09:46 HON PO GROUP<00228> - Announcement (3) 380,000,000 50.26 Placees - - 126,000,000 20.00 126,000,000 16.67 Public 250,000,000 39.68 250,000,000 39.68 250,000,000 33.07 ------------------------------------------------------------- Total 630,000,000 100.00 630,000,000 100.00 756,000,000 100.00 ============================================================= Immediately after completion of the Placing but before completion of the Subscription, the shareholding interests of the Vendor will decrease from approximately 60.32% to approximately 40.32% of the existing issued share capital of the Company. The shareholding interests of the Vendor will increase from approximately 40.32% of the existing issued share capital of the Company to approximately 50.26% of the issued share capital of the Company as enlarged by the issue of Subscription Shares immediately after completion of both the Placing and the Subscription. BUSINESS OF THE GROUP The principal activities of the Company is investment holding. The principal activities of the Company's subsidiaries involve the operation of a chain of Chinese restaurants and food manufacturing in Hong Kong. GENERAL During the twelve months' period immediately before the date of this announcement, the Company has not raised any funds on any issue of equity securities. As at the date of this announcement, Mr. Cheung To Sang, Mr. Chan Nun Chiu, Mrs. Cheung Lim Mai Tak, Grace, Mr. She Hing Chiu and Mr. Tse Chick Sang are executive directors, Mr. Cheung Sik Pang and Mr. Ng Wing Po are non-executive directors, Mr. Chang Kin Man, Mr. Wu Tak Lung and Ms. Lee Pui Hang, Pieann are independent non-executive directors of the Company. DEFINITIONS The following defined terms are used in this announcement: "Company" Hon Po Group (Lobster King) Limited, a company incorporated in the Cayman Islands with limited liability and the Shares of which are listed on the Stock Exchange "Group" the Company and its subsidiaries "Yicko" or the "Placing Agent" Yicko Securities Limited, a licensed corporation to carry on business in types 1, 4, 6 and 9 regulated activities under the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) "Hong Kong" the Hong Kong Special Administrative Region of the People's Republic of China "Listing Rules" the Rules Governing the Listing of Securities on the Stock Exchange "Placing" the placing of 126,000,000 Placing Shares by the Vendor pursuant to the Placing Agreement "Placing Agreement" the agreement entered into between the Vendor and the Placing Agent dated 20 January 2005 in relation to the Placing "Placing Shares" a total of 126,000,000 existing Shares beneficially owned by the Vendor to be placed pursuant to the Placing Agreement "Shares" ordinary shares of HK$0.01 each in the share capital of the Company "Stock Exchange" The Stock Exchange of Hong Kong Limited "Subscription" the subscription for 126,000,000 Subscription Shares by the Vendor pursuant to the Subscription Agreement "Subscription Agreement" the agreement entered into between the Vendor and the Company dated 20 January 2005 in relation to the Subscription "Subscription Shares" a total of 126,000,000 new Shares to be subscribed by the Vendor pursuant to the Subscription Agreement "Vendor" Hon Po Investment Limited, a company incorporated in the British Virgin Islands with limited liability, holding approximately