing from the issuance date of the                         
    business license of the JV Company.                                       
                                                                              
    Scope of business of the JV Company                                       
    Pursuant to the JV Agreement and the articles of                          
    association of the JV Company, the scope of business                      
    of the JV Company includes development, sales,                            
    maintenance and consultation of various information                       
    technology and telecommunication products. The goal                       
    of the formation of the JV Company is to engage in                        
    the authentication service for products manufactured                      
    in the PRC through the operation of "*"                                   
     (as defined as the Quality Supervision                                   
    Platform in this announcement) which can access the                       
    databank of AQSIQ on products manufactured in the PRC.                    
    In order to carry out the authentication service as                       
    described above, the JV Company will need, among                          
    others, an ICP licence and an ISP licence. Accordingly,                   
    the JV Company will apply for such licences and                           
    expands its scope of business to reflect such                             
    operations after the JV Company is formed. This                           
    arrangement is to expedite the progress of the JV                         
    Company as the application of the abovementioned                          
    licences takes time.                                                      
                                                                              
    Total investment in the JV Company                                        
    The total investment in the JV Company will be                            
    RMB150,000,000 (equivalent to approximately                               
    HK$141,509,434). Pursuant to the JV Agreement and