09:11     WING LEE HOLD<00876> - Announcement (4)                             

    Vendor   28,990,199   56.36   19,640,199   38.18   58,920,597             
    38.18   86,970,597   47.69                                                
    Chow Tak Hung   1,412,000   2.74   1,412,000   2.74                       
    4,236,000   2.74   4,236,000   2.32                                       
    Public   21,038,144   40.90   30,388,144   59.07   91,164,432             
    59.07   91,164,432   49.99                                                
                                                                              
    Total   51,440,343   100.00   51,440,343   100.00                         
    154,321,029   100.00   182,371,029   100.00                               
                                                                              
    REASONS FOR THE PLACING AND SUBSCRIPTION AND USE OF PROCEEDS              
                                                                              
    The Directors considered various ways of raising funds and                
    consider that the Placing and Subscription represents an                  
    opportunity to raise capital for the Company while broadening the         
    shareholder base and capital base of the Company.                         
                                                                              
    The gross proceeds from the Subscription is approximately HK$45.8         
    million. The net proceeds from the Subscription of approximately          
    HK$43.9 million will be applied for (i) construction of an                
    electroplating factory in Heyuan, Guangdong Province and                  
    procurement of machinery for the new factory; (ii) acquisition            
    of facilities to comply with the relevant environmental                   
    regulations in the PRC; and (iii) general working capital.                
                                                                              
    EQUITY FUND RAISING ACTIVITIES OF THE COMPANY IN THE PAST                 
    TWELVE-MONTH PERIOD                                                       
                                                                              
    The Company has not conducted any equity fund raising activities          
    in the past twelve-month period immediately before the date of            
    this announcement.                                                        
                                                                              
    GENERAL MANDATE                                                           
                                                                              
    The Subscription Shares will be issued under the general mandate          
    ("General Mandate") to allot, issue and deal with Shares granted          
    to the Directors by resolution of the Shareholders passed at the          
    annual general meeting of the Company held on 16th January, 2004          
    subject to the limit up to 20% of the issued share capital of the         
    Company as at the date of passing the relevant resolution. As at          
    the date of this announcement, no Share has been issued under the         
    General Mandate.                                                          
                                                                              
    ADJUSTMENT TO THE BONUS ISSUE                                             
                                                                              
    The Company announced the Bonus Issue on 7th January, 2005.               
    Subject to the fulfilment of the conditions of the Bonus Issue            
    set out in the Circular, the Bonus Issue will be made on the basis        
    of two Bonus Shares, credited as fully paid, for every one                
    existing Share then held. The Bonus Shares will rank pari passu           
    in all respects with the Shares, save and except that the holders         
    of the Bonus Shares will not be entitled to Bonus Issue and the           
    final dividend for the year ended 30th September, 2004.                   
                                                                              
    If the Subscription is completed before the Record Date and the           
    Bonus Issue is approved by the Shareholders at the AGM, the total         
    number of Bonus Shares to be issued will be 121,580,686 Shares.           
    It is proposed that the Directors be authorized to capitalize an          
    amount not less than HK$60,790,343 standing to the credit of the          
    contributed surplus account of the Company and to apply such              
    amounts in paying up in full the Bonus Shares. If the Subscription        
    is completed on or after the Record Date, the total number of Bonus       
    Shares to be issued will be 102,880,686 Shares and the amount to          
    be capitalised will be HK$51,440,343.                                     
                                                                              
    An ordinary resolution will be proposed at the AGM to approve the         
    Bonus Issue.                                                              
                                                                              
    GENERAL                                                                   
                                                                              
    The principal activities of the Group are manufacture, sales and          
    development of switches and jacks, flexible flat cables and metal         
    parts.                                                                    
                                                                              
    The Company will submit an application to the Stock Exchange for          
    the listing of, and permission to deal in the Subscription Shares         
    pursuant to the Subscription Agreement.                                   
                                                                              
    TERMS AND DEFINITIONS                                                     
                                                                              
    "AGM"   the annual general meeting of the Company to be convened          
    and held on 7th February, 2005                                            
                                                                              
    "Board"   the board of directors of the Company