SDI Explanatory Note FORM 2

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http://sdinotice.hkex.com.hk/di/notes/NSForm2.htm 1/12

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.


ABC(HongKong)Ltd.

51% N 50,000,000 10,000,000

GHI(HongKong)Ltd.


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.

SDI Explanatory Note FORM 2

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