Medlive Technology Co., Ltd. — Board/Management Information 2006

Aug 14, 2006

GUANGDONG KELON ELECTRICAL HOLDINGS COMPANY LIMITED 廣東科龍電器股份有限公司

(A joint stock limited company incorporated in the People’s Republic of China with limited liability)

(Stock Code: 0921)

ANNOUNCEMENT OF THE RESOLUTIONS PASSED BY THE BOARD OF DIRECTORS

This announcement is made in accordance with Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”).

The sixth board of directors of Guangdong Kelon Electrical Holdings Company Limited (the “Company”) convened its third meeting (the “Meeting”) in the conference room of the Company’s head office at Shunde District, Foshan City, Guangdong Province, the People’s Republic of China (the “PRC”) on 11 August 2006 at 9:00 am. All nine of the directors of the Company attended the Meeting, of whom executive directors Ms. Yu Shu Min and Mr. Lin Lan and the independent non-executive directors, Mr. Lu Qing and Mr. Cheung Yui Kai, Warren attended the Meeting and voted by way of telephone. The convening of and voting at the Meeting were in compliance with relevant requirements of the Company Law of the PRC and the articles of association of the Company. The Meeting was chaired by Mr. Tang Ye Guo. The following resolutions were considered and passed at the Meeting:

1. The working report of the board of directors of the Company for the year 2005 was considered and passed with 9 affirmative votes, 0 objecting votes and 0 abstaining votes;

2. The annual report of the Company and its summary for the year 2005 were considered and passed with 9 affirmative votes, 0 objecting votes and 0 abstaining votes;

3. the profit distribution proposal of the Company for the year 2005 was considered and passed with 9 affirmative votes, 0 objecting votes and 0 abstaining votes: as audited by the PRC domestic auditors, Shenzhen Dahua Tiancheng Certified Public Accountants, and the foreign auditors, BDO McCabe Lo Limited, the realised net profit of the Company in 2005 in accordance with PRC GAAP was RMB3,693,615,437.69 and in accordance with the International Financial Reporting Standards was RMB3,702,172,437.69. There will be no distribution of profit nor capitalisation of capital reserve for this year;

4. the special explanation of the board of directors of the company relating to the auditors’ qualified opinion with emphasised matters was considered and passed with 9 affirmative votes, 0 objecting votes and 0 abstaining votes;

5. the resolution in connection with the reappointment of the auditors of the Company was considered and passed, with 9 affirmative votes, 0 objecting votes and 0 abstaining votes: the Company proposed the reappointment of Shenzhen Dahua Tiancheng Certified Public Accountants and BDO McCabe Lo Limited as the Company’s PRC domestic and foreign auditors, respectively, for the 2006 financial year;

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1. the resolution in connection with the retrospective adjustments to the figures at the beginning of this year and the retrospective recognition of provisions for the impairment of inventories, provisions for the impairment of fixed assets, provision for the impairment of construction in progress, provision for the impairment of intangible assets, provision for the impairment of long term investments and provision for bad debts of the Company were considered and passed with 9 affirmative votes, 0 objecting votes and 0 abstaining votes: (i) the aggregate amount of the retrospective adjustments to the figures at the beginning of this year was RMB209,153,478.00; (ii) the aggregate amount of the provision for impairment of inventories was RMB275,251,947.89; (iii) the aggregate amount of the provision for impairment of fixed assets was RMB108,391,025.34; (iv) the aggregate amount of the provision for impairment of moulds was RMB38,039,344.34; (v) the aggregate amount of the provision for impairment of construction in progress was RMB84,802,421.80; (vi) the aggregate amount of provision for the impairment of long term investments was RMB11,000,000.00; (vii) the aggregate amount of provision for the impairment of intangible assets was RMB304,698,032.53; and (viii) the aggregate amount of provision for bad debts was RMB572,712,089.46;

2. the resolution in connection with the correction of the material accounting errors of the Company was considered and passed with 9 affirmative votes, 0 objecting votes and 0 abstaining votes. The details of the resolution can be found in the announcement on the correction of material accounting errors which will be published by the Company on the same day; and

3. the resolution in connection with the settlement of capital used was considered and passed with 9 affirmative votes, 0 objecting votes and 0 abstaining votes.

Resolutions 1 to 6 above will be proposed at the annual general meeting of the Company for the year 2005 for consideration and approval.

Trading in the H shares of the Company

At the request of the Company, trading in the H shares of the Company was suspended with effect from 10:00 a.m. on 16 June 2005 pending the release of an announcement in relation to price sensitive information. Subject to the publication of the annual results for the financial year ended 31 December 2005 and further announcements in relation to, amongst others, the financial, production and trading position of the Company, and the Stock Exchange’s satisfaction with the stability of the Company’s internal control measures, trading in the H shares of the Company will remain suspended until further notice.

By order of the Board of Guangdong Kelon Electrical Holdings Company Limited Tang Ye Guo Chairman

As at the date of this announcement, the Company’s executive directors are Mr. Tang Ye Guo, Ms. Yu Shu Min, Mr. Su Yu Tao, Mr. Xiao Jian Lin, Mr. Lin Lan and Mr. Zhang Ming; and the Company’s independent non-executive directors are Mr. Zhang Sheng Ping, Mr. Lu Qing and Mr. Cheung Yui Kai, Warren.

Foshan City, Guangdong, the PRC, 11 August 2006

“Please also refer to the published version of this announcement in China Daily”

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