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DT Capital Limited Proxy Solicitation & Information Statement 2013
49154_rns_2013-07-24_1df885a1-9318-401c-8080-278aad1764ac.pdf
Proxy Solicitation & Information Statement
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THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION
If you are in any doubt about this circular or as to the action to be taken, you should consult a licensed securities dealer, bank manager, solicitor, professional accountant or other professional adviser.
If you have sold or transferred all your shares in Interchina Holdings Company Limited, you should at once hand this circular with the enclosed form of proxy to the purchaser or transferee or to the bank, licensed securities dealer or other agent through whom the sale or the transfer was effected for transmission to the purchaser or transferee.
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this circular, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this circular.
INTERCHINA HOLDINGS COMPANY LIMITED
國中控股有限公司
(Incorporated in Hong Kong with limited liability)
(Stock code: 202)
PROPOSED RE-ELECTION OF DIRECTORS, PROPOSED GENERAL MANDATES TO ISSUE AND REPURCHASE SHARES
AND
NOTICE OF ANNUAL GENERAL MEETING
A notice convening an annual general meeting of Interchina Holdings Company Limited to be held at 15/F., CCB Tower, 3 Connaught Road Central, Hong Kong at 10:00 a.m. on Friday, 23 August 2013 is enclosed. A form of proxy is also enclosed.
Whether or not you are able to attend the annual general meeting, you are requested to complete the enclosed form of proxy in accordance with the instructions printed thereon and return it to the office of the Company's share registrar, Tricor Tengis Limited, at 26th Floor, Tesbury Centre, 28 Queen's Road East, Hong Kong, as soon as possible but in any event not less than 48 hours before the time appointed for holding the annual general meeting or any adjourned meeting. Completion and return of the form of proxy will not preclude you from subsequently attending and voting at the annual general meeting or any adjourned meeting should you so wish.
25 July 2013
CONTENTS
Page
Responsibility Statement ... ii
Definitions ... 1
Letter from the Board
Introduction ... 3
Proposed Re-election of Directors ... 4
Proposed General Mandates to Issue and Repurchase Shares ... 4
Annual General Meeting ... 5
Recommendations ... 5
General information ... 6
Appendix I — Information of Directors Proposed
to be Re-elected at the AGM ... 7
Appendix II — Explanatory Statement on Proposed Repurchase Mandate ... 12
Notice of Annual General Meeting ... 15
- i -
RESPONSIBILITY STATEMENT
This circular, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the Listing Rules for the purpose of giving information with regard to the Group. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this circular is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this circular misleading.
- ii -
DEFINITIONS
In this circular, unless the context otherwise requires, the following expressions shall have the following meanings:
"AGM Notice"
notice of the Annual General Meeting which is set out on pages 15 to 18 of this circular;
"Annual General Meeting"
the annual general meeting of the Company to be held at 15/F., CCB Tower, 3 Connaught Road Central, Hong Kong at 10:00 a.m. on Friday, 23 August 2013, to consider and, if appropriate, to approve the resolutions to be proposed at the Annual General Meeting or any adjournment thereof;
"Articles of Association"
the articles of association of the Company;
"associate(s)"
has the same meaning as ascribed in the Listing Rules;
"Board"
the board of Directors;
"Code"
the Hong Kong Code on Takeovers and Mergers;
"Companies Ordinance"
the Companies Ordinance (Chapter 32 of the Laws of Hong Kong);
"Company"
Interchina Holdings Company Limited, a company incorporated in Hong Kong with limited liability, the issued Shares of which are listed on the Stock Exchange;
"Directors"
the directors of the Company;
"Existing Issue Mandate"
a general mandate granted to the Directors at the annual general meeting of the Company held on 15 August 2012 to allot, issue and deal with Shares not exceeding 20% of the aggregate nominal amount of the issued share capital of the Company as at 15 August 2012;
"Existing Repurchase Mandate"
a general mandate granted to the Directors at the annual general meeting of the Company held on 15 August 2012 to repurchase Shares not exceeding 10% of the aggregate nominal amount of the issued share capital of the Company as at 15 August 2012;
"Group"
the Company and its Subsidiaries;
"HK$"
Hong Kong dollars;
"Hong Kong"
the Hong Kong Special Administrative Region of the PRC;
"Invested Entity"
any entity in which the Group holds an equity interest (irrespective of the percentage of such equity interest);
- 1 -
DEFINITIONS
"Latest Practicable Date"
19 July 2013, being the latest practicable date prior to the printing of this circular for ascertaining certain information in this circular;
"Listing Rules"
the Rules Governing the Listing of Securities on the Stock Exchange;
"Ordinary Resolutions"
the ordinary resolutions to be proposed and passed at the Annual General Meeting as set out in the AGM Notice;
"PRC"
the People's Republic of China, which, for the purpose of this circular, shall exclude Hong Kong, the Macau Special Administrative Region of the PRC and Taiwan;
"Proposed Issue Mandate"
a general mandate proposed to be granted to the Directors at the Annual General Meeting to allot, issue and deal with Shares not exceeding 20% of the aggregate nominal amount of the issued share capital of the Company as at the date of passing of relevant resolution granting such proposed issue mandate;
"Proposed Repurchase Mandate"
a general mandate proposed to be granted to the Directors at the Annual General Meeting to repurchase Shares not exceeding 10% of the aggregate nominal amount of the issued share capital of the Company as at the date of passing of relevant resolution granting such proposed repurchase mandate;
"SFO"
the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong);
"Share(s)"
share(s) of HK$0.10 each in the capital of the Company;
"Shareholder(s)"
holder(s) of the Share(s);
"Stock Exchange"
The Stock Exchange of Hong Kong Limited;
"Subsidiaries"
a company which is for the time being and from time to time a subsidiary (within the meaning of the Companies Ordinance (Chapter 32 of the Laws of Hong Kong)) of the Company;
"%"
per cent.
