Symphony Holdings Limited — AGM Information 2012

May 10, 2012

THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION

If you are in any doubt as to any aspect of this circular or as to the action you should take, you should consult your stockbroker or other registered dealer in securities, bank manager, solicitor, professional accountant or other professional advisor.

If you have sold or transferred all your shares in Symphony Holdings Limited, you should hand this circular and the accompanying proxy form to the purchaser or transferee or to the bank, stockbroker or other agent through whom the sale or transfer was effected for transmission to the purchaser or transferee at once.

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.

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SYMPHONY HOLDINGS LIMITED 新灃集團有限公司[*]

(Incorporated in Bermuda with limited liability)

(Stock code: 01223)

GENERAL MANDATE TO ISSUE AND REPURCHASE SHARES, RE-ELECTION OF DIRECTORS, AND NOTICE OF ANNUAL GENERAL MEETING

A notice convening the Annual General Meeting of Symphony Holdings Limited to be held at the Boardroom on the 10th Floor of Island Place Tower, 510 King’s Road, North Point, Hong Kong on 12th June 2012 at 9.30 a.m. is set out in the notice of Annual General Meeting on pages 13 to 16 of this circular.

Whether or not you are able to attend the meeting, you are advised to read the notice and to complete and return the enclosed form of proxy in accordance with the instructions printed thereon to the branch share registrar of the Company in Hong Kong, Tricor Tengis Limited, at the 26th Floor of Tesbury Centre, 28 Queen’s Road East, Wanchai, Hong Kong as soon as possible but in any event not less than 48 hours before the time appointed for holding Annual General Meeting. Completion and return of the form of proxy will not preclude you from attending and voting in person at Annual General Meeting should you so wish.

* For identification purposes only

Hong Kong, 4th May 2012

CONTENTS

		Page
DEFINITIONS	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	1
LETTER FROM THE BOARD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		3
APPENDIX I	PARTICULARS OF DIRECTORS PROPOSED FOR
	RE-ELECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	6
APPENDIX II	EXPLANATORY STATEMENT . . . . . . . . . . . . . . . . . . . . . . . .	9
NOTICE OF ANNUAL GENERAL MEETING . . . . . . . . . . . . . . . . . . . . . . . . . . .		13

– i –

DEFINITIONS

In this circular, the following expressions shall have the following meanings unless the context requires otherwise:

• “Annual General Meeting” the annual general meeting of the Company to be held on 12th June 2012 at 9.30 a.m. or any adjournment thereof

• “Associates” has the meaning ascribed to it under the Listing Rules

• “Board” the board of directors of the Company or a duly authorised committee thereof

• “Bye-Laws” the bye-laws of the Company for the time being in force which was amended and approved by Shareholders on 25th July 2011

• “CG Code” the Code on Corporate Governance Practices as set out in Appendix 14 to the Listing Rules

• “Companies Act” the Companies Act 1981 of Bermuda

• “Company” Symphony Holdings Limited, a company incorporated in Bermuda with limited liability and the Shares of which are listed on the Exchange

• “Designated Stock Exchange” the definition of Designated Stock Exchange as defined under the Bye-Laws

• “Directors” the directors of the Company for the time being

• “Exchange” The Stock Exchange of Hong Kong Limited

• “Group” the Company and its subsidiaries

• “Hong Kong”

• Hong Kong Special Administrative Region of the PRC

• “Issue Mandate”

the proposed general and unconditional mandate to be granted to the Directors to allot, issue and deal with Shares not exceeding 20 per cent. of the total issued share capital of the Company in issue as at the date of passing of the relevant resolution at the Annual General Meeting

• “Latest Practicable Date”

30th April 2012, being the latest practicable date prior to the printing of this circular for ascertaining certain information contained herein

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DEFINITIONS

• “Listing Rules” the Rules Governing the Listing of Securities on the Exchange

• “Memorandum of Association” the memorandum of association of the Company

• “Ordinary Resolution(s)” the proposed ordinary resolution(s) as referred to in the notice of Annual General Meeting

