Placing of new H Shares On 12 November 2007, the Company and the Placing Agent entered into the Placing Agreement,pursuant to which the Company has agreed to place, through the Placing Agent and on a best effort basis, not more than 100,000,000 Placing Shares to independent investors at a price of not more than HK$3.60 and of not less than the higher of (i) HK$2.60, and (ii) the latest audited consolidated net asset value per Share. Reference is also made to the circular issued by the Company dated 10 September 2007. The Placing Shares represent not more than approximately 16.5% of the total issued share capital of the Company as at the date of this announcement and approximately 14.1% of the issued share capital of the Company as enlarged by the allotment and issue of the Placing Shares, and represent not more than approximately 60.8% of the issued H Shares as at the date of this announcement and approximately 37.8% of the enlarged issued H Shares.
The Placing is conditional upon fulfilment of certain conditions. The Placing is conditional and may or may not proceed. Accordingly, shareholders and prospective investors are reminded to exercise extreme caution when trading in the Shares. Assuming that the issue price of the Placing Shares is HK$2.60 per Placing Share and a maximum number of 100,000,000 Placing Shares are issued, the Directors propose to use the net proceeds from the Placing as to approximately HK$166 million for expanding its production facilities and product lines and sales network, approximately HK$43 million for enhancing its research and development
Trading suspension and resumption At the request of the Company, trading in H Shares on the Stock Exchange has been suspended from 9:30 a.m. on Tuesday, 13 November 2007 pending the release of this announcement. Application has been made by the Company to the Stock Exchange for resumption of trading in H Shares on the Stock Exchange with effect from 9:30 a.m. on Wednesday, 14 November 2007.