2005-12-22 12:03:00
Circular (Discloseable transaction: Daye share reform plan)
THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION
22 December 2005
If you are in any doubt as to any aspect of this circular or as to the action to be taken, you
should consult your licensed securities dealer or registered institution in securities, bank
manager, solicitor, professional accountant or other professional adviser.
If you have sold or transferred all your shares in CITIC Pacific Limited, you should at
once hand this circular to the purchaser or the transferee or to the licensed securities
dealer or registered institution in securities or other agent through whom the sale or
transfer was effected for transmission to the purchaser or the transferee.
The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this
circular, 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 circular.
(Incorporated in Hong Kong with limited liability)
(Stock Code: 267)
DISCLOSEABLE TRANSACTION
DAYE SHARE REFORM PLANCONTENTS
Page
Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Letter from the Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Appendix – General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8DEFINITIONS
– 1 –
In this circular, the following expressions have the following meanings unless the context
otherwise requires:
“Board” the board of Directors
“CITIC Pacific” or the “Company” CITIC Pacific Limited, a company incorporated in
Hong Kong whose shares are listed on the Main Board
of the Stock Exchange
“CITIC Pacific China” (CITIC Pacific China
Holdings Limited), a company incorporated in the PRC
and a wholly-owned subsidiary of the Company
“Daye” (Daye Special Steel Co., Ltd.),
a joint stock limited company incorporated in the PRC
whose shares are listed on the Shenzhen Stock
Exchange
“Daye Freely Transferable freely transferable share(s) of Daye
Share(s)”
“Daye Non-freely Transferable not freely transferable share(s) of Daye
Share(s)”
“Daye Share Reform Plan” the proposal for the conversion of the Daye Non-freely
Transferable Shares into Daye Freely Transferable
Shares
“Directors” directors of the Company
“Group” the Company and its subsidiaries
“Implementation Date” the date of implementation of the Daye Share Reform
Plan
“Latest Practicable Date” 16 December 2005, being the latest practicable date
prior to the printing of this circular for the purpose of
ascertaining certain information contained in this
circular
“Listing Rules” the Rules Governing the Listing of Securities on the
Stock Exchange
“Option Date” the last trading day of the twelfth month after the
Implementation DateDEFINITIONS
– 2 –
“Option Period” the trading days comprised in a period of 30 days
after the Option Date
“Percentage Ratios” has the meaning set out in Rule 14.04(9) of the Listing
Rules
“PRC” the People’s Republic of China
“Record Date” 3 January 2006, which is the date chosen for the
determination of shareholders’ entitlements to vote in
respect of the Daye Share Reform Plan
“RMB” Renminbi, the lawful currency of the PRC
“Share(s)” share(s) of HK$0.40 each in the share capital of the
Company
“Shareholders” holder of Shares in CITIC Pacific
“SFO” the Securities and Futures Ordinance (Cap. 571 of the
laws of Hong Kong)
“Stock Exchange” The Stock Exchange of Hong Kong Limited
“Xin Yegang” (Hubei Xin Yegang Co., Ltd.),
a joint venture company incorporated in the PRC and
owned as to 95% by the Company and as to 5% by
(Huangshi Dongfang
Investment Co., Ltd.)
“%” percentage
(For the purpose of illustration only, the exchange rate of RMB1 to HK$0.96 is adopted.)LETTER FROM THE BOARD
– 3 –
(Incorporated in Hong Kong with limited liability)
(Stock Code: 267)
Directors: Registered Office:
Larry Yung Chi Kin (Chairman) 32nd Floor
Henry Fan Hung Ling (Managing Director) CITIC Tower
Peter Lee Chung Hing (Deputy Managing Director) 1 Tim Mei Avenue
Norman Yuen Kee Tong (Deputy Managing Director) Central
Vernon Francis Moore (Executive Director) Hong Kong
Yao Jinrong (Executive Director)
Li Shilin (Executive Director)
Carl Yung Ming Jie (Executive Director)
Liu Jifu (Executive Director)
Leslie Chang Li Hsien (Executive Director)
Willie Chang*
Hamilton Ho Hau Hay**
Alexander Reid Hamilton**
Hansen Loh Chung Hon**
Norman Ho Hau Chong**
André Desmarais*
Peter Kruyt
#
* Non-executive Director
** Independent non-executive Director
#
Alternate Director to André Desmarais
22 December 2005
To the Shareholders,
Dear Sir or Madam,
DISCLOSEABLE TRANSACTION
DAYE SHARE REFORM PLAN
INTRODUCTION
On 23 November 2005, the Board announced that the Daye Share Reform Plan was
proposed by Xin Yegang and CITIC Pacific China, which together hold a total of 261,238,480
Daye Non-Freely Transferable Shares (representing an approximately 58.13% of all theLETTER FROM THE BOARD
– 4 –
issued shares in Daye and approximately 92.52% of all the issued Daye Non-freely
Transferable Shares) and that communication with the holders of Daye Freely Transferable
Shares would be made for the purposes of obtaining their views on Daye Share Reform
Plan.
