REASONS FOR AND BENEFITS OF ENTERING INTO THE CAPITAL INCREASE AGREEMENT. The implementation of the Capital Increase Agreement and capital increase by the Company and CDC to Datang Nuclear Company can further increase the capital adequacy ratio of Datang Nuclear Company, hence satisfying the capital needs for investment projects of Datang Nuclear Company, enhancing the strength of the principal business of Datang Nuclear Company, reinforcing its capacity to withstand risk, effectively advancing relevant construction of nuclear projects and development of preliminary projects, so as to maximize shareholders’ interests. The Directors (including independent non-executive Directors) are of the view that the Capital Increase Agreement is entered into on normal commercial terms and the terms thereof are fair and reasonable and in the interest of the Company and the Shareholders as a whole.
REASONS FOR AND BENEFITS OF ENTERING INTO THE CAPITAL INCREASE AGREEMENT. AND THE EQUITY TRANSFER AGREEMENT
REASONS FOR AND BENEFITS OF ENTERING INTO THE CAPITAL INCREASE AGREEMENT. The operation and development of Datang Finance Leasing Company is currently stable, however the development and the external financing capabilities of Datang Finance Leasing Company will be limited by low capital, which will impact the capital efficiency and the shareholder’s return. Thus, the increase in capital of Datang Finance Leasing Company will elevate its asset size and financing ability, enhance its growth potential and competitiveness, and enables the Company to obtain a better return on investment. The Directors (including the independent non-executive Directors) are of the view that the relevant terms of the Capital Increase Agreement are normal commercial terms and the transaction is fair and reasonable, and is in the interest of the Company and its Shareholders as a whole.
REASONS FOR AND BENEFITS OF ENTERING INTO THE CAPITAL INCREASE AGREEMENT. For the Capital Increase, the introduction of CDC as a direct shareholder of Datang Leasing Company can improve the capital structure of Datang Leasing Company, increase the scale of owner’s equity, stabilize the business scale, and significantly enhance the corporate image and influence in the open market of Datang Leasing Company, which will be conducive to the expansion of the financing channels and the increase of credit line by Datang Leasing Company, thereby further reducing its debt ratio and financing costs, enhancing the core competitiveness and profitability of Datang Leasing Company, and creating greater value for its shareholders. Taking into account the comprehensive factors such as the business arrangement and the actual situation of the Company, the Company proposes to waive its pre-emptive rights in respect of the Capital Increase. The Directors (including independent non-executive Directors) are of the view that the Capital Increase Agreement is entered into on normal commercial terms and the terms thereof are fair and reasonable and in the interests of the Company and the Shareholders as a whole.
REASONS FOR AND BENEFITS OF ENTERING INTO THE CAPITAL INCREASE AGREEMENT. In order to coordinate with the development strategy planning of Tsinghua Unigroup and in consideration of the dominant position of the Group in SMT equipment manufacturing industry, the Group proposes to gradually adjust the development strategy to concentrate the development focus on SMT equipment manufacturing. Accordingly, the Directors (including the independent non-executive Directors) are of the view that the terms of the Capital Increase Agreement are made on normal commercial terms and are fair and reasonable and in the interests of the Company and the Shareholders as a whole. In view of Xx. Xxxxx Xxxxxx’s directorship with Sino IC Leasing and for the avoidance of any potential conflict of interest, he abstained from voting at the board of directors meeting of Unis Si-Cloud in relation to approval of the Capital Incensement Agreement. Upon Completion, the proceeds received from the Deemed Disposal will be used for general working capital of Unis Si-Cloud. Immediately following Completion, Unis Si-Cloud will cease to be a subsidiary and become an associate of the Company. The financial results of Unis Si-Cloud will cease to be consolidated into those of the Company. The estimated investment earnings arising from the Capital Increase is approximately HK$15,958,939.76, which is estimated based on the fair value of the Group's remaining shareholding interests in Unis Si-Cloud on the date of Completion and the rolling figure of identifiable net assets of Unis Si-Cloud attributed to the Group based on its original shareholding since the incorporation date of Unis Si-Cloud. The actual amount of the investment earnings arising from the Capital Increase to be recognized by the Company will depend on the net asset value of Unis Si-Cloud as at Completion and therefore may be different from the amount as set out above.
