CHINA SANDI (00910): Proposal for capital restructuring and change of trading unit per lot.

CHINA SANDI (00910) announced that the board of directors has proposed a capital reorganization including a share consolidation, capital reduction, and stock split. The board of directors recommends implementing the share consolidation as follows: (i) Every 200 existing shares of HKD 0.01 par value, both issued and unissued, will be consolidated into 1 share of HKD 2.00 par value; and (ii) Every 200 existing preference shares of HKD 0.01 par value, both issued and unissued, will be consolidated into 1 preference share of HKD 2.00 par value. As of the date of this announcement, the company's authorized share capital is HKD 2.006 billion, which includes (a) HKD 2.0 billion, divided into 200 billion existing shares with a par value of HKD 0.01 each, of which 5.088 billion existing shares have been issued and fully paid or accounted for as fully paid; and (b) HKD 6.02 million, divided into 602 million existing preference shares with a par value of HKD 0.01 each, none of which have been issued. Immediately following the effectiveness of the share consolidation, assuming that no existing shares or existing preference shares are allotted, issued, or repurchased from the date of this announcement to and including the effective date of the share consolidation, the company's authorized share capital will remain at HKD 2.006 billion, which includes (a) HKD 2.0 billion, divided into 1 billion shares with a par value of HKD 2.00 each, of which 25.441 million shares with a par value of HKD 2.00 have been issued and fully paid or accounted for as fully paid; and (b) HKD 6.02 million, divided into 301 million preference shares with a par value of HKD 2.00 each, none of which have been issued. Immediately following the effectiveness of the share consolidation, the capital reduction will involve reducing the par value of each issued consolidated share and consolidated preference share from HKD 2.00 to HKD 0.001, including (a) eliminating any fractional consolidated shares and consolidated preference shares created from the share consolidation in the company's issued share capital in order to round down the total number of consolidated shares and consolidated preference shares to the nearest whole number; and (b) cancelling the paid-up capital of HKD 1.999 for each issued consolidated share and consolidated preference share, so that each newly issued consolidated share and newly issued consolidated preference share will have a par value reduced from HKD 2.00 to HKD 0.001 immediately following the capital reduction, and the amount received from the capital reduction will be transferred to the paid-up surplus account of the company as defined by company law. Immediately following the effectiveness of the share consolidation and capital reduction, (a) the unissued consolidated shares with a par value of HKD 2.00 (including those unissued consolidated shares resulting from the capital reduction) will be divided into 2,000 new consolidated shares with a par value of HKD 0.001 each; and (b) the unissued consolidated preference shares with a par value of HKD 2.00 (including those unissued consolidated preference shares resulting from the capital reduction) will be split into 2,000 new consolidated preference shares with a par value of HKD 0.001 each. As of the date of this announcement, existing shares are traded on the Stock Exchange at a current trading unit of 6,000 existing shares per board lot. The board of directors proposes that after the capital reorganization becomes effective, the board lot for trading on the Stock Exchange will be changed to 2,000 new consolidated shares.