As Shenzhen Huaqiang Dingxin Guaranty & Investment Co. Ltd failed to come up with sufficient funds to subscribe to the 40 mln shares of the company as pledged, the company has had to reduce its additional offerings from 92 mln to 64.4 mln shares in its private placement, in which funds to be raised also decreased from RMB 1.6 bln to RMB 1.16 bln.

According to the private placement plan announced in October 2007, the company had planned to issue 92 mln A-shares to six investors at RMB 18.13 per share, which would have raised a total of RMB 1,667,960,000. As of 18 June 2008, Shenzhen Huaqiang Dingxin Guaranty & Investment, which had pledged to subscribe to 40 mln shares of the company, failed to do so as it had insufficient capital to fund the purchase and only subscribed to 12.40 mln shares in the private placement. The 64.40 mln shares issued in the private placement will be subject to three-year lockup period.

Source: China Business News

Date: 8 Jul 2008

CN01/RZ/MZ/BT/WH