10:25     CHINA HAIDIAN<00256> - Announcement (3)                             

    valuer in Hong Kong. The unpaid portion of the                            
    consideration (include outstanding construction                           
    costs and costs of the machinery) of the Properties                       
    of approximately RMB32.3 million (equivalent to                           
    approximately HK$30.5 million) as at 31 March 2005                        
    will be financed by internal resources and bank                           
    borrowings of Dartong.                                                    
                                                                              
    Of the total consideration of approximately                               
    RMB127.6 million (equivalent to approximately                             
    HK$120.4 million) of the Properties, RMB51 million                        
    (equivalent to approximately HK$48.1 million) will be                     
    injected by Citychamp into Dartong in the form of                         
    registered capital. The remaining balance of                              
    RMB76.6 million (equivalent to approximately                              
    HK$72.3 million) will be recognised as a debt due to                      
    Citychamp by Dartong.  The construction work of the                       
    factory was still in progress as at 31 March 2005.                        
    If there are any changes in the actual costs of the                       
    Properties incurred by Citychamp between 31 March 2005                    
    and the date of establishment of Dartong, the                             
    consideration of the Properties and, therefore, the debt                  
    due to Citychamp will be adjusted accordingly. Based on                   
    the information provided by Citychamp, the Directors                      
    expect that such difference will not be material. The                     
    debt will be unsecured, and will bear an interest rate                    
    equivalent to the one-year lending rate offered by                        
    the People's Bank of China with no fixed repayment                        
    term. It is currently intended that the repayment of                      
    the amount due to Citychamp will be financed by bank                      
    borrowings of Dartong.                                                    
                                                                              
    Citychamp also agreed to allow Dartong to use its                         
    trademark, production technology of enamelled copper                      
    wires and other intellectual property rights free of                      
    charge during the operation period of Dartong.                            
                                                                              
    Shareholding structure of Dartong                                         
                                                                              
    The registered capital of Dartong will be held as to                      
    51% by Citychamp and as to 49% by the Company. The                        
    Company and Citychamp will share any subsequent                           
    profit or loss arising from the operations of Dartong                     
    in proportion of their respective interests in                            
    Dartong.                                                                  
                                                                              
    Composition of the board of directors of Dartong                          
    The board of directors of Dartong shall comprise six                      
    members. Each of the Company and Citychamp will                           
    nominate three members. Major corporate matters                           
    including changes in articles, termination and                            
    dismissal of Dartong, increase or transfer of the                         
    registered capital of Dartong and mergers with other                      
    economic organisations are subject to the directors'                      
    unanimous approval. Other matters are required to be                      
    approved by two-thirds of the directors.                                  
                                                                              
    Each of the Company and Citychamp does not have                           
    unilateral control over Dartong. As the Company has                       
    joint control with Citychamp over Dartong, its                            
    interest in Dartong will be recorded in the Company's                     
    financial statements as a jointly-controlled entity.                      
                                                                              
    Term                                                                      
                                                                              
    Dartong will have an initial term of 20 years and is                      
    extendable by the approval of the board of directors                      
    of Dartong and the relevant authority in the PRC.                         
                                                                              
    Conditions precedent                                                      
                                                                              
    The establishment of Dartong is conditional upon:                         
    (i) the approvals of the directors and the