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13/10/2015 FORM2
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StandardCodes
EXPLANATORYNOTESTODINOTICESFORM2CORPORATESUBSTANTIALSHAREHOLDERNOTICE
GeneralNotes
1.TheseExplanatoryNotesexplaintheentriesthatcanbeseenonasearchreportthatshowsaDInoticeForm2
CorporateSubstantialshareholderNotice.Form2isforusebyacorporationdisclosinganotifiableinterestinaHongKonglistedcorporationunderPartXVoftheSecuritiesandFuturesOrdinance(Cap.571)(theOrdinance).ThesubstantialshareholdermustfilethenoticewithTheStockExchangeofHongKongLimited(SEHK)andthelistedcorporationconcernedatthesametimeoroneimmediatelyaftertheother.
2.Aseriesofnumbersandtitlesappearsonthescreenstartingwith1.Nameoflistedcorporation.Thenumbers
correspondtothenumbersontheboxesofForm2andthetitlesarethedescriptionsoftheboxesonForm2.Theinformationoppositethetitles,orshownintheboxesonthesearchreport,istheinformationthathasbeenenteredbythesubstantialshareholderontheForm.Theinformationontheformisnotcheckedbeforebeingenteredonthedatabaseandifincorrectinformationisdisclosedbythesubstantialshareholderthenthesameinformationwillbereproducedinthesearchresult,uncorrected.
3. Substantial shareholders areonly required to completeboxes that apply to themsoyoumay find several
numbers/boxesareblank.Inaddition,boxes8to12containbusinessregistration/certificateofincorporationnumbersandcontactinformationthatcannotbeviewedbythepublic.UnlessasubstantialshareholderhasdisclosedthathehasashortpositiontherowsonForm2entitledshortpositionarealsonotshownonthesearchreport.YoucandownloadablankcopyofForm2andthedetailedNotesgivingdirectionsandinstructionsoncompletingtheFormbyvisitingtheHKExwebsiteathttps://sdinotice.hkex.com.hk
4.EachForm2shouldhavebeencompletedinaccordancewiththedirectionsandinstructionsintheNotestotheform.
TheseexplanatorynotesmirrorthedirectionsandinstructionsintheNotestoForm2.TheinformationontheformcanalsobeviewedbyinspectingtheregisterofRegisterofInterestsinSharesandShortPositionsofSubstantialShareholdersmaintainedbythelistedcorporationconcerned.
Meaningofnotifiableinterest,shares,substantialshareholderintheseNotes.5.Anotifiableinterestisaninterestof5%ormoreofthevotingsharesofaHongKonglistedcorporation(inForm2
andtheseNotesshortenedtoshares).Form2andtheseNotesusethetermsubstantialshareholdertodescribeapersonwithanotifiableinterest.
Relevantevent6. Asubstantialshareholdermustgivenotificationofinterestsinsharesofalistedcorporation,andanyshort
position(explainedinnote12below)ontheoccurrenceofcertaineventscalledrelevantevents(sees.308oftheOrdinance).Relevanteventsinclude:
(i)Whenasubstantialshareholderfirstbecomesinterestedin5%ormoreofthesharesofalistedcorporation
(i.e.whenitfirstacquiresanotifiableinterest).(ii)Whenitsinterestdropsbelow5%(i.e.itceasestohaveanotifiableinterest).(iii) Whenthereisanincreaseordecreaseinthepercentagelevelofitsholdingthatresultsinitsinterest
crossingoverawholepercentagenumberwhichisabove5%(e.g.itsinterestincreasesfrom6.8%to7.1%crossingover7%).
(iv)Whenasubstantialshareholderhasanotifiableinterestandthenatureofitsinterestintheshareschanges(e.g.onexerciseofanoption).
(v)Whenasubstantialshareholderhasanotifiableinterestanditcometohave,orceasetohave,ashortpositionofmorethan1%(e.g.itisitisalreadyinterestedin6.8%ofthesharesofalistedcompanyandtakeashortpositionof1.9%).
(vi) Whenasubstantialshareholderhasanotifiable interestand there isan increaseordecrease in thepercentagelevelofits shortpositionthatresults in itsshortpositioncrossingoverawholepercentagenumberwhichisabove1%.(e.g.itisitisalreadyinterestedin6.8%ofthesharesofalistedcompanyandincreasesitsshortpositionfrom1.9%to2.1%).
(vii)Ifasubstantialshareholderhasaninterestin5%ormoreofthesharesofacorporationthatisbeinglisted,sharesofaclassthatisbeinglisted,orsharesofaclasswhicharebeinggivenfullvotingrights..
(viii)OncommencementoftheOrdinance,ifasubstantialshareholderhasaninterestin5%ormoreoftheshares
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ofalistedcorporation,orifithasanotifiableinterestandashortpositionof1%ormore,whichhasnotpreviouslybeendisclosed.
(ix)Ifthe5%thresholdisreducedorthe1%thresholdforshortpositionsisreduced.
Anotificationofrelevantevents(vii)to(ix)isdescribedinForm2andtheseNotesasanInitialNotification.
Relevantevent(iv)maynotalwaysgiverisetoadutytogiveanotification.Thechangeinthenatureofitsinterestisnotrequiredtobereportedifthepercentagelevelofitsinterestthathasnotchanged,andthepercentagelevelofitsinterestatthelastnotificationgivenbyitisthesame.Forexample,ifasubstantialshareholderhasaninterestin5.6%ofthesharesofalistedcorporationandlends0.5%thepercentagelevelofitsinterestthathasnotchangedis5.0%(i.e.5.6%less0.5%equalsapercentagefigureof5.1%whichisthenroundeddowntoapercentagelevelof5.0%)andnonotificationneedbemade.However,ifithasaninterestin5.6%ofthesharesofalistedcorporationandlend1.0% thepercentage level of its interest that has not changed is 4.0% (i.e. a percentage figureof 4.6%roundeddowntoapercentagelevelof4.0%)andanotificationmustbemade.