• “PRC” the People’s Republic of China

• “Repurchase Mandate” a general and unconditional mandate enabling the Directors to repurchase Shares as defined in the section headed “General Mandate to Issue and Repurchase Shares”

• “SFO” the Securities and Futures Ordinance

• “Share(s)” share(s) of HK$0.10 each in the share capital of the Company

• “Share Repurchase Rules” the relevant rules set out in the Listing Rules to regulate the repurchase by companies with primary listings on the Exchange of their own securities on the Exchange

• “Shareholder(s)” registered holder(s) of Share(s)

• “Takeovers Code” the Codes on Takeovers and Mergers and Share Repurchases

• “HK$” Hong Kong dollars, the lawful currency of the Hong Kong Special Administrative Region of the People’s Republic of China

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LETTER FROM THE BOARD

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SYMPHONY HOLDINGS LIMITED 新灃集團有限公司[*]

(Incorporated in Bermuda with limited liability)

(Stock code: 01223)

Executive Directors: Mr. Chan Ting Chuen (Chairman) Mr. Sze Sun Sun Tony (Deputy Chairman and Managing Director) Mr. Chang Tsung Yuan (Deputy Chairman) Mr. Chan Lu Min Ms. Chen Fang Mei Dr. Ho Ting Seng

Non-executive Director: Mr. Li I Nan

Registered Office: Clarendon House 2 Church Street Hamilton HM11 Bermuda

Principal Place of Business in Hong Kong: 10th Floor, Island Place Tower 510 King’s Road, North Point Hong Kong

Independent Non-executive Directors: Mr. Cheng Kar Shing Mr. Feng Lei Ming Mr. Ho Shing Chak Mr. Huang Shenglan

4th May 2012

To Shareholder(s)

Dear Sirs or Madam,

GENERAL MANDATE TO ISSUE AND REPURCHASE SHARES, RE-ELECTION OF DIRECTORS, AND NOTICE OF ANNUAL GENERAL MEETING

INTRODUCTION

The purpose of this circular is to provide you with information reasonably necessary to enable you to make decision on whether to vote for or against the following ordinary resolutions to be proposed at the Annual General Meeting for the approval of, inter alia:

* For identification purposes only

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LETTER FROM THE BOARD

Ordinary resolutions

• (a) the re-election of retiring Directors;

• (b) the grant of the Share Issue Mandate and Share Repurchase Mandate to Directors to issue new Shares and repurchase Shares.

RE-ELECTION OF RETIRING DIRECTORS

At the Annual General Meeting, Mr. Chang Tsung Yuan, Mr. Li I Nan, Mr. Cheng Kar Shing and Mr. Feng Lei Ming will retire as Directors by rotation and, being eligible, offer themselves for re-election in accordance with bye-laws 87 and 88 of the Bye-Laws.

Particulars of the retiring directors are set out in Appendix I to this circular.

GENERAL MANDATE TO ISSUE AND REPURCHASE SHARES

At the last annual general meeting of the Company held on Friday, 10 June 2011, Directors were granted a general mandate to allot and issue Shares and a general mandate to repurchase Shares. These mandates will expire at the forthcoming Annual General Meeting. Directors propose to seek the approval of Shareholders at Annual General Meeting for the grant of:

• (a) the Share Issue Mandate to issue Shares up to a maximum of 20% of the issued share capital of the Company as at the date of passing of the relevant resolution;

• (b) the Share Repurchase Mandate to repurchase Shares up to a maximum of 10% of the Shares in issue as at the date of passing of the relevant resolution; and

• (c) the extension of the Share Issue Mandate to issue Shares by the number of Shares purchased under the Share Repurchase Mandate mentioned in (b) above.

