Honworld Group Limited — Capital/Financing Update 2017

Jun 21, 2017

Hong Kong Exchanges and Clearing Limited, The Stock Exchange of Hong Kong Limited and Hong Kong Securities Clearing Company Limited take no responsibility for the contents of this announcement, 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 announcement.

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Honworld Group Limited 老 恒 和 釀 造 有 限 公 司[*]

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2226)

CLARIFICATION ANNOUNCEMENT IN RESPECT OF THE USE OF NET PROCEEDS FROM SUBSCRIPTION UNDER GENERAL MANDATE

References are made to the announcements of the Honworld Group Limited (the ‘‘Company’’) dated 2 June 2016 and 23 June 2016 (the ‘‘Announcements’’) in relation to the subscription of new shares of the Company under general mandate (the ‘‘Subscription’’) and the annual report 2016 of the Company dated 30 March 2017 (the ‘‘Annual Report’’). Unless otherwise stated herein, capitalised terms used in this announcement shall have the meanings as those defined in the Announcements.

Further to the Announcements and the Annual Report, the Board wishes to provide further information regarding the use of net proceeds from the Subscription.

USE OF PROCEEDS FROM THE SUBSCRIPTION

The net proceeds after deduction of relevant expenses (including but not limited to legal expenses and disbursements) from the Subscription were approximately HK$356,100,000. It was intended that the net proceeds from the Placing would be applied by the Company for general working capital of the Group.

As at the date of the Annual Report, the breakdown of the use of net proceeds from the Subscription are as follows:

Expansion of sales networkExpansion of productionfacilitiesGeneral working capitalTotal	Intended use(ApproximatelyHK$ million)142.44178.0535.61356.10	Amount utilised(ApproximatelyHK$ million)39.20—35.6174.81	The remainingbalance(ApproximatelyHK$ million)103.24178.05—
			281.29

• For identification purposes only

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The Board considered that the net proceeds were applied in accordance with the intended uses disclosed in the Announcements.

By order of the board of directors of Honworld Group Limited Chen Weizhong Chairman

Hong Kong, 21 June 2017

As at the date of this announcement, the executive directors of the Company are Chen Weizhong, Sheng Mingjian and Wang Chao; and the non-executive director of the Company is Sun Qingdong; and the independent non-executive directors of the Company are Shen Zhenchang, Lei Jiasu and Ma Chaosong.

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