10:14     CHANGMAOBIOCHEM<08208> - Unusual volume movement                    

                                                                              
    The Stock Exchange of Hong Kong Limited (the "Stock                       
    Exchange") 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.                                     
                                                                              
    Changmao Biochemical Engineering Company Limited*                         
    (Stock code: 8208)                                                        
    (a joint stock limited company incorporated in the                        
    People's Republic of China)                                               
                                                                              
    ANNOUNCEMENT                                                              
                                                                              
    This announcement is made at the request of the Stock                     
    Exchange. The directors (the "Directors") of Changmao                     
    Biochemical Engineering Company Limited (the                              
    "Company") have noted today's increase in the trading                     
    volume of the H shares of the Company and wish to state                   
    that save for the announcement of the unaudited                           
    results of the Company for the three months ended 31                      
    March 2005 on 9 May 2005, the Directors are not aware                     
    of any reasons for such increase.                                         
                                                                              
    The Directors also confirm that there are no                              
    negotiations or agreements relating to intended                           
    acquisitions or realisations which are discloseable                       
    under Chapter 19 and 20 of the Rules Governing the                        
    Listing of Securities on the Growth Enterprise Market                     
    of the Stock Exchange (the "GEM Listing Rules"). The                      
    board of Directors (the "Board") is not aware of any                      
    matter discloseable under the general obligation                          
    imposed by Rule 17.10 of the GEM Listing Rules, which                     
    is or may be of a price-sensitive nature.                                 
                                                                              
    Made by the order of the Board of the Company, the                        
    directors of which collectively and individually                          
    accept responsibility for the accuracy of this                            
    announcement.                                                             
                                                                              
    By order of the Board                                                     
    Changmao Biochemical Engineering Company Limited                          
    Rui Xin Sheng                                                             
    Chairman                                                                  
                                                                              
    The PRC, 12 May 2005                                                      
                                                                              
    As at the date hereof, Mr. Rui Xin Sheng and Mr. Jiang                    
    Jun Jie are the executive directors of the Company,                       
    Mr. Zeng Xian Biao, Mr. Zhu Lai Fa, Mr. Yu Xiao Ping,                     
    Mr. Lu Chong Zhu and Ms. Leng Yi Xin are the                              
    non-executive directors of the Company, Prof. Ouyang                      
    Ping Kai, Prof. Yang Sheng Li and Ms. Wei Xin are the                     
    independent non-executive directors of the Company.                       
                                                                              
    This announcement, for which the directors of Changmao                    
    Biochemical Engineering Company Limited collectively                      
    and individually accept full responsibility,                              
    includes particulars given in compliance with the                         
    Rules Governing the Listing of Securities on the                          
    Growth Enterprise Market of the Stock Exchange of Hong                    
    Kong Limited for the purpose of giving information                        
    with regard to the Company. The Directors, having made                    
    all reasonable enquiries, confirm that, to the best                       
    of their knowledge and belief; (1) the information                        
    contained in this announcement is accurate and                            
    complete in all material respects and not misleading;                     
    (2) there are no other matters the omission of which                      
    would make any statement in this announcement                             
    misleading; and (3) all opinions expressed in this                        
    announcement have been arrived at after due and                           
    careful consideration and are founded on bases and                        
    assumptions that are fair and reasonable.                                 
                                                                              
    This announcement will remain at www.hkgem.com on the                     
    "Latest company announcements" page of the GEM website                    
    for at least 7 days from the date of its posting.