Timingofnotification7.Inthecaseofevents(i)to(vi)inNote5,asubstantialshareholdermustgivethenotificationwithin3businessdays
ofthedayonwhichitbecameawareoftherelevantevent.Thetermbusinessdaymeansadayotherthanapublicholidayandadayonwhichablackrainstormwarning,oragalewarning,isinforcei.e.itwouldnormallyincludeSaturdaysbutnotSundays.Theperiodiscalculatedexcludingthedaythattherelevanteventoccurred.
For an InitialNotification, a substantial shareholdermustnormallygive thenotificationon thisForm2within10businessdaysaftertherelevantevent.However,ifatthatdateitwasnotawarethatithadanotifiableinterest,orashortposition,thenitmustgivethenotificationwithin10businessdaysofthedayitbecameawarethatithadsuchaninterestorshortposition.
Theperiodallowedforfilinganoticerunsfromthetimethesubstantialshareholderknowsofthefactsthatconstitutethe event (e.g. the purchase of the shares, the delivery of the shares, the buy back of shares by the listedcorporation),notthedaythatitrealizesthattheeventgaverisetoadutyofdisclosureunderPartXV.
Workingoutthepercentagefigureofitsinterest8.InBoxes18and19ofForm2asubstantialshareholderisaskedtostatethepercentagefigureofitsinterest.Towork
thisoutitexpressesthetotalnumberofsharesinwhichitisinterestedasapercentageofthenumberofsharesofthelistedcorporationinissue(i.e.thenumberinBox4).Thisfigureisthenroundedtotwodecimalplaces.Toworkoutthepercentagelevelofaninterestyousimplyrounddownthepercentagefigureoftheinteresttothenextwholenumber.
9.Incalculatingthetotalnumberofsharesinwhichasubstantialshareholderisinteresteditmustincludealljoint
interests(seeNotetoBox23below)intereststhroughderivatives(seeNote10below)andanysuchinterestsinsharesofthesamelistedcorporationthatanyofthefollowingpersonsandtrustshave:(i)Acorporationwhichitcontrols(i.e.acorporationisacontrolledcorporationifitcontrolsonethirdor
moreofthevotingpoweratgeneralmeetingsofthecorporation,orifthecorporationoritsdirectorsareaccustomedtoactinaccordancewithitsdirections)(seenotestoBox22)
(ii)Atrust,ifitisatrusteeofthetrust(otherthanatrustwhereitisabaretrusteei.e.whereithavenopowersordutiesexcepttotransferthesharesaccordingtothedirectionsofthebeneficialowner)(seenotestoBox24)
(iii)Adiscretionarytrust,ifitisthefounderofthetrust(e.g.ithadthetrustsetuporputassetsintoitandcaninfluencehowthetrusteeexerciseshisdiscretion(seenotestoBox24)
(iv)Atrustofwhichitisabeneficiary(discretionaryinterestsmaybeignored)(v)Allpersonswhohaveagreedtoacquireinterestsinsharesinthelistedcorporation,ifitisapartytothe
agreement(seenotestoBox25).
10.AsubstantialshareholdermustalsocountasitsshortpositionanyshortpositionsthatthepersonsandtrustsmentionedinNote8have.Thismaycreateashortposition(ifitdoesnothaveashortpositionalready)orincreasesthesizeofitsshortposition.
11.Incalculatingthelevelofitsinterestinsharesasubstantialshareholdermustaddtogetherbothdirectandindirect
interests.Itmustnotnetofflongpositionsandshortpositionsbutmustdisclosetheseseparately.Indirectinterestsincludeinterestsinsharesunderlyingequityderivatives.Equityderivativesincludeinstrumentssuchasoptions,warrants,stockfuturesandarereferredtointhesenotesasderivatives.Underlyingsharesarethesharesthatmayberequiredtobedeliveredtoaperson,orbyaperson,underthederivatives,andincludethesharesusedto
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determine thepriceorvalueof thederivatives (e.g. In thecaseofan issueofEuropeanStyleCashSettledCallWarrants20012002relatingtoordinarysharesofHK$10.00eachinXYZLtd.issuedbyABCInvestmentBanktheunderlyingsharesareordinarysharesofHK$10.00eachinXYZLtd.).
Longpositionsandshortpositions12.Asubstantialshareholderhavealongpositionifithasaninterestinshares,includingintereststhroughholding,
writingorissuingderivativesunderwhich,forexample:
(i)ithasarighttotaketheunderlyingshares(ii)itisunderanobligationtotaketheunderlyingshares(iii)ithasarighttoreceivemoneyifthepriceoftheunderlyingsharesincreasesor(iv)ithasarighttoavoidorreducealossifthepriceoftheunderlyingsharesincreases.
13. Asubstantialshareholderhasashortpositionifitborrowssharesunderasecuritiesborrowingandlending
agreement,orifitholds,writesorissuesfinancialinstruments(includingderivatives)underwhich,forexample:(i)ithasarighttorequireanotherpersontotaketheunderlyingshares(ii)itisunderanobligationtodelivertheunderlyingshares(iii)ithasarighttoreceivemoneyifthepriceoftheunderlyingsharesdeclinesor(iv)ithasarighttoavoidalossifthepriceoftheunderlyingsharesdeclines.
