00653 卓悦控股 展示文件：1. 董事会函件
25July2025
TotheShareholders
DearSirorMadam,
(1)PROPOSEDRIGHTSISUEONTHEBASISOFTHRE(3)RIGHTS
SHARESFOREVERYONE(1)EXISTINGSHAREHELDONTHERECORD
DATEONANON-UNDERWRITENBASIS;
(2)PLACINGOFNEWSHARESUNDERSPECIFICMANDATE;
(3)CONECTEDTRANSACTIONSINRELATIONTOTHEPOSIBLE
SUBSCRIPTIONANDTHESET-OFARANGEMENT;AND
(4)NOTICEOFEXTRAORDINARYGENERALMETING
INTRODUCTION
ReferenceismadetotheAnouncementinrelationto,amongotherthings,theRightsIsue,the
PosibleSubscription,theSet-ofArangementandthePlacing.Thepurposeofthiscircularisto
provideyouwith,amongotherthings,(i)furtherinformationregardingtheRightsIsue,thePosible
Subscription,theSet-ofArangement,thePlacingAgrementandtherespectivetransactions
contemplatedthereunder;(i)aleterofrecomendationfromtheIndependentBoardComitein
respectoftheRightsIsue,thePosibleSubscription,thePlacing,theSet-ofArangementandthe
respectivetransactionscontemplatedthereunder;(i)aleterofadvicefromtheIndependentFinancial
AdvisertotheIndependentBoardComiteandtheIndependentShareholdersinrespectoftheRights
Isue,thePosibleSubscription,thePlacing,theSet-ofArangementandtherespectivetransactions
contemplatedthereunder;(iv)otherinformationrequiredundertheListingRules;and(v)anotice
conveningtheEGM.
PROPOSEDRIGHTSISUE
TheRightsIsueisproposedtotakeplacewiththetermsetoutasfolows:
Isuestatistic
BasisoftheRightsIsue:Thre(3)RightsSharesforeveryone(1)existing
ShareheldbytheQualifyingShareholdersonthe
RecordDate
SubscriptionPrice:HK$0.080perRightsShare
NumberofSharesinisue:447,715,799Shares
NumberofRightsShares:Upto1,343,147,397RightsShares(asumingno
changeinthenumberofSharesinisueonorbefore
theRecordDate)
Agregatenominalvalueofthe
RightsShares
:UptoHK$13,431,473.97(asumingnochangeinthe
sharecapitaloftheCompanyonorbeforetheRecord
Date)
NumberofSharesasenlarged
bythealotmentandisueof
theRightsShares
:Upto1,790,863,196Shares(asumingnochangein
thenumberofSharesinisueonorbeforetheRecord
DateandthatnonewShares(otherthantheRights
Shares)wilbealotedandisued)
NumberofRightsSharesbeing
undertakenbyMr.Chen
:Upto675,291,879RightsShares(theactualamountof
RightsSharestobetakenupbyMr.Chenwildepend
onthelevelofsubscriptiontakenupbytheQualifying
Shareholdersuchthatheminimumpublicfloat
requirementundertheListingRulesisatisfied
imediatelyaftercompletionoftheRightsIsue)
Grosprocedstoberaisedfrom
theRightsIsue
:UptoaproximatelyHK$107.45milionbeforethe
expensesandtheSet-ofArangement
AsatheLatestPracticableDate,theCompanyhasoutstandingWarantstosubscribefor
29,078,947Shares.Saveasaforesaid,theCompanydoesnothaveanyotherderivatives,options,
warantsandconversionrightsorothersimilarightswhichareconvertibleorexchangeableintoShares
asatheLatestPracticableDate.TheCompanyhasnointentiontoisueorgrantanyShares,
convertiblesecurities,warantiesand/oroptionsonorbeforetheRecordDate.
–
–
AsumingnochangeinthenumberofSharesinisueonorbeforetheRecordDate,1,343,147,397
RightsSharestobeisuedpursuantothetermsoftheRightsIsuerepresents(i)300%ofthetotal
numberofisuedSharesasatheLatestPracticableDate;and(i)75%oftheisuedsharecapitalofthe
CompanyasenlargedbythealotmentandisueoftheRightsShares.
Non-underwritenbasis
SubjectothefulfilmentoftheconditionsoftheRightsIsue,theRightsIsuewilprocedona
non-underwritenbasisirespectiveofthelevelofaceptancesoftheprovisionalyalotedRights
Shares,andthelevelofsubscriptionofthexcesRightsShares.IntheventheRightsIsueisnot
fulysubscribed,anyRightsSharesnotakenupbytheQualifyingShareholderswilnotbeisuedby
theCompanyandthesizeoftheRightsIsuewilbereducedacordingly.
TherearenostatutoryrequirementsregardingminimumsubscriptionlevelsinrespectoftheRights
Isue.ThereisnominimumamountoberaisedundertheRightsIsue.AstheRightsIsuewil
procedonanon-underwritenbasis,anyShareholderwhoapliestotakeupalorpartofhis/her/its
entitlementunderthePAL(s)mayunwitinglyincuranobligationtomakeageneraloferfortheShares
undertheTakeoversCode.Acordingly,theRightsIsuewilbemadeontermsthatheCompanywil
providefortheShareholderstoaplyonthebasisthatiftheRightsSharesarenotfulytakenup,the
aplicationofanyShareholder(exceptforHKSCNominesLimited)forhis/her/itsasuredentitlement
undertheRightsIsuewilbescaledowntoalevelwhichdoesnotrigeranobligationonpartofthe
relevantShareholdertomakeageneraloferundertheTakeoversCodeinacordancewiththenoteto
Rule7.19(5)(b)oftheListingRulesandcomplyingwiththeminimumpublicfloatrequirementsofthe
ListingRules.
AsatheLatestPracticableDate,otherthantheUndertaking,theBoardhasnotreceivedany
informationorotherundertakingsfromanyShareholdersoftheirintentiontotakeupornototakeup
thesecuritiesoftheCompanytobeoferedtothemundertheRightsIsue.
Thescaling-downofaplicationsforRightsShareswilbeconductedinafairandequitable
maner,guidedbythefolowingprinciples:(a)EAF(s)wilbescaledownbeforePAL(s);(b)ifthe
scale-downisnecesaryduetoanexcedingofshareholdingbyagroupofQualifyingShareholders
actinginconcert(referedtoasthe
‘
AfectedGroup(s)ofShareholders
’
)ratherthananindividual
QualifyingShareholder,thealocationsofEAF(s)andPAL(s)tomembersoftheAfectedGroup(s)of
ShareholderswilbedeterminedbasedonthenumberofSharesheldbytheafectedaplicantsonthe
RecordDateonaproratabasis;and(c)thealocationsofEAF(s)andPAL(s)todiferentAfected
Group(s)ofShareholdersand/orafectedindividualQualifyingShareholderswilbemadebasedonthe
numberofSharesheldbytheafectedaplicant(s)and/orafectedgroup(s)ofaplicant(s)onthe
RecordDateonaproratabasis.
SubscriptionPrice
TheSubscriptionPriceisHK$0.080perRightsShare,payableinfuluponaceptanceofthe
relevantprovisionalalotmentofRightsSharesundertheRightsIsueorwhenatransfereofnil-paid
RightsSharesapliesfortheRightsShares.
–
–
TheSubscriptionPricerepresents:
(i)adiscountofaproximately25.93%totheclosingpriceofHK$0.1080perShareasquoted
ontheStockExchangeontheLastTradingDay;
(i)adiscountofaproximately27.93%totheaverageoftheclosingpricesofaproximately
HK$0.1110perShareasquotedontheStockExchangeforthefive(5)consecutivetrading
daysimediatelypriortotheLastTradingDay;
(i)adiscountofaproximately8.05%tothetheoreticalex-rightspriceofHK$0.0870perShare
asadjustedforthefectoftheRightsIsue,basedontheclosingpriceofHK$0.1080per
ShareasquotedontheStockExchangeontheLastTradingDay;
(iv)adiscountofaproximately75.91%totheunauditedconsolidatednetasetvalueperShare
ofaproximatelyHK$0.332(basedonthelatestpublishedunauditedconsolidatednetaset
valueofaproximatelyHK$148,654,000asat31December2024andthetotalnumberof
isuedSharesasatheLatestPracticableDate).TheDirectorswereawareofthefacthathe
SubscriptionPricerepresentsadiscountofaproximately75.91%tothelatestpublished
unauditedconsolidatednetasetvalueofaproximatelyHK$0.332perShareasat31
December2024.However,theDirectorsalsonotethatheShareshadbentradedonthe
StockExchangeatanaveragetradingpriceofaroundHK$0.1644perShareduringthesix
monthsimediatelyprecedingtheLastTradingDayandatanaveragetradingpriceof
aroundHK$0.1568forthethremonthsimediatelyprecedingtheLastTradingDay,
representinganaveragediscountofaproximately50.50%and52.79%tothelatestpublished
unauditedconsolidatednetasetvalueofaproximatelyHK$0.332perShareasat31
December2024,respectively.ConsideringthatheShareshadbenconsistentlytradedata
substantialdiscountotheconsolidatednetasetvalueperShareintherecentmonths
precedingtheLastTradingDay,theDirectorswereoftheviewthat,whendeterminingthe
SubscriptionPrice,itwouldbemoreapropriatetomakereferencetotheprevailingmarket
priceoftheShareswhichreflectedthefairmarketvalueoftheSharestradedontheStock
Exchange,insteadofmakingreferencetothenetasetvalueperShare.Moreover,the
DirectorsalsoconsiderthathewilingnesoftheShareholderstoparticipateintheRights
IsuewouldbesignificantlyreducediftheSubscriptionPricewasmadewithreferencetothe
consolidatednetasetvalueperShare,andthatwouldnotbefavorabletotheCompanyand
theShareholdersasawhole;and
(v)atheoreticaldilutionefect(asdefinedunderRule7.27BoftheListingRules)of(a)
aproximately20.95%onastandalonebasis,representedbythetheoreticaldilutedpriceof
aproximatelyHK$0.088perSharetothebenchmarkedprice(asdefinedunderRule7.27B
oftheListingRules,takingintoacountofthehigherof(i)theclosingpriceoftheShareon
theLastTradingDayofHK$0.1080perShare;and(i)theaverageoftheclosingpricesof
theSharesasquotedontheStockExchangeforthefivepreviousconsecutivetradingdays
priortothedateoftheAnouncementofaproximatelyHK$0.1110perShare)of
aproximatelyHK$0.1110perShare;and(b)aproximately21.06%onanacumulative
basistakingintoacountofthetheoreticaldilutionefectoftheloancapitalisationofthe
CompanyanouncedinNovember2024.
