09:29     GUANGNAN (HOLD)<01203> - Announcement (6)                           

    and GD Decorative                                                         
                                                                              
    "Listing Rules" The Rules Governing the Listing of                        
    Securities on the Stock Exchange                                          
                                                                              
    "PRC"   the People's Republic of China which, for the                     
    purposes of this announcement, excludes Hong Kong,                        
    Macau and Taiwan                                                          
                                                                              
    "RMB"   Renminbi, the lawful currency of the PRC                          
                                                                              
    "Shan Hai"      *(Zhongshan Shan Hai Industrial Co.                       
    Ltd.), a company incorporated in the PRC with                             
    limited liability and is an indirect 95%-owned                            
    subsidiary of the Company                                                 
                                                                              
    "Staff Quarters Lease Agreement"        staff quarters                    
    lease agreement dated 20th January, 2005 made between                     
    Shan Hai and GD Decorative pursuant to which Shan Hai                     
    has agreed to lease staff quarters and provide                            
    utilities to GD Decorative                                                
                                                                              
    "Stock Exchange"        The Stock Exchange of Hong Kong                   
    Limited                                                                   
                                                                              
    "Supply Agreement"      supply agreement dated 20th                       
    January, 2005 made between Zhongyue Tinplate and GD                       
    Decorative pursuant to which Zhongyue Tinplate has                        
    agreed to provide water and electricity to GD                             
    Decorative                                                                
                                                                              
    "Zhongyue Tinplate"     *(Zhongshan Zhongyue Tinplate                     
    Industrial Co. Ltd.), a company incorporated in the                       
    PRC with limited liability and is an indirect 95%-owned                   
    subsidiary of the Company                                                 
                                                                              
                                                                              
                                                                              
    By Order of the Board                                                     
    Liang Jiang                                                               
    Chairman                                                                  
                                                                              
    Hong Kong, 12th April, 2005                                               
                                                                              
    Unless otherwise specified in this announcement,                          
    conversion of Renminbi into Hong Kong dollars is based                    
    on the exchange rate of RMB1.00 = HK$0.9411.