Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
四川能投發展股份有限公司
Sichuan Energy Investment Development Co., Ltd.*
(a joint stock company incorporated in the People's Republic of China with limited liability)
(Stock code: 01713)
DISCLOSEABLE TRANSACTION
SUBSCRIPTION OF STRUCTURED DEPOSIT PRODUCT
SUBSCRIPTION OF STRUCTURED DEPOSIT PRODUCT
Reference is made to the announcement of the Company dated 16 October 2019, in which it was disclosed that the Company entered into the Financial Products Agreements, being seven agreements to subscribe for certain principal guaranteed structured deposit products provided by the Bank during the period from 25 January 2019 to 9 July 2019.
As at the date of this announcement, the outstanding balance under the Financial Products Agreements amounted to approximately RMB51,500,000.
On 30 October 2019, the Company entered into the Eighth Structured Deposit Product Agreement with the Bank, pursuant to which the Company agreed to subscribe for the principal guaranteed structured deposit product, with a principal amount of RMB237,000,000.
LISTING RULES IMPLICATIONS
As the Eighth Structured Deposit Product Agreement is entered into with the same bank and are of a similar nature as the Financial Products Agreements, the transactions under the Eighth Structured Deposit Product Agreement shall be aggregated with those under the Financial Products Agreements pursuant to Rule 14.22 of the Listing Rules. As the highest of the applicable percentage ratios calculated according to Rule 14.07 of the Listing Rules in respect of the Eighth Structured Deposit Product Agreement, whether on a standalone basis or on an aggregated basis together with the Financial Products Agreements, exceeds 5% but all of the applicable percentage ratios are less than 25%, the transactions constitute discloseable transactions for the Company and therefore subject to reporting and announcement requirements under Chapter 14 of the Listing Rules.
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BACKGROUND
Reference is made to the announcement of the Company dated 16 October 2019, in which it was disclosed that the Company entered into the Financial Products Agreements, being seven agreements to subscribe for certain principal guaranteed structured deposit products provided by the Bank during the period from 25 January 2019 to 9 July 2019.
As at the date of this announcement, the outstanding balance under the Financial Products Agreements amounted to approximately RMB51,500,000.
On 30 October 2019, the Company entered into the Eighth Structured Deposit Product Agreement with the Bank, pursuant to which the Company agreed to subscribe for the principal guaranteed structured deposit product, with a principal amount of RMB237,000,000.
THE EIGHTH STRUCTURED DEPOSIT PRODUCT AGREEMENT
On 30 October 2019, the Company entered into the Eighth Structured Deposit Product Agreement with the Bank. The principal terms of the Eighth Structured Deposit Product Agreement are set out below:
Date: | 30 October 2019 |
Product: | Bank of Communication Yuntong Fortune Periodic Structured |
Deposits One Month (Gold Linked Bearish) | |
Parties: | (1) the Company, as the subscriber; and |
(2) Sichuan Branch of the Bank of Communications, as the bank | |
Type of Product: | Fully principal-guaranteed |
Principal: | RMB237,000,000 |
Term: | 35 days (from 1 November 2019 to 6 December 2019) |
Expected return | Annualized return rate of between 3.35% to 3.45% |
per annum: | |
If the closing price of the AU99.99 on the Shanghai Gold Exchange | |
is less than or equal to the exercise price, being RMB276 per gram, | |
on 3 December 2019, the annualized return rate will be 3.45%, | |
otherwise it will be 3.35%. | |
Formula for Calculation | Principal × annualized return rate × actual term of deposit (days)/365 |
of Interest: | days |
Right of Early | The Company has no right of early termination or redemption. |
Termination | |
or Redemption: | |
Minimum Interest: | RMB237,000,000 × 3.35% × 35/365 = RMB761,321.92 |
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REASONS FOR AND BENEFITS OF THE TRANSACTIONS
The product the Company subscripted under the Eighth Structured Deposit Product Agreement is fully principal-guaranteed and with minimal risk which provides a better return than the fixed-term deposits generally offered by PRC commercial banks. The Directors believe that Subscription will improve the effectiveness of using the Group's temporarily idle funds and obtain certain return. Accordingly, the Directors (including the independent non-executive Directors) are of the view that the terms of the Eighth Structured Deposit Product Agreement were arrived at after the arm's length negotiation and the transactions contemplated under the Eighth Structured Deposit Product Agreement are on normal commercial terms which are fair and reasonable and in the interests of the Group and the Shareholders as a whole.