Directors believe that it is in the interests of the Company and Shareholders as a whole if the above general mandates are granted at Annual General Meeting. Such general mandate as referred to in (a) to (c) provides Directors with flexibility to issue Shares especially in the context of a fund raising exercise or a transaction involving an acquisition by the Company where Shares are to be issued as consideration and which has to be completed speedily.

The explanatory statement to provide you with all the information necessary to enable you to make an informed decision on whether to vote for or against the resolutions concerning Share Repurchase Mandate as required by the Listing Rules is set out in Appendix II to this circular.

VOTING BY POLL

In accordance with Rule 13.39(4) of the Listing Rules, any vote of shareholders at a general meeting must be taken by poll. Accordingly, the chairman of Annual General Meeting will exercise his right under bye-law 66 of the Bye-Laws to demand a poll on all resolutions to be proposed at Annual General Meeting.

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LETTER FROM THE BOARD

ACTION TO BE TAKEN

A form of proxy for Annual General Meeting is enclosed herewith. Whether or not you intend to attend Annual General Meeting, you are requested to complete the form of proxy and return it to the branch share registrar of the Company in Hong Kong, Tricor Tengis Limited, at the 26th Floor of Tesbury Centre, 28 Queen’s Road East, Wanchai, Hong Kong not less than 48 hours before the time appointed for holding Annual General Meeting or any adjournment thereof.

ANNUAL GENERAL MEETING

Annual General Meeting will be held at the Boardroom on the 10th Floor of Island Place Tower, 510 King’s Road, North Point, Hong Kong on Tuesday, 12th June 2012 at 9.30 a.m. Notice of Annual General Meeting is set out on pages 13 to 16 of this circular.

RESPONSIBILITY STATEMENT

This circular contains particulars given in compliance with the Listing Rules for the purpose of giving information with regard to the Company. The Directors collectively and individually accept full responsibility for the accuracy of the information contained in this circular and confirm, having made all reasonable enquires, and to the best of their knowledge and belief, there is no other facts the omission of which would make any statement herein misleading.

RECOMMENDATION

The Directors believe that the grant of the general mandates to issue and repurchase Shares, are in the interests of the Company and the Shareholders as a whole. Accordingly, Directors recommend Shareholders to vote in favour of the relevant resolutions to be proposed at the Annual General Meeting.

Yours faithfully, For and on behalf of Symphony Holdings Limited Chan Ting Chuen Chairman

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PARTICULARS OF DIRECTORS PROPOSED FOR RE-ELECTION

APPENDIX I

MR. CHANG TSUNG YUAN

Mr. Chang Tsung Yuan, aged 65, is the Deputy Chairman and executive director of the Company. Mr. Chang joined the Group at its inception in 1990 and is the founder of the manufacturing business of the Group. Mr. Chang is a substantial shareholder of Well Success Investment Limited, the major shareholder of the Company. Accordingly, he holds 50.81% interests in the Company indirectly and holds 0.344% interests in the Company directly. Mr. Chang is also the President of the manufacturing division of the Company and its subsidiaries. He has over 30 years of experience and knowledge in the footwear manufacturing industry.

There is neither service contract nor proposed length of service between Mr. Chang and the Company. His appointment with the Company is subject to the relevant provisions for retirement and re-election pursuant to bye-law 87 of the Bye-Laws. Mr. Chang received a total of HK$1,796,000 for being an executive Director for the financial year ended 31 December 2011. His remuneration is reviewed annually by the Board with reference to his duties and responsibilities, the prevailing market conditions and the performance of the Company.

As at the Latest Practicable Date, Mr. Chang did not own any share options of the Company. Save as disclosed above, Mr. Chang is not related to any Directors, senior management, substantial or controlling Shareholders of the Company, nor does he have any interest in the Share which is required to be disclosed under Part XV of SFO. There is no other matter that needs to be brought to the attention of Shareholders.

There is no other information relating to Mr. Chang that is required to be disclosed pursuant to rule 13.51(2)(h) to (v) of the Listing Rules.

