10:34 CHINA SHINEWAY PHARMACEUTICAL GROUP LIMITED<02877> - Ann.(2) 2004. Refund cheques for wholly or partially unsuccessful applicants which are either not available for personal collection or which are so available but are not collected in person will be despatched by ordinary post to the addresses of the applicants specified in the relevant Application Forms at their own risk on Wednesday, 1 December 2004. The Company has granted Cazenove (on behalf of the Placing Underwriters) the Over-allotment Option, exerciseable at any time within 30 days from 23 November 2004, to require the Company to issue up to an aggregate of 30,000,000 additional Shares. The Over-allotment Option has not been exercised as at the date of this announcement. If Cazenove decides to exercise the Over-allotment Option, the Company will issue a separate announcement. Dealings in the Shares on the main board of the Stock Exchange are expected to commence at 9:30 a.m. on Thursday, 2 December 2004. OFFER PRICE The Offer Price has been determined at HK$4.36 per Share (excluding brokerage of 1%, the Stock Exchange trading fee of 0.005%, the SFC transaction levy of 0.005% and investor compensation levy of 0.002%). The net proceeds of the International Offering (after deduction of underwriting fees and estimated expenses payable by the Company in relation to the International Offering, assuming the Over-allotment Option is not exercised) are estimated to be approximately HK$818 million. APPLICATIONS RECEIVED AND ALLOCATION OF PUBLIC OFFER SHARES The Directors are pleased to announce that at the close of the application lists at 12:00 noon on Friday, 26 November, 2004, a total of 6,433 valid applications have been received pursuant to the Public Offer for a total of 4,624,310,000 Public Offer Shares, equivalent to approximately 231 times the total number of 20,000,000 Shares initially available for subscription under the Public Offer. A total of 5,717 valid applications in respect of a total of 1,431,310,000 Public Offer Shares were for Public Offer Shares with an aggregate subscription amount based on the maximum offer price of HK$4.36 per Share (excluding brokerage of 1%, the Stock Exchange trading fee of 0.005%, the SFC transaction levy of 0.005% and investor compensation levy of 0.002% payable) of HK$5 million or less (equivalent to approximately 143 times of the 10,000,000 Public Offer Shares initially available for allocation in pool A), and a total of 716 valid applications in respect of a total of 3,193,000,000 Public Offer Shares were for Public Offer Shares with an aggregate subscription amount based on the maximum offer price of HK$4.36 per Share (excluding brokerage of 1%, the Stock Exchange trading fee of 0.005%, the SFC transaction levy of 0.005% and investor compensation levy of 0.002% payable) of more than HK$5 million (equivalent to approximately 319 times of the 10,000,000 Public Offer Shares initially available for allocation in pool B). No multiple applications and suspected multiple applications have been identified. No application for more than 50% of the Offer Shares initially being offered to the public for subscription under the Public Offer (that is, more than 10,000,000 Public Offer Shares) has been identified. The Offer Shares offered in the Public Offer were conditionally allocated on the basis set out in the paragraph headed `Basis of Allotment under the Public Offer' below. On the basis of the very significant over-subscription in the Public Offer, the clawback mechanism as specified in the section headed `Structure of the International Offering' in the Prospectus has been applied. Accordingly, the number of Offer Shares available under the Public Offer will be increased to 100,000,000 Shares, representing 50% of the total number of Offer Shares initially available under the International Offering. The number of Offer Shares allocated to the International Placing has been correspondingly reduced to 100,000,000 Offer Shares, representing 50% of the total number of Offer Shares initially available under the International Offering. The Company has granted to Cazenove (on behalf of the Placing Underwriters) the Over-allotment Option exercisable by Cazenove (on behalf of the Placing Underwriters) at any time from the commencement of dealings in the Shares on the Stock Exchange up to the date which is the 30th day after the date of the Prospectus (i.e. 22 December 2004), to require the Company to issue and allot up to an aggregate of 30,000,000 additional Shares. The Over-allotment Option has not been exercised as at the date of this announcement. If Cazenove decides to exercise the Over-allotment Option, the Company will issue a separate announcement. In connection with the International Offering, Cazenove, as stabilizing manager, or any person acting for it, on behalf of the Underwriters, may over-allot or effect transactions with a view to supporting the market price of the Shares at a level higher than that which might otherwise prevail for a limited period after the