LISTING RULES IMPLICATIONS
Pou Sung Vietnam is a wholly-own subsidiary of Yue Yuen Industrial (Holdings) Limited ("Yue Yuen"), a substantial shareholder of the Company. Pou Sung Vietnam is therefore an associate of Yue Yuen and accordingly a connected person of the Company. As such, the transaction under the Subcontracting Services Agreement constitutes a continuing connected transaction of the Company under Chapter 14A of the Listing Rules.
Since the applicable percentage ratios in respect of the proposed annual cap under the Subcontracting Services Agreement exceed 0.1% and more than HK$3,000,000, but are less than 5%, such transaction amount is subject to the reporting, annual review and announcement requirements but exempt from the independent shareholders' approval requirements.
As Mr. Chau Chi Ming, a non-executive Director of the Company, is the company secretary and a senior director of Finance & Treasury Department of Yue Yuen and Mr. Tsai Nai-Yung, a non- executive Director of the Company, is the vice president of Pou Chen Corporation, a controlling shareholder of Yue Yuen, they have a material interest in the Subcontracting Services Agreement and therefore abstained themselves in the voting on the relevant board resolution.
The Group is a leading manufacturer that designs, develops and manufactures recreational bags and packs, mainly backpacks, it also provides quality supply chain management services for renowned multinational sports and lifestyle brands.
Pou Sung Vietnam, a company established in Vietnam, is principally engaged in manufacturing and sales of footwear, it operates the Bau Xeo Industrial Zone which is located in Dong Nai Province, Vietnam.
By order of the Board
Prosperous Industrial (Holdings) Limited
Yeung Shu Kin
Hong Kong, 28 August 2020
As at the date of this announcement, the Board comprises Mr. Yeung Shu Kin, Mr. Yeung Shu Kai and Mr. Yeung Wang Tony as executive Directors, Mr. Chau Chi Ming and Mr. Tsai Nai-Yung as non-executive Directors and Mr. Chiu Che Chung Alan, Mr. Ko Siu Tak and Mr. Yip Kwok Cheung as independent non-executive Directors.