GRANDSHORES (01647) controlling shareholder Yao Yongjie intends to allocate additional shares of Great Scenery to his son Yao Zeqian at nominal cost.

GRANDSHORES (01647) announced that it has been informed by Mr. Yao Yongjie, the chairman and executive director of the company, and the beneficial owner holding 50% of Great Scenery Ventures Limited (Great Scenery), that he intends to issue additional shares of Great Scenery to his son, Mr. Yao Zeqian (the transferee), at nominal value (the proposed issuance). Upon completion of the proposed issuance, the transferee's equity interest in Great Scenery will increase from 50% to 99.5%, while Mr. Yao will retain a 0.5% interest. As of the date of this announcement, Great Scenery is jointly owned by Mr. Yao and the transferee, each holding 50%. Great Scenery holds 51% of the issued share capital of Morgan Hill Holdings Limited (Morgan Hill), and Morgan Hill holds 365,175,000 shares of the company (shares), representing approximately 30.56% of the total issued shares as of the date of this announcement. The proposed issuance will not result in any changes to the shareholding structure of Morgan Hill, nor will it affect the number of shares held by Morgan Hill in the company. Mr. Yao has submitted a letter to the Corporate Finance Division of the Securities and Futures Commission, and the executive has determined that the transferee will not be required to make a mandatory offer for shares as a result of the proposed issuance.