Subsequently, on 2 December 2005, the Board announced that such communication
ended on 2 December 2005, and the conclusion was that the exercise price of the Option
would be revised from RMB3.7 to RMB3.8 per Daye Freely Transferable Share with other
terms of the Daye Share Reform Plan as disclosed in the announcement of 23 November
2005 remain unchanged. Accordingly, the terms of the Daye Share Reform Plan were
finalised on 2 December 2005. Subject to the obtaining of the requisite shareholders’
approvals, the Daye Share Reform Plan will proceed on the terms and conditions with the
said alteration cleared by the Shenzhen Stock Exchange.
As the applicable Percentage Ratios are more than 5% and less than 25%, the proposed
granting of the Options by Xin Yegang under the Daye Share Reform Plan constitutes a
discloseable transaction for the Company and is subject to the announcement and reporting
requirements of the Listing Rules. The purpose of this circular is to provide you with
further information relating to, among others, details of the Options and the Daye Share
Reform Plan.
DAYE SHARE REFORM PLAN
The finalised terms and conditions of the Daye Share Reform Plan are summarised
below:–
Conversion of Daye Non-freely Transferable Shares into Daye Freely Transferable Shares
Subject to the obtaining of the requisite shareholders’ approvals as described below,
the Daye Non-freely Transferable Shares will be freely transferable on the Shenzhen Stock
Exchange on the first trading day following the Implementation Date subject to a lock-up
period of 36 months in the case of Xin Yegang and CITIC Pacific China and a period of at
least 12 months as required by the applicable laws in the case of the remaining holders of
Daye Non-freely Transferable Shares. However, some of such remaining holders of Daye
Non-freely Transferable Shares have accepted longer lock-up period of up to 24 months.
Conditions
The Daye Share Reform Plan is conditional upon:
(a) the approvals of more than two-thirds of (i) all the shareholders of Daye and
(ii) the holders of Daye Freely Transferable Shares; and
(b) the completion of all the necessary formalities for the purpose of enabling the
trading on the Shenzhen Stock Exchange of those Daye Freely Transferable
Shares to be converted from Daye Non-freely Transferable Shares.LETTER FROM THE BOARD
– 5 –
The votes of the shareholders of Daye in respect of the Daye Share Reform Plan may
be cast at a meeting to be held on 12 January 2006 or via the internet from 10 January 2006
to 12 January 2006.
If any of such conditions cannot be fulfilled, the Daye Share Reform Plan will not be
implemented.
Put Option
Xin Yegang will grant a put option (the “Option”) to each holder of Daye Freely
Transferable Shares, pursuant to which a holder of Daye Freely Transferable Shares (whose
name shall be registered on the register of members of Daye upon close of trading on the
Option Date) shall have the right (but not the obligation) to sell its Daye Freely Transferable
Shares to Xin Yegang within the Option Period at an exercise price of RMB3.8 per Daye
Freely Transferable Share (subject to adjustment for any cash or scrip dividend distributions
by Daye and conversion of Daye’s common reserve fund to equity), representing a premium
of 14.46% over the closing price per Daye Freely Transferable Share at the close of trading
on 28 October 2005 after which date trading in Daye Freely Transferable Shares was
suspended pending the announcement of the Daye Share Reform Plan. Based on the
167,040,000 Daye Freely Transferable Shares in issue as at the date hereof, the full exercise
of the Options would require the payment of approximately RMB634.75 million
(approximately HK$609.36 million) by Xin Yegang, which is intended by the Company to
be funded by the Group’s internal resources.
