09:21     CHINA ADVANCE<08117>&<08391> - Announcement                         

                                                                              
    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.                   
                                                                              
    China Advance Holdings Limited                                            
    (Incorporated in the Cayman Islands with limited liability)               
    (Stock Code: 8117)                                                        
                                                                              
    RESULTS OF THE RIGHTS ISSUE                                               
    AND                                                                       
    EXCEPTIONAL PRICE AND TRADING VOLUME MOVEMENT                             
                                                                              
    The Directors announce that at 4:00 p.m. on 20th May, 2005, 10 valid      
    applications have been received for an aggregate of 110,472,326 Rights    
    Shares under PALs (including 1 valid application from Future Advance for  
    64,268,396 Rights Shares) and 19 valid applications have been received    
    for an aggregate of 7,526,743 Rights Shares under EAFs. The 117,999,069   
    Rights Shares, being the aggregate of Rights Shares applied for under     
    PALs and EAFs represent approximately 99.8% of the total number of        
    118,272,000 Rights Shares offered under the Rights Issue.                 
                                                                              
    Based on the above subscription results, the Rights Issue was             
    under-subscribed by 272,931 Rights Shares and Future Advance has          
    procured the subscription for such 272,931 Rights Shares in accordance    
    with the terms of the Underwriting Agreement. The aggregate shareholding  
    of Future Advance and its associates in the Company thus increase from    
    approximately 54.3% to approximately 54.5% immediately following          
    completion of the subscription mentioned above.                           
                                                                              
    The Rights Issue became unconditional at 4:00 p.m. on 24th May, 2005.     
                                                                              
    Share certificates will be despatched by ordinary post to those           
    Shareholders who have validly applied and paid for the Rights Shares and  
    excess Rights Shares, at their own risk, on or around 25th May, 2005.     
    Dealings in the fully-paid Rights Shares will commence upon receipt of    
    the share certificates for the Rights Shares.                             
                                                                              
    The Board noted today's increase in price and trading volume of the       
    shares of the Company and wishes to state that the Directors are not      
    aware of any reasons for such increase, save for the release of the       
    results of the Rights Issue mentioned above.                              
                                                                              
    By order of the Board of                                                  
    China Advance Holdings Limited                                            
    Yu Hongzhi                                                                
    Chairman                                                                  
                                                                              
    Hong Kong, 24th May, 2005                                                 
                                                                              
    As at the date of this announcement, the Board comprises Mr. YU Hongzhi,  
    Mr. LANG Fulai, Ms. MA Zheng and Mr. CHIU Winerthan who are executive     
    Directors, and Mr. WAN Tze Fan Terence, Mr. ZHOU Guang Qi and Mr. ZHANG   
    Hongru who are independent non-executive Directors.                       
                                                                              
    This announcement, for which the Directors collectively and individually  
    accept full responsibility, includes particulars given in compliance      
    with the GEM Listing Rules 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.                             
                                                                              
    The above announcement is a summary only. For the full version of this    
    announcement, please refer to the "Latest Company Announcements" page on  
    the GEM website of http://www.hkgem.com.