Leeport (Holdings) Limited — Proxy Solicitation & Information Statement 2006

May 2, 2006

IMPORTANT

If you are in any doubt about this circular or as to the action to be taken, you should consult your stockbroker, bank manager, solicitor, professional accountant or other professional adviser.

If you have sold or transferred all your shares in Leeport (Holdings) Limited, you should at once hand this circular to the purchaser or transferee or to the bank, stockbroker or other agent through whom the sale was effected for transmission to the purchaser.

The Stock Exchange of Hong Kong Limited ( the “Stock Exchange” ) takes no responsibility for the contents of this circular, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this circular.

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LEEPORT (HOLDINGS) LIMITED

(incorporated in Bermuda with limited liability)

(Stock Code: 387)

PROPOSALS FOR GENERAL MANDATES TO ISSUE SHARES AND TO REPURCHASE SHARES AND AMENDMENTS TO BYE-LAWS

AND

INFORMATION ON THE RETIRING DIRECTOR TO BE RE-ELECTED AT THE 2006 ANNUAL GENERAL MEETING

A letter from the board of directors of the Company is set out on page 1 to 5 of this circular. A notice convening the annual general meeting ( the “2006 Annual General Meeting” ) of the Company to be held at Salon 1-2, Level 3, JW Marriot Ballroom, JW Marriot Hotel Hong Kong, Pacific Place, 88 Queensway, Hong Kong on 26th May 2006 at 3:00 p.m. is set out in the 2005 annual report ( the “2005 Annual Report” ) accompanying this circular.

A form of proxy for the 2006 Annual General Meeting is also enclosed with the 2005 Annual Report. Whether or not you desire to attend the 2006 Annual General Meeting, you are requested to complete the form of proxy and return the same to the Company’s branch share registrar in Hong Kong, Tricor Investor Services Limited at 26th Floor, Tesbury Centre, 28 Queen’s Road East, Wanchai, Hong Kong in accordance with the instructions printed thereon not less than 48 hours before the time appointed for the 2006 Annual General Meeting or any adjournment thereof. Completion and delivery of the form of proxy will not preclude you from subsequently attending and voting at the 2006 Annual General Meeting or any adjournment thereof if you so wish.

28th April 2006

* For identification purpose only

LETTER FROM THE BOARD OF DIRECTORS

LEEPORT (HOLDINGS) LIMITED

(incorporated in Bermuda with limited liability)

(Stock Code: 387)

Executive Directors: LEE Sou Leung Joseph (Chairman) TAN, Lisa Marie (Deputy Chairman) CHAN Ching Huen Stanley

Independent Non-Executive Directors: Dr. LUI Sun Wing PIKE, Mark Terence NIMMO, Walter Gilbert Mearns

Registered office: Clarendon House 2 Church Street Hamilton HM 11 Bermuda

Principal Place of Business: 1st Floor, Block 1 Golden Dragon Industrial Centre 152-160 Tai Lin Pai Road Kwai Chung New Territories Hong Kong

28th April 2006

To the Shareholders

Dear Sir/Madam,

PROPOSALS FOR GENERAL MANDATES TO ISSUE SHARES AND TO REPURCHASE SHARES AND AMENDMENTS TO BYE-LAWS

AND INFORMATION ON THE RETIRING DIRECTORS TO BE RE-ELECTED AT THE 2006 ANNUAL GENERAL MEETING

1. INTRODUCTION

The Company’s existing general mandates to issue shares and to repurchase shares were approved by the Company in the annual general meeting held on 25th May 2005. Unless otherwise renewed, the existing general mandates to issue shares and to repurchase shares will lapse at the conclusion of the 2006 Annual General Meeting.

In order to ensure flexibility when it is desirable to allot additional shares or to repurchase shares, the directors of the Company ( the “Directors” ) will seek the approval of shareholders to grant new general mandates to issue shares and to repurchase shares at the 2006 Annual General Meeting.

• For identification purpose only

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LETTER FROM THE BOARD OF DIRECTORS

The purpose of this circular is to, inter alia, provide you with information on the proposed renewal of the general mandates to issue shares and to repurchase shares and on the retiring directors to be re-elected at the 2006 Annual General Meeting, so as to seek your approval of the related ordinary resolutions at the aforesaid meeting.

