10:24     CHINA HAIDIAN<00256> - 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.                                                     
                                                                              
                                                                              
    CHINA HAIDIAN HOLDINGS LIMITED*                                           
    (Incorporated in the Cayman Islands with limited liability)               
    (Stock Code: 256)                                                         
                                                                              
                                                                              
    DISCLOSEABLE TRANSACTION                                                  
                                                                              
    FORMATION OF A JOINT VENTURE                                              
                                                                              
    Financial Adviser to China Haidian Holdings Limited                       
                                                                              
    Quam Capital Limited                                                      
                                                                              
    The Directors are pleased to announce that on                             
    27 April 2005, the Company entered into a conditional                     
    agreement with Citychamp to establish Dartong, an                         
    equity joint venture in the PRC. Dartong will be                          
    principally engaged in the manufacturing and sale of                      
    enamelled copper wires in the PRC.                                        
                                                                              
    Pursuant to the Agreement, the Company agreed to                          
    invest a sum of RMB49 million (equivalent to                              
    approximately HK$46.2 million) in cash for a 49%                          
    interest in the registered capital of Dartong. For                        
    its 51% interest, Citychamp agreed to transfer the                        
    land, factory (located at * (Jiangbin Road,                               
    Kuaian Science Park, Economic and Technology                              
    Development Zone of Fuzhou City), Fujian Province,                        
    the PRC) and the related production machinery to Dartong.                 
                                                                              
    The formation of Dartong constitutes a "discloseable                      
    transaction" for the Company under the Listing Rules.                     
                                                                              
    A circular containing, among other things, details                        
    of the Agreement will be despatched to the                                
    Shareholders as soon as practicable.                                      
                                                                              
    THE AGREEMENT                                                             
                                                                              
    Date    27 April 2005                                                     
                                                                              
    Parties                                                                   
                                                                              
    (a)     The Company; and                                                  
                                                                              
    (b)     Citychamp, the shares of which are listed on the                  
    Shanghai Stock Exchange in the PRC                                        
                                                                              
    * (Fuzhou Yingrong Investment Company Limited), the single                
    largest shareholder of Citychamp, is interested in                        
    approximately 26.3% of the issued share capital of Citychamp.             
    *(Fuzhou Yingrong Investment Company Limited) is owned as to              
    approximately 68.5% and 31.5% by Ms. Sit Lai Hei and                      
    *(Lu Xiaojun) respectively. Ms. Sit Lai Hei is a                          
    non-executive Director and hence a connected person of the                
    Company. In addition, both of Ms. Sit Lai Hei and                         
    *(Lu Xiaojun) are daughters-in-law of Mr. Hon Kwok Lung.                  
    Mr. Hon Kwok Lung, an executive Director, and his wife                    
    collectively own 70% equity interests in Sincere View                     
    International Limited, the controlling shareholder                        
    of the Company. Hence, *(Lu Xiaojun) is a connected person                
    of the Company. Save as aforementioned, to the Directors' best