09:59     HUALING<00382> - Announcement (6)                                   

    DEFINITIONS                                                               
                                                                              
    In this announcement, unless the context otherwise requires,              
    the following terms shall have the meanings set out below:                
                                                                              
    "associates"    :       has the meaning as ascribed thereto under the     
    Listing Rules                                                             
                                                                              
    "connected person"      :       has the meaning as ascribed thereto under 
    the Listing Rules                                                         
                                                                              
    "Continuing Connected   :       the continuing connected                  
    transactions between the                                                  
      Transactions"         Group and Midea Group pursuant to the Master      
    Agreement A and the continuing connected transactions between             
    the Group and Midea Electric Group pursuant to the Master                 
    Agreement B                                                               
                                                                              
    "Company"       :       Hualing Holdings Limited, a limited company       
    incorporated in Hong Kong, whose shares are listed on the main            
    board of the Stock Exchange                                               
                                                                              
    "Directors"     :       the directors of the Company                      
                                                                              
    "EGM"   :       an extraordinary general meeting of the Company to be     
    convened for the purpose of considering and passing by the                
    Independent Shareholders of the ordinary resolution approving             
    the Continuing Connected Transactions                                     
                                                                              
    "Electrical Appliances" :       the household electrical                  
    appliances from time to time manufactured by members of the Group         
                                                                              
    "Group" :       the Company and its subsidiaries                          
                                                                              
    "HK$"   :       Hong Kong dollars, the lawful currency of Hong Kong       
                                                                              
    "Hong Kong"     :       the Hong Kong Special Administrative Region of    
    the PRC                                                                   
                                                                              
    "Household Appliances"  :       small household electrical                
    appliances (including electric fans, rice cookers and microwave           
    ovens) from time to time manufactured by members of the Midea             
    Electric Group                                                            
                                                                              
    "Independent Shareholders"      :       shareholders of the Company,      
    other than Midea International and its associates                         
                                                                              
    "Listing Rules" :       Rules Governing the Listing of Securities on      
    the Stock Exchange                                                        
                                                                              
    "Master Agreement A"    :       the master sale and purchase agreement    
    dated 4 March 2005 entered into between the Company and Midea             
    Ltd.                                                                      
                                                                              
    "Master Agreement B"    :       the master sale and purchase agreement    
    dated 4 March 2005 entered into between the Company and Midea             
    Electric                                                                  
                                                                              
    "Materials and Spare Parts"     :       the materials and spare parts     
    for the manufacture of household electrical appliances from time          
    to time manufactured by members of the Midea Group or members             
    of the Midea Electric Group                                               
                                                                              
    "Midea Electric"        :       GD Midea Electric Appliances Co., Ltd.    
                                                                              
    "Midea Electric Group"  :       Midea Electric and its                    
    subsidiaries