If the conditions for the Daye Share Reform Plan as set out above cannot be fulfilled,
any granting of Options will not be effective and the Company will make an announcement
to disclose the same. Upon the exercise of the Option, the Company will comply with all
the relevant requirements of the Listing Rules in relation thereto.
Further Undertakings
Xin Yegang further undertakes that it will:
(1) prior to the Record Date, pay a performance guarantee deposit of approximately
RMB126.95 million (approximately HK$121.87 million), representing 20% of
the total amount payable by Xin Yegang upon full exercise of the Options,
into the bank account designated by the relevant authority, which will be
frozen until the expiry of the Option Period. Such performance guarantee
deposit will be funded by the Group’s internal resources;
(2) with a view to ensuring that the following debts be repaid prior to the Record
Date, actively procure the repayment to Daye of an aggregate amount of
approximately RMB188.88 million (approximately HK$181.32 million) owed
by two debtors of Daye and provide an irrevocable guarantee for the said
repayments. In the event that the said two debtors fail to make such
repayments, Xin Yegang will repay the said amount to Daye on their behalfLETTER FROM THE BOARD
– 6 –
out of the purchase prices payable by the Group for the Group’s acquisitions
of certain assets including fixed assets and stocks of two steel pipe factories
from the two debtors or their parent company. Save for such arrangements,
the two debtors are third parties independent of the Company; and
(3) within 3 years from the Implementation Date, put forward proposal(s) at
meeting(s) of the shareholders of Daye in respect of Xin Yegang’s injection(s)
of quality asset(s) of a value of not less than RMB300 million and of a return
on net asset ratio calculated on the basis of the audited financial statements
for the preceding financial year of not less than 10% to Daye with a view to
enhancing the profitability of Daye. In the event that such undertaking is not
complied with, Xin Yegang shall pay to each shareholder of Daye (other than
Xin Yegang and CITIC Pacific China) RMB0.053 for each share of Daye held
by such shareholder. Based on the number of shares of Daye held by the
shareholders of Daye (other than Xin Yegang and CITIC Pacific China) as at
the date hereof, an aggregate amount of approximately RMB10 million
(approximately HK$9.6 million) shall be payable by Xin Yegang if it fails to
comply with such undertaking. If the conditions for the Daye Share Reform
Plan as set out above cannot be fulfilled, Xin Yegang will not be bound by this
undertaking.
The Directors expect that the above undertakings given by Xin Yegang will not have
material adverse effect on the earnings, assets and liabilities of CITIC Pacific.
The holders of Daye Non-freely Transferable Shares, other than Xin Yegang, are not
obliged to, and will not grant, nor be granted, the Option or give any of the above
undertakings to be given by Xin Yegang described above, except that some of them have
accepted a lock-up period of longer than the legal requirement of 12 months as mentioned
above.
INFORMATION RELATING TO THE COMPANY AND DAYE
The Group is engaged in diversified range of businesses in Hong Kong and the
PRC, including basic infrastructure (such as power generation, communications, aviation
and civil infrastructure), manufacturing of specialty steel, marketing and distribution of
motor vehicles and consumer products, and property investment and development.
Daye is a joint stock limited company incorporated in the PRC whose shares are
listed on the Shenzhen Stock Exchange. Daye is primarily engaged in specialty steel
manufacturing.
As at the Latest Practicable Date, insofar as the Directors were aware, Daye did not
have any substantial shareholder (within the meaning of the Listing Rules) other than Xin
Yegang and CITIC Pacific China. As at the Latest Practicable Date, Daye had more than
50,000 holders of its Daye Freely Transferable Shares. As at the Latest Practicable Date, to
the best of the Directors’ knowledge, information and belief having made all reasonableLETTER FROM THE BOARD
– 7 –
enquiry, in respect of those shareholders holding Daye Freely Transferable Shares of a
value (valued on the basis of RMB3.8 per Daye Freely Transferable Share) which gave a
relevant percentage ratio of Rule 14.07 of more than 0.1%, none of such shareholders was
a connected person of the Company.
For the year ended 31 December 2004, both the audited net profits before and after
taxation of Daye were approximately RMB27 million (approximately HK$26 million). For
the year ended 31 December 2003, the audited net losses before and after taxation of Daye
were approximately RMB29 million (approximately HK$28 million) and RMB43 million
(approximately HK$41 million) respectively. As at 30 September 2005, the net asset value
of Daye was approximately RMB927 million (approximately HK$890 million).