–
–
TheSubscriptionPricewasdeterminedwithreferenceto,amongothers,(i)themarketpriceofthe
Sharesundertheprevailingmarketconditionsandtherelevantdiscountotheclosingprices;(i)the
prevailingmarketconditionsofthecapitalmarketinHongKongtakingintoconsiderationtherather
cautionsinvestmentsentimentofthegeneralpublicinvestorsinHongKongandeconomicuncertainties;
(i)thelatestbusinesperformanceandfinancialpositionoftheGroupastheGroupturnaroundfroma
netprofitofaproximatelyHK$157.22milionfortheyearended31December2022toanetlosof
aproximatelyHK$134.37milionforthetwelvemonthsended31December2024aswelasrecordeda
netcurentliabilitypositionwitharelativelylowcashandbankbalancesasat31December2024,the
majorityofwhichasbenutilisedforday-to-dayoperationsasfurtherelaboratedunderthesection
headed
‘
UseofProceds
’
below;and(iv)thereasonsfortheRightsIsueasdiscusedinthesection
headed
‘
ReasonsfortheRightsIsue,thePlacingandtheSet-OfArangement
’
inthisleter.
ConsideringtheGroup
’
s(i)recentfinancialperformancesandlatestlowcashlevelasmentionedin
theabove;(i)theprevailingmarketpriceoftheSharewhichilustratedadownwardtrendandthe
ongoingmarketsentimentincludingbutnotlimitedto,thewilingnesofinvestorstoconductmarket
transactionsinthecapitalmarketinHongKong;(i)lowliquidityoftheSharesduringthesixmonths
imediatelyprecedingtheLastTradingDaywiththeaveragedailytradingvolumeof4,710,725Shares,
representingaproximately1.05%ofthetotalnumberofisuedSharesasatheLastTradingDay;(iv)
itwilbemorepracticalandcomercialysensibletosetasubscriptionpricelowerthantheprevailing
marketpriceinordertoenhancetheatractivenesoftheRightsIsueandencouragetheQualifying
ShareholdersandinvestorstoparticipateintheRightsIsue;(v)theproposedusesoftheprocedsfrom
theRightsIsueasdetailedinthesectionheaded
“
UseofProceds
”
whichspecifiedthathowthefunds
generatedmayimprovetheGroup
’
soperationsandthatfundraisingisiminentandreasonable;and(iv)
theamountofthefundsrequiredbytheGroupto,ononehandtoimprovetheGroup
’
sfinancialposition
andonanotherhand,tofulfilthexpensesrequireforimprovementoftheGroup
’
soperationsandthat
analternativeprice/sizeratiomayeitherbeinsuficientofulfiltheGroup
’
snedsinexpansionormay
resultinapotentialbigerdilutionsimpactincasethatheQualifyingShareholdersdonotakeupthe
RightsShares,onbalance,theDirectorsconsiderthat,despiteanypotentialdilutionimpactofthe
proposedRightsIsueontheshareholdinginterestsoftheShareholders,thetermsoftheRightsIsue,
includingtheSubscriptionPricewhichasbensetasadiscountotherecentclosingpricesofthe
ShareswithanobjectiveofencouragingexistingShareholderstotakeuptheirprovisionalalotments
andtoparticipateinthepotentialgrowthoftheCompany,arefairandreasonableandintheinterestsof
theCompanyandtheShareholdersasawhole,aftertakingintoacounthat(i)theQualifying
ShareholderswhodonotwishtotakeuptheirprovisionalentitlementsundertheRightsIsuecansel
thenil-paidrightsinthemarket;(i)theRightsIsuealowstheQualifyingShareholderstosubscribe
fortheirpro-rataRightsSharesforthepurposeofmaintainingtheirespectivexistingshareholding
interestsintheCompany;and(i)theprocedsfromtheRightsIsuecanfulfilthefundingnedsofthe
Group.
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QualifyingShareholders
ToqualifyfortheRightsIsue,aShareholdermust:
(i)beregisteredasamemberoftheCompanyontheRecordDate;and
(i)notanExcludedShareholder.
InordertoberegisteredasmembersoftheCompanyontheRecordDate,transferdocuments
(togetherwiththerelevantsharecertificates)mustbelodgedwiththeShareRegistrarnolaterthan
4:00p.m.onTuesday,5August2025.
QualifyingShareholderswhodonotakeuptheRightsSharestowhichtheyarentitled
shouldnotethatheirshareholdingsintheCompanywilbediluted.
RightsofOverseasShareholders
TheProspectusDocumentswilnotberegisteredundertheaplicablesecuritieslegislationofany
jurisdictionotherthanHongKong.TheCompanywilcomplywithRule13.36(2)(a)oftheListing
RulesandmakenquiriesregardingthefeasibilityofextendingtheoferoftheRightsSharesto
OverseasShareholders.If,basedonlegalopinionsprovidedbythelegaladviserstotheCompany,the
DirectorsconsiderthatitisnecesaryorexpedientnotofertheRightsSharestoOverseas
Shareholdersonacounteitherofthelegalrestrictionsunderthelawsoftherelevantplace(s)orthe
requirementsoftherelevantregulatorybodyorstockexchangeinsuchplace(s),theRightsIsuewil
notbextendedtosuchOverseasShareholders.
TheCompanywilsendcopiesoftheProspectustotheExcludedShareholdersfortheir
informationonly,butwilnotsendthePALorEAFtothem.
ArangementswilbemadefortheRightsShareswhichwouldotherwisehavebenprovisionaly
alotedtotheExcludedShareholderstobesoldinthemarketintheirnil-paidformasonas
practicableafterdealingsintheRightsSharesintheirnil-paidformcomenceandbeforedealingsin
theRightsSharesintheirnil-paidformend,ifapremium(netofexpenses)canbeobtained.The
procedsofsuchsale,lesexpensesandstampduty,ofmorethanHK$100wilbepaidtotheExcluded
ShareholdersproratatotheirshareholdingsheldontheRecordDate.Inlightofadministrativecosts,
theCompanywilretainindividualamountsofHK$100orlesforitsownbenefit.Anyunsold
entitlementsoftheExcludedShareholderstotheRightsShares,andanyRightsSharesprovisionaly
alotedbutnotaceptedbytheQualifyingShareholdersorotherwisesubscribedforbytransferesof
nil-paidRightsShares,wilbemadeavailableforexcesaplicationsbytheQualifyingShareholders
undertheEAF(s).
AsatheLatestPracticableDate,therewasnoOverseasShareholder.
OverseasShareholdershouldnotethatheymayormaynotbentitledtotheRightsIsue.
Acordingly,OverseasShareholdershouldexercisecautionwhendealinginthesecuritiesofthe
Company.
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–
Closureofregisterofmembers
TheregisterofmembersoftheCompanywilbeclosedfromMonday,18August2025toFriday,
22August2025(bothdaysinclusive)fordeterminingtheShareholders
’
entitlementstotheRightsIsue.
NotransferofShareswilberegistereduringthebokclosureperiods.
Basisofprovisionalalotment
Thebasisoftheprovisionalalotmentshalbethre(3)RightsSharesforeveryone(1)existing
ShareinisueandheldbytheQualifyingShareholdersontheRecordDateatheSubscriptionPrice
payableinfulonaceptanceandotherwiseonthetermsandsubjectotheconditionsetoutinthe
ProspectusDocuments.
AplicationforaloranypartofaQualifyingShareholder
’
sprovisionalalotmentshouldbemade
bylodgingadulycompletedPALandachequeorabanker
’
scashierorderforthesumpayableforthe
RightsSharesbeingapliedforwiththeShareRegistraronorbeforetheLatestTimeforAceptance.
FractionalentitlementstotheRightsShares
Onthebasisofprovisionalalotmentofthre(3)RightsSharesforeveryone(1)existingShare
held,nofractionalentitlementoRightsShareshalarise.
StatusoftheRightsShares
TheRightsShares,whenalotedandisued,shalrankparipasuinalrespectswiththeShares
theninisue.Holdersofuly-paidRightsShareswilbentitledtoreceivealfuturedividendsand
distributionswhicharedeclared,madeorpaidafterthedateofalotmentoftheRightsSharesintheir
fuly-paidform.
SharecertificatesandrefundchequesfortheRightsIsue
SubjectothefulfilmentoftheconditionsoftheRightsIsue,certificatesforalfuly-paidRights
Sharesarexpectedtobepostedtothosentitledtheretobyordinarypostatheirownriskonorbefore
Tuesday,16September2025.Thosentitled,exceptHKSCNominesLimited,wilreceiveoneshare
certificateforaltheRightsSharesinfuly-paidform,alotedandisuedthereto.Refundchequesin
respectofwholyorpartialyunsucesfulaplicationsforexcesRightsShares(ifany)arexpectedto
bepostedonorbeforeTuesday,16September2025byordinarypost,atherespectiveShareholders
’
ownrisk,totheiregisteredadreses.
AplicationforexcesRightsShares
QualifyingShareholdersarentitledtoaplyfor,bywayofexcesaplication:(i)anyunsold
entitlementstotheRightsSharesoftheExcludedShareholder(s)(ifany)and(i)anynil-paidRights
SharesprovisionalyalotedbutnotaceptedbytheQualifyingShareholdersorotherwisenot
subscribedforbyrenouncesortransferesofnil-paidRightsShares.(i)and(i)arecolectivelyrefered
toas
‘
UntakenRights
’
.
