Medlive Technology Co., Ltd. — Regulatory Filings 2007

Oct 29, 2007

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HISENSE KELON ELECTRICAL HOLDINGS COMPANY LIMITED

海信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)

Clarification Announcement

This announcement is made in accordance with Rule13.09(1) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

Ⅰ Summary of the Rumour

On 27 October 2007, a press article titled “ Hisense Kelon prepares to lodge an arbitration to recover the land grant premium of RMB7, 500,000 ” was published in 21st Century Business Herald and other medias, which included the following reports in relation to the Company:

“ Press report (1) ： The assets reorganisation of Hisense Kelon is nearly completed, but the historically unresolved issues emerge endlessly. An issue, regarding the outstanding land premium of RMB 7,500,000 for the then acquisition of Zhong Shan Weili by Gu Chu Jun, has recently emerged. Hisense Kelon intends to lodge an arbitration against the Fu Shan Town Government of Zhong Shan. ”

Press report (2): “ Although RMB 7,500,000 is not a large sum of money, it is the right time for Hisense Kelon, which is in urgent need of generation of profits, to resolve the case in relation to the outstanding land premium lasting for over three years. As indicated in the Third Quarterly Report of the Company dated on 25 October 2007, the net profit of the Company for the quarter is only RMB 5,090,000. ”

Ⅱ Clarification

Upon verification, the Company now explains as the above rumours as follows: (1) It was true that a land premium of RMB 7,500,000 was owed to the

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Company by the Fu Sha Town Government of Zhong Shan. In 2004, the Company participated in the reorganization of Zhong Shan Weili group. The Company had contributed capital jointly with Kelon Development Company Limited ( 科龙发展有限公司 ), a wholly-owned subsidiary of the Company, with Shun Chang Industrial Company Limited ( 顺畅工业有限公司 ) of Zhong Shan Fu Sha Town, to establish Guangdong Kelon Weili Electrical Company Limited ( 广东科龙威力电器有限公司 ) (the “ Kelon Weili ” ). During the period, Kelon Weili borrowed a loan from the Company to pay the first land grant premium of RMB 7,500,000 to the Fu Sha Town Government. However, Kelon Weili still had not obtained the land for industrial use situated at 2 Fu Sha Industrial Park as previously committed by the Fu Sha Town Government, nor had received the refund of such amount. . As at the date of this announcement, the Company has not taken any legal action in relation to this issue. Such amount was not part of the funds embezzled by Gu Chu Jun, his associated companies and the specified third party; the Company has made a bad debt provision in respect of 50% of such receivables. The Company is in the course of negotiating with the Fu Sha Town Government in relation to their continual cooperation and the resolution of this matter. The board of the directors of the Company expect that the chance of recovering such amount will not be less than 50%.

（ 2 ） The Company had published an announcement in relation to its estimated profit increase on 25 October 2007. The announcement of such estimated results is made on the basis of the Company ’ s actual status in the first three quarters and under the normal operating environment in the fourth quarter, without taking into account any unpredictable factors such as the disposal of relevant assets and the impairment of assets, which will have an impact on the accuracy of the estimated results. In the event of any material deviations between the Company ’ s annual results for the year ended 2007 and the announcement of estimated profit increase, the Company will make relevant disclosure of the revised results by way of an announcement according to the relevant requirements as soon as possible. The detailed financial information for 2007 will be disclosed in the 2007 annual report. Investors are advised to be cautious when making investments in the Company.

III. Risk Warnings

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The “ China Securities Journal ” , “ Securities Times ” , “ Hong Kong Commercial Daily ” and “ China Daily ” are the newspapers specified by the Company for information disclosure within and outside China. Investors can only rely on the information on the Company published on the newspapers specified by the Company. Investors are reminded to make rational investment decisions and be cautious of the risks associated with investments.

Suspension of Trading in H Shares

At the request of the Company, trading in H Shares of the Company was suspended with effect from 10:00 a.m. on 16 June 2005 until further notice.

By order of the Board of

Hisense Kelon Electrical Holdings Company Limited

Tang Ye Guo

Chairman

As at the date of this announcement, the Company’s directors are Mr. Tang Ye Guo, Mr. Yang Yun Duo, Mr. Wang Shi Lei, Ms. Yu Shu Min, Mr. Lin Lan and Ms. Liu Chun Xin; 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, 29 October 2007

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