14. Thenumberofsharesinwhichasubstantialshareholderistakentobeinterested,ortohaveashortposition,throughderivativesis:(i)thenumberofsharesrequiredtobedeliveredtoit,orbyit,underthederivatives(ii) thenumberofsharesbyreference towhich theamountpayableunder thederivatives isderivedor
determinedor(iii)(inthecaseofstockfuturescontracts)thecontractmultipliertimesthenumberofcontractsitholds.
Ifanypartytoaderivativecanchoosewhethertosettleincashorbydeliverythenuse(i)toworkoutthenumberofshares in which it is interested. If it is not possible to determine the number of shares in which a substantialshareholderistakentobeinterested(orhaveashortposition)atthedatewhenitfirstacquiresaninterestintheunderlyingsharesthroughanequityderivativethenitneednotfileanotice.However,itshouldfileanoticewhenitfirstbecomesawareofthenumberofsharesthatwillbedeliveredtohim/willberequiredtobedeliveredbyhim.Forexample,ifthenumberofsharesthatitwillreceiveunderanequityderivativeisdeterminedbythepriceofthesharesonagivendateinthefuture(andthereisnominimumormaximumnumberthatitisboundtoget)thennodutyofdisclosurearisesonenteringintothederivative.Oncethenumberofsharesthatitwillreceiveisknownadutyofdisclosurearises.
15.PersonsareaskednottosendcopiesofsharepurchaseagreementsandotherdocumentstoSEHKorthelisted
corporationconcernedwhenfilingForm2(exceptasindicatedintheNotestoBox25).Attachingadocumentthatexplains the transaction inquestiondoesnotdischarge theduty tocomplete theprescribed form.Copiesofanydocuments that are sent toSEHKaremaintained in a register and are available for inspection by the public.ToinspectthesedocumentspleasecontactSEHK.
16.TheOutlineofPartXV(Outline)publishedbytheSecuritiesandFuturesCommission(SFC)givesfurther
guidanceonthesituationsinwhichanoticehastobefiledunderPartXV.AcopyoftheOutlinecanbedownloadedfromtheSFCswebsitehttp://www.hksfc.org.hk.
SpecificNotes
Ifthesubstantialshareholderisgivingnotificationthatithasceasedtohaveanotifiableinterestthenitneedonlycompleteboxes1to19and27ofForm2.Inthecaseofothereventsallboxeswhichapplytoitshouldbecompleted.IftherearesomeboxesintheFormthatdonotapplytoasubstantialshareholderitisdirectedthattheseshouldbeeitherleftblankorheshouldinsertNIL.Personsgivingnoticeundersection5(4)oftheSecuritiesandFutures(DisclosureofInterestsSecuritiesBorrowingandLending)Rules(L.N.219of2002)shouldreadthenotesonpage11.
Box1Asubstantialshareholderisdirectedtocompletethenameofthelistedcorporationinwhosesharesitisinterested.
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Box3 A few corporations have two classes of share capital, eachwith voting rights (e.g. A and B shares). Asubstantialshareholderisdirectedtostatetheclassofsharesinwhichitisinterested.Ifitithasaninterestin5%ormoreoftwoclassesofsharesthenitshouldcompleteaseparatenoticeforeachclassofshares.
Box4Asubstantialshareholderisdirectedtostatethenumberofshares(intheclassofsharesinwhichitisinterested)
whichhavebeenissuedatthedateoftherelevantevent.Ifthenumberofsharesinissueisgreaterimmediatelyaftertherelevanteventthanitwasimmediatelybeforethateventthenitshouldstatethehigherfigure.ItcanfindthenumberofsharesissuedontheHKExWebSiteoritcanaskthecorporation.
Boxes5to12.Asubstantialshareholdershouldhavestatedthedetailsasindicated.Itisaskedtostateitscompanynamein
fullasitappearsonthecertificateofincorporation.ItshouldonlycompleteBox8ifithasaHongKongbusinessregistration number. In Box9 it should state the place where it was incorporated and give the number on thecertificateof incorporation.Thedataentered inBoxes8 to12 isnotbeavailable forviewingby thepublicwhensearchingtheDIpagesoftheHKExwebsite.
Box13Ifitisalistedcorporationitshouldstatethenameoftheexchangeonwhichitislisted.Box14Ifitsparentcompanyisalistedcorporationitshouldstatethenameofitslistedparentandtheexchangeonwhichit
islisted.Ifitsparentcompanyislistedonseveralexchangesitshouldgivetheprimarylisting.Box15Asubstantialshareholderisdirectedtostatethedateoftherelevantevent(explainedinNote4)whichgaveriseto
thedutyofdisclosure.Box16Inthecaseofevents(i)to(vi)inNote5,ifitbecameawareoftherelevanteventonadatelaterthanthedatethatit
occurred,thenitshouldputthedatethatitbecameawareoftheeventthattriggersthereportingobligationinBox16.
ForanInitialNotification,ifitwasnotawarethatithadaninterest,orashortpositionatthedateoftherelevantevent,orwasnotawarethatithad5%ormoreofthesharesofthelistedcorporation,thenitshouldhaveputthedatethatitbecameawarethatithadsuchaninterestinthesharesinBox16.
Box17Box17asksfordetailsoftherelevantevent.ThisistheeventthattriggerstheNotice.Inthecaseofrelevantevents
(i)to(viii)inNote5thedetailsthatitmustgiveinBox17relatetothesharesbought/soldorinvolvedatthattimenottheshareswhichitalreadyhas.Wheretherelevanteventispromptedbyatransactionthatformspartofaseriesoftransactionseffectedonthesameday,thedetailsoftherelevanteventthatitgivesinBox17shallrelatetoallsharesinwhichitacquiredaninterest,ceasedtohaveaninterestorthenatureofitsinterestchangedonthatdayasaresultofthatseriesoftransactions.