REASONS AND BENEFITS FOR DAYE SHARE REFORM PLAN
The implementation of the Daye Share Reform Plan is in line with the prevailing
development of the securities market of the PRC and will render the Daye Non-freely
Transferable Shares held by the Group becoming freely transferable on the Shenzhen
Stock Exchange.
The Board considers that the implementation of the Daye Share Reform Plan is in
the interest of the Group because it can enhance the value of the Group’s interest in Daye,
and will provide more flexibility to the Group in dealing with its interest in Daye. The
Directors (including the independent non-executive directors) also consider that the terms
thereof (including the granting of the Options (as defined above)) are fair and reasonable
from the perspective of the Group whilst giving an incentive for holders of Daye Freely
Transferable Shares to support the Daye Share Reform Plan and they are in the interests of
the shareholders of the Group as a whole.
The Directors expect that if the Options are not exercised, the Daye Share Reform
Plan will not have any material effect on the earnings, assets and liabilities of CITIC
Pacific, and that if the Options are fully exercised, it would not have material adverse
effect on the earnings, assets and liabilities of CITIC Pacific.
ADDITIONAL INFORMATION
Your attention is drawn to the general information set out in the Appendix to this
circular.
Yours faithfully,
By Order of the Board
CITIC Pacific Limited
Larry Yung Chi Kin
ChairmanAPPENDIX GENERAL INFORMATION
– 8 –
1. RESPONSIBILITY STATEMENT
This circular includes particulars given in compliance with the Listing Rules for the
purpose of giving information with regard to the Company. The Directors collectively and
individually accept full responsibility for the accuracy of the information contained in this
circular and confirm, having made all reasonable enquiries, that to the best of their
knowledge and belief, there are no other facts not contained in this circular, the omission
of which would make any statement herein misleading.
2. DISCLOSURE OF INTERESTS
(a) Interests of Directors and chief executive in securities
Save as disclosed below, as at the Latest Practicable Date, none of the Directors
and the chief executive of the Company had any interest or short position in the
shares, underlying shares or debentures of the Company or its associated corporations
(within the meaning of the SFO) which were required, pursuant to section 352 of the
SFO, to be entered into the register referred to therein, or were required to be
notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of
Part XV of the SFO (including interest and short position which he was taken or
deemed to have under such provisions of the SFO) or the Model Code for Securities
Transactions by Directors of Listed Companies set out in the Listing Rules:
(i) Shares in the Company:
Number of Shares
Trusts and Percentage of
Personal Corporate Family similar issued share
Name of Director interests interests interests interests capital (%)
Larry Yung Chi Kin 400,381,000 18.258
Henry Fan Hung Ling 1,728,000 44,600,000 2.113
Peter Lee Chung Hing 500,000 0.023
Norman Yuen Kee Tong 33,000 0.002
Vernon Francis Moore 3,200,000 0.146
Liu Jifu 40,000 0.002
Leslie Chang Li Hsien 30,000 0.001
Hansen Loh Chung Hon 1,050,000 500,000
1
500,000
1
0.071
André Desmarais 1,488,000 102,242,000
2
75,000 4.734
Peter Kruyt 2,100 0.0001
(alternate Director to
Mr André Desmarais)APPENDIX GENERAL INFORMATION
– 9 –
Notes:
1. The corporate interests and the family interests of the relevant Director duplicate
each other as the 500,000 Shares are held through a company in which the relevant
Director and his family are interested.
2. Out of 102,242,000 Shares, 2,012,000 Shares are held by a corporation controlled
by the relevant Director and 100,230,000 Shares are held indirectly by a corporation
of which the relevant Director is the President and Co-Chief Executive Officer.