MR. LI I NAN

Mr. Li, I-Nan, aged 70, joined the Group in 2002 as a non-executive director. He has many years of experience in the footwear business including sourcing and wholesale operations. He is an executive director of Yue Yuen Industrial (Holdings) Limited (“ Yue Yuen ”), a company engaged in shoes manufacturing that is listed on The Stock Exchange of Hong Kong Limited (HKSE: 00551). Yue Yuen is a deemed substantial shareholder of the Company under the Securities and Futures Ordinance. Mr. Li holds a Bachelor and a Master of Arts degrees from National Chengchi University in Taiwan and a Master of Arts degree from the University of Southern California.

There is neither service contract nor proposed length of service between Mr. Li and the Company. His appointment with the Company is subject to the relevant provisions for retirement and re-election pursuant to bye-law 87 of the Bye-Laws. Mr. Li received a total of HK$96,000 for being a non-executive Director for the financial year ended 31 December 2011. His remuneration is reviewed annually by the Board with reference to his duties and responsibilities, the prevailing market conditions and the performance of the Company.

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PARTICULARS OF DIRECTORS PROPOSED FOR RE-ELECTION

APPENDIX I

As at the Latest Practicable Date, Mr. Li did not own any Share or share option of the Company. Save as disclosed above, Mr. Li is not related to any Director, senior management, substantial or controlling Shareholder of the Company, nor does he have any interest in the Share which is required to be disclosed under Part XV of SFO. There is no other matter that needs to be brought to the attention of Shareholders.

There is no other information relating to Mr. Li that is required to be disclosed pursuant to rule 13.51(2)(h) to (v) of the Listing Rules.

MR. CHENG KAR SHING

Mr. Cheng, Kar Shing, aged 59, was appointed an independent non-executive director of the Company in 1997. He holds a Master degree in engineering from the University of California in Los Angeles, United States. Mr. Cheng has been a director of New World Hotels (Holdings) Limited (formerly known as “NWD (Hotels Investments) Limited”) since 1984 and New World Development Company Limited (“ New World Development ”) since 1994. New World Development is a company listed on The Stock Exchange of Hong Kong Limited (“ Exchange ”) (HKSE: 00017). He is also an executive director of New World China Land Limited, a company listed on the Exchange (HKSE: 00917) and an independent non-executive director of King Fook Holdings Limited (HKSE: 00280).

There is neither service contract nor proposed length of service between Mr. Cheng and the Company. His appointment with the Company is subject to the relevant provisions for retirement and re-election pursuant to bye-law 87 of the Bye-Laws. Mr. Cheng received a total of HK$96,000 for being an independent non-executive Director for the financial year ended 31 December 2011. His remuneration is reviewed annually by the Board with reference to his duties and responsibilities, the prevailing market conditions and the performance of the Company.

As at the Latest Practicable Date, Mr. Cheng did not own any Shares or share options of the Company. Save as disclosed above, Mr. Cheng is not related to any Director, senior management, substantial or controlling Shareholder of the Company, nor does he have any interests in the Shares which is required to be disclosed under Part XV of SFO. There is no other matter that needs to be brought to the attention of Shareholders.

There is no other information relating to Mr. Cheng that is required to be disclosed pursuant to rule 13.51(2)(h) to (v) of the Listing Rules.

MR. FENG LEI MING

Mr. FENG Lei Ming, aged 54, was appointed an independent non-executive director of the Company in 2003. He graduated with an MBA in finance from the University of Memphis, Tennessee, United States of America. Mr. Feng has over 15 years of experience in the Hong Kong securities industry and is a registered responsible officer of various regulated activities

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PARTICULARS OF DIRECTORS PROPOSED FOR RE-ELECTION

APPENDIX I

with the Securities and Futures Commission of Hong Kong. He is currently the Managing Director of Pro-Health (China) Co. Ltd. and Responsible Officer of Pinnacle Partners Asset Management (HK) Co. Ltd. He was responsible for sales planning at National Electric Appliance Corp. and A.C. Nielsen in Taiwan before he started to work in Hong Kong in 1994.

