10:27     HUALING<00382> - Announcement & Resumption (6)                      

    registrar in Hong Kong by 4:00 p.m. on Friday, 17 June 2005.              
    The last day of dealings in Shares on a cum-rights basis is               
    therefore expected to be Wednesday, 15 June 2005. The Shares              
    will be dealt with on an ex-rights basis from Thursday, 16 June           
    2005.                                                                     
                                                                              
    The Company's branch share registrar in Hong Kong is                      
    Computershare Hong Kong Investor Services Limited, at 46th Floor,         
    Hopewell Centre, 183 Queen's Road East, Hong Kong.                        
                                                                              
    It is intended that the Company's register of members will be             
    closed from Monday, 20 June 2005 to Thursday, 23 June 2005, both          
    dates inclusive, for the purpose of, among other things,                  
    establishing entitlements to the Rights Issue. No transfer of             
    Shares will be registered during this period.                             
                                                                              
    Share option schemes                                                      
                                                                              
    As at the date of this announcement, there are 960,000                    
    outstanding share options granted pursuant to the Company's 1993          
    Share Option Scheme and no outstanding share options granted              
    pursuant to the Company's 2003 Share Option Scheme. The 1993              
    Share Option Scheme was terminated in June 2003, but pursuant             
    to the terms of the 1993 Share Option Scheme, the share options           
    granted prior to such termination shall continue to be valid              
    and exercisable in accordance with the scheme rules. Pursuant             
    to the terms of the 1993 Share Option Scheme and the 2003 Share           
    Option Scheme, respectively, adjustments to the outstanding               
    share options may be made upon the Rights Issue becoming                  
    unconditional. The Company will announce further details on such          
    adjustment (if any).                                                      
                                                                              
    Application for listing of the Rights Shares on the Stock                 
    Exchange                                                                  
                                                                              
    The Company will apply to the Listing Committee of the Stock              
    Exchange for the listing of, and permission to deal in, the Rights        
    Shares in both nil-paid and fully-paid forms.                             
                                                                              
    Nil-paid Rights Shares are expected to be traded in board lots            
    of 2,000 (same as the current board lot size of the Shares as             
    traded on the Stock Exchange). Dealings in nil-paid and                   
    fully-paid Rights Shares will be subject to the payment of stamp          
    duty in Hong Kong.                                                        
                                                                              
    Conditions of the Rights Issue                                            
                                                                              
    Pursuant to Rule 7.19(6) of the Listing Rules, since the Rights           
    Issue would increase the issued share capital of the Company              
    by more than 50%, the Rights Issue is conditional on, among other         
    things, the approval by the Independent Shareholders by a                 
    resolution at the EGM on which Midea International, the                   
    controlling Shareholder, and its associates shall abstain from            
    voting.                                                                   
                                                                              
    The Rights Issue is conditional upon the following conditions             
    being fulfilled:                                                          
                                                                              
    (a)     the Company despatching the circular to the Shareholders          
    containing, among other matters, details of the Rights Issue,             
    the increase in authorised share capital and Whitewash Waiver             
    together with proxy form and notice of EGM;                               
                                                                              
    (b)     the passing by the Independent Shareholders at the EGM of         
    ordinary resolutions to approve the Rights Issue and the                  
    Whitewash Waiver;                                                         
                                                                              
    (c)     the passing by the Shareholders at the EGM of ordinary            
    resolution to approve the increase in authorised share capital;