10:41     GUANGDONG KELON<00921>-Announcement&Resumption of Trading(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.                   
                                                                              
    GUANGDONG KELON ELECTRICAL HOLDINGS COMPANY LIMITED                       
    (A joint stock limited company incorporated in the People's Republic of   
    China with limited liability)(Stock Code: 0921)                           
                                                                              
    AUDITORS NOT SEEKING RE-APPOINTMENT AT FORTHCOMING AGM                    
                                                                              
    UNUSUAL PRICE AND VOLUME MOVEMENT                                         
                                                                              
    AND                                                                       
                                                                              
    RESUMPTION OF TRADING                                                     
                                                                              
    .Deloitte not seeking re-appointment at forthcoming AGM.                  
                                                                              
    .The following statement is made at the request of the Stock Exchange     
    pursuant to rule 13.10 of the Rules Governing the Listing of Securities   
    on the Stock Exchange of Hong Kong Limited (the "Listing Rules"). The     
    Board has noted the decrease in the price and increase in the trading     
    volume of the shares of the Company on 11 May 2005. Save as disclosed     
    above and its recent announcements dated 26 April 2005 and 9 May 2005 ,   
    the Board wishes to state that it is not aware of any reasons for such    
    movement. The Board also confirms that there are no negotiations or       
    agreements relating to intended acquisitions or realisations which are    
    discloseable under rule 13.23 of the Listing Rules, neither is the        
    Board aware of any matter discloseable under the general obligation       
    imposed by rule 13.09 of the Listing Rules, which is or may be of a       
    price-sensitive nature.                                                   
                                                                              
    .At the request of the Company, trading in shares of the Company was      
    suspended with effect from 9:30 a.m. on 12 May 2005 pending the release   
    of this announcement. The Company has applied for resumption of trading   
    in its shares with effect from 9:30 a.m. on 13 May 2005.                  
                                                                              
    Auditors not seeking re-appointment at forthcoming AGM                    
                                                                              
    The Company was informed on 11 May 2005 by a letter dated 9 May 2005      
    that its existing auditors in Hong Kong, Deloitte Touche Tohmatsu, and    
    its existing auditors in the PRC, Deloitte Touche Tohmatsu CPA Limited    
    (together, "Deloitte"), would not be seeking reappointment as auditors    
    of the Company at the annual general meeting of the Company to be held    
    on 28 June 2005.                                                          
                                                                              
    Deloitte were the Company's auditors for the year ended 31 December,      
    2004. Deloitte had issued a qualified audit opinion for the Company's     
    audited financial statements for the abovesaid period. The Company has    
    received a confirmation letter from Deloitte that apart from the          
    matters referred to in the qualified opinion and this announcement,       
    there are no matters that should be brought to the attention of the       
    Company's shareholders.                                                   
                                                                              
    In their letter dated 9 May 2005, Deloitte referred to significant        
    limitations in evidence during their audit about specific items, the      
    details of which were set out in the qualified audit opinion and which    
    resulted in them qualifying their opinion. Against the background of      
    their qualified audit opinion, Deloitte is not satisfied with the         
    Company's commitment to good financial record keeping and so has          
    decided not to seek re-appointment. According to the Company's            
    understanding from Deloitte, Deloitte's qualification was a result of     
    them not being satisfied with the financial record keeping relating to    
    the transactions referred to in the limitations set out in qualified      
    opinion.                                                                  
                                                                              
    The Company disagrees with Deloitte's view on the Company's financial     
    record keeping and reserves its legal rights accordingly.                 
                                                                              
    The board of directors of the Company (the "Board") will appoint new      
    auditors in place of Deloitte subject to shareholders' approval in a      
    general meeting. Further announcement will be made as and when            
    appropriate.                                                              
                                                                              
    Unusual price and trading volume movement                                 
                                                                              
    The following statement is made at the request of the Stock Exchange      
    pursuant to rule 13.10 of the Rules Governing the Listing of Securities   
    on The Stock Exchange of Hong Kong Limited (the "Listing Rules").         
                                                                              
    The Board has noted the decrease in the price and increase in the         
    trading volume of the shares of the Company on 11 May 2005. Save as