InthecaseofanInitialNotificationinBox17itneedonlycompletecolumn2(asthenotificationisnotpromptedbytheacquisitionordisposalofaninterestinshares).InBox17column2itshouldhaveenteredtheCodefromTable1belowwhichbestdescribestherelevantevent.ItwillseefromNote8abovethatifapersonconnectedwiththesubstantialshareholderacquiresaninterestinsharestheirinterestwillbetreatedasitsinterest.Forexample,ifacompanythatitcontrolsfirstacquired5%ormoreofthesharesofalistedcorporationthecontrolledcorporationwoulduseCode101andthesubstantialshareholdershouldtreattheacquisitionashisacquisitionandusetheappropriateCodeinthiscaseCode101ifitdidnotalreadyhaveanotifiableinterestitself.
Asubstantialshareholderisdirectedtousetherowentitledshortpositionifitisfilingthenoticebecauseofachangeinashortposition.Thenormalpositionisthateitheralongpositionorashortpositionwillgiverisetoadutyofdisclosure(notbothsimultaneously).Howeverifthetransactioncreatesbothalongandashortpositionsimultaneously(suchasborrowingshareswhichgivesrisetobothalongandashortposition)thenitcancompletebothrows.
Table1Eventorchange
Code
LONGPOSITIONS Firstacquiringanotifiableinterest
Firstbecominginterestedin5%ormoreofthesharesofthelistedcorporation.Thisincludesallacquisitionswhetherbypurchaseorgift,orbyrights/bonusissueandtakingstepstoenforcerightsinrespectofsharesheldbywayofsecurity
101
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Ceasingtohaveanotifiableinterest Ceasingtohaveaninterestinatleast5%ofthesharesofthelistedcorporation 102
Changeinthepercentagelevelofitsinterest Acquisitionordisposalresultinginthepercentagelevelofitsinterestcrossingoverawholepercentagenumber(e.g.itsinterestincreasesfrom6.8%to7.1%crossingover7%)
103
Event(otherthananacquisitionordisposal)resultinginthepercentagelevelofitsinterestinsharesofthelistedcorporationcrossingoverawholepercentagenumber(e.g.thereisachangeintheissuedsharecapitalofalistedcorporationsothatitsinterestreducesfrom7.1%to6.8%crossingover7%)
104
Changesinnatureofaninterest Exerciseofarightoranoptionifithas5%ormoreofthesharesofthelistedcorporation 105Lendingofsharesunderasecuritiesborrowingandlendingagreementifithas5%ormoreofthesharesofthelistedcorporation
106
Returnofsharesofthelistedcorporationlentunderasecuritiesborrowingandlendingagreementifithas(orhadimmediatelybeforethereturnoftheshares)5%ormoreofthesharesofthelistedcorporation
107
Otherevents Onlistingofthecorporationifithas5%ormoreofthesharesofthecorporation 108Onlistingofaclassofsharesofalistedcorporationifithas5%ormoreofthesharesofthatclass 109OncommencementoftheOrdinanceifithas5%ormoreofthesharesofalistedcorporationandsuchinterestwasnotdisclosedundertheSecurities(DisclosureofInterests)Ordinance(Cap.396)beforeitsrepeal
110
SHORTPOSITIONS Comingtohaveashortpositionof1%(ifitalsohas5%ormoreofthesharesofthelistedcorporation).Thisincludesashortpositionthroughholdingderivativesandborrowingsharesunderasecuritiesborrowingandlendingagreement
111
Ceasingtohaveashortpositionof1%(ifitalsohas5%ormoreofthesharesofthelistedcorporation) 112Acquisitionordisposalorothereventresultinginthepercentagelevelofitsshortpositioncrossingoverawholepercentagenumberwhichisabove1%(ifitalsohas5%ormoreofthesharesofthelistedcorporation)e.g.itsshortpositionincreasesfrom1.9%to2.1%crossingover2%
113
OncommencementoftheOrdinanceifithasashortpositioninthesharesofalistedcorporationof1%ormore(ifitalsohave5%ormoreofthesharesofthelistedcorporation)
114
MISCELLANEOUS(longandshortpositions) Voluntarydisclosure 115Noticeundersection5(4)oftheSecuritiesandFutures(DisclosureofInterestsSecuritiesBorrowingandLending)Rules(L.N.219of2002)
116
Other(Thiscoversanynotifiableeventnotmentionedabove) 117Asubstantialshareholder isdirected toselect fromTable2belowtheCodewhichbestdescribes thecapacityornatureofitsinterestandentertheCodeinBox17column3and/or4.IfithasdisposedofaninterestinsharesitshouldchoosetheCodedescribingthecapacityinwhichitheldthesharesimmediatelybeforeitdisposedofthemandenterthisCodeinBox17column3.IfithasacquiredaninterestinsharesitshouldchoosetheCodedescribingthecapacityinwhichitheldthesharesimmediatelyafteritacquiredthemandenterthisCodeinBox17column4.Ifitisgivingnoticeof a change in thenatureof its interest in shares, it should complete theCodesdescribing thecapacityinwhichithelditsinterestinthosesharesbeforeandaftertherelevanteventi.e itmustcompletebothcolumns3and4. If it is,orwas,thebeneficialownerbutanotherCodealsoapplies,asubstantialshareholderisdirectedtousethelatterCoderatherthanCode201.Asubstantialshareholderisdirectedtousetherowentitledshortpositionifitisfilingthenoticebecauseofachangeinashortposition.
