11:12     CHAMPION TECH<00092> - Announcement (9)                             

    DILUTION EFFECT ON SHAREHOLDERS                                           
    As the Company foresees the future dilution effect                        
    on its shareholders resulting from the exercise of                        
    the conversion rights attaching to the Additional                         
    Tranche 1 Bonds and the Subscription Right in respect                     
    of the Additional Tranche 1 Bonds, the Company will                       
    keep its shareholders informed of the level of                            
    dilution effect and all relevant details of any                           
    conversion and/or exercise of the relevant                                
    Subscription Right in the following manner:                               
                                                                              
    (a)     the Company will make a monthly announcement                      
    (the "Monthly Announcement") on the website of the                        
    Stock Exchange. Such announcement will be made on or                      
    before the fifth business day following the end of                        
    each calendar month and will include the following                        
    details in a table form:                                                  
                                                                              
    (i)     whether there is any conversion of the                            
    Additional Tranche 1 Bonds during the relevant month.                     
    If yes, details of the conversion(s), including the                       
    conversion date, number of new Shares issued,                             
    conversion price for each conversion. If there is no                      
    conversion during the relevant month, a negative                          
    statement to that effect;                                                 
                                                                              
    (ii)    the number of outstanding Additional Tranche 1                    
    Bonds after the conversion, if any;                                       
                                                                              
    (iii)   the total number of Shares issued pursuant to                     
    other transactions, including Shares issued pursuant                      
    to exercise of options under any share option scheme(s)                   
    of the Company; and                                                       
                                                                              
    (iv)    the total issued share capital of the Company                     
    as at the commencement and the last day of the relevant                   
    month; and                                                                
                                                                              
    (b)     in addition to the Monthly Announcement, if the                   
    cumulative amount of new Shares issued pursuant to                        
    the conversion of the Additional Tranche 1 Bonds                          
    reaches 5% of the issued share capital of the Company                     
    as disclosed in the last Monthly Announcement or any                      
    subsequent announcement made by the Company in                            
    respect of the Additional Tranche 1 Bonds (as the case                    
    may be) (and thereafter in a multiple of such 5%                          
    threshold), the Company will make an announcement on                      
    the website of the Stock Exchange including details                       
    as stated in (a) above for the period commencing from                     
    the date of the last Monthly Announcement or any                          
    subsequent announcement made by the Company in                            
    respect of the Additional Tranche 1 Bonds (as the case                    
    may be) up to the date on which the total amount of                       
    Shares issued pursuant to the conversion amounted to                      
    5% of the issued share capital of the Company as                          
    disclosed in the last Monthly Announcement or any                         
    subsequent announcement made by the Company in                            
    respect of the Additional Tranche 1 Bonds (as the case                    
    may be).                                                                  
                                                                              
    GENERAL                                                                   
    The Company will comply with all applicable Listing                       
    Rules in respect of any alterations in the terms of                       
    the Subscription Right after issue, except where the                      
    alterations take effect automatically under the                           
    existing terms of the Subscription Right. A separate                      
    announcement in respect of such change will be issued                     
    by the Company.                                                           
                                                                              
    The Company will ensure that each of the connected                        
    persons of the Company (as defined in the Listing                         
    Rules) will not subscribe for any of the Additional                       
    Tranche 1 Bonds at the issue of such securities and                       
    that, after the issue of the Additional Tranche 1