(ii) Share options in the Company
Number of Options Number of Percentage
Share lapsed/ Share of issued
options cancelled/ options share
Directors Date of Grant granted exercised Outstanding capital (%)
Larry Yung Chi Kin 28 May 2002 2,000,000 Nil 104,000,000 4.74
1 Nov 2004 2,000,000
5 Dec 2005 100,000,000
(Note)
Peter Lee Chung Hing 28 May 2002 1,000,000 Nil 2,000,000 0.091
1 Nov 2004 1,000,000
Norman Yuen Kee Tong 28 May 2002 500,000 Nil 1,000,000 0.046
1 Nov 2004 500,000
Vernon Francis Moore 28 May 2002 1,000,000 Nil 2,000,000 0.091
1 Nov 2004 1,000,000
Yao Jinrong 28 May 2002 300,000 Nil 800,000 0.036
1 Nov 2004 500,000
Li Shilin 28 May 2002 300,000 Nil 300,000 0.014
Carl Yung Ming Jie 28 May 2002 300,000 Nil 800,000 0.036
1 Nov 2004 500,000
Liu Jifu 28 May 2002 300,000 Nil 800,000 0.036
1 Nov 2004 500,000
Leslie Chang Li Hsien 28 May 2002 300,000 Nil 800,000 0.036
1 Nov 2004 500,000
Note: These 100,000,000 Share options were granted by CITIC Hong Kong (Holdings)
Limited (“CITIC HK”), a substantial shareholder of the Company (within the
meaning of the Listing Rules).APPENDIX GENERAL INFORMATION
– 10 –
(iii) Shares in the associated corporation:
Number of ordinary shares in
Cathay Pacific Airways Limited
Percentage
Trusts and to the
Personal Corporate Family similar issued share
Name of Director interests interests interests interests capital (%)
Hansen Loh Chung Hon 450,000 0.013
(b) Substantial shareholders of the Company
As at the Latest Practicable Date, save as disclosed herein, so far as was known
to any Director or chief executive of the Company, no person (other than a Director
or chief executive of the Company or their respective associates) had any interest or
short position in the Shares or underlying Shares which would fall to be disclosed
to the Company under the provisions of Divisions 2 and 3 of Part XV of the SFO:
(i) Interest in the Shares
Number of Shares Percentage to the issued
Name of the Company share capital (%)
CITIC Group 632,253,285 28.832
CITIC HK 632,253,285 28.832
Heedon Corporation 496,386,285 22.636
Honpville Corporation 310,988,221 14.181
CITIC HK is a substantial shareholder of the Company (within the meaning of
the Listing Rules) indirectly through the following wholly owned subsidiary companies:
Name of subsidiary Number of Shares Percentage to the issued
companies of CITIC HK of the Company share capital (%)
Affluence Limited 43,266,000 1.973
Winton Corp. 30,718,000 1.401
Westminster Investment Inc. 101,960,000 4.650
Jetway Corp. 20,462,000 0.933
Cordia Corporation 32,258,064 1.471
Honpville Corporation 310,988,221 14.181
Hainsworth Limited 82,601,000 3.767
Southpoint Enterprises Inc. 10,000,000 0.456
Each of Affluence Limited, Winton Corp., Westminster Investment Inc., Jetway
Corp., Cordia Corporation, Honpville Corporation, Hainsworth Limited and
Southpoint Enterprises Inc. holds the Shares beneficially. Accordingly, Honpville
Corporation is a substantial shareholder of the Company (within the meaning of the
Listing Rules).APPENDIX GENERAL INFORMATION
– 11 –
CITIC Group is the direct holding company of CITIC HK. CITIC HK is the
direct holding company of Heedon Corporation, Hainsworth Limited, Affluence Limited
and Barnsley Investments Limited. Heedon Corporation is the direct holding company
of Winton Corp., Westminster Investment Inc., Jetway Corp., Kotron Company Ltd.
and Honpville Corporation and Kotron Company Ltd. is the direct holding company
of Cordia Corporation. Barnsley Investments Limited is the direct holding company
of Southpoint Enterprises Inc. Accordingly, the interests of CITIC Group in the
Company duplicate the interests of CITIC HK in the Company. The interests of
CITIC HK in the Company duplicate the interests in the Company of all its direct
and indirect subsidiary companies as described above. The interests of Heedon
Corporation in the Company duplicate the interests in the Company of all its direct
and indirect subsidiary companies as described above. The interests of Barnsley
Investments Limited in the Company duplicate the interests in the Company of its
direct subsidiary company as described above and the interests of Kotron Company
Ltd. in the Company duplicate the interests in the Company of its direct subsidiary
company as described above.
(ii) Short position in the Shares
Number of Shares Percentage to the issued
Name of the Company share capital (%)
CITIC Group 100,000,000 4.56
CITIC HK 100,000,000 4.56
These are in respect of options granted by CITIC HK, a substantial shareholder
of the Company (within the meaning of the Listing Rules), to Mr. Larry Yung Chi
Kin.
