09:32     SNP LEEFUNG<00623> - Announcement (2)                               

    permission to deal in, the Rights Shares in both the nil-paid and         
    fully-paid forms.                                                         
                                                                              
    The Capital Reorganisation                                                
                                                                              
    In order that a sufficient number of unissued Shares are available for    
    the Rights Issue, the Directors propose to increase the authorised        
    share capital of the Company from HK$50,000,000 to HK$100,000,000 by      
    the creation of an additional 500,000,000 Shares. An ordinary             
    resolution to this effect will be proposed at the Special General         
    Meeting.                                                                  
                                                                              
    General                                                                   
                                                                              
    A circular containing, amongst others, details of the Capital             
    Reorganisation and the notice convening the Special General Meeting for   
    approving the Capital Reorganisation will be despatched to the            
    Shareholders as soon as practicable. If the Shareholders approve the      
    Capital Reorganisation at the Special General Meeting, the Company will   
    then send the Prospectus containing details of the Rights Issue to the    
    Qualifying Shareholders, and for information only, to the Excluded        
    Shareholders. PALs and EAFs will also be sent to the Qualifying           
    Shareholders.                                                             
                                                                              
    THE RIGHTS ISSUE                                                          
                                                                              
    Issue statistics                                                          
                                                                              
    Basis of the Rights Issue:  One Rights Share for every four existing      
    Shares held on the Record Date                                            
                                                                              
    Number of existing Shares in issue:  402,726,918 Shares as at the date    
    of this announcement                                                      
                                                                              
    Number of Rights Shares:  Not less than 100,681,729 Rights Shares and     
    not more than 100,767,979 Rights Shares                                   
                                                                              
    Underwriter:  Tai Fook Securities Company Limited                         
                                                                              
      Tai Fook Securities Company Limited and its holding company, Tai Fook   
    Securities Group Limited, which, to the best of the Directors'            
    knowledge and information and having made all reasonable enquiries, are   
    third parties independent of the Group and connected persons (as          
    defined in the Listing Rules) of the Group                                
                                                                              
    Under the Rights Issue, not less than 100,681,729 nil-paid Rights         
    Shares (assuming no Exercisable Share Options are exercised on or         
    before the Record Date) would be provisionally allotted, representing     
    approximately 25.00% of the existing issued share capital of the          
    Company and approximately 20.00% of the issued share capital of the       
    Company as enlarged by the issue of 100,681,729 Rights Shares.            
                                                                              
    The number of Rights Shares which may be issued pursuant to the Rights    
    Issue will be increased in proportion to any additional Shares which      
    may be allotted and issued upon the exercise of the Exercisable Share     
    Options on or before the Record Date. As at the date of this              
    announcement, there are outstanding Share Options entitling holders       
    thereof to subscribe for 3,285,000 Shares (of which (i) Mr. Yeo Chee      
    Tong, the chief executive officer of the Company and an executive         
    Director, is entitled to subscribe for 900,000 Shares; and (ii) the       
    employees of the Group, being public Shareholders, in aggregate, are      
    entitled to subscribe for 2,385,000 Shares). Pursuant to the Share        
    Option Scheme, (i) 25% of the Share Options will be exercisable after     
    the expiry of 12 months from the date of grant (the "First Exercise       
    Date"); (ii) 25% of the Share Options will be exercisable after the       
    expiry of each successive 12 months period from the First Exercise        
    Date; and (iii) the options will expire after ten years from the date     
    of grant. As at the date of this announcement, there are outstanding      
    Exercisable Share Options entitling holders thereof to subscribe for      
    345,000 Shares (of which (i) Mr. Yeo Chee Tong is entitled to subscribe   
    for 112,500 Shares; and (ii) the employees of the Group are entitled to   
    subscribe for 232,500 Shares). If all of the subscription rights          
    attaching to the outstanding Exercisable Share Options are exercised in   
    full and the Shares are allotted and issued pursuant to such exercise     
    on or before the Record Date, the number of issued Shares will be         
    increased to 403,071,918 Shares, and the number of Rights Shares which    
    may be issued pursuant to the Rights Issue will be increased to           
    100,767,979 Rights Shares.                                                
                                                                              
    Qualifying Shareholders                                                   
                                                                              
    To qualify for the Rights Issue, a Shareholder must be registered as a    
    member of the Company on the Record Date. In order to be registered as    
    members of the Company on the Record Date, all transfers of the Shares