There is neither service contract nor proposed length of service between Mr. Feng and the Company. His appointment with the Company is subject to the relevant provisions for retirement and re-election pursuant to bye-law 87 of the Bye-Laws. Mr. Feng received a total of HK$96,000 for being an independent non-executive Director for the financial year ended 31 December 2011. His remuneration is reviewed annually by the Board with reference to his duties and responsibilities, the prevailing market conditions and the performance of the Company.

As at the Latest Practicable Date, Mr. Feng did not own any Shares or share options of the Company. Save as disclosed above, Mr. Feng is not related to any Director, senior management, substantial or controlling Shareholder of the Company, nor does he have any interest in the Share which is required to be disclosed under Part XV of SFO. There is no other matter that needs to be brought to the attention of Shareholders.

There is no other information relating to Mr. Feng that is required to be disclosed pursuant to rule 13.51(2)(h) to (v) of the Listing Rules.

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EXPLANATORY STATEMENT

APPENDIX II

This explanatory statement contains information required under the Listing Rules to accompany the notice of Annual General Meeting at which a resolution is to be proposed in relation to the repurchase by the Company of its own Shares. Its purpose is to provide Shareholders with all information reasonably necessary for you to make an informed decision on whether to vote for or against the ordinary resolutions to approve the Share Repurchase Mandate at Annual General Meeting.

SHARE REPURCHASE RULES

The Listing Rules contain provisions to regulate the repurchase by companies with primary listings on the Exchange of their own securities.

Under the Share Repurchase Rules, any Share repurchases by a company with a primary listing on the Exchange has to comply with the following provisions:

(a) Shareholders’ Approval

All on-market share repurchases by a company must obtain a specific approval or a general mandate in advance by way of ordinary resolution by shareholders. The shares proposed to be repurchased are fully paid up.

(b) Source of Funds

Repurchases must be made out of funds which are legally available for such purpose in accordance with Memorandum of Association, Bye-Laws and all applicable laws of Bermuda.

SHARE CAPITAL

As at the Latest Practicable Date, the total number of issued Shares of the Company was 1,308,033,580.

REASONS FOR SHARE REPURCHASE

Although Directors have no present intention to repurchase any Shares, they believe that it is in the best interests of the Company and the Shareholders for Directors to seek a general authority from Shareholders to enable the Company to repurchase Shares in the market. At any time in future when Shares are trading at a discount to their underlying value, the ability of the Company to repurchase Shares will be beneficial to Shareholders who retain investments in the Company. Shareholders’ percentage interests in the assets of the Company would increase in proportion to the number of Shares repurchased by the Company, thereby resulting in an increase in net assets and/or earnings per Share. Such repurchases will only be made when Directors believe that such repurchases will benefit the Company and the Shareholders as a whole.

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EXPLANATORY STATEMENT

APPENDIX II

Subject to the approval of the ordinary resolutions for the Share Repurchase Mandate, the Company would be allowed under the Share Repurchase Mandate to repurchase a maximum of 130,803,358 Shares on the basis that no further Share will be issued or repurchased prior to the date of Annual General Meeting.

FUNDING OF REPURCHASES

Directors propose that repurchases of Shares under the Share Repurchase Mandate would be financed from internal resources of the Company. In repurchasing Shares, the Company may only apply funds legally available for such purpose in accordance with Memorandum of Association, Bye-Laws and all applicable laws of Bermuda.

The Company is empowered by its Memorandum of Association and Bye-Laws to repurchase its Shares. The Bermuda laws provide that the consideration paid in connection with a share repurchase may only be paid out of the capital paid-up on the relevant shares, or the funds of the company that would otherwise be available for dividend or distribution or the proceeds of a fresh issue of shares made for such purpose. The amount of premium payable on repurchase may only be paid out of funds of the Company that would otherwise be available for dividend or distribution or out of the share premium account of the Company before the Shares are repurchased.