2. GENERAL MANDATE TO ISSUE SHARES (THE “ISSUE MANDATE”)

Two ordinary resolutions, as set out in the notice of the 2006 Annual General Meeting, will be proposed for the following purposes:–

Ordinary resolution no. 5 – to grant to the Directors a general mandate to issue new shares up to a maximum of 20% of the aggregate nominal amount of the issued share capital of the Company as at the date of passing of the resolution; and

Ordinary resolution no. 7 – to increase the aggregate nominal amount of share capital of the Company which the Directors may issue under the general mandate if given in the Ordinary Resolution no. 5 by the aggregate nominal amount of share capital of the Company repurchased under the general mandate if given in the ordinary resolution no. 6.

The Company has in issue an aggregate of 203,880,000 shares of HK$0.10 each as at 24th April 2006, ( the “Latest Practicable Date” ), being the latest practicable date before the printing of this circular for ascertaining certain information to be included herein. Subject to the passing of the aforesaid ordinary resolution no. 5 and in accordance with the terms therein, the Company would be allowed to issue additional shares up to the aggregate nominal amount of a maximum of 40,776,000 shares on the basis that no further shares will be issued or repurchased prior to the 2006 Annual General Meeting.

3. GENERAL MANDATE TO REPURCHASE SHARES (THE “REPURCHASE MANDATE”)

The ordinary resolution no. 6 as set out in the notice of the 2006 Annual General Meeting, will be proposed to grant to the Directors a general mandate to exercise the powers of the Company to repurchase the Company’s fully paid up shares representing up to a maximum of 10% of the aggregate nominal amount of the issued share capital of the Company as at the date of passing of the resolution.

The Rules Governing the Listing of Securities on the Stock Exchange ( the “Listing Rules” ) contain provisions to regulate the repurchase by companies with primary listings on the Stock Exchange of their own securities on the Stock Exchange.

In accordance with the Listing Rules, the appendix to this circular serves as the explanatory statement, to provide you with the requisite information reasonably necessary to enable you to make an informed decision on whether to vote for or against the ordinary resolutions for granting of the Repurchase Mandate.

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LETTER FROM THE BOARD OF DIRECTORS

4. PROPOSED AMENDMENTS TO BYE-LAWS

With reference to the amendments made by the Stock Exchange concerning various corporate governance issues, the Directors propose to amend the Company’s Bye-laws (the “Bye-laws”) in order to ensure compliance with all applicable laws.

The major amendments to the Company’s Bye-laws relate to the retirement of directors by rotation. The new Bye-laws will provide that subject to the manner of retirement by rotation of directors as from time to time prescribed by the Listing Rules, at each annual general meeting, one-third of the directors for the time being shall retire from office by rotation and that every director shall be subject to retirement by rotation at least once every three years. Subsequent to the amendments, all directors will be subject to retirement by rotation. In addition, any director appointed by the board of directors either to fill a casual vacancy or as an additional director will hold office only until the next following general meeting of the Company (and not annual general meeting as currently stated in the Company’s existing Bye-laws). The power to remove directors will be changed from a special resolution to an ordinary resolution in the new Byelaws.

The existing Bye-laws of the Company will be amended in the following manner:–

• (a) by inserting the words “voting by way of a poll is required by the rules of the Designated Stock Exchange or” after the words “a show of hands unless” in the third sentence of Bye-law 66; and by deleting the full stop at the end of Bye-law 66(d) and replacing it with a semi-colon and inserting the word “or” after the semi-colon.

Then by inserting the following wording after Bye-law 66(d):

• “(e) if required by the rules of the Designated Stock Exchange, by any Director or Directors who, individually or collectively, hold proxies in respect of shares representing five per cent. (5%) or more of the total voting rights at such meeting.”

• (b) by deleting the second sentence of Bye-law 68 in its entirety and substituting therefor the following:

“The Company shall only be required to disclose the voting figures on a poll if such disclosure is required by the rules of the Designated Stock Exchange.”

• (c) by deleting the word “following annual” in the second sentence of the existing Byelaws 86(2);

• (d) by deleting the word “special” in the first sentence of the existing Bye-laws 86(4) and substituting therefor the word “ordinary”;

• (e) by deleting the word “greater” in the 3rd line of the existing Bye-laws 87(1) and substituting therefor the word “less” and deleting the words “notwithstanding anything herein, the chairman of the Board and/or the managing director of the Company shall not, whilst holding such office, be subject to retirement by rotation or

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LETTER FROM THE BOARD OF DIRECTORS

be taken into account in determining the number of Directors to retire in each year” at the end of the existing Bye-law 87(1) and substituting therefor the following:–

“every Director (including those appointed for a specified term or holding office as Chairman, Deputy Chairman, Managing Director or other office) shall be subject to retirement by rotation at least once every three years.

