The company announced a plan to issue up to RMB 720 mln in convertible bonds with detachable warrants at a par value of RMB 100. Subscribers will receive a fixed number of call warrants for every bond they purchase. The number of warrants issued will be no less than 500 mln and total funds raised from full exercise of warrants should not exceed the funds to be raised from the bonds issuance. Based upon this premise, the company will fix the final number of granted warrants. The period of maturity is six years and the period validity for the call warrants is 18 months. Investors are entitled to purchase one share for every two warrants they hold.

The funds to be raised from the issuance will be invested in the 24 new formed foil production lines planned for Yidu Dongyangguang Formed Foil Co. Ltd and the 200,000-ton per year brazing foil project at Ruyuan Aluminum Foil Co. Ltd. In addition, funds to be raised from the bond issuance will be used to repay bank loans. The total investment budget for these projects is RMB 720 mln.

The funds to be raised from the exercise of call warrants issued will be invested in technology upgrades, expansion projects and a 27,500-ton per year hydrogen peroxide project. The total planned investment is RMB 835 mln.

The total investment in projects to be funded by convertible bond with detachable warrant issuance is RMB 1.555 bln.

Source: Shanghai Securities News

Date: 27 Jun 2008

CN01/RZ/MZ/AR/MM