OREANDA-NEWS. March 05, 2011. The shareholders of Shanghai Galaxy passed a resolution to approve the Capital Increase of Shanghai Galaxy, the registered capital of which is owned by SIIC Shanghai as to 80% and by Hu-Ning Expressway as to 20%. Hu-Ning Expressway will make an additional capital contribution of RMB326,776,843.99 (equivalent to approximately HKD385,441,000) to Shanghai Galaxy, of which RMB48,000,000 (equivalent to approximately HKD 56,617,000) will become additional registered capital and RMB278,776,843.99 (equivalent to approximately HKD 328,824,000) will be accounted for in the capital surplus of Shanghai Galaxy, reported the press-centre of Shanghai Galaxy.

The registered capital of Shanghai Galaxy will be accordingly increased from RMB80,000,000 (equivalent to approximately HKD 94,362,000) to RMB128,000,000 (equivalent to approximately HKD 150,979,000), and the equity interest in Shanghai Galaxy held by Hu-Ning Expressway will be increased from 20% to 50%.

Hu-Ning Expressway is an indirect wholly-owned subsidiary of the Company. SIIC is the holding company of the Company holding approximately 53.88% in the entire issued capital of the Company and a connected person of the Company. SIIC is authorized to operate SIIC Shanghai, a state-owned enterprise, and SIIC exercises the authority as a state-owned shareholder of SIIC Shanghai. Shanghai Galaxy being a subsidiary of SIIC Shanghai is thus an associate of a connected person of the Company.

Accordingly, the Capital Increase constitutes a connected transaction of the Company under Chapter 14A of the Listing Rules. As one of the applicable percentage ratios in respect of the Capital Increase exceeds 0.1% but is less than 5%, such transaction is only subject to the reporting and announcement requirements, and is exempt from the independent shareholders’ approval requirement under Chapter 14A of the Listing Rules.

INFORMATION ON SHANGHAI GALAXY
Shanghai Galaxy is a company incorporated in the PRC with limited liability and its scope of principal business activities includes industrial investment, assets management and relevant consultation business. Shanghai Galaxy approved to carry out assets management activities by the relevant PRC government authority since 2000.

Prior to the Capital Increase, Shanghai Galaxy is owned by SIIC Shanghai as to 80% and by Hu-Ning Expressway as to 20% of its total registered capital.