Table2Capacity
Code
Beneficialowner 201Investmentmanager 202Personhavingasecurityinterestinshares 203
Interestsbyattribution Interestofcorporationcontrolledbythesubstantialshareholder 205
Trustsandsimilarinterests
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Nomineeforanotherperson(otherthanabaretrustee) 206Trustee(otherthanabaretrustee) 207Custodiancorporation/approvedlendingagent 208Founderofadiscretionarytrust 209Beneficiaryofatrust(otherthanadiscretionaryinterest) 210
Personsactinginconcert Interestsofanypartiestoanagreementtoacquireinterestsinaparticularlistedcorporationrequiredtobedisclosedunders.317(1)(a)ands.318
211
Interestsofanypartiestoanagreementtoacquireinterestsinaparticularlistedcorporationrequiredtobedisclosedunders.317(1)(b)ands.318(controllingshareholderprovidingcash/makingaloantootherpartiestosuchanagreement)
212
Miscellaneous Interestsheldjointlywithanotherperson 213Other 214
InBox17column5itshouldhavestatedthenumberofsharesconcerned(e.g.thenumberofsharesitboughtthattriggeredtheNotice).Forachangeinthenatureofaninterest(e.g.onexerciseofanoption)itshouldhavestatedthenumberofsharesaffectedbythechange.InBox17column6 it shouldhavechosen thecurrency inwhich theprice for the interest in sharesdescribed incolumn5waspaidorreceived.Lastly, it shouldhave stated theconsiderationper sharepaidor received (for the interest in sharesdescribed incolumn5)incolumns7/8or9/10ofBox17underOnExchangeorOffExchangeasappropriate.Incolumn7itshouldstatethehighestpricepersharewhilstincolumns8and9itshouldstatetheaverageprice/considerationpershare.AnacquisitionordisposalismadeOnExchangewhenthetransactiontookplaceintheordinarycourseoftradingonarecognizedexchangeandOffExchangecoversallothertransactions.Ifnopriceorconsiderationhasbeenpaidorreceived,oriftheconsiderationisservicesprovided,thepriceorconsiderationshouldbestatedas0.Codesdescribingtheprincipal typesofconsiderationforOffExchangetransactionsaresetout inTable3below.UsingTable 3 it should have selected theCodewhich best describes the nature of the consideration it paid orreceivedandentereditinBox17column10.Ifthetransactionthatpromptsdisclosureisachangeinthenatureofitsinterestinshares(e.g.asecuritiesborrowingandlendingtransaction),atransactioninderivatives,orachangeinashort position, the highest price per share and the average price per share (average amount and nature of theconsiderationforoffexchangetrades)shouldhavebeenleftblank.
Table3Natureofconsideration Code Natureofconsideration
Code
Cash 301 Surrenderofrightstoshares 303Assetsotherthancash 302 Services 304
ExampleofhowtocompleteBox17.
WehavesetoutbelowanexampleofhowBox17shouldhavebeencompleted.Assumethatthepersoncompletingthe form is a substantial shareholderwhoalreadyowns4,500,000 shares in the listed corporationor4.5%of thesharesinissue.On31stDecember2003itpurchased(throughtheStockExchange)400,000sharesforHK$800,000and100,000sharesforHK$210,000(allsharestobeheldbeneficially)increasingitstotalshareholdingto5%.AsthetwotransactionsareaseriesoftransactionsonthesamedatethedetailsoftherelevanteventthatitshouldgiveinBox17relatetothepurchaseof500,000shareswhichistherelevantevent.ThedateoftherelevanteventtobeinsertedinBox15wouldbe31.12.2003anditshouldcompleteBox17inthefollowingmanner.TheCodestobeusedaredescribedbelow.
17.Detai lsofre levantevent Relevant event
codedescribingcircumstances(seeT able1)
Codedescribingcapacityinwhichshareswereheld(seeT able2)
Numberofsharesbought/soldorinvolved
Currency OnExchange OffExchange
Before
After
Highestpriceper
Averagepriceper
Averageconsiderat ion
Considerat ionCode(see
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relevantevent
relevantevent
share share pershare Table3)
Longposit ion
101 201 500,000 HKD 2.10 2.02 0
Shortposit ion
Box18 Incolumn2ofBox18asubstantial shareholder isdirected tostate the totalnumberofshares inwhich itwere
interested,andthoseinwhichithadashortposition,immediatelybeforetherelevantevent.Thisfigureincludesalljointinterests,intereststhroughequityderivativesanddeemedinterests(seenote8).Incolumn3itshouldstatethepercentagefigureofitsinterest,andshortposition(ifany),immediatelybeforetherelevantevent.Note7explainshowtocalculatethepercentagefigure.
Unlessitisgivinganoticeundersection5(4)oftheSecuritiesandFutures(DisclosureofInterestsSecurities
BorrowingandLending)Rules(L.N.219of2002)asubstantialshareholderwillignorerow3ofBox18.Box19AsubstantialshareholdershouldcompleteBox19inthesamemannerasBox18specifyingthenumberofsharesin
whichitwasinterested,andthoseinwhichithadashortpositionimmediatelyafterthedateoftherelevantevent.Thisfigureincludesalljointinterests,intereststhroughequityderivativesanddeemedinterests(seenote8).
Unlessitisgivinganoticeundersection5(4)oftheSecuritiesandFutures(DisclosureofInterestsSecurities
BorrowingandLending)Rules(L.N.219of2002)asubstantialshareholderwillignorerow3ofBox19.Box20AsubstantialshareholdershouldhaveselectedfromTable2theCodewhichbestdescribesthecapacityinwhichit
heldtheshareslistedinBox19andentereditinBox20column1.Ifitheldsomeofitsinterestsinonecapacity(e.g.asbeneficialowner),andotherinterestsinanothercapacity(e.g.astrustee)thenitshouldhaveusedtwoCodes(ondifferentrows)andstatedthenumberoftheinterestsinsharesheldineachcapacity(ondifferentrows)incolumn2.