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–
AplicationsforexcesRightsSharesmaybemadebycompletinganEAFandlodgingthesame
withaseparateremitanceforthefulamountpayableforthexcesRightsSharesbeingapliedfor.
TheDirectorswilalocateanyexcesRightsSharesonafairandequitablebasis.Subjectothe
requirementsofRule10.31(3)(b)oftheListingRules,theDirectorswilalocatethexcesRights
Shares(ifany)atheirdiscretiononafairandequitablebasisandonthefolowingprinciples:
(i)asfaraspracticable,inproportiontothenumberofexcesRightsSharesbeingapliedfor
undereachaplication;
(i)nopreferencewilbemadetotheRightsSharesubscribedthroughaplicationsbyPALsor
thexistingnumberofSharesheldbyQualifyingShareholders;and
(i)nopreferencewilbegiventoaplicationsmadefortopingupodlotholdingstowhole
boardlotholdings.
IftheagregatenumberofRightsSharesunderlyingtheUntakenRightsisgreaterthanthe
agregatenumberofexcesRightsSharesbeingapliedforunderEAFs,theDirectorswilalocateto
eachQualifyingShareholderwhoapliesforexcesRightsSharestheactualnumberofexcesRights
Sharesbeingapliedfor.PursuantoRule7.21(3)(b)oftheListingRules,theCompanywilalsotake
stepstoidentifytheaplicationsforexcesRightsSharesmadebyanycontrolingShareholderorits
asociates(together,the
‘
RelevantShareholders
’
),whetherintheirownamesorthroughnomines.
TheCompanyshaldisregardtheRelevantShareholders
’
aplicationsforexcesRightsSharestothe
extenthathetotalnumberofexcesRightSharestheyhaveapliedforexcedsamaximumnumber
equivalentothetotalnumberofRightsSharesoferedundertheRightsIsueminusthenumberof
RightsSharestakenupbytheRelevantShareholdersundertheirasuredentitlementotheRights
Shares.
Mr.ChenhasgiventheUndertakingthatheandhisasociateswilnotaplyforexcesRights
Shares.
InvestorswhoseSharesareheldbyanominecompany(includingHKSCNominesLimited)
shouldnotethatforthepurposeoftheRightsIsue,theBoardwilregardthenominecompanyasa
singleShareholderacordingtotheregisterofmembersoftheCompany.Acordingly,investorshould
notethatheaforesaidarangementinrelationtothealocationofexcesRightsShareswilnotbe
extendedtobeneficialownersindividualy.InvestorswhoseSharesareheldbyanominecompany(or
heldthroughCAS)areadvisedtoconsiderwhethertheywouldliketoarangefortheregistrationof
therelevantSharesinthenameofthebeneficialowner(s)priortotheRecordDate.
Forthoseinvestorswhowouldliketohavetheirnamesregisteredontheregisterofmembersof
theCompany,alnecesarydocumentsmustbelodgedwiththeRegistrar,UnionRegistrarsLimitedat
Suites3301-04,33/F.,TwoChinachemExchangeSquare,338King
’
sRoad,NorthPoint,HongKongfor
registrationbynolaterthan4:00p.m.onFriday,15August2025.
IntheventhatheBoardnotesunusualpaternsofexcesaplicationsandhasreasontobelieve
thatanyexcesaplicationmayhavebenmadewiththeintentiontoabusethemechanism,such
aplication(s)forexcesRightsSharesmayberejectedathesolediscretionoftheBoard.
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–
RightsShareswilbeligibleforadmisionintoCAS
Subjectothegrantingofthelistingof,andthepermisiontodealin,theRightsShares(inboth
theirnil-paidandfuly-paidforms)ontheStockExchangeaswelascompliancewiththestock
admisionrequirementsofHKSC,theRightsShares(inboththeirnil-paidandfuly-paidforms)wil
beaceptedaseligiblesecuritiesbyHKSCfordeposit,clearanceandsetlementinCASwithefect
fromtheirespectivecomencementdatesofdealingsontheStockExchange,orsuchotherdatesas
determinedbyHKSC.
SetlementoftransactionsbetwenparticipantsoftheStockExchangeonanytradingdayis
requiredtotakeplaceinCASonthesecondsetlementdaythereafter.AlactivitiesunderCAS
aresubjectotheGeneralRulesofCASandCASOperationalProceduresinefectfromtimeto
time.Shareholdershouldsekadvicefromtheirlicensedsecuritiesdealer(s)orotherprofesional
adviser(s)fordetailsofthosesetlementarangementsandhowsucharangementswilafectheirights
andinterests.
Stampdutyandotheraplicablefesandcharges
DealingsintheRightsSharesinbothnil-paidandfuly-paidformswilbesubjectothepayment
ofstampduty,theStockExchangetradingfe,SFCtransactionlevy,AFRCtransactionlevyorany
otheraplicablefesandchargesinHongKong.Shareholdersareadvisedtoconsultheirprofesional
advisersiftheyareindoubtastothetaxationimplicationsofthereceipt,purchase,holding,exercising,
disposingofordealingin,thenil-paidRightsSharesorthefuly-paidRightsSharesand,regarding
ExcludedShareholders,theireceiptofthenetproceds,ifany,fromsalesofthenil-paidRightsShares
ontheirbehalf.
ConditionsoftheRightsIsue
TheRightsIsueisconditionalupon:
(i)thepasingbytheIndependentShareholdersatheEGMofthenecesaryresolution(s)to
aprovetheRightsIsuebynolaterthanthePostingDate;
(i)theprovisiontotheStockExchangeforauthorizationandtheregistrationwiththeRegistrar
ofCompaniesinHongKongrespectivelyonecopyofeachoftheProspectusDocumentsnot
laterthanthePostingDate;
(i)thepostingoftheProspectusDocumentstotheQualifyingShareholdersandthepostingof
theProspectusandaletertotheExcludedShareholders,ifany,forinformationpurposeonly
explainingthecircumstancesinwhichtheyarenotpermitedtoparticipateintheRights
IsueonthePostingDate;and
(iv)theListingComitegrantingoragreingtogrant(subjectoalotment)andnothaving
withdrawnorevokedthelistingof,andthepermisiontodealin,theRightsShares(intheir
nil-paidandfuly-paidforms)bynolaterthanthebusinesdaypriortothefirstdayoftheir
dealings.
–
–
AsatheLatestPracticableDate,noneoftheaboveconditionprecedentshasbenfulfiled.Al
conditionsetoutabovecanotbewaivedbyanyparty.Ifanyoftheaboveconditionsisnotsatisfiedat
orpriortotherespectivetimestipulatedtherein,theRightsIsuewilnotproced.
TheRightsIsueandthePlacingarenotinter-conditional.
ThePlacingisnotacompensatoryarangementunderRule7.21(1)(b)andQualifying
ShareholderswilnotreceiveanyreturnfromthePlacing.Shareholderswhodonotentitlementin
fulundertheRightsIsue,theirproportionateshareholdingsintheCompanywilbediluted.
THEPLACINGAGREMENT
On16April2025(aftertradinghours),theCompanyandthePlacingAgententeredintothe
PlacingAgrement,pursuantowhichthePlacingAgenthasconditionalyagredtoprocureplace(s),
onabestefortsbasis,tosubscribeforthePlacingShares(i.e.unsubscribedRightsShares)underthe
SpecificMandate.
DetailsofthePlacingAgrementaresumarisedasfolows:
Date:16April2025(aftertradinghours)
Isuer:TheCompany
PlacingAgent:MoneyMoreSecuritiesLimited
ThePlacingAgentconfirmedthatitanditsultimate
beneficialowner(s)(i)arenotShareholders;and(i)
theyareIndependentThirdParties.
PlacingPeriod:aperiodcomencingfromthenextBusinesDayafter
thedateofanouncementofthenumberofPlacing
Shares,whichisexpectedtobeTuesday,16
September2025,andendingat6:00p.m.on
Wednesday,24September2025
Placingfe:SubjectocompletionofthePlacing,theCompany
shalpaytothePlacingAgentaplacingcomisionin
HongKongdolars,of2.0%oftheamountwhichis
equaltotheplacingpricemultipliedbythenumberof
PlacingSharesthathavebensucesfulyplacedby
thePlacingAgentpursuantothetermsofthePlacing
Agrement.
Fortheavoidanceofdoubt,thePlacingAgentwilnot
bentitledtoanyplacingcomisionpursuantothe
PlacingSharesplacedtoMr.Chen.
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–
Placingpriceofthe
UnsubscribedRightsShares
:HK$0.080perPlacingShare,equivalentothe
SubscriptionPrice.
Places:ThePlacingSharesarexpectedtobeplacedto
place(s),whoandwhoseultimatebeneficialowner(s)
shalbeIndependentThirdParty(ies)(otherthanMr.
Chen(whenaplicable).
ThePlacingAgentshalensurethathePlacingShares
areplaced(i)toinvestorswhoandwhoseultimate
beneficialownershalbeIndependentThirdParties
(otherthanMr.Chen(whenaplicable);(i)suchthat
noplaceshalbecomeasubstantialshareholder
imediatelyfolowingthePlacing(otherthanMr.
Chen(whenaplicable);(i)suchthathePlacing
wilnothaveanyimplicationundertheTakeovers
CodeandnoShareholderwilbeunderanyobligation
tomakeageneraloferundertheTakeoversCodeasa
resultofthePlacing;and(iv)suchthathePlacing
wilnotresultintheCompanyincapableofcomplying
withthepublicfloatrequirementsundertheListing
RulesimediatelyfolowingthePlacing.
PlacingShares:beingthenumberoftheunsubscribedRightsShares(if
any).
Fortheavoidanceofdoubt,ifaltheRightsSharesare
fulysubscribedundertheRightsIsue,thePlacing
wilnotproced.
