09:29     CITIC PACIFIC<00267> - 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.                                                     
                                                                              
    CITIC Pacific Limited                                                     
    (Incorporated in Hong Kong with limited liability)                        
                                                                              
    (Stock Code: 267)                                                         
                                                                              
    CONNECTED TRANSACTION                                                     
                                                                              
    VARIATION ARRANGEMENT IN RELATION TO                                      
    JIANGSU LIGANG ELECTRIC POWER COMPANY LIMITED                             
                                                                              
    The Directors announce that on 28 February 2005,                          
    Sunspark, a wholly owned subsidiary of the Company,                       
    entered into the Agreement with other JV Shareholders,                    
    pursuant to which Sunspark and other JV Shareholders                      
    have agreed to the Variation Arrangement in relation                      
    to the JV Contract and Articles in consideration of                       
    Sunspark paying the Compensation of RMB500 million                        
    (approximately HK$470 million) to the other JV                            
    Shareholders.                                                             
                                                                              
    Wuxi Power (one of the JV Shareholders) and its                           
    holding company are substantial shareholders of                           
    certain subsidiaries of the Company. Accordingly,                         
    Wuxi Power is a connected person of the Company. SDIC                     
    (another JV Shareholder) is a connected person of the                     
    Company due to its substantial interest held in a                         
    subsidiary of the Company. Hence, the Agreement                           
    constitutes a connected transaction for the Company.                      
    Pursuant to the Listing Rules, as each of the                             
    applicable Percentage Ratios is less than 2.5%, the                       
    Agreement is only subject to announcement and                             
    reporting requirements and does not require the                           
    approval of the independent shareholders of the                           
    Company. Details of the Agreement is accordingly                          
    disclosed in this announcement and will be disclosed                      
    in the Company's forthcoming annual report pursuant                       
    to Rule 14A.45 of the Listing Rules.                                      
                                                                              
    DETAILS OF THE AGREEMENT                                                  
    Date:   28 February 2005                                                  
                                                                              
    Parties:        Sunspark as one of the JV Shareholders, an                
    investment holding company and a wholly owned                             
    subsidiary of the Company;                                                
                                                                              
    Sunburst as one of the JV Shareholders (on behalf of                      
    itself and another JV Shareholder, namely SDIC), a                        
    company in which the Company owns a 65% shareholding                      
    interest;                                                                 
                                                                              
    Jiangsu Provincial Investment as one of the JV                            
    Shareholders; and                                                         
                                                                              
    Wuxi Power as one of the JV Shareholders.                                 
                                                                              
    Wuxi Power and its holding company are substantial                        
    shareholders of certain subsidiaries of the Company.                      
    Therefore, Wuxi Power is also a connected person of                       
    the Company. SDIC is a connected person of the Company                    
    due to its substantial interest held in a subsidiary                      
    of the Company. The Directors confirm that to the best                    
    of their knowledge, information and belief having                         
    made all reasonable enquiries, Jiangsu Provincial                         
    Investment is independent of, and not connected with                      
    the directors, chief executive, substantial                               
    shareholders of the Company