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LETTER FROM THE BOARD
INTERCHINA HOLDINGS COMPANY LIMITED
國中控股有限公司
(Incorporated in Hong Kong with limited liability)
(Stock code: 202)
Executive Directors:
Mr. Jiang Zhaobai
Mr. Lam Cheung Shing Richard
Mr. Shen Angang
Mr. Zhu Deyu
Mr. Lu Yaohua
Registered office:
15th Floor
CCB Tower
3 Connaught Road Central
Hong Kong
Independent non-executive Directors:
Mr. Ho Yiu Yue Louis
Mr. Ko Ming Tung Edward
Mr. Chen Yi, Ethan
25 July 2013
To the Shareholders
Dear Sir or Madam,
PROPOSED RE-ELECTION OF DIRECTORS, PROPOSED GENERAL MANDATES TO ISSUE AND REPURCHASE SHARES
AND
NOTICE OF ANNUAL GENERAL MEETING
INTRODUCTION
The purpose of this circular is to provide you with information in respect of the resolutions to be proposed at the Annual General Meeting for the approval of (a) proposed re-election of the Directors; (b) the grant to the Directors of the Proposed Issue Mandate; (c) the grant to the Directors of the Proposed Repurchase Mandate; and (d) the extension of the Proposed Issue Mandate to issue Shares by adding to it the aggregate number of the issued Shares repurchased under the Proposed Repurchase Mandate.
LETTER FROM THE BOARD
PROPOSED RE-ELECTION OF DIRECTORS
Pursuant to Article 92 of the Articles of Association, the Directors have the power from time to time, and at any time to appoint any person as a Director either to fill a casual vacancy or as an addition to the Board and any Director so appointed by the Board shall hold office only until the next following annual general meeting and shall then be eligible for re-election at that meeting. Accordingly, Mr. Jiang Zhaobai, Mr. Zhu Deyu and Mr. Lu Yaohua (who were appointed in September 2012), all of them being Directors appointed by the Board to fill the casual vacancies and as addition to the Board, shall hold office only until the Annual General Meeting and be eligible for re-election at the Annual General Meeting.
Pursuant to Article 101 of the Article of Association, at each of the annual general meeting, one third of the Directors for the time being (or, if their number is not a multiple of three, the number nearest to not less than one-third) shall retire from office by rotation, provided that every Director, including those appointed for a specific term, shall be subject to retirement by rotation at least once every three years. Accordingly, Mr. Lam Cheung Shing Richard and Mr. Ho Yiu Yue Louis shall retire by rotation from office and being eligible, will offer themselves for re-election at the Annual General Meeting.
Brief biographies of the Directors proposed to be re-elected at the Annual General Meeting are set out in Appendix I to this circular.
PROPOSED GENERAL MANDATES TO ISSUE AND REPURCHASE SHARES
At the annual general meeting of the Company held on 15 August 2012, ordinary resolution was passed granting the Existing Repurchase Mandate to the Directors and at the annual general meeting of the Company held on 15 August 2012, ordinary resolution was passed granting the Existing Issue Mandate to the Directors.
In accordance with the provisions of the Listing Rules and the terms of the Existing Issue Mandate and the Existing Repurchase Mandate, the Existing Issue Mandate and the Existing Repurchase Mandate shall lapse if, inter alia, they are revoked or varied by ordinary resolutions of the Shareholders in general meeting.
At the Annual General Meeting, an ordinary resolution will be proposed that the Directors be granted the Proposed Repurchase Mandate during the period ending on the earliest of the date of the next annual general meeting of the Company, or the date by which the next annual general meeting of the Company is required by law to be held or the date upon which such authority is revoked or varied.