As at the Latest Practicable Date, save as disclosed below, none of the Directors
was a director or employee of a company which had an interest or short position in
the Shares and underlying Shares which would fall to be disclosed to the Company
under the provisions of Division 2 and 3 of Part XV of the SFO, or, was, directly or
indirectly, interested in ten per cent. or more of the nominal value of any class of
share capital carrying rights to vote in all circumstances at general meetings of any
other member of the Group:
Name of company which
had such discloseable Position within
Name of Director interest or short position such company
Larry Yung Chi Kin CITIC Group Director
CITIC HK Director
Heedon Corporation Director
Honpville Corporation Director
Earnplex Corporation Director & Shareholder
Bloomfield Enterprises Corp. Director & Shareholder
Rockhampton Investments Limited Director & Shareholder
Henry Fan Hung Ling CITIC HK Director
Vernon Francis Moore CITIC HK Director
Heedon Corporation Director
Honpville Corporation Director
Yao Jinrong CITIC Group Director
Li Shilin CITIC Group Director
Carl Yung Ming Jie Earnplex Corporation Director
Liu Jifu CITIC HK Director
Leslie Chang Li Hsien Honpville Corporation DirectorAPPENDIX GENERAL INFORMATION
– 12 –
(c) Substantial shareholding in other members of the Group
As at the Latest Practicable Date, save as disclosed herein, so far as was known
to any Director or chief executive of the Company, no person (other than a Director
or chief executive of the Company or their respective associates or a member of the
Group) was, directly or indirectly, interested in ten per cent. or more of the nominal
value of any class of share capital carrying rights to vote in all circumstances at
general meetings of any other member of the Group:
Percentage of
issued
Name of subsidiary Name of shareholder share capital
Adwood Company Limited Silverstone Assets Limited 30%
New Hong Kong Tunnel Kumagai International Limited 13.875%
Company Limited
Sims Trading (Macau) Mr. Ma Iao Hang 10%
Company Limited Mr. Ma Chi Seng 10%
Mr. Ka Lon Ho 10%
Dah Chong Hong – Dragonair Hong Kong Dragon Airlines 30%
Airport GSE Service Limited Limited
Triangle – Isuzu Motors Limited Isuzu Motors Limited 40%
DAS Nordisk Limited Nordisk Aviation Products 30%
Asia Limited
DAS Aviation Support Limited Hong Kong Dragon Airlines 30%
Limited
Bright Billion Limited Jungle Investment Limited 10%
Alixon Co. Ltd. RFC Management Limited 10%
Prosperity Motors Limited Xin Kang Heng Holdings Limited 40%
Dah Chong Hong Motor Service Xin Kang Heng Holdings Limited 40%
Centre (Macau) Limited
Dong Chong Motors (China) Tokyo Boeki Ltd. 32.25%
LimitedAPPENDIX GENERAL INFORMATION
– 13 –
Percentage of
issued
Name of subsidiary Name of shareholder share capital
Hang Shun Fat Company, Honorway Investments Limited 11.8%
Limited Wideland Investors Limited 11.8%
Mr. Leung Kau Kui, deceased 11.8%
Wah Luen Fung Company, Marvel Sweet Management Ltd. 15%
Limited Wideland Investors Limited 15%
Asia Pacific Internet Exchange HKIX Hong Kong Ltd. 25%
Limited
Ko Lok Investment Company, Marvel Sweet Management Ltd. 40%
Limited
Goldenburg Properties Limited Gorich Traders Limited 30%
Dah Chong Hong (Macao) Mr. Ma Iao Hang 20%
Engineering Limited Mr. Liu Chak Wan 20%
Dah Chong Hong Macau Total CBA Investments Company Limited 35%
Supply Chain Management Cheong Wah Hong Corporation – 10%
Company Limited Enterprises and Investments
Limited
Dah Chong Hong Macau Food CBA Investments Company Limited 35%
Supply Company Limited Cheong Wah Hong Corporation – 10%
Enterprises and Investments
Limited
Dah Chong Hong Macau Logistics CBA Investments Company Limited 35%
Warehouse Company Limited Cheong Wah Hong Corporation – 10%
Enterprises and Investments
Limited
DCH Supply Chain Management Excel Epoch International Limited 20%
Company Limited
Mainstream Holdings Limited IBP Caribbean Inc. 45%
Regal Heights Limited Perdue Farms Incorporated 40%
Winway Investments Holdings Rising Sun Investments 38%
Corp. Holdings Ltd.
