09:34     CHENGDU PUTIAN<01202> - 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.                   
                                                                              
    Chengdu PUTIAN Telecommunications Cable Company Limited                   
    (a sino-foreign joint stock limited company incorporated in the           
    People's Republic of China with limited liability)                        
                                                                              
    (Stock Code: 1202)                                                        
                                                                              
    Change of controlling shareholder                                         
                                                                              
    The Company was notified by China PUTIAN, the controlling shareholder     
    of the Company, that as part of its internal restructuring, China         
    PUTIAN has entered into the Agreement on 21 January 2005 with CPCL, a     
    wholly-owned subsidiary of China PUTIAN. Under the Agreement, China       
    PUTIAN will transfer all of its shareholding in the Company, amounting    
    to 60% of the issued share capital of the Company, to CPCL at no          
    consideration. Accordingly, the Share Transfer will result in a change    
    in the immediate controlling shareholder of the Company from China        
    PUTIAN to CPCL. As CPCL is wholly-owned by China PUTIAN, there is no      
    change in the ultimate beneficial ownership of the 60% shareholding       
    interest in the Company as a result of the Share Transfer.                
                                                                              
    The Securities and Futures Commission of Hong Kong confirmed to the       
    Company on 4 January 2005 that an obligation on CPCL to make a general    
    offer for the shares in the Company under Rule 26.1 of the Code on        
    Takeovers and Mergers as a result of the Share Transfer is waived         
    pursuant to Note 6(a) to such rule.                                       
                                                                              
    The Board wishes to inform the Shareholders and the public the change     
    of the immediate controlling shareholder of the Company.                  
                                                                              
    BACKGROUND                                                                
                                                                              
    China PUTIAN, which was the immediate controlling shareholder of the      
    Company before the Share Transfer, is currently implementing an           
    internal restructuring. As part of such internal restructuring, the 60    
    % issued share capital of the Company originally held by China PUTIAN     
    will be transferred to CPCL.                                              
                                                                              
    The shareholding structures of the Company immediately before the         
    Share Transfer are as follows:                                            
                                                                              
    PRC State                                                                 
    100%                                                                      
    China PUTIAN H Shares shareholders                                        
    60% 40%                                                                   
    Company                                                                   
                                                                              
    THE SHARE TRANSFER                                                        
                                                                              
    The Company was notified by China PUTIAN that as part of its internal     
    restructuring, China PUTIAN has entered into the Agreement on 21          
    January 2005 with CPCL, a wholly-owned subsidiary of China PUTIAN.        
    Under the Agreement, China PUTIAN will transfer all of its                
    shareholding in the Company, amounting to 60% of the issued share         
    capital of the Company, to CPCL at no consideration. Accordingly, the     
    Share Transfer will result in a change of the immediate controlling       
    shareholder of the Company from China PUTIAN to CPCL.                     
                                                                              
    The shareholding structures of the Company immediately after the Share    
    Transfer will be as follows:                                              
                                                                              
    PRC State                                                                 
    100%                                                                      
    China PUTIAN                                                              
    100%                                                                      
    CPCL H Shares shareholders                                                
    60% 40%                                                                   
    Company                                                                   
                                                                              
    As CPCL is wholly-owned by China PUTIAN, there is no change in the        
    ultimate beneficial ownership of the 60% shareholding interest in the     
    Company as a result of the Share Transfer. The Company will continue      
    to be engaged in the manufacture and sale of various types of             
    telecommunications cables (including different types of copper            
    cables), optical fibres, cable joining sleeves, as well as equipment,     
    manufacturing parts and materials for the production of cables.