Ordinary resolutions set out as resolutions 4(1)(d) and 4(2)(c) in the AGM Notice will be proposed at the Annual General Meeting to revoke the Existing Issue Mandate and the Existing Repurchase Mandate respectively. Resolutions to consider, and if thought fit, to approve the Proposed Issue Mandate and the Proposed Repurchase Mandate as set out in resolutions 4(1)(a), (b), (c) and (e) and resolutions 4(2)(a), (b) and (d) in the AGM Notice respectively will also be proposed at the Annual General Meeting. With reference to the Proposed Issue Mandate and the Proposed Repurchase Mandate, the Directors wish to state that they have no immediate plans to issue or repurchase any Shares pursuant thereto. As at the Latest
LETTER FROM THE BOARD
Practicable Date, the number of Shares in issue was 6,078,669,363 Shares. Subject to the passing of the resolution granting the Proposed Issue Mandate and on the basis that no further Shares will be issued or repurchased before the Annual General Meeting, the Company will be allowed to issue a maximum of 1,215,733,872 Shares upon exercise of the Proposed Issue Mandate in full.
An explanatory statement required by the Listing Rules to be sent to the Shareholders in connection with the Proposed Repurchase Mandate is set out in the Appendix II to this circular. The explanatory statement contains all information reasonably necessary to enable the Shareholders to make an informed decision on whether to vote for or against the relevant resolutions at the Annual General Meeting.
Ordinary resolution set out as resolution 4(3) in the AGM Notice will also be proposed at the Annual General Meeting to extend the Proposed Issue Mandate by adding to it the aggregate number of issued Shares repurchased under the Proposed Repurchase Mandate.
ANNUAL GENERAL MEETING
A notice convening the Annual General Meeting to be held at 15/F., CCB Tower, 3 Connaught Road Central, Hong Kong at 10:00 a.m. on Friday, 23 August 2013 is set out on pages 15 to 18 of this circular.
A form of proxy for use by the Shareholders at the Annual General Meeting is enclosed with this circular. Whether or not you intend to attend and vote at the Annual General Meeting in person, you are requested to complete the form of proxy and return it to the office of the Company's share registrar, Tricor Tengis Limited, at 26th Floor, Tesbury Centre, 28 Queen's Road East, Hong Kong in accordance with the instructions printed thereon as soon as possible and in any event not less than 48 hours before the time appointed for holding the Annual General Meeting or any adjourned meeting. Completion and return of the form of proxy will not prevent you from attending and voting at the Annual General Meeting or any adjourned meeting should you so wish.
Under Rule 13.39(4) of the Listing Rules, any voting of shareholders of listed issuers at a general meeting must be taken by way of poll and the listed issuers must announce the poll results in the prescribed manner. In compliance with the Listing Rules, the chairman of the Annual General Meeting shall demand the resolutions to be put to vote by poll in the Annual General meeting and the Company will announce the poll results accordingly.
RECOMMENDATIONS
The Directors consider that the proposed Ordinary Resolutions for approval of (a) proposed re-election of the Directors; (b) granting to the Directors the Proposed Issue Mandate; (c) granting to the Directors the Proposed Repurchase Mandate; and (d) to extend the Proposed Issue Mandate to issue Shares by adding to it the aggregate number of the issued Shares repurchased under the Proposed Repurchase Mandate are in line with the requirements under the Listing Rules and in the interests of the Company, the Shareholders and, in particular, the Group as a whole. The Directors therefore recommend the Shareholders to vote in favour of the Ordinary Resolutions.
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LETTER FROM THE BOARD
GENERAL INFORMATION
Your attention is drawn to the additional information set out in the Appendices to this circular.
Yours faithfully,
For and on behalf of the Board
Interchina Holdings Company Limited
Lam Cheung Shing, Richard
Executive Director and Chief Executive Officer
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APPENDIX I
INFORMATION OF DIRECTORS PROPOSED TO BE RE-ELECTED AT THE AGM
This appendix sets out the information, as required to be disclosed by the Listing Rules, on the Directors proposed to be re-elected at the Annual General Meeting.
(1) Mr. JIANG Zhaobai (“Mr. Jiang”)
Mr. Jiang, aged 50, has been appointed as an executive Director of the Company and Chairman of the Board in September 2012. He is also the chairman of the board of Shanghai Pengxin Group Co., Ltd. (“Pengxin Group”). Mr. Jiang is the founder of Pengxin Group and Shanghai Pengxin Real Estate Development Co., Ltd. (“Pengxin Real Estate”) and has more than 25 years experience in real estate development and investment. He was the chairman of Pengxin Real Estate during the period from January 1995 to March 1997. Mr. Jiang is currently vice president of China Non-Government Enterprise Directors Association (中國民營企業家協會) and a rotating chairman of New Shanghai Businessman Federation (上海新賜商聯合會). He graduated in Nanjing Institute of Architecture and Civil Engineering and was admitted to an Executive Master of Business Administration degree at China Europe International Business School in June 2005.
The Company has not entered in to any service contract with Mr. Jiang and Mr. Jiang had not been appointed for a specific term, but he is subject to retirement by rotation and re-election in accordance with the Articles of Association. Mr. Jiang is entitled to a fixed director’s fee of approximately HK$180,000 per annum. The Directors’ emoluments are determined by reference to the prevailing market conditions. Such emoluments are subject to review by the Board from time to time pursuant to the power conferred on it in the annual general meeting of the Company.
