09:07     CITIC 21CN<00241> - Announcement & Resumption of Trading (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.                                                     
                                                                              
    CITIC 21CN COMPANY LIMITED                                                
    (incorporated in Bermuda with limited liability)                          
    (Stock code: 241)                                                         
                                                                              
    DISCLOSABLE TRANSACTION                                                   
                                                                              
    FORMATION OF JOINT VENTURE WITH AQSIQ                                     
    AND CHINA HUAXIN TELECOM                                                  
                                                                              
    The Board is pleased to announce that on 20 January                       
    2005, CITIC 21CN Telecom, a wholly owned subsidiary                       
    of the Company, entered into a JV Agreement with AQSIQ                    
    and China Huaxin Telecom, pursuant to which CITIC 21CN                    
    Telecom, AQSIQ and China Huaxin Telecom agreed to                         
    establish the JV Company with an intention to engage                      
    in, among others, the authentication service for                          
    products manufactured in the PRC. The JV Company will                     
    be owned as to 50% by CITIC 21CN Telecom, 30% by AQSIQ                    
    and the remaining 20% by China Huaxin Telecom. Upon                       
    its establishment, the JV Company will become a                           
    jointly controlled entity of the Company and will be                      
    partially consolidated into the accounts of the Group                     
    in accordance with its shareholding in the JV Company.                    
                                                                              
    Pursuant to the JV Agreement, the registered capital                      
    of the JV Company will be RMB60,000,000 (equivalent                       
    to approximately HK$56,603,774), of which                                 
    RMB30,000,000 (equivalent to approximately                                
    HK$28,301,887) will be contributed by CITIC 21CN                          
    Telecom in cash, RMB18,000,000 (equivalent to                             
    approximately HK$16,981,132) will be contributed by                       
    AQSIQ in cash, to be advanced by the Group on behalf                      
    of AQSIQ, and the remaining RMB12,000,000 (equivalent                     
    to approximately HK$11,320,755) will be contributed                       
    by China Huaxin Telecom in cash. The entire capital                       
    contributions shall be fully paid up within one month                     
    from the issuance date of the business license of the                     
    JV Company. Total investment of the JV Company will                       
    be RMB150,000,000 (equivalent to approximately                            
    HK$141,509,434).                                                          
                                                                              
    To the best of the Directors' knowledge, information                      
    and belief and having made all reasonable enquiries,                      
    AQSIQ and China Huaxin Telecom, and their ultimate                        
    beneficial owners are independent third parties not                       
    connected with the directors, chief executives or                         
    substantial shareholders of the Company or any of its                     
    subsidiaries or their respective associates.                              
                                                                              
    As the Company's portion of the registered capital                        
    of the JV Company exceeds 5% of the total assets of                       
    the Group, the formation of the JV Company constitutes                    
    a disclosable transaction of the Company under                            
    Chapter 14 of the Listing Rules.                                          
                                                                              
    The JV Agreement is subject to the conditions which                       
    may or may not be fulfilled and the establishment of                      
    the JV Company may or may not be completed, and even                      
    if completed, may be terminated if certain events                         
    occur. Shareholders and potential investors of the                        
    Company are reminded to exercise caution when dealing                     
    in securities of the Company.                                             
                                                                              
    Trading in the shares in the CITIC 21CN on the Stock                      
    Exchange was suspended at the request of the Company