If italsohasashortpositionitshouldhavestatedthecapacityorcapacitiesinwhichitheldthatshortposition,usingtheappropriateCode(s),incolumn3.
DerivativeinterestsBox21Ifitderivesallorpartofitsinterestinshares(oritsshortposition)whicharelistedinBox19fromequityderivatives,
itshouldhaveselectedfromTable4belowtheCodewhichbestdescribesthederivativesthatitholdsandenteredthatCodeinBox21column1.Itshouldhavestatedthenumberofsharesinwhichitderivesaninterest(orashortposition) fromthederivatives incolumn2(or3). Note13explainshowtowork thisout. If ithasmore thanonederivativeof thesamecategory, it shouldhaveadded themtogetherandstated the totalnumber (inone row) incolumn2(or3).If it hasmore than one derivative but they are in different categories it should have used 2 ormore codes (ondifferentrows)andstatedthenumberofsharesforeachcategoryofderivative(ondifferentrows)incolumn2(or3).
Table4Categoryofderivatives Code Categoryofderivatives
Code
DerivativeslistedortradedonaStockExchangeortradedonaFuturesExchange
Unlistedderivatives
Physicallysettled 401 Physicallysettled 403Cashsettled 402 Cashsettled 404
Ifanypartytoaderivativecanchoosewhethertosettleincashorbydeliverythenitshouldtreatthatderivativeasphysicallysettled.
InterestsheldbyacorporationwhichitcontrolBox22Ifthesubstantialshareholderisentitledtoexercise,orcontroltheexerciseof,onethirdormoreofthevotingpower
atgeneralmeetingsofacorporation,orthecorporationoritsdirectorsareaccustomedtoactinaccordancewithitsdirections,andthatcorporationisinterestedinsharesofthelistedcorporationconcernedthengivedetailsofthat
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corporation(referredtointhesenotesasacontrolledcorporation)inBox22.IfthereismorethanonecorporationthatitcontrolsthendetailsofeachcontrolledcorporationmustbestatedseparatelyinBox22.The substantial shareholder must also add the controlled corporations interest to its interests in working outwhetheritisunderadutyofdisclosureandwhencompletingBoxes17to21.Ifthecorporationwhichitcontrolsalsohasashortpositionthenthesameprinciplesapply.AsubstantialshareholderisdirectedtocompleteBox22asfollowsColumn1:Statethenameofthecontrolledcorporationstartingwiththetopcontrolledcorporationinthegroup(ifyoucontrolmorethanonecorporation).Column2:Statetheaddressandplaceofincorporation(inbrackets)ofthecontrolledcorporation.Column3 : If it controls thecontrolledcorporationstate itsname incolumn3. If anothercorporationnamed incolumn 1 of Box 22 controls the controlled corporation then state that corporations name in column 3. (Thesubstantialshareholdersnamewillnormallyappearinthefirstrowofcolumn3.Thecontrolledcorporationnamedinthefirstrowofcolumn1normallyappearsinthesecondrowofcolumn3andsoon).Column4:Statethepercentageofthesharesinthecontrolledcorporationthatthepersonnamedincolumn3ofthesamerowcontrols.Column5:Ifthecontrolledcorporationholdstheinterestinsharesofthelistedcorporationdirectly(asopposedtotheinterestbeingadeemedinterest)placea Yincolumn5, if theinterest isadeemedinterest placeaNincolumn 5. If the controlled corporation holds some shares of the listed corporation directly, and some sharesindirectly,detailsoftheinteresthelddirectlyshouldbegiveninonerowofBox22andthesharesheldindirectly(thedeemedinterest)shouldbegiveninthefollowingrow(seetheexamplebelowwherethedirectandindirectinterestsofWongIndustriesLtd.arestatedseparately).Column 6 and 7 : State the number of shares of the listed corporation in which the controlled corporation isinterested(hasashortposition).
ExampleofhowBox22shouldhavebeencompleted.AssumethatWongHoldingsLimitedowns100%ofthesharesinaprivatecorporationABC(HongKong)Ltd.whichowns51%ofthesharesinDEF(HongKong)Ltd.whichowns35%ofGHI(HongKong)Ltd.and65%ofWongIndustriesLtd.WongIndustriesLtd.inturnowns100%ofthesharesinWongAssetManagementLtd.ThegroupholdingsinXYZLtd.(alistedcorporation)areasfollows:GHI(HongKong)Ltd.hasacalloptionover25,000,000 shares (physically settled) and has a short position in 10,000,000 shares under a cash settled equityderivative(detailsofthesederivativeinterestswillhavebeengiveninBox21).WongIndustriesLtd.owns10,000,000sharesandWongAssetManagementLtd.owns15,000,000shares.GroupStructureandholdings
WongHoldingsLtd. 100% ABC(HongKong)Ltd.
51% DEF(HongKong)Ltd.
35% 65% GHI(HongKong)Ltd. WongIndustriesLtd.
25,000,000shares 100% (10,000,000shortposition) 10,000,000shares WongAssetManagement
Ltd.
15,000,000
shares
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XYZLtd.
(Alistedcorporation)
InthisexampletheentriesinBox22wouldbeasfollows
22.Furtherinformationinrelationtointerestsofcorporationscontrolledbysubstantialshareholder#Nameofcontrolledcorporation
Address and place ofincorporation
NameofcontrollingShareholder
%control
DirectInterest(Y/N)
Numberofshares
Longpositions Shortpositions
ABC(HongKong)Ltd.