SubjectothesituationthathePlacingmayresultina
notabledilutiononMr.Chen
’
shareholding
’
s
percentagetounder50.28%intheCompany,Mr.
Chenwilalsobeabletosubscribeforandbealoted
amaximumof233,589,172PlacingSharesothatMr.
Chenwilretainandbeinterestedinupto900,389,172
Shares,representingaproximately50.28%ofthe
enlargedisuedSharesuponthecompletionsofthe
RightsIsueandthePlacingasumingnoneofthe
Warantswilbexercised.
–
–
RankingofthePlacingShares:ThePlacingShares(whenaloted,isuedandfuly
paid,ifany)shalrankparipasuinalrespects
amongthemselvesandwiththexistingSharesin
isueasathedateofcompletionofthePlacing.
ConditionsofthePlacing
Agrement
:ThePlacingisconditionaluponthefulfilmentofthe
folowingconditions:
(i)thepasingbytheIndependentShareholdersat
theEGMofthenecesaryresolution(s)to
aprovetheRightsIsue,thePlacingAgrement
andthetransactionscontemplatedthereunder
(includingbutnotlimitedtothealotmentand
isueoftheRightsSharesandthegrantofthe
SpecificMandateforthealotmentandisueof
thePlacingShares)bynolaterthanthedateon
whichtheProspectusDocumentsareposted;
(i)theListingComiteoftheStockExchange
grantingtheaprovalforthelistingof,andthe
permisiontodealin,theRightsSharesandthe
PlacingShares;
(i)noneoftherepresentations,warantiesor
undertakingscontainedinthePlacingAgrement
beingorhavingbecomeuntrue,inacurateor
misleadinginanymaterialrespectatanytime
beforethecompletion,andnofactor
circumstancehavingarisenandnothinghaving
bendoneoromitedtobedonewhichwould
renderanyofsuchundertakings,representations
orwarantiesuntrueorinacurateinanymaterial
respectifitwasrepeatedasathetimeof
completion;
(iv)thePlacingAgrementnothavingben
terminatedinacordancewiththeprovisions
thereof;and
(v)thepostingofcopiesoftheProspectus
DocumentstotheQualifyingShareholdersand
thepostingoftheProspectstotheExcluded
Shareholdersforinformationpurposeonly
–
–
AsatheLatestPracticableDate,noneoftheabove
conditionprecedentshasbenfulfiled.ThePlacing
Agentmay,initsabsolutediscretion,waivethe
fulfilmentofaloranyoranypartoftheconditions
(otherthanthosesetoutinparagraphs(i),(i)and(v)
above)bynoticeinwritingtotheCompany.
TheRightsIsueandthePlacingarenotinter-
conditional.
TheCompanyshaluseitsbestendeavourstoprocure
thefulfilmentofsuchconditionsprecedentothe
PlacingAgrementbytheLatestPlacingTime.Ifany
oftheconditionsprecedentothePlacingAgrement
havenotbenfulfiledbytheLatestPlacingTimeor
becomeincapableofbeingfulfiled(subjectothe
PlacingAgentnotexercisingitsrightstowaiveror
extendthetimeforfulfilmentofsuchconditions),then
thePlacingwilapseandalrights,obligations,
liabilitiesoftheCompanyandthePlacingAgentin
relationtothePlacingshalceaseandetermine,save
inrespectofanyacruedrightsorobligationsunder
thePlacingAgrementorantecedentbreachthereof.
TerminationofthePlacing
Agrement:
ThePlacingArangementshalendontheLatest
PlacingTime.Ifanyofthefolowingeventsocurat
anytimepriortotheLatestPlacingTime,thePlacing
Agentmay(aftersuchconsultationwiththeCompany
and/oritsadvisersasthecircumstanceshaladmitor
benecesary),bygivingawritenoticetothe
Company,atanytimeonorpriortotheLatestPlacing
Time,terminatethePlacingAgrementwithout
liabilitytotheotherpartiesheretoand,subjectothe
clausestatedonthePlacingAgrementwhichshal
continue,thePlacingAgrementshalthereuponcease
tohavefectandnoneofthepartiesheretoshalhave
anyrightsorclaimsbyreasonthereofsaveforany
rightsorobligationswhichmayacrueunderthe
PlacingAgrementpriortosuchtermination:
–
–
(a)inthereasonableopinionofthePlacingAgent
thereshalhavebensincethedateofthe
PlacingAgrementsuchachangeinationalor
internationalfinancial,politicaloreconomic
conditionsortaxationorexchangecontrolsas
wouldbelikelytoprejudicematerialythe
consumationofthePlacing;or
(b)theintroductionofanynewlaworegulationor
anychangeinexistinglaworegulation(orthe
judicialinterpretationthereof)orother
ocurenceofanymaterwhatsoeverwhichmay
adverselyafecthebusinesorthefinancialor
tradingpositionorprospectsoftheGroupasa
whole;or
(c)anymaterialbreachofanyoftherepresentations
andwarantiescomestotheknowledgeofthe
PlacingAgentoranyeventocursoranymater
arisesonorafterthedateofthePlacing
AgrementandpriortotheLatestPlacingTime
whichifithadocuredorarisenbeforethedate
ofthePlacingAgrementwouldhaverendered
anyofsuchrepresentationsandwarantiesuntrue
orincorectinanymaterialrespectortherehas
benamaterialbreachbytheCompanyofany
otherprovisionofthePlacingAgrement;or
(d)thereisanyadversechangeinthefinancial
positionoftheCompanywhichinthereasonable
opinionofthePlacingAgentismaterialinthe
contextofthePlacing.
ThenetprocedsfromthePlacingwilbeutilizedforthesamepurposesasdescribedinthe
sectionheaded
‘
UseofProceds
’
inthisleter.TheCompanywilcontinuetocomplywithRule8.08
oftheListingRulesandthePlacingwilnothaveanyimplicationundertheTakeoversCodeandno
ShareholderwilbeunderanyobligationtomakeageneraloferundertheTakeoversCodeasaresult
ofthePlacing.
–
–
AplicationforlistingoftheRightsSharesandthePlacingShares
TheCompanywilaplytotheListingComiteforthelistingof,andthepermisiontodealin,
theRightsShares,inboththeirnil-paidandfuly-paidforms,andthePlacingShares.
Subjectothegrantingofthelistingof,andpermisiontodealin,theRightsSharesinboththeir
nil-paidandfuly-paidformsandthePlacingSharesontheStockExchangeaswelascompliancewith
thestockadmisionrequirementsofHKSC,theRightsSharesinboththeirnil-paidandfuly-paid
formsandthePlacingShareswilbeaceptedaseligiblesecuritiesbyHKSCfordeposit,clearance
andsetlementinCASwithefectfromthecomencementdatesofthedealingsintheRightsShares
inboththeirnil-paidandfuly-paidformsandthePlacingSharesorsuchotherdatesasmaybe
determinedbyHKSC.
SetlementoftransactionsbetwenparticipantsoftheStockExchangeonanytradingdayis
requiredtotakeplaceinCASonthesecondtradingdaythereafter.AlactivitiesunderCASare
subjectotheGeneralRulesofCASandCASOperationalProceduresinefectfromtimetotime.
DealingintheRightsSharesinboththeirnil-paidandfuly-paidformsandthePlacingShares
whichareregisteredintheregisterofmembersoftheCompanyinHongKongwilbeintheboardlots
of12,000RightsSharesandwilbesubjectothepaymentofstampduty,StockExchangetradingfe,
transactionlevyoranyotheraplicablefesandchargesinHongKong.
TherewilbenodlotmatchingarangementfortheRightsSharesintheirnil-paidorfulypaid
formandthePlacingShares.Havingconsideredthat(i)onthebasisthatheprovisionalalotmentof
thre(3)RightsSharesforeveryone(1)existingShareheldontheRecordDate,nofractional
entitlementstotheRightsShareshalariseundertheRightsIsue;and(i)theabsenceofodlot
matchingarangementwilnotafecthePlacingbutmaysaveaditionalexpensesfortheGroup,the
BoardconsidersthatsucharangementisfairandreasonableandintheinterestsoftheCompanyand
theShareholdersasawhole.
Shareholdersareadvisedtoconsultheirprofesionaladvisersiftheyareindoubtastothe
taxationimplicationsofthereceipt,purchase,holding,exercising,disposingofordealingin,thenil-
paidRightsSharesorthefuly-paidRightsSharesandthePlacingSharesand,regardingExcluded
Shareholders,theireceiptofthenetproceds,ifany,fromsalesofthenil-paidRightsSharesontheir
behalf.
–
–
THEUNDERTAKING
RightsIsue
AsatheLatestPracticableDate,Mr.Chenisbeneficialyinterestedinanagregateof
225,097,293Shares,representingaproximately50.28%oftheisuedsharecapitaloftheCompany.On
16April2025,Mr.ChenhasgiventheUndertakinginfavouroftheCompany,that(i)hewilnot
disposeofanyofthe225,097,293SharescomprisingthecurentshareholdingintheCompanyowned
byhimself,andsuchShareswilremainbeneficialyownedbyhimuptoandincludingtheRecord
Date;(i)hewilodgehisaceptanceofthe675,291,879RightsShares,whichwilbethenumberof
RightsSharesprovisionalyalotedtohimnil-paidundertheRightsIsue,withtheShareRegistraror
theCompany,withpaymentinfultherefor,bynolaterthantheLatestTimeforAceptanceor
otherwiseinacordancewiththeinstructionsetoutintheProspectusDocumentsandwilnotaplyfor
excesRightsShares;and(i)heconsentsthat,intheventofanunder-subscriptionoftheRights
Isue,theCompanyhaspowerandauthoritytoaplyadjustmentstosuchnumberofRightsSharestobe
oferedtohimselfsuchthatheminimumpublicfloatrequirementundertheListingRules,i.e.atleast
25%oftheSharesareheldbythepublicataltimes,isatisfiedimediatelyaftercompletionofthe
RightsIsue.
