09:31     BAOYE GROUP<02355> - Announcement (9)                               

    City Co., Ltd.*), a limited liability company                             
    established in the PRC on 17 December 2002, which is                      
    owned by Mr Li, #(The                                                     
    Economic Cooperative Committee of Minghua Village,                        
    Yaqian Town, Xiaoshan District, Hangzhou*) and #(Zhejiang Zhongxing       
    Electric                                                                  
    Development Group Company Limited*), both being                           
    Independent Third Parties, as to 67%, 23% and 10%                         
    respectively                                                              
                                                                              
    "Mr Li" Mr Li Wenjiang, a former director of Shaoxing                     
    Baogang, who was resigned as a director of Shaoxing                       
    Baogang on 30 April 2004                                                  
                                                                              
    "Mr Pang"       Mr Pang Baogen, an executive Director and                 
    a substantial shareholder of the Company                                  
                                                                              
    "PRC"   the People's Republic of China                                    
                                                                              
    "Shaoxing Baogang"      #(Shaoxing                                        
    Baogang Woodwork Co., Ltd.), a limited liability                          
    company established in the PRC on 19 December 2002,                       
    which is owned by the Company and #                                       
    (Goldbase International Investment Limited) as to 70%                     
    and 30% respectively                                                      
                                                                              
    "Shareholder(s)"        holder(s) of the H Shares of the                  
    Company                                                                   
                                                                              
    "Stock Exchange"        The Stock Exchange of Hong Kong                   
    Limited                                                                   
                                                                              
    "substantial shareholder"       has the meaning                           
    ascribed to it under the Listing Rules                                    
                                                                              
    "HK$"   Hong Kong dollars, the lawful currency of Hong                    
    Kong                                                                      
                                                                              
    "RMB"   Renminbi, the lawful currency of the PRC                          
                                                                              
    "%"     per cent                                                          
                                                                              
    For the purpose of this announcement, conversion of                       
    RMB into HK dollars is calculated at the exchange rate                    
    of HK$1.00 to RMB1.06.                                                    
                                                                              
    By order of the Board                                                     
    Baoye Group Company Limited*                                              
    Pang Baogen                                                               
    Chairman                                                                  
                                                                              
    Zhejiang Province, the PRC                                                
    26 February 2005                                                          
                                                                              
    *  For identification purposes only                                       
                                                                              
    As at the date of this announcement, the Board                            
    comprises four executive Directors, namely Mr. Pang                       
    Baogen, Mr. Gao Jiming, Mr. Gao Lin and Mr. Zhou Hanwan;                  
    two non-executive Directors, namely Mr. Wu Weimin and                     
    Mr. Hu Shaozeng; and three independent non-executive                      
    Directors, namely Mr. Wang Youwei, Mr. Yi Deqing and                      
    Mr. Dennis Yin Ming Chan.                                                 
                                                                              
    # For the Chinese name, please refer to the press announcements today.