LISTING RULES IMPLICATIONS
As the Eighth Structured Deposit Product Agreement is entered into with the same bank and are of a similar nature as the Financial Products Agreements, the transactions under the Eighth Structured Deposit Product Agreement shall be aggregated with those under the Financial Products Agreements pursuant to Rule 14.22 of the Listing Rules. As the highest of the applicable percentage ratios calculated according to Rule 14.07 of the Listing Rules in respect of the Eighth Structured Deposit Product Agreement, whether on a standalone basis or on an aggregated basis together with the Financial Products Agreements, exceeds 5% but all of the applicable percentage ratios are less than 25%, the transactions constitute discloseable transactions for the Company and therefore subject to reporting and announcement requirements under Chapter 14 of the Listing Rules.
INFORMATION OF THE PARTIES INVOLVED
The Company
The Company is a vertically integrated power supplier and service provider in Yibin City, Sichuan Province, with a full power supply value chain covering power generation and electricity distribution and sales.
Bank of Communications
Bank of Communications is a large-scale joint stock commercial bank in the PRC. Headquartered in Shanghai, it was listed on the Stock Exchange in June 2005 (stock code: 03328) and on the Shanghai Stock Exchange in May 2007 (stock code: 601328).
To the best knowledge, information and belief of the Directors having made all reasonable enquiries, Bank of Communications and its ultimate beneficial owners are third parties independent of the Group and its connected persons.
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DEFINITIONS
Unless otherwise defined as below, the capitalized terms used in this announcement shall have same meanings as those defined in the Previous Announcement:
"Board"
"Bank"
"Chairman"
"Company"
the board of Directors
Sichuan Branch of the Bank of Communications
the chairman of the Board
Sichuan Energy Investment Development Co., Ltd.* (四川能投發展股 份有限公司) (stock code: 01713), a company established in the PRC as a joint stock company with limited liability on 29 September 2011
"connected person(s)" | has the meaning ascribed to it under the Listing Rules |
"Director(s)" | the director(s) of the Company |
"Eighth Structured | The Bank of Communication Yuntong Fortune Periodic Structured |
Deposit Product | (Gold Linked) Product Agreement 《( 交通銀行蘊通財富定期型結構性 |
Agreement" | 存款（黃金掛鈎）產品協議》) entered into between the Company and |
the Bank on 30 October 2019 | |
"Group" | the Company and its subsidiaries |
"Hong Kong" | the Hong Kong Special Administrative Region of the PRC |
"Listing Rules" | Rules Governing the Listing of Securities on the Stock Exchange |
"PRC" | the People's Republic of China, for the purposes of this announcement, |
excluding Hong Kong, the Macau Special Administrative Region of the | |
PRC and Taiwan | |
"Previous | the announcement of the Company dated 16 October 2019 |
Announcement" | |
"Financial Products | the agreements entered into between the Company and the Bank to |
Agreements" | subscribe the structured deposit products by the Company, including |
the First Structured Deposit Product Agreement, the Second Structured | |
Deposit Product Agreement, the Third Structured Deposit Product | |
Agreement, the Fourth Structured Deposit Product Agreement, the Fifth | |
Structured Deposit Product Agreement, the Sixth Structured Deposit | |
Product Agreement and the Seventh Structured Deposit Product | |
Agreement | |
"RMB" | Renminbi, the lawful currency of the PRC |
"Shareholder(s)" | holder(s) of the Shares |
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"Stock Exchange"
"Subscription"
"%"
The Stock Exchange of Hong Kong Limited
the subscription of the structured deposit products under the Eighth Structured Deposit Product Agreement
per cent
By order of the Board
Sichuan Energy Investment Development Co., Ltd.
Zeng Yong
Chairman
Chengdu, Sichuan Province, the PRC
30 October 2019
As at the date of this announcement, the executive Directors are Mr. Zeng Yong, Mr. Li Hui and Ms. Xie Peixi; the non-executive Directors are Ms. Han Chunhong, Ms. Li Yu, Mr. Wang Chengke and Mr. Zhou Yanbin; and the independent non-executive Directors are Mr. Kin Kwong Kwok Gary, Mr. Fan Wei, Ms. He Zhen and Mr. Wang Peng.
- For identification purposes only
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Sichuan Energy Investment Development Co. Ltd. published this content on 30 October 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2019 15:26:08 UTC