Placing
Asaresultofthesituationasmentionedin(i)pursuantotheUndertaking,thenumberofRights
SharestobeoferedtoMr.ChenmayhavetobescaledowninorderfortheCompanytomaintainthe
minimumpublicfloatrequirementundertheListingRules(imediatelyaftertheRightsIsuebutbefore
thePlacing)resultingthatMr.Chentobeinterestedin666,800,000Shares,representingaproximately
74.97%ofthenlargedisuedShares,afterthecompletionoftheRightsIsueasilustratedinthe
column/scenariounder
‘
AsumingnoQualifyingShareholders(exceptMr.Chenpursuantothe
Undertaking)hadtakenuptheirRightsSharesentitlementafteradjustmentonumberofRightsShares
ofertoMr.Chen
’
inthesectionheaded
‘
ChangeintheShareholdingStructureoftheCompanyarising
fromtheRightsIsue
’
inthisleter.
SubjectothesituationthathePlacingmayresultinanotabledilutiononMr.Chen
’
s
shareholding
’
spercentagetounder50.28%intheCompany,Mr.Chenwilalsobeabletosubscribefor
andbealotedamaximumof233,589,172PlacingSharesothatMr.Chenwilretain50.28%ofthe
enlargedisuedSharesuponthecompletionsoftheRightsIsueandthePlacingasumingnoneofthe
Warantswilbexercisedasilustratedinthecolumn/scenariounder
‘
AsumingnoQualifying
Shareholders(exceptMr.ChenpursuantotheUndertaking)hadtakenuptheirRightsShares
entitlementandalthePlacingShareshavebenplaced
’
inthesectionheaded
‘
Changeinthe
ShareholdingStructureoftheCompanyarisingfromtheRightsIsue
’
inthisleter.
Savefortheabove-mentionedUndertakings,theCompanyhasnotreceived,asatheLatest
PracticableDate,anyinformationorirevocableundertakingfromanyotherShareholderofany
intentiontotakeuptheRightsSharestobeprovisionalyalotedtothatShareholderundertheRights
Isue.
–
–
Tobeterilustratetheabove-mentionedscenarios,thefolowingsetsouthescenariosofMr.
Chen
’
shareholdingintheCompanyinrespectoftheUndertakings(asumingnochangeintheisued
sharecapitaloftheCompanyfromtheLatestPracticableDateuptotheRecordDate)takinginto
acountoftheRightsIsueandthePlacing,
ScenarioA:altheshareholdershavetakenuptheirRightsSharesentitlementunderthe
RightsIsueandtherewilbenoPlacing
EventsShares%
Mr.Chen
’
shareholdingasatheLatestPracticableDate225,097,29350.28
ShouldalshareholdershavetakenuptheirRightsShares
undertheRightsIsue,pursuantotheUndertaking,
Mr.Chenwilsubscribefor675,291,879RightsShares
undertheRightsIsue
AftertheRightsIsue
(i)Mr.Chenwilbe
interestedin
900,389,172Shares;and
50.28
(i)publicShareholders
wilbeinterestedina
totalof890,274,024
Shares
49.71
TherewilbenoPlacingarangementasaltheRights
Sharesarefulysubscribed
–
n/a
EnlargedisuedshareaftertheRightsIsue1,790,863,196Shares100%
ScenarioB:noshareholderhastakenuphis/her/itsRightsSharesentitlementunderthe
RightsIsue
EventsShares%
Mr.Chen
’
shareholdingasatheLatestPracticableDate225,097,29350.28
Shouldnoshareholderhastakenuphis/her/itsRights
SharesundertheRightsIsue,pursuantothe
Undertaking,Mr.Chencanonlysubscribefora
maximumof441,702,707RightsSharesunderthe
RightsIsuesothatheCompanycanmaintaina
minimumof25%publicfloat
AftertheRightsIsue
(i)Mr.Chenwilbe
interestedin
666,800,000Shares;and
74.97
(i)shareholdingsofthe
publicShareholderswil
notchangewith
222,568,506Shares
25.02
–
–
EventsShares%
TherewilbePlacingarangementwithamaximumof
901,444,690PlacingSharesavailableasPlacing
Shares,amongwhich,667,855,518PlacingSharesare
availableforindependentplacesandupto
233,589,172PlacingSharesarentitledtoMr.Chen
(asheforfeitedaportionofhisentitlementofRights
SharesundertheRightsIsuepursuantothe
Undertaking)underthePlacingtoretainhis
shareholdingintheCompanypriortotheRightsIsue
Subjectotheresultsof
thePlacing,Mr.Chen
wilbeabletoaplyfor
upto233,589,172
PlacingShares
Mr.Chenwilbe
interestedfrom
666,800,000Sharesto
900,389,172Shares
50.28to
74.97
(a)ifnoPlacingSharesbeplaced,Mr.Chen
’
s
shareholdingandthethentotalenlargedisued
sharecapitaloftheCompanywilbe,respectively
666,800,000Sharesand
889,418,506Shares
74.97and
(b)ifalPlacingSharescanbeplaced,Mr.Chencan
subscribeforupto233,589,172PlacingSharesand
thetotalenlargedisuesharecapitalofthe
Companywilbe,respectively
900,389,172Sharesand
1,790,863,196Shares
50.28and
THESET-OFARANGEMENT
TheShareholder
’
sLoanshavebenprovidedbyMr.ChentotheGroupfromtimetotimesince
September2023pursuantotheMasterLoanAgremententeredintobetwentheCompanyandMr.
Chen,pursuantowhichMr.ChenagredtoprovideloanstotheGroupfromtimetotimeforthe
purposeofinancingitsgeneralworkingcapitalrequirementsuchaselingandistributionexpenses,
oficeadministrativeoverheadsandsalaries,subjectoalimitofHK$100,000,000,withthematurity
datebeing31March2026.TheShareholder
’
sLoansareunsecuredandbearinterestof2.75%per
anum.Havingconsideredthat(i)theGroupwasnotrequiredtoprovideanycolateralforthe
Shareholder
’
sLoans,and(i)theinterestrateoftheShareholder
’
sLoansisignificantlyloweras
comparedtotheinterestratesoferedbybanksinHongKongwhichrangebetwenaproximately
7.625%to8.625%peranum,theDirectorsconsiderthetermsoftheShareholder
’
sLoanstobeon
normalcomercialtermsorbetertotheCompany.AsatheLatestPracticableDate,theCompanywas
indebtedtoMr.ChenanagregateamountofaproximatelyHK$54.96milioninoutstandingprincipal
amountandacruedinterestundertheShareholder
’
sLoans.
PursuantotheUndertaking,Mr.ChenconditionalyagredtotheSet-ofwherebyaproximately
HK$54.02milionrequiredtobepaidbyMr.Chenforthesubscriptionof675,291,879RightsShares
provisionalyalotedtohimpursuantotheRightsIsue(andpursuantothePlacingAgrement,when
aplicable)wouldbeset-ofagainstheShareholder
’
sLoansofaproximatelyHK$54.96milionona
dolar-for-dolarbasis.
–
–
TheSet-ofArangementwilbesubjectothecompletionoftheRightsIsuebutisnotinter-
conditionalwiththeRightsIsueorthePlacing.IntheventhatheresolutioninrespectoftheSet-of
ArangementisvetoedintheEGM,Mr.ChenisexpectedtosetlethesubscriptionoftheRightsShares
andPlacingShares(ifany)withisownfinancialresources.
CHANGEINTHESHAREHOLDINGSTRUCTUREOFTHECOMPANYARISINGFROMTHE
RIGHTSISUE
SetoutbelowistheshareholdingstructureoftheCompany(i)asatheLatestPracticableDate;
(i)imediatelyaftercompletionoftheRightsIsue(asumingthereisnochangeintheisuedshare
capitaloftheCompanyfromtheLatestPracticableDateuptotheRecordDate);and(i)when
aplicable,imediatelyafterthecompletionsoftheRightsIsueandthePlacingAgrement:
ImediatelyaftercompletionoftheRightsIsue
Imediatelyaftercompletions
oftheRightsIsueandthe
PlacingAgrement
Asathe
LatestPracticableDate
AsumingalQualifying
Shareholdershavetakenup
theRightsShares
AsumingnoQualifying
Shareholders(exceptMr.Chen
pursuantotheUndertaking)
hadtakenuptheirRights
Sharesentitlementbutbefore
adjustmentstonumberof
RightsSharesoferedtoMr.
Chen(forilustrationpurpose)
AsumingnoQualifying
Shareholders(exceptMr.Chen
pursuantotheUndertaking)
hadtakenuptheirRights
Sharesentitlementafter
adjustmentonumberof
RightsSharesoferedtoMr.
Chen(Note1)
AsumingnoQualifying
Shareholders(exceptMr.Chen
pursuantotheUndertaking)
hadtakenuptheirRights
Sharesentitlementandalthe
PlacingShareshaveben
placed(Note2)
No.ofShares%No.ofShares%No.ofShares%No.ofShares%No.ofShares%
Mr.Chen225,097,29350.28900,389,17250.28900,389,17280.18666,800,00074.97900,389,17250.28
Ms.ChiuLaiKuenSusana50,0000.01200,0000.0150,0000.0050,0000.0150,0000.00
IndependentShareholders222,568,50649.71890,274,02449.71222,568,50619.82222,568,50625.02222,568,50612.43
Independentplaces–667,855,51837.29
Total447,715,799100.001,790,863,196100.001,123,007,678100.00889,418,506100.001,790,863,196100.00
Notes:
1.Intheventofanunder-subscriptionoftheRightsIsue,theCompanyhaspowerandauthoritytoaplyadjustments
tosuchnumberofRightsSharestobeoferedtoMr.Chensuchthatheminimumpublicfloatrequirementunderthe
ListingRules,i.e.atleast25%oftheSharesareheldbythepublicataltimes,isatisfiedimediatelyafter
completionoftheRightsIsue.
2.PursuantothePlacingAgrement,Mr.ChencansubscribeforthenumberofPlacingSharesothathis
shareholding’spercentageintheCompanyimediatelyuponcompletionoftheRightsIsueandthePlacingwilnot
belesthanhishareholding’spercentageintheCompanyonthedateofthePlacingAgrement.