As at the Latest Practicable Date, Mr. Jiang was interest in 1,742,300,000 Shares, representing approximately 28.66% of the issued share capital of the Company within the meaning of Part XV of the SFO, of which 709,000,000 Shares are held by Pengxin Holdings Company Limited and 1,033,300,000 Shares are held by Rich Monitor Ltd, all of which are wholly owned by Mr. Jiang. Save as disclosed above, as at the Latest Practicable Date, (i) Mr. Jiang did not have any relationship with any Directors, senior management or substantial or controlling shareholders of the Company; (ii) he did not have any interest in the Shares within the meaning of Part XV of the SFO; (iii) he did not hold any other directorships in public companies the securities of which are listed on any securities market in Hong Kong or overseas in the last three years; and (iv) he did not hold other positions with other members of the Group.
There is no other information in relation to the re-election of Mr. Jiang which is required to be disclosed pursuant to Rule 13.51(2) of the Listing Rules. Save as disclosed above, there are no other matters in relation to the re-election of Mr. Jiang that need to be brought to the attention of the holders of securities of the Company.
APPENDIX I
INFORMATION OF DIRECTORS PROPOSED TO BE RE-ELECTED AT THE AGM
(2) Mr. ZHU Deyu (“Mr. Zhu”)
Mr. Zhu, aged 50, has been appointed as an executive Director of the Company in September 2012. Mr. Zhu has over 20 years experience in investment and corporate management. He was chairman of Zhejiang Beingmate Technology, Industry & Trading Co., Ltd. (a company listed on the Shenzhen Stock Exchange with its stock code 002570) and president of Beingmate Group Co., Ltd. from 2002 to mid of 2012. Mr. Zhu worked in a number of reputable companies in the PRC during the period from 1992 to 2001, including manager of the project investment department of Hainan Liuhe Market Development Company Limited (海南六合市場開發股份有限公司), general manager of Shanghai Rongjie Real Estate Development Company Limited (上海融捷房地產投資發展有限公司), vice-general manager of Shanghai branch of Guangzhou Sino baron Environmental Protection Equipment Co., Ltd. and China marketing manager of Germany Babcock Group (Shanghai) Co., Ltd. Mr. Zhu graduated in food inspection from Hangzhou University of Commerce (now known as Zhejiang Gongshang University) and obtained a master's degree in business administration from Donghua University.
The Company has not entered in to any service contract with Mr. Zhu and Mr. Zhu had not been appointed for a specific term, but he is subject to retirement by rotation and re-election in accordance with the Articles of Association. Mr. Zhu is entitled to fixed director's fee of HK$180,000 per annum. The Directors' emoluments are determined by reference to the prevailing market conditions and his duties and responsibilities towards the Company. Such emoluments are subject to review by the Board from time to time pursuant to the power conferred on it in the annual general meeting of the Company.
As at the Latest Practicable Date, Mr. Zhu was interest in 1,000,000 Shares, representing approximately 0.016% of the issued share capital of the Company within the meaning of Part XV of the SFO. Save as disclosed above, as at the Latest Practicable Date, (i) Mr. Zhu did not have any relationship with any Directors, senior management or substantial or controlling shareholders of the Company; (ii) he did not have any interest in the Shares within the meaning of Part XV of the SFO; (iii) he did not hold any other directorships in public companies the securities of which are listed on any securities market in Hong Kong or overseas in the last three years; and (iv) he did not hold other positions with other members of the Group.
There is no other information in relation to the re-election of Mr. Zhu which is required to be disclosed pursuant to Rule 13.51(2) of the Listing Rules. Save as disclosed above, there are no other matters in relation to the re-election of Mr. Zhu that need to be brought to the attention of the holders of securities of the Company.
(3) Mr. LU Yaohua (“Mr. Lu”)
Mr. Lu, aged 48, has been appointed as an executive Director of the Company in September 2012. Mr. Lu has 25 years experience in dairy sector and corporate management. He was president and director of Shandong Yatai Zhonghui Group Company Limited (山東亞太中慧集團有限公司) from 2010 to 2012. He was vice-president, director and communist party committee secretary of Bright Diary & Food Co., Ltd. (a company listed on the Shanghai Stock
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APPENDIX I
INFORMATION OF DIRECTORS PROPOSED TO BE RE-ELECTED AT THE AGM
Exchange with its stock code 600597) as well as chairman and general manager of Shanghai Danone Yoghurt Co., Ltd. from 2005 to 2010 respectively and served as general manager and vice-president of milk division of Shanghai Bright Diary & Food Co., Ltd. and managing director of Shanghai Bright Holstan Co., Ltd. from 1997 to 2005. He was also chairman of Shanghai Institute of Diary Science and officer of Shanghai Diary Cattle Breeding Centre as well as executive of the fine breed station from 1995 to 1997. He was appointed as animal husbandry expert and project manager of Shanghai Diary Group Co., Ltd. from 1987 to 1995. He was technician of Shanghai Institute of Diary Science and secretary of China Diary Association from 1985 to 1987. Mr. Lu graduated from Shanghai Agricultural College with a bachelor's degree in agricultural with major in the animal husbandry and obtained a qualification of senior technical translation from Simon Fraser University, Canada in September 1992. He also graduated from East China Normal University as on-the-job graduate student with western economic in January 1997.