Furthermore, the Companies Act provides that a company may not repurchase its own shares if on the date on which the repurchase is to be effected, there are reasonable grounds for believing that the company is, or after the repurchase would be, unable to pay its liabilities as they become due.

No material adverse impact on the working capital or gearing position of the Company (as compared with the position disclosed in the audited consolidated financial statements contained in the annual report of the Company for the year ended 31st December 2011) is anticipated in the event that the Share Repurchase Mandate was to be carried out in full at any time during the proposed repurchase period. Directors do not propose to exercise the Share Repurchase Mandate to such an extent that would, in the circumstances, have a material adverse effect on the working capital requirements of the Company or the gearing levels which in the opinion of Directors are from time to time appropriate for the Company. The number of Shares to be repurchased on any occasions and the price and other terms upon which Shares are repurchased will be decided by Directors at the relevant time having regard to the circumstances then pertaining.

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EXPLANATORY STATEMENT

APPENDIX II

SHARE PRICES

During each of the previous 12 months preceding the Latest Practicable Date, the highest and lowest traded price for Shares on the Exchange were as follows:

	Shares
	Highest	Lowest
	price	price
	HK$	HK$
2011
April	0.734	0.646
May	0.700	0.510
June	0.700	0.432
July	0.469	0.460
August	0.465	0.380
September	0.440	0.360
October	0.415	0.330
November	0.420	0.370
December	0.395	0.370
2012
January	0.405	0.360
February	0.460	0.375
March	0.480	0.400
April (up to and including the Latest Practicable Date)	0.395	0.370

No repurchase of Shares has been made by the Company during the last 12 months immediately preceding the Latest Practicable Date (whether on the Exchange or otherwise).

DIRECTORS’ UNDERTAKING

Directors have undertaken to the Exchange to exercise the powers of the Company to make purchase under the Share Repurchase Mandate in accordance with the Listing Rules, Memorandum of Association, Bye-Laws and all applicable laws of Bermuda.

EFFECT ON THE TAKEOVERS CODE

If on exercise of the power to repurchase Shares pursuant to the Share Repurchase Mandate, the proportionate interest of a Shareholder or group of Shareholders acting in concert (as defined in the Takeovers Code) in the voting rights of the Company increases, such increase will be treated as an acquisition for the purposes of Rules 26 and 32 of the Takeovers Code.

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EXPLANATORY STATEMENT

APPENDIX II

As at the Latest Practicable Date, Well Success, the single largest substantial Shareholder, holds approximately 50.81% of the issued share capital of the Company. In the event where Directors exercise in full the power to repurchase Shares in accordance with the Share Repurchase Mandate, the total interest of Well Success in the issued Shares would be increased to approximately 56.46% of the total issued share capital of the Company (on the basis that no Share is issued or repurchased by the Company prior to Annual General Meeting). In the opinion of the Directors, such increase may give rise to an obligation to make a mandatory offer under Rules 26 and 32 of the Takeovers Code. The Directors have no present intention to exercise the Share Repurchase Mandate to such an extent as would result in takeover obligations.

DIRECTORS, THEIR ASSOCIATES AND CONNECTED PERSONS

None of the Directors or, to the best of their knowledge and having made all reasonable enquiries, any of their Associates presently intends to sell any Shares in the Company/to the Company and/or its subsidiaries in the event that the Share Repurchase Mandate is approved by Shareholders.

The Company has not been notified by any connected persons (as defined in the Listing Rules) that they have a present intention to sell any Shares, or that they have undertaken not to sell any Shares held by them to the Company in the event that the Share Repurchase Mandate is approved by Shareholders.

