Medlive Technology Co., Ltd. — Share Issue/Capital Change 2002

Jul 15, 2002

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.

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)

ANNOUNCEMENT

The board of directors of the Company wishes to announce that the Company’s Employee Shares will be listed on Shenzhen Stock Exchange with effect from 18 July 2002.

This announcement is made pursuant to paragraph 2(2) of the listing agreement entered into between Guangdong Kelon Electrical Holdings Company Limited (the “Company”) and The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”).

The board of directors of the Company wishes to announce that the Company’s PRC domestic shares currently held by 4,041 of the Company’s employees (the “Employee Shares”) have been held for three years since the issue of the Company’s A shares to the public on 2 June 1999. As approved by the China Securities Regulatory Commission (“CSRC”) and the Shenzhen Stock Exchange, the Employee Shares will be listed on Shenzhen Stock Exchange with effect from 18 July 2002.

The Company was incorporated as a joint stock limited liability company in 1992 through a placing of shares. Upon incorporation, the total share capital of the Company comprised 422,416,755 shares, out of which 84,501,000 shares were issued to the Company’s employees at RMB1.00 per share.

In May 1996, in preparation for the Company’s overseas listing, the Company took over Guangdong Rongsheng Refrigerators Company Limited (廣東容聲冰箱有限公司 ), a Sino-foreign joint venture set up by the Company and a foreign investor. The original foreign investor’s interest in Guangdong Rongsheng Refrigerators Company Limited was converted into 181,639,808 H shares of the Company at a price of RMB1.75 per H share.

In July 1996, as approved by the Securities Commission of the State Council, the Company issued 201,352,000 H shares at a price of HK$3.67 per H share. Upon obtaining the approval from the Hong Kong Stock Exchange, such newly issued H shares together with the H shares issued by the Company in May 1996 were listed on the Hong Kong Stock Exchange.

In July 1997, pursuant to the approvals of the Company’s shareholders and the relevant authorities, the Company issued an additional 76,598,000 H shares at a price of HK$9.20 per H share. After this additional issue, the total share capital of the Company increased to 882,006,563 shares.

After obtaining the approval from the CSRC on 28 May 1999, the Company issued 110,000,000 A shares on 2 June 1999 and such A shares were listed on the Shenzhen Stock Exchange on 13 July 1999. Since this issue of A shares, the Company has not made any new issue or bonus issue of shares.

The total number of the Employee Shares to be listed on the Shenzhen Stock Exchange is 84,501,000. Such shares are held by 4,041 individuals. Among the 84,501,000 shares, 217,000 shares were held by a supervisor of the Company, an ex-chairman of the supervisory committee and an ex-vice president of the

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Company who have left the Company for less than six months. These 217,000 shares will continue to be frozen according to the Shenzhen Stock Exchange Listing Rules. Therefore, the actual number of the Employee Shares which are to be listed and freely tradeable is 84,284,000 being held by 4,038 individuals.

The shareholding structure of the Company prior to and immediately after the listing of the Employee Shares is as follows:

			Number	of Shares
				Immediately
			Prior to listing of	after listing of
Types	of Shares		Employee Shares	Employee Shares
1.	Unlisted Shares
	i.	PRC domestic legal person shares	337,915,755	337,915,755
	ii.	Employee Shares	84,501,000	0
	Total unlisted shares		422,416,755	337,915,755
2.	Listed Shares
	i.	Domestic shares listed in the PRC (A shares)	110,000,000	194,501,000
	ii.	Overseas shares listed outside the PRC (H shares)	459,589,808	459,589,808
3.	Total shares		992,006,563	992,006,563
			By the Order of the Board
		Guangdong Kelon Electrical Holdings Company Limited
			Liu Cong Meng
			Vice Chairman

Shunde, Guangdong, the PRC, 15 July 2002

"Please also refer to the published version of this announcement in The Standard"

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