The Company has not entered in to any service contract with Mr. Lu and Mr. Lu had not been appointed for a specific term, but he is subject to retirement by rotation and re-election in accordance with the Articles of Association. Mr. Lu is entitled to fixed director's fee of HK$180,000 per annum. The Directors' emoluments are determined by reference to the prevailing market conditions and his duties and responsibilities towards the Company. Such emoluments are subject to review by the Board from time to time pursuant to the power conferred on it in the annual general meeting of the Company.
As at the Latest Practicable Date, Mr. Lu was interest in 1,000,000 Shares, representing approximately 0.016% of the issued share capital of the Company within the meaning of Part XV of the SFO. Save as disclosed above, as at the Latest Practicable Date, (i) Mr. Lu did not have any relationship with any Directors, senior management or substantial or controlling shareholders of the Company; (ii) he did not have any interest in the Shares within the meaning of Part XV of the SFO; (iii) he did not hold any other directorships in public companies the securities of which are listed on any securities market in Hong Kong or overseas in the last three years; and (iv) he did not hold other positions with other members of the Group.
There is no other information in relation to the re-election of Mr. Lu which is required to be disclosed pursuant to Rule 13.51(2) of the Listing Rules. Save as disclosed above, there are no other matters in relation to the re-election of Mr. Lu that need to be brought to the attention of the holders of securities of the Company.
(4) Mr. LAM Cheung Shing, Richard ("Mr. Lam")
Mr. Lam, aged 55, is the deputy chairman and chief executive officer of the Company since June 2009. In August 2001, Mr. Lam was appointed as an executive Director and deputy chief executive officer of the Company and was designated as the chairman of the Company during the period from May 2009 to June 2009. Other than the directorship in the Company, currently, Mr. Lam is also an independent non-executive director of Eagle Legend Asia Limited, the issued shares of which are listed on the Stock Exchange. Besides, Mr. Lam was appointed as an executive director of Kai Yuan Holdings Limited, the issued shares of which
APPENDIX I
INFORMATION OF DIRECTORS PROPOSED TO BE RE-ELECTED AT THE AGM
are listed on the main board of the Stock Exchange, during the period from December 2001 to July 2008 and re-designated as a non-executive director during the period from July 2008 to November 2008. Mr. Lam was appointed as an executive director of China Pipe Group Limited, the issued shares of which are listed on the Stock Exchange, during the period from June 2007 to February 2009. Mr. Lam is a fellow member of both Hong Kong Institute of Certified Public Accountants and Association of Chartered Certified Accountants. Mr. Lam was admitted to the Master Degree of Business Administration in the Chinese University of Hong Kong in 2006. Mr. Lam spent over ten years in PriceWaterhouseCoopers, an international accounting firm and promoted to a senior audit manager, and is equipped with extensive experience in accountancy, taxation and corporate finance. Prior to joining the Group, Mr. Lam held senior positions in a number of listed companies in Hong Kong, including Sun Hung Kai & Co., Limited, Kingsway SW Asset Management Limited and U-Cyber Technology Holdings Limited.
The Company has not entered in to any service contract with Mr. Lam and Mr. Lam had not been appointed for a specific term, but he is subject to retirement by rotation and re-election in accordance with the Articles of Association. Mr. Lam is entitled to fixed director's fee of HK$180,000 per annum. The Directors' emoluments are determined by reference to the prevailing market conditions and his duties and responsibilities towards the Company. Such emoluments are subject to review by the Board from time to time pursuant to the power conferred on it in the annual general meeting of the Company.
As at the Latest Practicable Date, Mr. Lam was interest in 7,700,000 Shares of the Company, representing approximately 0.13% of the issued share capital of the Company within the meaning of Part XV of the SFO. Save as disclosed above, as at the Latest Practicable Date, (i) Mr. Lam did not have any relationship with any Directors, senior management or substantial or controlling shareholders of the Company; (ii) he did not have any interest in the Shares within the meaning of Part XV of the SFO; (iii) he did not hold any other directorships in public companies the securities of which are listed on any securities market in Hong Kong or overseas in the last three years; and (iv) he did not hold other positions with other members of the Group.
There is no other information in relation to the re-election of Mr. Lam which is required to be disclosed pursuant to Rule 13.51(2) of the Listing Rules. Save as disclosed above, there are no other matters in relation to the re-election of Mr. Lam that need to be brought to the attention of the holders of securities of the Company.