5. INFORMATION OF THE RETIRING DIRECTOR TO BE RE-ELECTED AT THE 2006 ANNUAL GENERAL MEETING

Ms Tan, Lisa Marie (“ Ms Tan ”), aged 44, was appointed as an executive director of the Company since 10th July 2003. Ms Tan is responsible for human resources, administration, strategic planning and the formulation of the internal policies of the Company and its subsidiaries (the “Group”). Prior to joining the Group in June 1995, Ms Tan was a product manager in the retail banking division of an international bank in Hong Kong. Ms Tan graduated from California State Polytechnic University Pomona, US with a Bachelor of Science Degree in Business Administration. Except for being director in the Company, Ms Tan has not held directorship in other listed company during the past three years. She is the director of certain subsidiaries of the Group.

Ms. Tan has entered into a service agreement with the Company for a term of three years commencing from 10 July 2003 and her appointment would continue thereafter unless and until terminated by either party in accordance with her service agreement. As a director, Ms Tan is subject to retirement by rotation and re-election at annual general meetings in accordance with the Bye-laws of the Company. Ms Tan’s existing remuneration is about HK$574,000 per annum. In addition, for each completed year of service, Ms Tan is entitled to a bonus equal to one month’s average salary, and a discretionary bonus as may be decided by the board of directors of the Company in accordance with the terms of her service agreement with the Company. Ms Tan’s remuneration, which is commensurate with his duties and responsibilities held, is approved by the Board with reference to the prevailing market situation for similar appointment. She has already received HK$549,000 for salary and HK$25,000 for retirement fund in the financial year 2005.

Ms Tan is the wife of Mr Lee Sou Leung, Joseph. Save as disclosed, she does not have other relationships with any directors, senior management or other substantial or controlling shareholder of the Company for the purpose of the Listing Rules. As at the Latest Practicable Date, Ms Tan is interested in 137,384,000 shares of the Company within the meaning of Part XV of the Securities and Futures Ordinance.

The Board is not aware of any other matters or information that need to be brought to the attention of shareholders of the Company or to be disclosed pursuant to Rule 13.51(2) in relation to the proposed re-election of the aforesaid retiring directors.

6. ACTION TO BE TAKEN

The notice convening the 2006 Annual General Meeting to be held at Salon 1-2, Level 3, JW Marriot Ballroom, JW Marriot Hotel Hong Kong, Pacific Place, 88 Queensway, Hong Kong on 26th May 2006 at 3:00 p.m. is set out in the Company’s 2005 Annual Report.

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LETTER FROM THE BOARD OF DIRECTORS

A form of proxy for the 2006 Annual General Meeting is also enclosed with the 2005 Annual Report. Whether or not you desire to attend the 2006 Annual General Meeting, you are requested to complete the form of proxy and return the same to the Company’s branch share registrar in Hong Kong, Tricor Investor Services Limited at 26th Floor, Tesbury Centre, 28 Queen’s Road East, Wanchai, Hong Kong in accordance with the instructions printed thereon not less than 48 hours before the time appointed for the 2006 Annual General Meeting or any adjournment thereof. Completion and delivery of the form of proxy will not preclude you from subsequently attending and voting at the 2006 Annual General Meeting or any adjournment thereof if you so wish.

7. PROCEDURES FOR DEMANDING A POLL

For your further information as required by the Listing Rules, set forth below are the procedures for demanding a poll at general meeting of the Company. Pursuant to Bye-law 66 of the Company’s Bye-Laws, every resolution put to the vote of a general meeting shall be decided on a show of hands unless (before or on the declaration of the result of the show of hands or on the withdrawal of any other demand for a poll) a poll is duly demanded:

• (a) by the chairman of such meeting; or

• (b) by at least three members present in person (or in the case of a member being a corporation by its duly authorized representative) or by proxy for the time being entitled to vote at the meeting; or

• (c) by a member or members present in person (or in the case of a member being a corporation by its duly authorized representative) or by proxy and representing not less than one-tenth of the total voting rights of all members having the right to vote at the meeting; or

• (d) by a member or members present in person (or in the case of a member being a corporation by its duly authorized representative) or by proxy and holding shares in the Company conferring a right to vote at the meeting being shares on which an aggregate sum has been paid up equal to not less than one-tenth of the total sum paid up on all shares conferring that right.