3.TheCompanywilensurethatitwilcontinuetocomplyataltimeswiththepublicfloatrequirementunderRule
8.08oftheListingRulesuponcompletionoftheRightsIsueandthePlacing.
–
–
ScenarioasumingfulexerciseofalWarants
SetoutbelowistheshareholdingstructureoftheCompany(i)asatheLatestPracticableDate;
and(i)imediatelyaftercompletionoftheRightsIsue(asumingnewSharesareisuedonorbefore
theRecordDate);and(i)whenaplicable,imediatelyafterthecompletionsoftheRightsIsueand
thePlacingAgrement:
ImediatelyaftercompletionoftheRightsIsue
Imediatelyaftercompletions
oftheRightsIsueandthe
PlacingAgrement
Asathe
LatestPracticableDate
AsumingalQualifying
Shareholdershavetakenup
theRightsShares
AsumingnoQualifying
Shareholders(exceptMr.Chen
pursuantotheUndertaking)
hadtakenuptheirRights
Sharesentitlementbutbefore
adjustmentstonumberof
RightsSharesoferedtoMr.
Chen(forilustrationpurpose)
AsumingnoQualifying
Shareholders(exceptMr.Chen
pursuantotheUndertaking)
hadtakenuptheirRights
Sharesentitlementafter
adjustmentonumberof
RightsSharesoferedtoMr.
Chen(Note1)
AsumingnoQualifying
Shareholders(exceptMr.Chen
pursuantotheUndertaking)
hadtakenuptheirRights
Sharesentitlementandalthe
PlacingShareshaveben
placed(Note2)
No.ofShares%No.ofShares%No.ofShares%No.ofShares%No.ofShares%
Mr.Chen225,097,29347.21900,389,17247.21900,389,17278.15754,000,00074.97900,389,17247.21
Ms.ChiuLaiKuenSusana50,0000.01200,0000.0150,0000.0050,0000.0150,0000.00
IndependentShareholders251,647,45352.781,006,589,81252.78251,647,45321.85251,697,45325.02251,647,45313.20
Independentplaces–755,092,35939.59
Total476,794,746100.001,907,178,984100.001,152,086,625100.001,005,697,453100.001,907,178,984100.00
Notes:
1.Intheventofanunder-subscriptionoftheRightsIsue,theCompanyhaspowerandauthoritytoaplyadjustments
tosuchnumberofRightsSharestobeoferedtoMr.Chensuchthatheminimumpublicfloatrequirementunderthe
ListingRules,i.e.atleast25%oftheSharesareheldbythepublicataltimes,isatisfiedimediatelyafter
completionoftheRightsIsue.
2.PursuantothePlacingAgrement,Mr.ChencansubscribeforthenumberofPlacingSharesothathis
shareholding’spercentageintheCompanyimediatelyuponcompletionoftheRightsIsueandthePlacingwilnot
belesthanhishareholding’spercentageintheCompanyonthedateofthePlacingAgrement.
3.TheCompanywilensurethatitwilcontinuetocomplyataltimeswiththepublicfloatrequirementunderRule
8.08oftheListingRulesuponcompletionoftheRightsIsueandthePlacing.
–
–
USEOFPROCEDS
AsumingfulsubscriptionundertheRightsIsue(asumingthereisnochangeintheisuedshare
capitaloftheCompanyfromtheLatestPracticableDatetotheRecordDategiventheWarantsarefar
outofmoney),thegrosprocedsfromtheRightsIsuewilbeaproximatelyHK$107.5milionand
thestimatednetprocedsoftheRightsIsueaftertheSet-ofArangementandeductingtherelated
expenseswilbeaproximatelyHK$52milion.TheCompanyintendstousethenetprocedsfromthe
RightsIsueforthefolowings:
(a)astoaproximatelyHK$20milionwilbeusedforepaymentofindebtedneswhicharedue
intheperiodtoSeptember2025,comprisingofbondsoftheCompanyintheamountof
HK$15milionwithanualinterestof9%andaloanofHK$5milioncaryinganual
interestof23.4%obtainedfromafinancialinstitution.
WithreferencetotheCompany
’
sanouncementdated2August2021,on2August2021,the
Companyengagedaplacingagentoprocureplaceswhoareindependenthirdpartiestothe
CompanytosubscribeincashforthebondsoftheCompanywithanagregateprincipal
amountofuptoHK$50milionwitha9%peranuminterestonabestefortbasis(the
‘
BondPlacing
’
).AlthoughthebondsisuedbytheCompanyundertheBondPlacinghada
maturitydateof2years,someoftherespectiveholdersofthebondshadagredonrolover
arangementswiththeCompanyandtheCompanyhasyetosetletheprincipalamountof
thesebonds.AsatheLatestPracticableDate,theCompanystilhasanagregatedof
HK$27milionofbondpayablesinrelationtotheBondPlacing.Consideringthatcertain
bondswiththeagregateprincipalamountofHK$15milionarexpectedtobematuredand
wilbedueintheperiodtoSeptember2025,theCompanyisintendedtosetletherepayment
ofthesebondsfromtheprocedsoftheRightsIsue.
(b)astoaproximatelyHK$18milionwilbealocatedtoupgradeitsexistingcrosbordere-
ComerceplatformHKMAL,whichwilfacilitatetheretailandwholesaleoftheGroup
’
s
beauty,healthcareandlifestyleproductsacrosinternationalmarkets,enhancingtheGroup
’
s
globalreach.TheGroup,asoneoftheleadinge-comerceplatformandbeautyretailgroup
inHongKong,iscomitedtocontinuetoexploitdigitalaplicationdevelopmentby
devotingresourcestodevelopsystemintegration,includingtheaditionofvariousinteligent
technologiestomaketheHKMalmorestreamlineandiversified.Tomaintainaheadof
industrytrendsandmethevolvingnedsofitscustomers,theCompanyisintendedto
alocate(i)uptoHK$8miliontostrengthenonconsumerbehaviorsanalysisbydeveloping
andadoptingAIsolutionsthatcanhelpbreakdownindetailsofthecurentandupcoming
marketrends,thesesolutionsincludingbutnotlimitedto,buildinglargelanguagemodels
andpredictivemodelsemphasizingonconsumerbehaviorsandoptimizingsearchbehaviors
toenrichitscustomerelationshipmanagement;(i)uptoHK$5miliontodevelop
enhancinguserexperiencerelatedsolutionsinvolvingtheusesofAI-poweredfeatures
includingbutnotlimitedto,inteligentchatbot,automatedtolsaswelasupgrading
HKMal
’
scybersecuritytoreducetherelevantrisksine-transactionsandatatransfering
overtheinternetandacrose-Comerceplatforms;and(i)uptoHK$5miliontoincrease
overseamarketingeforts,placingadvertisementsatseler
’
scountriesandofering
promotionalcampaignsonsocialmediasinthePRCsuchasRednoteandWeChat
aplications,toatractbusines-to-busineselerstoenterintoandcomencebusinesesin
thePRCmarket.
–
–
TheupgradeofHKMalmarksasignificantleapforwardinenhancingtheplatform
’
s
capabilities,userexperience,andglobalreach.Severalofthekeyadvancementsisthe
improvementofuserexperiencewithnewAI-poweredfeatures,inteligentchatbot,automated
tols,aswelasAImarketingcreativetolsetctomaketheplatformoreficientanduser
friendlyforeveryone.Tofacilitateglobalexpansion,HKMalwilbroadenitsreachto
includemerchantsfromorecountries,particularlytargetingB2Bselerslokingtoenterthe
lucrativeChinesemarket,withlocalizedsuportforcros-borderlogistics,payments,and
compliance.Furthermore,theplatformisdevelopingoverseaswarehousestohelpmerchants
reduceshipingtimesandcosts,enablingsmotherinventorymanagementandfaster
deliverytointernationalcustomers.TheseupgradescolectivelypositionHKMalasamore
inteligent,eficient,andglobalyacesible-comercesolution.
(c)astoaproximatelyHK$8milionwilbeusedforinvestmentinenhancingtheGroup
’
s
businesmodelofproductswholesaling,encompasingstrategicpartnershipsinbonded
warehousing,O2O(online-to-ofline)comerce,andenhancedsuplychainoperations.A
significantportionwilbedirectedtowardstrategicpartnershipsinbondedwarehousing,
whichwilinclude(i)abudgetofaroundHK$4.5miliontopurchaseupto300bonded
vendingmachinesthatisexpectedtobeinstaledintodiferentareasofthePRC;and(i)a
budgetofaroundHK$3.5miliontodevelopsystemsandsoftwarethatwilbeapliedto
thesebondedvendingmachinestogapbetwenO2Oexperienceprovidingvariousfeatures
thatsuporthexpansionofO2Ocomercetoimprovecustomereachandorder
fulfilment,includinginput/outputransactions,fulfilmentoperations,promotionand
advertisementfunctionsonmachinesdisplaysandaplications.Theutilizationofthese
machinesisexpectedtoalowtheCompanytoenablecost-eficientstorage,streamline
customsclearance,andsmothencros-bordertrade.Theincorporationsoftheseinitiatives
shalimprovetheoperationeficienciesoftheGroup
’
swarehousemanagementsystem,order
managementsystemandinventorylogisticforbondedwarehouseoperationsandwilsolidify
theGroup
’
scompetitivedgeinwholesaledistribution,ensuringscalability,agility,anda
seamlesomnichanelexperienceforbothB2BandB2Ccustomers.
