09:58     JIAODA HIGHTECH<00300> - 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.                                                     
                                                                              
    JIAODA KUNJI HIGH-TECH COMPANY LIMITED                                    
    (A joint stock limited company incorporated in the                        
    People's Republic of China with limited liability)                        
    (Stock Code: 0300)                                                        
                                                                              
    DISCLOSEABLE TRANSACTION                                                  
                                                                              
    FORMATION OF EQUITY JOINT                                                 
    VENTURE COMPANY                                                           
                                                                              
    The Directors announce that on 27 January 2005, the                       
    Company and Tos Varnsdorf, A.S. entered into the JV                       
    Agreement to establish the JV Company for the purpose                     
    of research & development, production, assembly,                          
    sales and servicing of certain models of horizontal                       
    boring and milling machines identified under the JV                       
    Agreement.                                                                
                                                                              
    To the best of the Directors' knowledge, information                      
    and belief and having made reasonable enquiry, Tos                        
    Varnsdorf, A.S. and its ultimate beneficial owners                        
    are third parties independent of and are not connected                    
    with the Company and its connected persons.                               
                                                                              
    Pursuant to the JV Agreement, JV Company's registered                     
    capital shall be Euro5,000,000 (approximately                             
    RMB54,000,000). The JV Company shall be owned as to                       
    50% by the Company and as to 50% by Tos Varnsdorf,                        
    A.S. Each of the investment parties shall contribute                      
    Euro2,500,000 respectively. The Company shall                             
    contribute its share of the registered capital in the                     
    form of construction, specialized equipment,                              
    fixtures and tools, measuring equipment and office                        
    facilities amounting in aggregate to Euro1,640,000                        
    (approximately RMB17,712,000) and Euro860,000                             
    (approximately RMB9,288,000) in cash.                                     
                                                                              
    The establishment of the JV Company by the Company                        
    and Tos Varnsdorf, A.S. exceeds 5% but is less than                       
    25% of the percentage ratios calculations and,                            
    accordingly, constitutes a discloseable transaction                       
    for the Company under Rule 14.06(2) of the Listing                        
    Rules.                                                                    
                                                                              
    A circular containing details of the JV Agreement will                    
    be dispatched to shareholders of the Company within                       
    21 days after the publication of this announcement.                       
                                                                              
    TERMS OF THE JOINT VENTURE                                                
    Date: 27 January 2005                                                     
                                                                              
    Parties:                                                                  
    I.      The Company                                                       
    II.     Tos Varnsdorf, A.S.                                               
                                                                              
    Purpose of the joint venture:                                             
    The JV Company will be established as a joint venture                     
    for the purpose of research & development, production,                    
    assembly, sales and servicing of the following models                     
    of horizontal boring and milling machines identified                      
    by the Parties:                                                           
                                                                              
    (1)     Planning and desk type horizontal boring and