A poll which is duly demanded shall be then held in such manner prescribed by the ByeLaws of the Company.

8. RECOMMENDATION

The Directors believe that the granting of the Issue Mandate (including the extended mandate stipulated under Ordinary resolution no. 7) and the Repurchase Mandate are in the best interests of the Company and its Shareholders as a whole. Moreover, for your consideration, adequate information regarding the re-election of the retiring directors at the 2006 Annual General Meeting is contained herein. Meanwhile, the Directors recommend that all shareholders should vote in favour of the related ordinary resolutions to be proposed at the 2006 Annual General Meeting.

Yours faithfully, By Order of the Board Leeport (Holdings) Limited LEE Sou Leung Joseph Chairman

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EXPLANATORY STATEMENT

APPENDIX

This appendix serves an explanatory statement, as required by the Listing Rules, to provide requisite information to shareholders of the Company for their consideration as to whether to vote for or against the ordinary resolution to be proposed at the 2006 Annual General Meeting for granting the Repurchase Mandate.

This explanatory statement contains all the information required pursuant to rule 10.06 of the Listing Rules which is set out as follows:-

SHARE CAPITAL

As at the Latest Practicable Date, the Company has in issue an aggregate of 203,880,000 shares of HK$0.10 each which are fully paid.

Subject to the passing of the ordinary resolution no. 6 as set out in the notice of 2006 Annual General Meeting and in accordance with the terms therein, the Company would be allowed under the Repurchase Mandate to repurchase fully paid shares up to the aggregate nominal amount of a maximum of 20,388,000 shares on the basis that no further shares will be issued or repurchased prior to the 2006 Annual General Meeting.

REASONS FOR SHARE REPURCHASE

Although the Directors have no present intention of repurchasing any shares of the Company, they believe that the flexibility afforded by the Repurchase Mandate would be beneficial to the Company and its shareholders. Trading conditions on the Stock Exchange have sometimes been volatile. At any time in the future when shares are trading at a discount to their underlying value, the ability of the Company to repurchase shares will be beneficial to those shareholders who retain their investment in the Company since their interests in the assets of the Company would increase in proportion to the number of shares repurchased by the Company and thereby resulting in an increase in net asset value and/or earnings per share of the Company. Such repurchases will only be made when the Directors believe that the repurchases will benefit the Company and its shareholders as a whole.

FUNDING OF REPURCHASES

The Company is empowered by its memorandum of association and bye-laws to repurchase its shares. In repurchasing shares, the Company may only apply funds legally available for such purpose in accordance with its memorandum of association and bye-laws and the applicable laws of Bermuda. In repurchasing shares, the Directors will only apply funds out of the capital paid up on the relevant shares or the funds of the Company which would otherwise be available for dividend or distribution or the proceeds of a fresh issue of shares made for the purpose in accordance with Bermuda laws. Regarding the amount of premium (if any) payable on a repurchase, the Directors will only apply funds of the Company which would otherwise be available for dividend or distribution or out of the share premium account of the Company. The shares so repurchased will be treated as cancelled but the aggregate amount of authorized share capital will not be reduced.

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EXPLANATORY STATEMENT

APPENDIX

SHARE PRICES

The highest and lowest prices at which shares of the Company have been traded during each of the following twelve months were as follows:–

		Shares
	Highest		Lowest
	HK$		HK$
2005
April	1.44		1.25
May	1.76		1.37
June	2.00		1.61
July	2.55		1.92
August	2.30		1.64
September	1.94		1.80
October	1.93		1.61
November	1.70		1.63
December	1.68		1.59
2006
January	1.72		1.65
February	1.88		1.68
March	1.78		1.56

REPURCHASES MADE BY THE COMPANY

Neither the Company nor any of its subsidiaries has purchased any of the Company’s shares (whether on the Stock Exchange or otherwise) in the six months immediately preceding the Latest Practicable Date.

POSSIBLE MATERIAL ADVERSE IMPACT

There might be material adverse impact on the working capital or gearing position of the Company (as compared with the position disclosed in the audited accounts for the year ended 31st December, 2005) in the event that the Repurchase Mandate was to be carried out in full at any time during the proposed repurchase period. However, the Directors do not propose to exercise the Repurchase Mandate to such extent as would, in the circumstances, have a material adverse effect on the Company’s working capital requirements or the gearing levels. The number of shares to be repurchased on any occasion and the price and other terms upon which the same are repurchased will be decided by the Directors at the relevant time having regard to the circumstances then pertaining.