(5) Mr. HO Yiu Yue Louis ("Mr. Ho")
Mr. Ho, aged 65 has been appointed as an independent non-executive Director in April 2009. He obtained a master degree of business administration in finance & operations research from Concordia University in Canada and is an associate member of both Hong Kong Institute of Certified Public Accountants and Australia Society of Certificate Practising Accountants. Mr. Ho had over 30 years working experience with international accounting professional firms and had been admitted as partner in Ernst & Young, PricewaterhouseCoopers and Arthur Andersen, focusing on technology risk, system and process assurance and risk consulting
APPENDIX I
INFORMATION OF DIRECTORS PROPOSED TO BE RE-ELECTED AT THE AGM
practices. During that period, Mr. Ho provided services and advices to numerous blue chip corporations in both Hong Kong and the PRC. Mr. Ho was an independent non-executive director of China Pipe Group Limited, the issued shares of which are listed on the main board of the Stock Exchange.
The Company has not entered in to any service contract with Mr. Ho and Mr. Ho had not been appointed for a specific term, but he is subject to retirement by rotation and re-election in accordance with the Articles of Association. Mr. Ho is entitled to a fixed director's fee of approximately HK$180,000 per annum. The emoluments were mutually agreed between the Board and with reference to the prevailing market conditions. Such emoluments are subject to review by the Board from time to time pursuant to the power conferred on it in the annual general meeting of the Company.
As at the Latest Practicable Date (i) Mr. Ho did not have any relationship with any Directors, senior management or substantial or controlling shareholders of the Company; (ii) he did not have any interest in the Shares within the meaning of Part XV of the SFO; (iii) he did not hold any other directorships in public companies the securities of which are listed on any securities market in Hong Kong or overseas in the last three years; and (iv) he did not hold other positions with other members of the Group.
There is no other information in relation to the re-election of Mr. Ho which is required to be disclosed pursuant to Rule 13.51(2) of the Listing Rules. Save as disclosed above, there are no other matters in relation to the re-election of Mr. Ho that need to be brought to the attention of the holders of securities of the Company.
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APPENDIX II
EXPLANATORY STATEMENT ON PROPOSED REPURCHASE MANDATE
This appendix contains the particulars that are required by the Listing Rules to be included in an explanatory statement to enable the Shareholders to make an informed view on whether to vote for or against the resolution to be proposed at the Annual General Meeting in relation to the Proposed Repurchase Mandate.
(1) SHARE CAPITAL
As at the Latest Practicable Date, the number of Shares in issue was 6,078,669,363 Shares. Subject to the passing of the resolution granting the Proposed Repurchase Mandate and on the basis that no further Shares will be issued or repurchased before the Annual General Meeting, the Company will be allowed to repurchase a maximum of 607,866,936 Shares during the period ending on the earlier of the conclusion of the next annual general meeting of the Company or the date by which the next annual general meeting of the Company is required to be held by law or the date upon which such authority is revoked or varied by a resolution of the Shareholders in general meeting.
(2) SOURCE OF FUNDS
Repurchases must be funded out of fund legally available for the purpose and in accordance with the Articles of Association and the laws of Hong Kong, the jurisdiction in which the Company is incorporated.
(3) REASONS FOR REPURCHASES
The Directors believe that it is in the best interests of the Company and the Shareholders to seek a general authority from the Shareholders to enable the Company to repurchase its Shares on the Stock Exchange. Such repurchases may, depending on market conditions, and funding arrangements at the time, lead to an enhancement of the net asset value of the Company and, or earnings per share of the Company and will only be made when the Directors believe that such a repurchase will benefit the Company and the Shareholders.
The Directors have no present intention to repurchase any Shares and they would only exercise the power to repurchase in circumstances where they consider that the repurchase would be in the best interests of the Company. The Directors consider that if the general mandate to repurchase Shares were to be exercised in full at the currently prevailing market value, it would have a material adverse impact on the working capital position and gearing position of the Company, as compared with the positions disclosed in the audited consolidated accounts of the Company for year ended 31 March 2013, being the date to which the latest published accounts of the Company were made up. The Directors do not propose to exercise the general mandate to repurchase Shares to such extent as would, in the circumstances, have a material adverse effect on the working capital requirements of the Company or the gearing levels of the Company which in the opinion of the Directors are from time to time appropriate for the Company.
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APPENDIX II
EXPLANATORY STATEMENT ON PROPOSED REPURCHASE MANDATE
(4) SHARE PRICES
The following table shows the highest and lowest prices at which the Shares have been traded on the Stock Exchange in each of the 12 months immediately preceding the Latest Practicable Date:
| Month | Price per Share | |
|---|---|---|
| Highest HK$ | Lowest HK$ | |
| 2012 | ||
| July | 0.570 | 0.395 |
| August | 0.510 | 0.410 |
| September | 0.690 | 0.480 |
| October | 0.670 | 0.475 |
| November | 0.540 | 0.395 |
| December | 0.470 | 0.420 |
| 2013 | ||
| January | 0.470 | 0.390 |
| February | 0.445 | 0.410 |
| March | 0.465 | 0.400 |
| April | 0.455 | 0.405 |
| May | 0.485 | 0.420 |
| June | 0.510 | 0.415 |
| July (up to and including the Latest Practicable Date) | 0.520 | 0.440 |
(5) GENERAL
To the best of their knowledge, having made all reasonable enquiries, none of the Directors nor any of their associates currently intend to sell any Shares to the Company or its subsidiaries in the event that the Proposed Repurchase Mandate is approved.