Join Resources Limited Swire Properties Limited 16.67%APPENDIX GENERAL INFORMATION
– 14 –
Name of subsidiary being
a joint venture company
established in the PRC Percentage of
without the concept of registered
general meetings (#) Name of shareholder capital
Guangdong Jing Yun Guangdong Huada Distribution 10%
Distribution Co., Ltd. Company
30%
(Wuxi Taihu Jing Development (Wuxi Guo Lian Development Group
Co., Ltd.) Co., Ltd.)
30%
(Wuxi Taihu Yuan Property (Wuxi Guo Lian Development Group
Co., Ltd.) Co., Ltd.)
30%
(Wuxi Taihu Mei Environmental (Wuxi Guo Lian Development Group
Co., Ltd.) Co., Ltd.)
Jiangsu CP Xingcheng Special Jiangyin Steel Mill 10.6%
Steel Co., Ltd. Bright Trinity Enterprises Ltd. 11.62%
Jiangyin Xingcheng Steel Jiangyin Steel Mill 11.7%
Products Co., Ltd.
Jiangyin Xingcheng Storage Jiangyin Steel Mill 11.7%
and Transportation Co., Ltd.
Wuxi Xingcheng Steel Products Jiangyin Steel Mill 11.7%
Co., Ltd.
Kunming Dah Chong Motor (Yunnan Coach Factory) 30%
Service Co., Ltd.
Guangdong Dah Chong Guangdong International Trade 30%
Foodstuffs Co., Ltd. Travel Service Ltd.
Qingdao Adachi Paints and New Asia Pacific Group Co. Ltd. 25%
Chemical Materials Co., Ltd.
Shanghai DCH Jiangnanfeng Shanghai Agriculture Investment 12.67%
Co., Ltd. Holding Co., Ltd.
Shanghai Pudong Huilun Enterprise 10.56%
Holding Co., Ltd.APPENDIX GENERAL INFORMATION
– 15 –
Name of subsidiary being
a joint venture company
established in the PRC Percentage of
without the concept of registered
general meetings (#) Name of shareholder capital
Shenzhen Zhongliangdachang COFCO Shenzhen Trading & 30%
Foodstuffs Co., Ltd. Development Co. Ltd.
Dalian CP Digital Technology 19.5%
Co., Ltd. (Dalian Instrument Group Co., Ltd.)
Shanghai Jingan City Trading Group 10%
(Shanghai CITIC Square Company
Co., Ltd.)
# Although the information relating to these joint venture companies have been set out under this
section, such joint venture companies established in the PRC under the relevant laws thereof have
a different capital structure from, and do not have the same concept of shareholders general
meetings as, subsidiaries of the Company established in other jurisdictions.
3. LITIGATION
As at the Latest Practicable Date, neither the Company nor any of its subsidiaries
was engaged in any litigation or claim of material importance and, so far as the Directors
were aware, no litigation or claim of material importance was pending or threatened
against the Company or any of its subsidiaries.
4. SERVICE CONTRACTS
There is no existing or proposed service contracts between any of the Directors and
the Company or any of its subsidiaries, other than contracts expiring or determinable by
the employer within one year without payment of compensation (other than statutory
compensation).
5. COMPETING INTEREST
In so far as the Directors are aware, none of the Directors or their respective associates
have any interest in a business which competes or is likely to compete with the business
of the Group.
6. GENERAL
(a) The secretary of the Company is Ms. Alice Tso Mun Wai, ACIS, MA and the
qualified accountant of the Company appointed pursuant to Rule 3.24 of the
Listing Rules is Mr. Leslie Chang Li Hsien, HKICPA, AICPA, NYSSCPA.APPENDIX GENERAL INFORMATION
– 16 –
(b) The registered office of the Company is at 32nd Floor, CITIC Tower, 1 Tim
Mei Avenue, Central, Hong Kong.
(c) The share registrars of the Company is Tengis Limited, Ground Floor, Bank of
East Asia Harbour View Centre, 56 Gloucester Road, Wanchai, Hong Kong.
(d) The English text of this circular shall prevail over the Chinese text.
LTN20051222081.pdf