REASONS FOR AND BENEFITS OF ENTERING INTO THE CAPITAL INCREASE AGREEMENT. Poly Finance is a non-banking financial institution with a financial license under the supervision of the China Banking Regulatory Commission and its operating results keep growing fast since its incorporation in 2008. The proceeds of the capital contribution to Poly Finance under the Capital Increase Agreement will be used as working capital of Poly Finance. The Company considers that the entering into of the Capital Increase Agreement and the Capital Increase will enhance the finance conditions and therefore the development of Poly Finance and allow Poly Finance to further expand its business. The capital contribution to be made by the Company would also enable the Company to increase its percentage interest in Poly Finance. The Directors (including the independent non-executive Directors) are of the view that the terms of the Capital Increase Agreement and the transactions contemplated thereunder are based on normal commercial terms, are fair and reasonable and in the interests of the Company and its Shareholders as a whole.
REASONS FOR AND BENEFITS OF ENTERING INTO THE CAPITAL INCREASE AGREEMENT. Qingyuan City is adjacent to Guangzhou City and is situated within the “Half-hour Economic Circle” of the Pearl River Delta. It is an important interchange for transportation and logistics for industries in the Pearl River Delta, with excellent transportation infrastructure facilities and a large transportation market. The Target Company, as the only enterprise with the level 2 qualification for road passenger transportation in Qingyuan City, has abundant road transportation resources, 8 stations of grade three or above, and 1696 operating vehicles, with business coverage throughout Qingyuan City and a market share of more than 50%. Under the current road transportation management system, new licenses for routes are tightly restricted. The Capital Increase provides an optimal way for the Group to enter into the road transportation market in Qingyuan City and is in line with the development strategies of the Group. The Capital Increase is expected to further optimise the road transportation network of the Group and enhance the competitiveness and market share of the Group by connecting with its established road transportation network in western and northern Guangdong with that of the Target Company. The Group intends to pay the capital contribution by the Group under the Capital Increase Agreement through bank loans and internally generated funds. The Board is of the view that the terms of the Capital Increase Agreement are on normal commercial terms, fair and reasonable and in the interests of the Company and its shareholders as a whole.
REASONS FOR AND BENEFITS OF ENTERING INTO THE CAPITAL INCREASE AGREEMENT. Shenzhen CIMC Tongchuang will integrate resources from different business segments of CIMC and create a strong supply chain system. Entering of the Capital Increase Agreement will strengthen the efficiency of supply chain management of the Company by using the services provided by CIMC professional procurement platform. As its shareholder, the Company expects the Capital Increase will generate investment return from Shenzhen CIMC Tongchuang. The Directors (including the Independent Non-executive Directors) believe that the terms of the transaction contemplated under the Capital Increase Agreement are fair and reasonable; and the transaction contemplated under the Capital Increase Agreement is on the normal commercial terms and in the interests of the Company and shareholders of the Company as a whole.
REASONS FOR AND BENEFITS OF ENTERING INTO THE CAPITAL INCREASE AGREEMENT. The Directors believe that the Capital Increase will enhance the core competitiveness and increase the risk management ability of COSCO Finance, whereby allows COSCO Finance to further support the development of the Group.
REASONS FOR AND BENEFITS OF ENTERING INTO THE CAPITAL INCREASE AGREEMENT. The Group is principally engaged in the development, sale, lease, investment and management of properties and assets management. Each of Excellence Dongguan and Guangzhou Merchants would benefit from the cooperation in order to exert their strengths, generate synergistic effect and enhance their investment portfolio in the property market in the PRC, which would improve the capital efficiency and effectiveness and reduce the investment risks and thus a greater return could be created for the Shareholders. The terms of the Capital Increase Agreement have been arrived at after arm’s length negotiations between the parties. The Directors (including the independent non-executive Directors) have confirmed that the terms of the Capital Increase Agreement and the transactions contemplated thereunder are fair and reasonable, on normal commercial terms or better and in the interests of the Company and its Shareholders as a whole.
