09:38     DONGFANG ELEC<01072> - Announcement (2)                             

    As a Percentage                                                           
    in the estimated                                                          
    total purchase                                                            
    Estimated of raw materials                                                
    Description of the Connected   amount of the Company                      
    Connected transaction person in 2005 for the year 2005                    
    (RMB'000) (%)                                                             
                                                                              
    Purchase of welded structural * 45,000 - 50,000 1.76                      
    -1.96                                                                     
    parts of A.C. motor, A.C.                                                 
    alternating frequency changer,   (Sichuan Dongdian                        
    D.C. motor and mini-hydro   Metal Structural Parts                        
    turbine generator, etc.   Company Limited)                                
                                                                              
    Purchase of gas cooler, * 44,000 - 50,000 1.73-1.96                       
    oil cooler, brake, brush holder,   (Sichuan Dongdian                      
    rotor ventilator, silver welder   Ancillary Machine                       
    and blaze welder, etc.   Company Limited)                                 
                                                                              
    Purchase of insulation materials, * 30,000 - 35,000                       
    1.18 - 1.37                                                               
    collar cheek, insulating case,                                            
    turn separator and banding ring.   (Sichuan Dongdian                      
    Insulation Materials                                                      
    Company Limited)                                                          
                                                                              
    Purchase of terminal sleeve, * 28,000 - 33,000 1.1-1.29                   
    valve, springy metal-plastic tile,                                        
    insulating inlet pipe, etc.   (Sichuan Dongdian                           
    General Machinery                                                         
    Company Limited)                                                          
                                                                              
    TOTAL:  147,000 - 168,000 5.77 - 6.58                                     
                                                                              
    The aggregate of the continuing connected transactions is estimated to    
    be in the range of RMB147,000,000 to RMB168,000,000 for the year 2005,    
    accounting for about 5.77% to 6.58%. of the Company's estimated total     
    purchase of raw materials.                                                
                                                                              
    II. Information on the connected parties and connected relationship       
                                                                              
    1. Principal Business of the Company                                      
                                                                              
    The Company principally engages in the business of production and sale    
    of hydro power generators, steam power generators, AC/DC electrical       
    motors, and controlling equipment.                                        
                                                                              
    2. Basic information on the connected persons                             
                                                                              
    *                                                                         
    Sichuan Dongdian Metal  Sichuan Dongdian  Sichuan Dongdian  Sichuan       
    Dongdian                                                                  
    Structural Parts  Ancillary Machine  Insulation Materials  General        
    Machinery                                                                 
    Parties to the  Company Limited  Company Limited  Company Limited         
    Company Limited                                                           
    transaction (the "Metal Company") (the "Ancillary Company") (the          
    "Insulation Company") (the "General Company")                             
                                                                              
    Registered address Xiaohan Town,  Qiyun Mountain Road  No. 188,           
    Huanghe  No. 188, Huanghe Road                                            
    Guanghan City, Deyang,    North, Economic    Road West, Deyang   West,    
    Deyang, Sichuan ,                                                         
    Sichuan Province,    Development Zone,    Sichuan Province,               
    Province, the PRC                                                         
    the PRC   Jingyang District,    the PRC                                   
    Deyang, Sichuan                                                           
    Province, the PRC                                                         
                                                                              
    Nature of Enterprise a company with  a company with  a company with  a    
    company with                                                              
    limited liability   limited liability   limited liability   limited       
    liability                                                                 
                                                                              
    Legal representative Wei Guoqiang Xie Santai Peng Wanzhong Yao Shuping    
                                                                              
    Date of Incorporation 7 September 1999 18 August 2003 4 August 1998 8     
    July 2003                                                                 
                                                                              
    Registered capital RMB17.54 million RMB12 million RMB4 million RMB16      
    million                                                                   
                                                                              
    Principal Business Manufacturing, installation,  Design,                  
    manufacturing, sale.  Development, production and  Design,                
    manufacturing, sale and                                                   
    maintenance and renovation    maintenance and renovation    sale of       
    insulation materials,    installation of hydro, thermal                   
    of power equipment and    of ancillary equipment and    glass steel,