10:28     HUALING<00382> - Announcement & Resumption (9)                      

    (i)     the introduction of any new regulation or any change in           
    existing law or regulation (or the judicial interpretation                
    thereof) or other occurrence of any nature whatsoever which may           
    in the reasonable opinion of Midea International materially and           
    adversely affect the business or the financial or trading                 
    position or prospects of the Group as a whole; or                         
                                                                              
    (ii)    the occurrence of any local, national or international            
    event or change, whether or not forming part of a series of events        
    or changes occurring or continuing before, and/or after the date          
    of the Underwriting Agreement, of a political, military,                  
    financial, economic or other nature, or in the nature of any              
    local, national or international outbreak or escalation of                
    hostilities or armed conflict, or affecting local securities              
    markets which may, in the reasonable opinion of Midea                     
    International materially and adversely affect the business or             
    the financial or trading position or prospects of the Group as            
    a whole; or                                                               
                                                                              
    (iii)   any material adverse change in the business or in the             
    financial or trading position or prospects of the Group as a              
    whole; or                                                                 
                                                                              
    (b)     any material adverse change in market conditions (including,      
    without limitation, a change in fiscal or monetary policy or              
    foreign exchange or currency markets, suspension or restriction           
    of trading in securities, and a change in currency conditions             
    for the purpose of this clause includes a change in the system            
    under which the value of the Hong Kong currency is pegged with            
    that of the currency of the United States of America) occurs              
    which in the reasonable opinion of Midea International makes              
    it inexpedient or inadvisable to proceed with the Rights Issue;           
    or                                                                        
                                                                              
    (c)     the circular or the prospectus in connection with the Rights      
    Issue when published contains information (either as to business          
    prospects or the condition of the Group or as to its compliance           
    with any laws or the Listing Rules or any applicable regulations)         
    which has not prior to the date hereof been publicly announced            
    or published by the Company and which may in the reasonable               
    opinion of Midea International is material to the Group as a              
    whole and is likely to affect materially and adversely the                
    success of the Rights Issue or might cause a prudent investor             
    not to accept the Rights Shares provisionally allotted to it.             
                                                                              
    If the Underwriting Agreement is terminated by Midea                      
    International on or before the aforesaid deadline or does not             
    become unconditional, the Rights Issue will not proceed.                  
                                                                              
    WARNING OF THE RISK OF DEALING IN THE SHARES AND NIL-PAID RIGHTS          
    SHARES                                                                    
                                                                              
    The Shares will be dealt in on an ex-rights basis from Thursday,          
    16 June 2005. Dealings in the Rights Shares in the nil-paid form          
    will take place from Tuesday, 28 June 2005 to Wednesday, 6 July           
    2005 (both days inclusive). If the conditions of the Rights Issue         
    are not fulfilled and/or waived on or before Wednesday, 13 July           
    2005 (or such later time and/or date as the Company and Midea             
    International may determine), or the Underwriting Agreement is            
    terminated by Midea International, the Rights Issue will not              
    proceed and the Rights Issue will lapse.                                  
                                                                              
    Any persons contemplating buying or selling Shares from the date          
    of this announcement up to the date on which all the conditions           
    of the Rights Issue are fulfilled, and any dealings in the Rights         
    Shares in their nil-paid form between Tuesday, 28 June 2005 to            
    Wednesday, 6 July 2005