Unit1,26/FWongIndustrialBldgChaiWan,HK(HongKong)
WongHoldingsLtd 100% N 50,000,000 10,000,000
DEF(HongKong)Ltd.
Unit1,26/FWongIndustrialBldgChaiWan,HK(HongKong)
ABC(HongKong)Ltd.
51% N 50,000,000 10,000,000
GHI(HongKong)Ltd.
Unit1,26/FWongIndustrialBldgChaiWan,HK(HongKong)
DEF(HongKong)Ltd.
35% Y 25,000,000 10,000,000
WongIndustriesLtd. Unit1,26/FWongIndustrialBldgChaiWan,HK(Bermuda)
DEF(HongKong)Ltd.
65% Y 10,000,000
WongIndustriesLtd. Unit1,26/FWongIndustrialBldgChaiWan,HK(Bermuda)
DEF(HongKong)Ltd.
65% N 15,000,000
WongAssetManagementLtd.
Unit1,26/FWongIndustrialBldgChaiWan,HK(BritishVirginIslands)
WongIndustriesLtd. 100% Y 15,000,000
JointinterestsBox23Ifitisinterestedinsharesofthelistedcorporationconcernedjointlywithanotherpersonthentheyarebothtakento
beinterestedinallofthesharesheldjointlyincalculatingwhethertheyeachhavetofileanotice,andincompletingBoxes17to21.Itshouldhavestatedthenameofthepersonwhoownstheinterestinthesharesjointlywiththesubstantialshareholder,his/heraddressandthenumberofsharesinwhichhe/sheisinterestedinBox23.
Thesameprinciplesapplytoshortpositionsheldjointly.
InterestsoftrusteeorbeneficiaryofatrustorfounderofadiscretionarytrustBox24 If it isa trusteeofa trust,abeneficiaryofa trust,or if it is thefounderofadiscretionarytrust(e.g. ithada
discretionarytrustsetuporputassetsintoit(andcaninfluencehowthetrusteeexerciseshisdiscretion),thenitshouldhaveaddedallofthesharesinwhichthetrusthasaninterest(orashortposition)toitsinterestsinworkingoutwhetheritmustfileanotice.Itshouldhavediscloseddetailsofthatinterest(orshortposition)whencompletingBoxes17to21.ItmayhavestatedthenameoftheTrustwhichownstheinterestinthesharesanditsaddressinBox24,columns1and2butisnotrequiredtodosoifhewishesthesedetailstoremainprivate.Box22columns1and2.ItshouldhaveselectedfromTable5belowtheCodewhichbestdescribesitsstatusinrelationtothetrustandentertheCodeinBox24column3.Itshouldhavestatedthenumberofsharesinwhichthetrustisinterested(hasashortposition)inBox24column4.(and5).Itshouldhaveignoredaninterestinreversionorremainder,aninterestofabaretrustee,andanydiscretionaryinterest(ofabeneficiary).
Table5Statusinrelationtoatrust
Code
Trusteeofatrust 501Beneficiaryofatrust 502
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Founderofadiscretionarytrust 503PersonsactinginconcertBox25IfitisapartytoanagreementwithotherpartiestoacquireinterestsinsharesinthelistedcorporationinBox1inthe
circumstances set out in s. 317 (1)(a) or (b) then itwill have added any shares inwhich any other party to theagreementisinterestedtoitsowninterestsinworkingoutwhetheritmustfileanotice.DetailsoftheinterestsofanyotherpartymustalsohavebeentakenintoaccountincompletingBoxes17to21.Itmuststatethenameofeachoftheotherpartiestotheagreement,his/heraddressandthenumberofsharesinwhichhe/sheisinterestedapartfromtheagreementinBox25.InthelastrowofBox25itmuststatethenumberofsharesinwhichitisinterestedundersections317and318.Thiswillbethetotaloffirstlyallshareswhichhavebeenpurchasedpursuanttotheagreementby any of the parties to the agreement and secondly all shares inwhich the other parties to the agreement areinterestedapartfromtheagreement(definedins.318(2)).
ExampleofhowtocompleteBox25For example, assume that Wong Holdings Ltd and 2 other persons agree to buy shares in XYZ Ltd. (a listedcorporation).TheyareeachalreadyinterestedinanumberofsharesofXYZLtd.whichtheypurchasedbeforetheyenteredintothes.317agreement.Underthes.317agreementtheyeachpurchasedafurther20,000,000sharesinXYZLtd.TheirshareholdingsareasfollowsConcertparty Numberofshares
apartfromthes.317agreement
Numberofsharespurchasedpursuanttothes.317agreement
Total
WongHoldings
Ltd.50,000,000 20,000,000 70,000,000
Mr.A 4,000,000 20,000,000 24,000,000Mr.B 2,000,000 20,000,000 22,000,000
Totals 56,000,000 60,000,000 116,000,000
AssumealsothatWongHoldingsLtd.iscompletingthenotice.ItwillhavealreadystatedinBox19thatitis
interestedin116,000,000shares.Ithastostatethenumberofsharesinwhichtheotherpartiesareinterestedapartfromtheagreementandthetotalsharesinwhichheisinterestedbytheapplicationofs.317and318(the60,000,000sharesboughtpursuanttotheagreementandthefurthersharesthattheotherpartiesareinterestedinapartfromtheagreement).Accordingly,Mr.WongwillthencompleteBox25asfollows
25.Furtherinformationfromapartytoanagreementundersection317(PleaseseeNotesforfurtherinformationrequired)
Names of otherparties
Address Numberofshares
Mr.A Unit1,25/FWongIndustrialBldg,ChaiWan,HK 4,000,000Mr.B Unit1,24/FWongIndustrialBldg,ChaiWan,HK 2,000,000 Totalnumberofsharesinwhichsubstantialshareholderisinterestedundersection317and318 66,000,000
Itmustalso
(i)attachaseparatesheettothenotificationstatingthatitisapartytoanagreementtowhichs.317(1)(a)or
(b)applies(ii)includeacopyofanywrittenagreement,contractorotherdocumentwhichrecordsanytermsordetailsof
theagreementand(iii)iftherearenosuchpapersasarementionedin(ii),orifsuchpapersdonotrecordthematerialtermsofthe
agreement,includeawrittenmemorandumsettingoutthematerialtermsoftheagreement.Thememorandumrequiredunder(iii)shouldincludedetailsofanycashorconsiderationinvolvedandtheidentityofall persons betweenwhom such cash or other consideration is passed or is intended to pass. If the parties areinterested in any derivatives, the exercise or conversion price, expiration date and exercise period should bedisclosed.Thememorandummustbesignedbythesubstantialshareholderorhisdulyauthorizedagent.