The Directors have undertaken to the Stock Exchange that, so far as the same may be applicable, they will exercise the Proposed Repurchase Mandate in accordance with the Listing Rules and the applicable laws of Hong Kong, as well as the regulations set out in the memorandum and Articles of Association.
No connected person (as defined in the Listing Rules) of the Company has notified the Company that he has a present intention to sell any Shares to the Company, or has undertaken not to do so, in the event that the Proposed Repurchase Mandate is approved.
If as a result of a repurchase of Shares, a Shareholder's proportionate interest in the voting rights of the Company increases, such increase will be treated as an acquisition for the purposes of the Code. Accordingly, a Shareholder, or group of Shareholders acting in concert,
APPENDIX II
EXPLANATORY STATEMENT ON PROPOSED REPURCHASE MANDATE
depending on the level of increase of the Shareholders’ interest, could obtain or consolidate control of the Company and become obliged to make a mandatory offer in accordance with Rule 26 of the Code.
On the basis that no further Shares will be issued or repurchased after the Latest Practicable Date and in the event that the Directors exercise the Proposed Repurchase Mandate in full, no Shareholder would be required to make a mandatory offer under Rule 26 of the Code. The Directors have no present intention to exercise in full the power to repurchase Shares proposed to be granted pursuant to the Proposed Repurchase Mandate.
The Listing Rules prohibit a company from making repurchase on the Stock Exchange if the result of the repurchase would be that less than 25% (or such other prescribed minimum percentage as determined by the Stock Exchange) of the issued share capital would be in public hands. The Directors do not propose to repurchase Shares which would result in less than the prescribed minimum percentage of Shares in public hands.
The Company had not repurchased any Shares (whether on the Stock Exchange or otherwise) in the six months preceding the date of this circular.
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NOTICE OF ANNUAL GENERAL MEETING
INTERCHINA HOLDINGS COMPANY LIMITED
國中控股有限公司
(Incorporated in Hong Kong with limited liability)
(Stock code: 202)
NOTICE IS HEREBY GIVEN that an annual general meeting of Interchina Holdings Company Limited (“Company”) will be held at 15/F., CCB Tower, 3 Connaught Road Central, Hong Kong at 10:00 a.m. on Friday, 23 August 2013 at (or an adjournment thereof) for the following purposes:
- To receive and consider the audited financial statements and the report of the directors and auditors for the year ended 31 March 2013;
- To re-elect directors who offer themselves for re-election and to authorise the board of directors to fix their remuneration;
- To re-appoint HLB Hodgson Impey Cheng Limited as the auditors of the Company and to authorise the board of directors to fix their remuneration;
- To consider and, if thought fit, passing with or without modification, the following resolutions as ordinary resolutions of the Company:
ORDINARY RESOLUTIONS
(1) “THAT:
(a) subject to paragraph (c) below, the exercise by the directors of the Company (the “Directors”) during the Relevant Period (as hereinafter defined) of all the powers of the Company to allot, issue and otherwise deal with additional shares of the Company (the “Shares”) or securities convertible into Shares, or options, warrants or similar rights to subscribe for any Shares, and to make or grant offers, agreements and options which might require the exercise of such power be and is hereby generally and unconditionally approved;
(b) the approval in paragraph (a) above shall be in addition to any other authorizations given to the Directors and shall authorise the Directors during the Relevant Period to make or grant offers, agreements and options which might require the exercise of such power after the end of the Relevant Period;
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NOTICE OF ANNUAL GENERAL MEETING
(c) the aggregate nominal amount of the share capital allotted or agreed conditionally or unconditionally to be allotted (whether pursuant to an option or otherwise) by the Directors pursuant to the approval in paragraph (a) above, otherwise than pursuant to:
(i) a Rights Issue (as hereinafter defined);
(ii) the exercise of rights of subscription or conversion under terms of any warrants issued by the Company or any securities which are convertible into Shares;
(iii) the exercise of any option scheme or similar arrangement for the time being adopted for the grant or issue to officers and/or employees of the Company and/or any of its subsidiaries of Shares or right to acquire Shares;
(iv) any scrip dividend or similar arrangements providing for the allotment of shares in lieu of the whole or part of a dividend on Shares in accordance with the articles of association of the Company;
shall not exceed 20% of the aggregate nominal amount of the share capital of the Company in issue as at the date of passing of this Resolution and the said approval shall be limited accordingly;
(d) subject to the passing of each of the paragraphs (a), (b) and (c) of this Resolution, any prior approvals of the kind referred to in paragraphs (a), (b) and (c) of this Resolution which had been granted to the Directors and which are still in effect be and are hereby revoked; and
(e) for the purpose of this Resolution:
“Relevant Period” means the period from the passing of this Resolution until whichever is the earlier of:
(i) the conclusion of the next annual general meeting of the Company;
(ii) the expiration of the period within which the next annual general meeting of the Company is required by law or the articles of association of the Company to be held; or
(iii) the revocation or variation of the authority given under this Resolution by ordinary resolution of the shareholders of the Company in general meeting;
“Rights Issue” means the allotment, issue or grant of Shares pursuant to an offer of Shares open for a period fixed by the Directors to holders of Shares or any class thereof on the register on a fixed record date in proportion to their then holdings of such Shares or class thereof (subject to
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NOTICE OF ANNUAL GENERAL MEETING
such exclusion or other arrangements as the Directors may deem necessary or expedient in relation to fractional entitlements, or having regard to any restrictions or obligations under the laws of, or the requirements of, any recognized regulatory body or any stock exchange in any territory outside Hong Kong).
