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3SBio Inc. Capital/Financing Update 2008

Jun 5, 2008

49981_rns_2008-06-05_f25b57bb-476e-45a7-aa9e-8b2f7bc163b9.pdf

Capital/Financing Update

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==> picture [79 x 36] intentionally omitted <==

HONGKONG CHINESE LIMITED 香港華人有限公司 *

(Incorporated in Bermuda with limited liability)

(Stock Code: 655)

6th June, 2008

To the Excluded Shareholders, for information only

Dear Sir or Madam,

RIGHTS ISSUE OF 471,390,178 RIGHTS SHARES AT HK$1.00 EACH IN THE PROPORTION OF

SEVEN RIGHTS SHARES FOR EVERY TWENTY SHARES HELD WITH BONUS WARRANTS ON THE BASIS OF THREE WARRANTS FOR EVERY SEVEN RIGHTS SHARES TO THE QUALIFYING SHAREHOLDERS ONLY

It was announced on 17th May, 2008 that the Company proposed to raise approximately HK$471 million, before expenses, by way of rights issue of 471,390,178 Rights Shares. Capitalised terms used herein shall have the same meanings as used in the prospectus of the Company dated 6th June, 2008 in respect of the Rights Issue unless the context otherwise requires.

Shareholders with a registered address in Hong Kong as well as those Overseas Shareholders other than the Excluded Shareholders will be offered to apply for the Rights Shares at the Subscription Price of HK$1.00 per Rights Share on the basis of seven Rights Shares for every twenty Shares held on the Record Date. Successful applicants of the Rights Shares will receive three Bonus Warrants for every seven Rights Shares taken up. The Bonus Warrants will entitle the holders to subscribe for new Shares at an initial subscription price of HK$1.25 per Share (subject to adjustment) upon exercise of the Bonus Warrants.

The Prospectus Documents have not been and will not be registered and/or filed under any securities or equivalent legislation of any jurisdictions other than the applicable laws in Hong Kong and Bermuda. Based on the advice provided by the legal advisers in those countries where the Excluded Shareholders’ addresses were registered with the Company, the Board has formed the view that it is necessary or expedient not to offer the Rights Shares (with entitlement to Bonus Warrants) to the Excluded Shareholders due to the time and costs involved in the registration of the Prospectus Documents and/or compliance with the legal or regulatory requirements or special formalities in those places. The Company will only send the Prospectus to the Excluded Shareholders for their information only. The Company will not send the PALs and EAFs to the Excluded Shareholders.

Enclosed please find a copy of the Prospectus issued by the Company giving information of the Rights Issue and certain other information of the Company. The enclosed Prospectus has been sent to you for your information only and no offer or invitation to subscribe for the Rights Shares (with entitlement to Bonus Warrants) or any other securities of the Company is being made to you or any other Excluded Shareholders.

Yours faithfully, By Order of the Board HONGKONG CHINESE LIMITED John Luen Wai Lee Director

  • For identification purpose only