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Anotificationthatapersonhasceasedtobeapartytoanagreementtowhichs.317(1)(a)or(b)appliesshallalso
statethatheortheotherparty(asthecasemaybe)hasceasedtobeapartytotheagreementand,inthelattercase,includethenameandaddressoftheotherparty.
Detailsofperson(s)inaccordancewithwhosedirectionsitoritsdirectorsareaccustomedtoactBox26 Ifyou,oritsdirectors,areaccustomedorobligedtoactinaccordancewiththedirectionsorinstructionsofany
person,orpersons,(referredtointhesenotesasacontroller)itshouldmuststatethenameandaddressofeachsuchpersoninBox26.ItshouldhaveselectedfromTable6belowtheCodewhichbestdescribestherelationshipofthecontrollertoitandenterthatCodeinBox26column3.Statethepercentageofitssharesthatthecontrollerowns.
Table6Relationshipwithcontroller Code
Controllerisitsimmediateholdingcompany 601Controllerisitsintermediateholdingcompany 602Controllerisitsultimateholdingcompany 603Controllerisadirector 604Controllerisashadowdirector 605Other 606
ItneednotcompleteBox26ifitisalistedcorporationorthewhollyownedsubsidiaryofalistedcorporation.
Box27Form2shouldhavebeendatedthesamedayasitisfiledwithSEHK.Box28 Thisnumber relates to thenumberofcontinuationsheets thesubstantial shareholderhascompleted.Theseare
alreadydisplayedautomaticallyinthesearchresults.Box29Thesubstantialshareholderisdirectedtostatethenumberofattachmentsfiledwiththeform.Theonlydocuments
that shouldbe submittedare those referred to in relation toBox25. If it is filingelectronically,or if therearenoattachments,itneednotcompleteBox29.
SecuritiesBorrowingandLendingIfthesubstantialshareholderisanapprovedlendingagent(ALA)givingnotificationundersection5(4)oftheSecuritiesandFutures(DisclosureofInterestsSecuritiesBorrowingandLending)Rules(L.N.219of2002)(theSBLRules)thenitneedonlycompleteBoxes1to12,15and16,columns2and5ofBox17,Boxes18and19,and27and28ofForm2.If it is theholdingcompanyofanALAgivingnotificationundersection5(4)of theSecuritiesandFutures(DisclosureofInterestsSecuritiesBorrowingandLending)Rules(L.N.219of2002)thenitneedonlycompleteBoxes1to12,15and16,columns2and5ofBox17,Boxes18to20,22,23and27and28ofForm2.Allboxesshouldbecompletedinaccordancewiththenotessetoutabove.AllboxesshouldbecompletedinaccordancewiththenotessetoutabovewiththeexceptionofBoxes18and19.Boxes18and19shouldhavebeencompletedasfollows.Box18Incolumn2ofBox18thesubstantialshareholderisdirectedtostatethetotalnumberofsharesinwhichitwere
interested, and those inwhich it had a short position, immediatelybefore the relevant event. In column 3 thesubstantial shareholder should have stated the percentage figure of its interest, and short position (if any),immediatelybefore the relevantevent. It should includeshares that it is authorized to lend (or, if it is aholdingcompanyofanALA,thesharesthattheALAisauthorizedtolend)inthetotalofsharesinwhichitisinterestedwhencompletingrow1ofcolumns2and3ofBox18.
Incolumn2,row3ofBox18(labelledLendingpool)anALAandaholdingcompanyofanALA,shouldstateonlythe number of shares that the ALA is authorized to lend immediately before the relevant event (referred to asqualifiedsharesintheSBLRules).Incolumn3,row3ofBox18,itshouldhavestatedthepercentagefigureoftheinterestoftheALAinqualifiedsharesimmediatelybeforetherelevantevent.
Box19Completerows2and3ofBox19inthesamemannerasBox18specifyingthetotalnumberofsharesinwhichitwere
interested,andthoseinwhichithadashortpositionimmediatelyafterthedateoftherelevantevent.
Incolumn2,row3ofBox19(labelledLendingpool)anALAandaholdingcompanyofanALA,shouldstateonlythenumberofsharesthattheALAisauthorizedtolend(thequalifiedshares)immediatelyaftertherelevantevent.
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Incolumn3, row3ofBox19, it shouldstate thepercentagefigureof the interestof theALAinqualifiedsharesimmediatelyaftertherelevantevent.
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