Chapter 30

Due Diligence Guidelines –

Provision of Information to Analysts

Addendum 3: Suggested Rider for (a) Presentation Materials for Kick-off Meeting and (b) Hong Kong Publicity Memorandum

(a) For kick-off meeting materials:

Restriction on disclosure of material information to analysts

Paragraph 16 of the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission imposes restrictions on the disclosure or provision to any investment research analyst of any material information, including forward-looking information (whether quantitative or qualitative) which is not reasonably expected to be contained in a prospectus and is not publicly available.

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. Any such information may give rise to serious legal and regulatory implications. Care must be taken that no such information is communicated unless it is reasonably expected to be in the prospectus or is publicly available.

Attached please find a memorandum setting out the responsibilities of IPO issuers under the regulatory requirements. Training sessions for the Company’s appropriate personnel will be provided in due course to facilitate compliance with the applicable rules.

(b) For publicity memorandum:

Restriction on disclosure of material information to analysts

Paragraph 16 of the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission imposes restrictions on the disclosure or provision to any investment research analyst of any material information, including forward-looking information (whether qualitative or quantitative) concerning the Company that is not reasonably expected to be included in the prospectus or publicly available.

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. Any such information may give rise to serious legal and regulatory implications. Care must be taken that no such information is communicated unless it is reasonably expected to be in the prospectus or is publicly available.

The Company is strongly advised to seek the guidance and assistance of [names of the sponsor and both teams of Hong Kong legal advisers] where there is any intention or risk of material non-public information being released or disclosed to an investment or research analyst.

Riders for (a) presentation materials for kick-off meeting; and (b) publicity memorandum (Chinese version):

(a) 供项目启动会议材料之用:

向分析员披露重要资料之限制

《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段加诸向任何投资研究分析员披露或提供任何重要资料方面的限制,包括不属合理地预期会载于招股章程、且不可公开取得的前瞻性资料 (不论是量化或质化方面)。

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,除非该等资料已被合理地预期会纳入招股章程内或可公开取得则。当评估该等任何资料是否“重要”资料时,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一名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。

上述任何资料可引致严重的法律和监管方面的含义。除非上述资料被合理地预期会纳入招股章程内或可公开取得,否则必须加倍谨慎以免该资料的传达。

随附一份载列首次公开发售的发行人在监管要求下须承担的责任之备忘录。将于适当时候为公司的适当人员提供培训以促进其符合适用规则的规定。

(b) 供宣传备忘录之用:

向分析员披露重要资料之限制

《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段加诸向任何投资研究分析员披露或提供任何重要资料方面的限制,包括不属合理地预期会纳入招股章程内或可公开取得的、关于公司的前瞻性资料 (不论是质化或量化方面)。

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,上述资料被合理地预期会纳入招股章程内或可公开取得则除外。当评估上述任何资料是否“重要”资料时,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、正式或非正式及以书面或口头方式向一名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。上述任何资料可引致严重的法律和监管方面的含义。除非上述资料被合理地预期会纳入招股章程内或可公开取得,否则必须加倍谨慎以免该资料的传达。

如果有任何重要的非公开资料向投资或研究分析员发放或披露的意图或风险,在此强烈建议公司向[保荐人及两个香港法例顾问团队的名称] 寻求指导和协助。

Disclaimer

HKCFEF Limited and the contributing law firms, accountants and sponsors are not offering these due diligence guidelines as legal, financial or professional advice or services and they should not be relied upon as such. These due diligence guidelines should not be used as a sole basis for any decision, action or inaction and are not meant to serve as a substitute for the advice of qualified professionals. See here for the full terms and conditions.

Due Diligence Guidelines

Kick-off Meeting

Presentation

Hong Kong Sponsors Due Diligence Guidelines

Addendum 3 Suggested Rider for Presentation Materials for Kick-off Meeting

Addendum 3 Suggested Rider for Presentation Materials for Hong Kong Publicity Memorandum

No Material Information About the Company or its Securities is Provided to any Investment Research Analyst

Provision of Information to Analysts

Due Diligence Checklist

Due Diligence Process

Due Diligence Compliance
Restriction on Disclosure of Material Information to Analysts
Responsibilities of IPO Issuers Under the Regulatory Requirements

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