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NOTICE OF ANNUAL GENERAL MEETING

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SYMPHONY HOLDINGS LIMITED 新灃集團有限公司[*]

(Incorporated in Bermuda with limited liability)

(Stock code: 01223)

NOTICE IS HEREBY GIVEN that the Annual General Meeting of the Shareholders of Symphony Holdings Limited will be held at the Boardroom on the 10th Floor of Island Place Tower, 510 King’s Road, North Point, Hong Kong on Tuesday, 12th June 2012 at 9.30 a.m. for the following purposes:

ORDINARY RESOLUTIONS

1. To receive and consider the audited financial statements of the Company and the reports of Directors and the auditors for the year ended 31st December 2011;

2. To approve and declare a final dividend of HK$0.01 for the year ended 31st December 2011;

3. (a) To accept the retirement of Mr. Chang Tsung Yuan as Director pursuant to bye-law 87 of the Bye-Laws and to re-elect Mr. Chang as Director;

4. (b) To accept the retirement of Mr. Li I Nan as Director pursuant to bye-law 87 of the Bye-Laws and to re-elect Mr. Li as Director;

5. (c) To accept the retirement of Mr. Cheng Kar Shing as Director pursuant to bye-law 87 of the Bye-Laws and to re-elect Mr. Cheng as Director;

6. (d) To accept the retirement of Mr. Feng Lei Ming as Director pursuant to bye-law 87 of the Bye-Laws and to re-elect Mr. Feng as Director;

7. (e) To authorise the Board to fix the remuneration of Directors; and

8. To appoint auditors and to authorise the Board to fix their remuneration.

* For identification purposes only

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NOTICE OF ANNUAL GENERAL MEETING

To consider as special businesses and, if thought fit, pass with or without amendments, the following resolutions as ordinary resolutions of the Company:

1. “ THAT

2. (a) subject to sub-paragraph (b) of this resolution, the exercise by Directors during the Relevant Period (as hereinafter defined) of all the powers of the Company to repurchase Shares issued by the Company and to make offers, agreements and options (including warrants) which would or might require the exercise of such powers, subject to and in accordance with all applicable laws and the requirements of the Listing Rules and Bye-Laws, be and is hereby generally and unconditionally approved;

3. (b) the aggregate nominal amount of Shares to be repurchased pursuant to the approval in sub-paragraph (a) of this resolution during the Relevant Period shall not exceed 10% of the aggregate nominal amount of the share capital of the Company in issue on the date of the passing of this resolution, and the said approval shall be limited accordingly; and

4. (c) for the purpose of this resolution,

“ Relevant Period ” means the period from the date of 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 revocation or variation of the authority given under this resolution by ordinary resolution of Shareholders in general meeting; and

• (iii) the expiration of the period within which the next annual general meeting of the Company is required by Bye-Laws or any applicable laws to be held.”;

6. “ THAT

• (a) subject to sub-paragraph (c) of this resolution, the exercise by Directors during the Relevant Period (as hereinafter defined) of all the power of the Company to allot, issue and deal with additional Shares and to make or grant offers, agreements and options (including warrants) which might require the exercise of such power be and is hereby generally and unconditionally approved;

• (b) the approval in sub-paragraph (a) of this resolution shall authorise Directors during the Relevant Period to make or grant offers, agreements and options (including warrants) which would or might require the exercise of the powers to allot, issue and deal with additional Shares in the capital of the Company under sub-paragraph (a) of this resolution after the end of the Relevant Period;

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NOTICE OF ANNUAL GENERAL MEETING

• (c) the aggregate nominal amount of share capital allotted or agreed conditionally or unconditionally to be allotted (whether pursuant to an option or otherwise) and issued by Directors pursuant to the approval in sub-paragraph (a) of this resolution, otherwise than pursuant to a Rights Issue (as hereinafter defined) or upon the exercise of rights of subscription or conversion under any outstanding warrants to subscribe for Shares or any securities which are convertible into Shares or the share option scheme of the Company or similar arrangement for the time being adopted for the grant or issue to employees of the Company and/or any of its subsidiaries of Shares or rights to acquire Shares, or any scrip dividend scheme or similar arrangement providing for the allotment of Shares in lieu of the whole or part of a dividend on Shares in accordance with Bye-Laws, shall not exceed 20% of the aggregate nominal amount of the share capital of the Company in issue on the date of the passing of this resolution and the said approval shall be limited accordingly; and

