10:42     GUANGDONG KELON<00921>-Announcement&Resumption of Trading(2)        

    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.                                    
                                                                              
    The Board of the directors of which individually and jointly accept       
    responsibility for the accuracy of this statement.                        
                                                                              
    Resumption of trading                                                     
                                                                              
    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.                  
                                                                              
    Investors shall exercise caution when dealing in the shares of the        
    Company.                                                                  
                                                                              
    By order of the Board of                                                  
    Guangdong Kelon Electrical Holdings Company Limited                       
    Gu Chu Jun                                                                
    Chairman                                                                  
                                                                              
    As at the date of this announcement, the Company's executive directors    
    are Mr. Gu Chu Jun, Mr. Liu Cong Meng, Mr. Li Zhen Hua, Mr. Yan You       
    Song, Mr. Zhang Hong and Mr Fang Zhi Guo; and the independent             
    non-executive directors are Mr. Chan Pei Cheong, Andy, Mr. Li Kung Man    
    and Mr. Xu Xiao Lu.                                                       
                                                                              
    Foshan City, Guangdong, the PRC, 12 May, 2005