09:11     WING SHAN INT'L<00570> - Announcement (3)                           

    The Company was aware that the disclosure obligations pursuant            
    to Rules 13.13, 13.14 and 13.15 of the Listing Rules in connection        
    with the relevant trade receivables arose immediately after the           
    new Listing Rules came into effect on 31 March 2004.  However,            
    as the trade receivables were interest-free and unsecured, the            
    Company inadvertently believed that only the total assets test            
    (but not the consideration test) pursuant to Rule 14.07 of the            
    Listing Rules was applicable. Since (i) the amount of relevant            
    trade receivables during the period from 31 March 2004 to the             
    date of this announcement represented less than 8% of the Group's         
    total assets value of approximately HK$2,259,685,000 as shown             
    in the Company's latest published annual report for the year              
    ended 31 December 2003; and (ii) prior to 31 March 2004,  no              
    corresponding disclosure obligation had arisen in connection              
    with the relevant trade receivables pursuant to the then Listing          
    Rules, the Company was genuinely but inadvertently of the view            
    that the relevant trade receivables were exempt from the                  
    disclosure requirements under the new Listing Rules.                      
                                                                              
    The Directors intend to further enhance the Company's internal            
    control by improving the staff training programme and arranging           
    technical seminars for the Directors and senior management so             
    as to familiarize them with the Listing Rules requirements                
    regarding general disclosure obligations in order to ensure that          
    the Company will continue to comply with the Listing Rules.               
                                                                              
    Save as disclosed above, as at the date of this announcement,             
    the Company does not have any other disclosure obligations under          
    Rules 13.13, 13.14 and 13.15 of the Listing Rules.  The Company           
    further confirms that as at the date of this announcement, the            
    Company does not have any disclosure obligations under Rule 13.16         
    of the Listing Rules.                                                     
                                                                              
    The Company will ensure its due compliance with the continuing            
    disclosure obligations under Rule 13.20 of the Listing Rules              
    in its subsequent interim and annual reports.                             
                                                                              
    Owing to the misapprehension of the applicable test in respect            
    of the trade receivables, the Company failed to release an                
    announcement pursuant to Rules 13.13, 13.14 and 13.15 of the              
    Listing Rules in a timely manner.  The Stock Exchange reserves            
    its rights to take appropriate action against the Company and/or          
    the Directors.                                                            
                                                                              
    General                                                                   
                                                                              
    The principal activities of the Group are the generation and              
    sale of electricity in Foshan City, Guangdong Province, the PRC.          
                                                                              
    The Group has well-established business relationship with                 
    Guangdong Guan-Dian which is the Group's sole customer.  Due to           
    persistent strong demand of electricity in Foshan City, the               
    relevant trade receivables had increased in line with the                 
    increase in sales of electricity to Guangdong Guan-Dian last              
    year.  The relevant trade receivables comprised account                   
    receivables arose solely from the sales of electricity to                 
    Guangdong Guan-Dian by the Group in its ordinary course of                
    business.  The relevant trade receivables are interest-free,              
    unsecured and with credit terms of 30 days and with average               
    settlement period of approximately 45 days.                               
                                                                              
    Guangdong Guan-Dian, a state-owned enterprise incorporated in             
    the PRC, is an independent third party and not a connected person         
    of the Company (as defined in the Listing Rules).                         
                                                                              
    Definitions