• (d) for the purpose of this resolution,

“ Relevant Period ” means the period from the date of 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 revocation or variation of the authority given under this resolution by ordinary resolution of Shareholders in general meeting; and

• (iii) the expiration of the period within which the next annual general meeting of the Company is required by Bye-Laws or any applicable laws to be held; and

“ Rights Issue ” means an offer of Shares open for a period fixed by Directors to Shareholders on the register on a fixed record date in proportion to their holdings of such Shares (subject to such exclusion or other arrangements as Directors may deem necessary or expedient in relation to fractional entitlements or having regard to any restriction or obligation under the laws of, or the requirements of any recognised regulatory body or any stock exchange in, any territory applicable to the Company).”; and

1. “ THAT conditional upon the passing of the ordinary resolutions numbers 5 and 6 set out in the notice convening this meeting being passed, the general mandate granted to Directors to allot, issue and deal with additional Shares pursuant to ordinary resolution number 6 above be and is hereby extended by the addition thereto of an amount representing the aggregate nominal amount of the share capital of the Company under the authority granted pursuant to ordinary resolution number 5 above, provided that such amount shall not exceed 10% of the aggregate nominal amount of the issued share capital of the Company at the date of passing this resolution.”

By order of the Board Anna Chow Company Secretary

Hong Kong, 4th May 2012

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NOTICE OF ANNUAL GENERAL MEETING

Notes:

• (a) A member, who is the holder of 2 or more Shares, entitled to attend and vote at Annual General Meeting is entitled to appoint more than one proxy to attend and vote on his/her behalf. A proxy needs not be a member of the Company but must be present in person at the meeting to represent the member. If more than one proxy is appointed, the appointment shall specify the number and class of Shares in respect of which each such proxy is appointed.

• (b) The instrument appointing a proxy shall be in writing under the hand of the appointor or of his/her attorney duly authorised in writing or, if the appointor is a corporation, either under its seal or under the hand of an officer, attorney or other person authorised to sign the same, and must be lodged with the branch share registrar of the Company in Hong Kong, Tricor Tengis Limited at the 26th Floor of Tesbury Centre, 28 Queen’s Road East, Wanchai, Hong Kong, not less than 48 hours before the time appointed for holding Annual General Meeting or any adjournment thereof.

• (c) Delivery of an instrument appointing a proxy shall not preclude a member of the Company from attending and voting in person at Annual General Meeting convened and in such event, the instrument appointing a proxy shall be deemed to be revoked.

• (d) The register of members of the Company will be closed for the purpose of determining the entitlements to the voting rights at Annual General Meeting from Friday, 8th June 2012 to Tuesday, 12th June 2012, during which period no transfer of Shares shall be effected. In order to qualify for the voting rights at Annual General Meeting, all transfers of Shares accompanied by the relevant Share certificates must be lodged with the branch share registrar of the Company in Hong Kong for registration no later than 4:30 p.m. on Thursday, 7th June 2012.

• (e) The register of members of the Company will be closed for the purpose of determining the entitlements to the proposed final dividend from Monday, 18th June 2012 to Tuesday, 19th June 2012, during which period no transfer of Shares shall be effected. In order to qualify for the proposed final dividend, all transfers of Shares accompanied by the relevant Share certificates must be lodged with the branch share registrar of the Company in Hong Kong for registration no later than 4:30 p.m. on Friday, 15th June 2012.

• (f) The translation into Chinese language of this notice is for reference only. In case of any inconsistency, the English version shall prevail.

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