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EXPLANATORY STATEMENT

APPENDIX

DIRECTORS’ UNDERTAKING

The Directors have undertaken to the Stock Exchange to exercise the powers of the Company to make repurchases under the Repurchase Mandate in accordance with the Listing Rules and laws of Bermuda and in accordance with the regulations set out in the memorandum of association and bye-laws of the Company.

EFFECT OF HONG KONG CODE ON TAKEOVERS AND MERGERS

If as a result of share repurchase by the Company, a substantial shareholder’s proportionate interest in voting rights of the Company increases, such increase will be treated as an acquisition for the purpose of the Hong Kong Code on Takeovers and Mergers (the “ Code ”). Accordingly, a shareholder, or group of shareholders acting in concert, could, depending on the level of increase in the interest of shareholdings, obtain or consolidate control of the Company and become obliged to make a mandatory offer in accordance with Rule 26 and 32 of the Code.

As at the Latest Practicable Date and to the best of knowledge and belief of the Company, the following person(s) were directly or indirectly interested in 5% of more of the nominal value of the ordinary shares that carry a right to vote in all circumstances at general meetings of the Company:–

Number of shares Name held/interested Mr. Lee Sou Leung, Joseph 2,868,000_(Note 1) (“Mr. Lee”) 133,700,000(Note 2) 816,000(Note 3) 137,384,000 Ms. Tan, Lisa Marie(“Ms. Tan”) 2,868,000(Note 4) 133,700,000(Note 2) 816,000(Note 3)_ 137,384,000	Approximate Percentage of Shareholding 1.41% 65.58% 0.40%
	67.38%
	1.41% 65.58% 0.40%
	67.38%

• Note 1: The 2,868,000 shares are held by Mr. Lee as personal interests.

• Note 2: The 133,700,000 shares are held by Peak Power Technology Limited in its capacity as the trustee of The Lee Family Unit Trust holding the same for the benefit of holders of units issued by The Lee Family Unit Trust. Of the entire 100,000 units in issue, 99,999 units are held by HSBC International Trustee Limited in the capacity of the trustee of The LMT Trust and the remaining 1 unit is held by Ms. Loretta Tong Yuk Yin (an aunt of Ms. Tan). HSBC International Trustee Limited is the trustee of The LMT Trust whose discretionary objects are Ms. Tan, and Mr. Lee’s family members.

• Note 3: These 816,000 shares are beneficially owned by Ms. Tan. As husband of Ms. Tan, Mr. Lee is deemed to be interested in these shares by virtue of family interests.

• Note 4: Ms. Tan is deemed to be interested in shares held by Mr. Lee.

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EXPLANATORY STATEMENT

APPENDIX

In the event that the Company exercised in full the power to repurchase shares of the Company in accordance with the terms of the ordinary resolution no. 6 to be proposed at the 2006 Annual General Meeting, the aforesaid interests of Mr. Lee, Ms. Tan and their respective associates in the existing issued share capital of the Company would be proportionally increased to approximately 74.87% (Mr. Lee, Ms. Tan and their respective associates currently holds 67.38% of the issued share capital as at the Latest Practicable Date). As at the Latest Practicable Date, the Directors are not aware of the consequences of such increases or as a result of repurchases of shares that would result in any of the aforesaid persons or any shareholder, or group of shareholders acting in concert, becoming obliged to make a mandatory offer under the Code.

As at the Latest Practicable Date, the exercise of the Repurchase Mandate whether in whole or in part will not result in less than 25% of the issued share capital of the Company being held by the public and the Directors have no intention to exercise the Repurchase Mandate to such an extent that would result in the number of shares in the hands of public falls below the prescribed minimum percentage of 25%.

DIRECTORS’ DEALINGS

None of the Directors nor, to the best of their knowledge having made all reasonable enquiries, any of their associates presently intends to sell shares to the Company under the Repurchase Mandate in the event that such mandate as proposed in the ordinary resolution no. 6 is approved by the shareholders of the Company.

CONNECTED PERSONS

The Company has not been notified by any connected persons of the Company that they have a present intention to sell any shares to the Company, or that they have undertaken not to sell any shares held by them to the Company in the event that such mandate as proposed in the ordinary resolution no. 6 is approved by the shareholders of the Company.

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