08:54     CCOE<08286> - Unusual price & volume movements                      

                                                                              
    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.                                                     
                                                                              
    SHANXI CHANGCHENG MICROLIGHT EQUIPMENT CO. LTD.*                          
    (a joint stock limited company incorporated in the                        
    People's Republic of China)                                               
    (Stock Code: 8286)                                                        
                                                                              
    Announcement                                                              
                                                                              
    This announcement is made at the request of The Stock                     
    Exchange of Hong Kong Limited. The directors of Shanxi                    
    Changcheng Microlight Equipment Co. Ltd. (the                             
    "Company") have noted the decrease in the price and                       
    increase in trading volume of the shares in the                           
    Company today and wish to state that they are not aware                   
    of any reasons for such fluctuation.                                      
                                                                              
    The directors also confirm that there are no                              
    negotiations or agreements relating to intended                           
    acquisitions or realisations which are discloseable                       
    under Chapters 19 and 20 of the Rules Governing the                       
    Listing of Securities on the Growth Enterprise Market                     
    of the Stock Exchange (the "GEM Listing Rules"),                          
    neither is the board of the Company (the "Board")                         
    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 price-sensitive nature.                      
                                                                              
    Made by the order of the Board, the directors of which                    
    individually and collectively accept responsibility                       
    for the accuracy of this announcement.                                    
                                                                              
    As at the date of this announcement, the executive                        
    directors of the Company are Mr. Wang Gen Hai, Mr.                        
    Li Kang Sheng and Mr. Tian Qun Xu. Mr. Lin Yin Ping                       
    is the non-executive director. Mr. Ni Guo Qiang, Mr.                      
    Shen Ming Heng, Mr. Li Li Cai and Ms. Chen Yue Jie                        
    are the independent non-executive directors.                              
                                                                              
    By Order of the Board of                                                  
    Shanxi Changcheng Microlight Equipment Co. Ltd.                           
    Wang Gen Hai                                                              
    Chairman                                                                  
    Shanxi, the People's Republic of China, 17 May 2005                       
                                                                              
    This announcement, for which the directors of the                         
    Company 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, the information contained in this                                 
    announcement is accurate and complete in all material                     
    respects and not misleading, there are no other                           
    matters the omission of which would make any statement                    
    in this announcement misleading, and 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 on the GEM website at                       
    http://www.hkgem.com on the "Latest Company                               
    Announcements" page for at least 7 days from the                          
    day of its posting.                                                       
                                                                              
    *  For identification purpose only