HENGAN INTERNATIONAL GROUP COMPANY LIMITED 
By 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.
(Incorporated in the Cayman Islands with limited liability)
(Stock code: 1044)Websites:
http://www.hengan.com
http://www.irasia.com/listco/hk/hengan
This announcement is made by Hengan International Group
Company Limited (the "Company", together with its
subsidiaries, the "Group") on a voluntary basis.
The Group holds the land use right to a parcel of land in Wu
Yuan Bay District, Xiamen City, Fujian Province, the People's
Republic of China (the "PRC") with a total site area of
approximately
30,000 square meters (the "Land").
The Group's headquarters are currently located in Anhai which
is a town in the south of Jinjiang City, Fujian Province, the
PRC. In order to satisfy the Group's business expansion and
operational needs and to attract more talent, the Group had
commenced building an office building, training centre and
ancillary facilities on the Land since May 2010.
Having considered the Land's strategic location, and after
conducting feasibility study and market research, the Group
now proposes to convert the abovementioned training centre
into a hotel (the "Hotel"). Aside from this project, the
Group has no plan to develop other hotel projects. The
Group's principal business shall remain to be the
manufacturing, distribution and sale of personal hygiene
products as well as food and snacks in the PRC.
Since the Company's management shall continue to focus on the
existing principal business of the Group, in order to provide
high quality hotel management services and to increase the
investment return of the Group, Fujian Hengan Holding Xiamen
Business Trade Co., Ltd, a wholly-owned subsidiary of the
Group, had entered into a management agreement with Hilton
Hotel Management (Shanghai) Co., Ltd. ("Hilton Management"),
a third party management company on 8 September
2012, pursuant to which the management and operational rights
of the Company shall be outsourced
for 15 years. To the best of the Company's Directors'
knowledge, information and belief, having made all reasonable
enquiries, each of Hilton Management and its ultimate
beneficial owner is a third party independent of and not
connected with the Company or its connected persons (as
defined under the Rules Governing the Listing of Securities
on The Stock Exchange of Hong Kong Limited (the "Listing
Rules")).
The Group had previously paid capital expenditure of
approximately HK$220 million in connection with the training
centre (including land, construction fee and ancillary
facilities). The capital expenditure for converting the
training centre into the Hotel is approximately HK$360
million, with
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HK$40 million, HK$240 million and HK$80 million to be
incurred respectively in the second half of year 2012, 2013
and 2014. The start-up cost for hotel operation is
approximately HK$20 million. The funding of the
abovementioned will be satisfied by the internal resources of
the Group. The Company believes the abovementioned
expenditure will not have any material impact upon the
Group's finance, business or operations.
The Company estimates that the Hotel shall commence business
in October 2014. The specific timing will be subject to
actual market conditions.
The Company confirms that currently there are no negotiations
or agreements relating to the relevant transaction which are
discloseable under Rule 13.23 of the Listing Rules; neither
is the Board of Directors aware of any matter discloseable
under the general obligations imposed by Rule
13.09 of the Listing Rules, which is or may be of a
price-sensitive nature.
By Order of the Board
Chairman
Hong Kong, 9 September 2012
As at the date of this announcement, our Executive Directors are Mr. Sze Man Bok, Mr. Hui Lin Chit, Mr. Hung Ching Shan, Mr. Xu Shui Shen, Mr. Xu Da Zuo, Mr. Xu Chun Man, Mr. Sze Wong Kim, Mr. Hui Ching Chi and Mr. Loo Hong Shing Vincent; and our Independent Non-Executive Directors are Mr. Chan Henry, Mr. Wang Ming Fu and Ms. Ada Ying Kay Wong.
* For identification purpose only
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