TheBoardisawarethathebehaviorsoftheretailconsumershavebenshiftingtowards
purchasingandorderingfromtheinternetandwithsmartsolutionsalongwiththerapid
adaptationofinovativetechnologychanges.TheGroup
’
strategytoterminateitsphysical
storesandtraditionaloperationmethodsandtointegratenewinitiativesinitsoperationsuch
asthedevelopmentandusesofAI,e-comerceplatforms,behaviortracking,automation
inventoryandmodernsocialmediamarketingwilfacilitatetheGroup
’
stransitionandis
consideredcriticaltofuturecompetitivenes.Theabove-mentionedupgradesandinitiativesin
(b)and(c)requireupfrontexpendituresfromtheGroup,butaftersucesfulyimplemented,
arexpectedtobeteresiliencetomarketchangesandadvaluestothexistingbusines
modelsoftheGroupwhichenhanceandfacilitateoperations.TheBoardthereforebelieves
thatitiscriticalandiminentfortheCompanytofacilitateitstransitionasquicklyas
posiblethroughembracingtechnologicaladvancementsthatadaptstomarketchangesothat
theCompanywilbebeterpositionedtoincreaseitsmarketshares,achieveficient
operationmodels,avoideliminationsbypersandultimatelybecomeoneoftheleadersin
theindustry.Curently,representativesoftheGrouphavebenindiscusionswithdiferent
serviceprovidersforpotentialsolutionsandthecostsrequiredtomaterializetheaboveplans.
–
–
SubjectothesizeofthefundsraisedfromtheRightsIsue,theBoardisexpectedto
comencethesaidevelopmentuponcompletionoftheRightsIsue,i.e.whichisexpected
tobearounduringthethirdandfourthquartersof2025withaknownbudget,andthen
procedtoengagesuitableserviceproviderstocolaboratewiththeGrouptocomencethe
upgradingofitsHKMaloperationsandO2Obusinesastatedintheabove.
(d)astotheremainingofaproximatelyHK$6milionwilbeusedasgeneralworkingcapitalof
theGroup,includingday-to-daysalaries,oficeadministrativeoverheadsandselingand
distributionexpenses.
Asdisclosedinthesecondinterimresultsanouncementforthetwelvemonthsended31
December2024,theGrouprecordedanetlosatributabletownersoftheCompanyofaproximately
HK$134milionandnetcurentliabilitiesofaproximatelyHK$134milionforthe12monthsended31
December2024respectively.Asat30June2024and31December2024,theGrouphadbankandcash
balancesofaproximatelyHK$6milionandHK$6.4milion,respectively,ofwhichmajorityofthe
cashoutflowhasbenutilisedforday-to-dayoperationsuchasalariesandotheradministrative
expenses.Asuch,takingintoacount(i)thecurentfinancialpositionoftheGroup;and(i)the
intendeduseofprocedsforthefuturedevelopmentoftheGroupsetoutabove,theDirectors
consideredthatheGrouphasanurgentfundingnedinraisingaditionalcashandstrengthenthe
financialpositionaswelasliquidityoftheGroupthroughtheRightsIsue.Forotherfactorsconsidered
bytheDirectorsinotherfundraisingalternatives,pleaserefertothe
‘
ReasonsfortheRightsIsue,the
PlacingandtheSet-ofArangement
’
below.
Intheventhathereisanunder-subscriptionoftheRightsIsueotherthanthoseunderthe
UndertakingsandafteradjustmentstonumberofRightsSharesoferedtoMr.Chen,aftertheSet-of
ArangementherewilbenoprocedsfromtheRightsIsue.
REASONSFORTHERIGHTSISUE,THEPLACINGANDTHESET-OFARANGEMENT
TheCompanyisaninvestmentholdingcompanyandtheGroupisprincipalyengagedintheretail
andwholesaleofbeauty,health-careandlifestyleproductsinHongKong,MacauandthePRC,and
throughthe-ComerceplatformHKMAL.
TheDirectorsareoftheviewthatheRightsIsueprovidesbeterfinancialflexibilityforthe
CompanyasitwilstrengthenthecapitalbaseoftheCompany,thusenhancingitsfinancialposition
withoutanyongoingburdenofinterestexpenses,andalsoferalQualifyingShareholdersthe
oportunitytomaintaintheirproratashareholdinginterestsintheCompanyandavoidshareholding
dilutionforthoseShareholderswhotakeuptheirentitlementsundertheRightsIsueinful.
AsumingfulsubscriptionundertheRightsIsueandtheimplementationofSet-ofArangement,
thenetprocedsfromtheRightsIsueaftertheSet-ofArangementandeductingtherelatedexpenses,
arestimatedtobeaproximatelyHK$52milion.
–
–
TakingintoacounthefinancialresourcesoftheGroup,includingitscashandcashequivalents
balanceofaproximatelyHK$6.45milionasat31December2024,thexistingfacilitiesavailableto
theGroup(asmentionedinsection
‘
3.WorkingCapitalStatement
’
inApendixIofthiscircular)and
thestimatednetprocedsoftheRightsIsue,theDirectorsareoftheopinionthatheGrouphas
suficientworkingcapitalforatleasthenext12monthsafterthecompletionoftheRightsIsue.
TheDirectorshaveconsideredotherfinancingalternativesincluding(i)aditionaldebtfinancing;
and(i)equityfundraisingsuchasoleplacementoftheSharesandopenofer.TheDirectorsareofthe
viewthatwhileaditionaldebtfinancingwilincreasetheGroup
’
sgearingratio,itwilalsoincreasethe
ongoinginterestexpensesoftheGroupwhichmayinturnafectheprofitabilityoftheCompany.
–
–
Asforequityfundraising,suchasoleplacementofShares,itisacomonmarketpracticeto
conductsuchactivityonabest-efortbasisandacordinglytheamountoberaisedwouldbeuncertain
andsubjectothethenmarketconditions.Inadition,forplacementofnewShares,itwouldleadto
imediatedilutionintheshareholdinginterestofexistingShareholderswithoutoferingthemthe
oportunitytoparticipateinthenlargedcapitalbaseoftheCompany.Inadition,toraisefundfrom
placing,substantialamountofsecuritiesmustbeisuedandusualythesubscriber(s)mayaskfora
relativelydeperdiscountothetradingpriceoftheSharesinviewofthesubstantialamountof
securitiesinvolved.Giventhat(i)thePlacingwilbeonlyforthePlacingShares,i.e.RightsSharesthat
arenotsubscribedbytheQualifyingShareholders(andafterexcesaplications)undertheRightsIsue;
(i)incasetheRightsIsueisundersubscribed,Mr.Chen,beingthecontrolingShareholderwilbeable
toretainhishareholdingintheCompanybacktobeforetheRightsIsueisinplaceunderthePlacing
sothatheinterestsoftheCompanyandMr.Chenarerealigned;and(i)thePlacingAgrementwould
provide(1)adistributionchanelofthePlacingSharestotheCompany;and(2)chanelofparticipation
intheRightsIsueforindependentinvestors,theBoardconsideredthathePlacingAgrementisfair
andreasonableandwouldprovideadequatesafeguardtoprotectheinterestsoftheShareholders.
Asforopenofer,similartoarightsisue,italsofersqualifyingshareholderstoparticipatein,
butitdoesnotalowthetradingofrightsentitlementsintheopenmarket.
Despitetheabove,theBoardhadstilatemptedtoexploretheposibilityofobtainingbank
borowingsand/orotheralternativesofcomparablesizetotheRightsIsue.ApartfromthePlacing
Agent,theGroupaproachedtwotherfinancialinstitutionsandbrokeragefirmsandidnotreceive
positiveresponseswhichmaylikelydueto,amongothereasons,(i)thecurentnetliabilitiesposition
oftheGroupasat31December2024andtherelativelyslowrecoveryoftheretailingmarketinHong
Kong;(i)theproposedsizeofthefundraisingisignificantcomparedtotheCompany
’
smarket
capitalizationofroughlyHK$48.35milion(basedontheclosingpriceontheLastTradingday);and
(i)absenceofaceptablecolateralscanbeoferedbytheGroupthatwilbesuficientoraisefunds
ofthesizecomparabletotheRightsIsue.
Inlightoftheabovecircumstances,inparticularthat(i)theGrouphasanurgentfundingnedin
raisingaditionalcashandstrengthenthefinancialpositionaswelasliquidityoftheGroup;(i)the
CompanycouldnotobtainfavorabletermsfromdebtfinancingofasizecomparabletotheRightsIsue;
(i)debtfinancingwilincuraditionalinterestexpensesandworsenthenetliabilitiespositionofthe
Group;and(iv)theRightsIsuewiloferexistingShareholdersanoportunitytoparticipateinthe
developmentoftheGroupwhilethePlacing,whichwilbeonlyforthePlacingShares,providesanother
chanelforotherindependentinvestorstosuportheGroup
’
sdevelopment,theBoardconsidersthat
RightsIsueandthePlacingaremorefavourablethandebtfinancingdespiteoftheunderlyingdilutions
efects.
–
–
InconsideringmethodsofsetlementoftheamountowedtoMr.ChenbytheCompany,the
CompanyalsoconsideredloancapitalisationbyisuingSharestoMr.Chenasaformofrepaymento
Mr.Chen.However,suchloancapitalisationwouldcauseanimediatedilutionintheshareholding
interestofexistingShareholderswithoutoferingthemtheoportunitytoparticipateinthenlarged
capitalbaseoftheCompany.Furthermore,aloancapitalisationwouldnotraiseanyprocedsforthe
GroupforitsbusinesandworkingcapitalusewhiletheRightsIsuewouldenabletheCompanyto
raiseaditionalcapital.Besides,theSet-ofArangementwouldreducetheinterestobligationand
burdencausedonthefinancialperformanceandailycashoutflowoftheGroupinthelongrun.
TakingintoacounthecostsandbenefitsofeachofthealternativesascomparedwiththeRights
Isue,theDirectorsconsideraisingfundsbywayoftheRightsIsueismoreatractiveandfeasiblein
thecurentmarketcondition,andthus,intheinterestsoftheCompanyandtheShareholdersasawhole.
FUND-RAISINGEXERCISEINTHEPAST12MONTHS
TheCompanyhasconductedthefolowingequityfundraisingactivitiesduringthe12months
imediatelyprecedingthetheLatestPracticableDate.