(2) “THAT:
(a) subject to paragraph (b) below, the exercise by the Directors during the Relevant Period (as hereinafter defined) of all the powers of the Company to repurchase the Shares on The Stock Exchange of Hong Kong Limited or on any other stock exchange on which the Shares may be listed and recognised for this purpose by the Securities and Futures Commission and The Stock Exchange of Hong Kong Limited under the Hong Kong Code on Share Repurchases, and subject to and in accordance with all applicable laws and the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, be and is hereby generally and unconditionally approved;
(b) the aggregate nominal amount of Shares which may be repurchased pursuant to the approval in paragraph (a) above shall not exceed 10% of the aggregate nominal amount of the share capital of the Company in issue as at the date of passing of this Resolution and the said approval shall be limited accordingly;
(c) subject to the passing of each of the paragraphs (a) and (b) of this Resolution, any prior approvals of the kind referred to in paragraphs (a) and (b) of this Resolution which had been granted to the Directors and which are still in effect be and are hereby revoked; and
(d) for the purpose of this Resolution, “Relevant Period” means the period from the passing of this Resolution until whichever is the earlier of:
(i) the conclusion of the next annual general meeting of the Company;
(ii) the expiration of the period within which the next annual general meeting of the Company is required by law or the articles of association of the Company to be held; or
(iii) the revocation or variation of the authority given under this Resolution by ordinary resolution of the shareholders of the Company in general meeting.”
(3) “THAT conditional upon the passing of the Resolutions 4(1) and 4(2) as set out in the notice of this meeting, the general mandate granted to the Directors to exercise the powers of the Company to allot, issue and otherwise deal with shares of the Company pursuant to Resolution 4(1) above be and is hereby extended by the addition to the aggregate nominal amount of the share capital
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NOTICE OF ANNUAL GENERAL MEETING
of the Company which may be allotted by the Directors pursuant to such general mandate an amount representing the aggregate nominal amount of the share capital of the Company repurchased by the Company under the authority granted pursuant to Resolution 4(2) above, provided that such amount shall not exceed 10% of the aggregate nominal amount of the share capital of the Company in issue at the date of passing of this Resolution.”
By Order of the Board
Interchina Holdings Company Limited
Lam Cheung Shing, Richard
Executive Director and Chief Executive Officer
Hong Kong, 25 July 2013
Registered office:
15th Floor
CCB Tower
3 Connaught Road Central
Hong Kong
Notes:
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A shareholder of the Company (“Shareholder”) entitled to attend and vote at the annual general meeting (“AGM”) may appoint one or more than one proxy to attend and to vote in his stead. A proxy need not be a Shareholder.
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Where there are joint registered holders of any share of HK$0.10 each in the capital of the Company (“Share”), any one such persons may vote at the AGM, either personally or by proxy, in respect of such Share as if he were solely entitled thereto; but if more than one of such joint holders be present at the AGM personally or by proxy, that one of the said persons so present whose name stands first on the register of members of the Company in respect of such Shares shall alone be entitled to vote in respect thereof.
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In order to be valid, the form of proxy duly completed and signed in accordance with the instructions printed thereon together with the power of attorney or other authority, if any, under which it is signed or a notarially certified copy thereof must be delivered to the office of the Company’s share registrar, Tricor Tengis Limited, at 26th Floor, Tesbury Centre, 28 Queen’s Road East, Hong Kong, as soon as possible but in any event not less than 48 hours before the time appointed for holding the AGM.
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As at the date of this notice, the board of directors of the Company consists of Mr. Jiang Zhaobai, Mr. Shen Angang, Mr. Lam Cheung Shing Richard, Mr. Zhu Deyu and Mr. Lu Yaohua (all being executive directors), and Mr. Ho Yiu Yue Louis, Mr. Ko Ming Tung Edward and Mr. Chen Yi, Ethan (all being independent non-executive directors).
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