Chapter 30

Due Diligence Guidelines –

Provision of Information to Analysts

Addendum 2: Instructions to Research Analysts on Providing Notice to Issuers

Rules of the Securities and Futures Commission of Hong Kong have come into force that imposes obligations on research analysts, sponsors, issuers as regards pre-deal research. These rules apply to all IPOs of listing applicants to be listed on the Hong Kong Stock Exchange where the Form A1 is submitted on or after 31 October 2011.

See https://duediligenceguidelines.com/wp-content/uploads/local/predeal_conclusions_eng.pdf for the full text of the rules.

In this context, research analysts are required to provide the issuer with a copy of the following notice prior to meeting with the issuer:

Notice to Issuers of SFC Requirements for
Pre-deal Research for Hong Kong listings

Rules of the Securities and Futures Commission of Hong Kong have come into force that impose obligations on research analysts, sponsors, issuers as regards pre-deal research. These rules apply to all IPOs of listing applicants to be listed on the Hong Kong Stock Exchange where the Form A1 is submitted on or after 31 October 2011.

The rules provide that it is the responsibility of the Issuer to disclose all relevant and material information in its prospectus or offering document.

To avoid the risk of liability, the directors and senior management of the Company must ensure that no material information about the Company or its securities is provided to any investment research analyst, unless the information is reasonably expected to be included in the prospectus or is publicly available. When assessing whether any such information is “material” information, the test that should be applied is whether the information is material to an investor in forming a valid and justifiable opinion of the Company and its financial condition and profitability.

This restriction covers any information provided to an analyst, directly or indirectly, formally or informally, and in writing or verbally. It covers all communications in a meeting, during a presentation, site visit or interview, or in any other context.

In addition, Paragraph 16 of the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission requires research analyst firms to have written policies and control procedures to ensure that analysts are not provided by the firm with any impermissible information.

To ensure compliance with the rules, we are requesting that you do not provide research analysts with any material information that is not reasonably expected to be in the prospectus or offering document or publicly available.

Please seek the advice of your counsel if you have any question about the rules referred to above.

Notice to Issuer (Chinese version):

致发行人关于证监会对香港上市交易前研究的规定之通知

香港证券及期货事务监察委员会的规则已经生效，对研究分析员、保荐人、发行人就交易前研究加诸了一些义务。此等规则适用于所有在2011年10月31日或之后向香港联合交易所提交上市申请（即A1表格）的首次公开发售。

此等规则规定发行人有责任在其招股章程或发售文件中披露所有相关的重要资料。

为避免责任风险，公司的董事及高级管理层必须确保没有向任何投资研究分析员提供关于公司或其证券的任何重要资料，除非该等资料被合理地预期会纳入招股章程内或可公开取得。当评估上述任何资料是否“重要”资时，适用的测试应为资料在构成就公司及其财务状况及利润率的有效及合理意见方面是否属于对投资者为重要性质。此限制涵盖直接或间接、正式或非正式、以书面或口头方式向分析员提供的任何资料，包括于一个会议、介绍会、实地考察或会面或在任何其他情况下的所有沟通。

此外，《证券及期货事务监察委员会持牌人或注册人操守准则》第16段要求研究分析机构拥有书面政策及控制程序以确定分析员没有获机构提供任何不可传播的资料。

为确保符合规则，我们要求阁下不要向研究分析员提供合理地预期为不会载于招股章程或发售文件或不可公开取得的任何重要资料。

如果阁下对上述所指的规则有任何问题，请寻求阁下法律顾问的意见。