DateofanouncementEventNetprocedsraised
Proposeduseof
proceds
Actualuseof
proceds
12November2024IsueofnewShares
underspecificmandate
Aproximately
HK$33.18milion
LoancapitalisationLoancapitalization
Savefortheabove,theCompanyhasnotconductedanyotherequityfundraisingactivitiesduring
the12monthsimediatelyprecedingtheLatestPracticableDate.
WARNINGOFTHERISKSOFDEALINGINTHESHARESAND/ORIGHTSHARESIN
NIL-PAIDFORM
TheRightsIsueisubjectothefulfilmentofconditionsincluding,amongotherthings,the
ListingComitegrantingthelistingof,andpermisiontodealin,theRightsSharesintheirnil-
paidandfuly-paidforms.Pleaserefertotheparagrapheaded
‘
ConditionsoftheRightsIsue
’
underthesectionheaded
‘
ProposedRightsIsue
’
inthisLeter.Shareholdersandpotential
investorsoftheCompanyshouldnotethatiftheconditionstotheRightsIsuearenotsatisfied,
theRightsIsuewilnotproced.
AnydealingsintheSharesfromtheLatestPracticableDateuptothedateonwhichal
conditionsoftheRightsIsuearefulfiled,andanyShareholdersdealingintheRightsSharesin
nil-paidformwilacordinglybeartheriskthatheRightsIsuemaynotbecomeunconditionalor
maynotproced.AnyShareholdersorotherpersonscontemplatinganydealingsintheSharesor
RightsSharesintheirnil-paidformarerecomendedtoconsultheirprofesionaladvisers.
–
–
Subjectothefulfilmentand/orwaiver(whereaplicable)oftheconditionsoftheRights
Isue,theRightsIsuewilprocedonanon-underwritenbasisirespectiveofthelevelof
aceptancesoftheprovisionalyalotedRightsSharesandthelevelofsubscriptionofthexces
RightsShares.QualifyingShareholderswhodonotentitlementinfulundertheRightsIsue,their
proportionateshareholdingsintheCompanywilbediluted.IntheventheRightsIsueisnot
fulysubscribed,anyRightsSharesnotakenupbytheQualifyingShareholderswilnotbeisued
bytheCompanyandthesizeoftheRightsIsuewilbereducedacordingly.
ThePlacingisnotacompensatoryarangementunderRule7.21(1)(b)andQualifying
ShareholderswilnotreceiveanyreturnfromthePlacing.Shareholderswhodonotentitlementin
fulundertheRightsIsue,theirproportionateshareholdingsintheCompanywilbediluted.
ADJUSTMENTSTOTHEOUTSTANDINGWARANTS
AsatheLatestPracticableDate,theCompanyhasoutstandingWarantstosubscribefor
29,078,947Shares.TheCompanyhasengagedtheIndependentFinancialAdviserinacordancewiththe
termsoftheinstrumentforWarantstocertifyinwritingastotheadjustments(ifany)requiredtobe
madeinrespectoftheWarantsasaresultoftheRightsIsue.TheCompanywilmakefurther
anouncementsaboutheadjustmentsinduecourse.
LISTINGRULESIMPLICATIONS
RightsIsue
GiventhatheRightsIsuewilincreasetheisuedsharecapitaloftheCompanybymorethan
50%,underRules7.19Aand7.27AoftheListingRules,theRightsIsueisubjectotheaprovalof
theIndependentShareholdersbywayofpolatheEGMatwhichanycontrolingshareholdersandtheir
respectiveasociatesor,wheretherearenocontrolingshareholders,theDirectors(excludingthe
independentnon-executiveDirectors)andthechiefexecutiveoftheCompany,andtheirespective
asociateshalabstainfromvotinginfavouroftheRightsIsue.Asuch,thecontrolingshareholder
oftheCompany,namelyMr.Chenwhoisinterestedinaproximately50.28%oftheshareholdingofthe
CompanyasatheLatestPracticableDate,andhisasociateshalabstainfromvotinginfavourofthe
resolution(s)toaprovetheRightsIsueatheEGM.
TheRightsIsuedoesnotresultinatheoreticaldilutionefectof25%ormoreonitsownand
whenagregatedwithaspecificmandatetoisuenewShareswithin12monthperiodimediately
precedingtheAnouncement.Asuch,thetheoreticaldilutionimpactoftheRightsIsueisin
compliancewithRule7.27BoftheListingRules.
Placing
ThePlacingwilbesubjectothegrantingoftheSpecificMandatewhichwilbesubjectothe
IndependentShareholders
’
aprovalundertheListingRules.
–
–
ConectedtransactionsinrelationtothePlacingandtheSet-ofArangement
Mr.ChenisacontrolingShareholderholding225,097,293Shares,representingaproximately
50.28%oftheisuedsharecapitaloftheCompanyasatheLatestPracticableDate.AsMr.Chenmay
beabletosubscribeforthePlacingSharesunderthePlacing,thePosibleSubscriptionandtheSet-of
ArangementwouldthereforeconstituteconectedtransactionsoftheCompanyunderChapter14Aof
theListingRulesandarethereforesubjectothereportingandanouncementrequirementsandthe
aprovaloftheIndependentShareholdersatheEGMundertheListingRules.
TheEGMwilbeconvenedandheldforthepurposesofconsideringand,ifthoughtfit,aproving
thePlacingAgrementandthetransactionscontemplatedthereunderandtheSpecificMandatetoalot
andisuethePlacingShares.
Mr.Chenwhoisinterestedinaproximately50.28%oftheCompanyasatheLatestPracticable
Date,andhisasociateswilabstainfromvotingofthePlacing,thePosibleSubscriptionandtheSet-
ofArangementatheEGM.AsatheLatestPracticableDate,tothebestoftheDirectors
’
knowledge,
informationandbeliefhavingmadealreasonablenquiries,saveforMr.Chen,notherShareholderis
requiredorindicatedhisintentiontoabstainfromvotingonthePlacing,thePosibleSubscriptionand
theSet-ofArangementatheEGM.
EstablishmentoftheIndependentBoardComiteandapointmentoftheIndependentFinancial
Adviser
TheIndependentBoardComitecomprisingaltheindependentnon-executiveDirectors,namely
Mr.KwokChiShing,Mr.LeKwunKwanandMr.YanShermanChuek-ninghasbenestablishedto
advisetheIndependentShareholdersasto(i)whetherthetermsoftheRightsIsue,thePlacing,the
PosibleSubscriptionandtheSet-ofArangementarefairandreasonableandintheinterestsofthe
ShareholdersandtheCompanyasawhole;and(i)howtovoteontheresolution(s)relatingtothe
RightsIsue,thePlacing,thePosibleSubscriptionandtheSet-ofArangement.
Inthisconection,theIndependentFinancialAdviserhasbenapointedtoadvisethe
IndependentBoardComiteandtheIndependentShareholdersregardingthetermsoftheRights
Isue,thePlacing,thePosibleSubscriptionandtheSet-ofArangementandtherespectivevoting
recomendations.
RECOMENDATION
TheIndependentBoardComite,whichcomprisesaltheindependentnon-executiveDirectors
hasbenestablishedtoadvisetheIndependentShareholdersastowhetherthetermsoftheRightsIsue,
thePlacing,thePosibleSubscriptionandtheSet-ofArangementarefairandreasonableandinthe
interestsoftheCompanyandtheShareholdersasawholeandtomakerecomendationstothe
IndependentShareholdersonhowtovoteatheEGMontherelevantresolution.SBIChinahasben
apointedastheIndependentFinancialAdvisertoadvisetheIndependentBoardComiteandthe
IndependentShareholdersinthisregard.
–
–
YouratentionisdrawntotheleterfromtheIndependentBoardComitewhichcontainsits
recomendationtotheIndependentShareholdersinrelationtotheRightsIsue,thePlacing,the
PosibleSubscriptionandtheSet-ofArangementandtheleterfromtheIndependentFinancialAdviser
whichcontainsitsadvicetotheIndependentBoardComiteandtheIndependentShareholders.
TheDirectorsconsiderthathetermsoftheRightsIsue,thePlacing,thePosibleSubscription
andtheSet-ofArangementareonormalcomercialterms,fairandreasonablesofarasthe
IndependentShareholdersareconcernedandintheinterestsoftheCompanyandtheShareholdersasa
whole.Acordingly,theDirectorsrecomendtheIndependentShareholderstovoteinfavourofthe
resolutionstobeproposedatheEGM.
EGM
TheEGMwilbeconvenedfortheIndependentShareholderstoconsiderand,ifthoughtfit,
aprovetheRightsIsue,thePlacing,thePosibleSubscriptionandtheSet-ofArangement.Anotice
conveningtheEGMoftheCompanytobeheldat10:00a.m.onTuesday,12August2025at12/F,
BonjourTower,36-50WangWoTsaiStret,TsuenWan,HongKongisetoutonpagesEGM-1to
EGM-3ofthiscircular.
DESPATCHOFPROSPECTUSDOCUMENTS
SubjectotheaprovaloftheRightsIsuebytheIndependentShareholdersatheEGM,the
ProspectuscontainingfurtherinformationinrelationtotheRightsIsueandfinancialandother
informationrelatingtotheGroupisexpectedtobedespatchedbytheCompanytogetherwiththePAL
andEAFonMonday,25August2025.TheProspectusDocumentswilalsobemadeavailableonthe
websitesoftheStockExchange(w.hkexnews.hk)andtheCompany(htp:/corp.bonjourhk.com).To
thextentreasonablypracticableandsubjectotheadviceoflegaladvisersintherelevantjurisdictions
inrespectofaplicablelocalawsandregulations,theCompanywilsendcopiesoftheProspectusto
ExcludedShareholdersfortheirinformationonlybutwilnotsendthePALandEAFtothem.
ADITIONALINFORMATION
Youratentionisdrawntotheaditionalinformationsetoutintheapendicestothiscircular.
ByorderoftheBoard
BonjourHoldingsLimited
ChenJianwen
ChairmanandExecutiveDirector
–
–