Chapter 30

Due Diligence Guidelines –

Provision of Information to Analysts

Addendum 7: Suggested Insert for Directors’ Training Presentation

Restriction on disclosure of material information to analysts

• The Hong Kong prospectus is the sole document by which the Company sells its shares in the Hong Kong IPO

• Any other additional document by which securities are offered to the public (or members of the public) could constitute a “prospectus” under Hong Kong law, in which case:

• the prospectus content requirements will apply

• the translation requirements will apply

• the registration requirement will apply

Breach of the prospectus laws is a criminal offence

• 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.

• It is of paramount importance that no additional material non-public information is provided to other persons, including analysts

• in case of disclosure (whether intentional or not) to analysts, the Company may be compelled to disclose the same information in the prospectus

• such information may not be appropriate for a prospectus and may not be verifiable

• Consequences of putting such a statement in the prospectus

• any untrue statement (including any statement that is false, misleading or deceptive) in a prospectus may give rise to criminal and civil liability, including personal liabilities of each director and any other person who authorised the issue of the prospectus

• the directors must likewise take personal liability for the truthfulness, accuracy and completeness of any information the Company may be compelled under the SFC rules to insert into the prospectus under the above circumstances

• The restriction covers any information provided to an analyst, directly or indirectly, formally or informally, and in writing or otherwise

[Consider inserting examples of impermissible information]

• The Company is strongly advised to seek the guidance and assistance of [names of the Sponsor and both teams of Hong Kong legal advisers] if there are any uncertainties

Suggested insert for directors’ training presentation (Chinese version):

向分析员披露重要资料之限制

• 香港招股章程为公司在香港首次公开发售中籍以出售其股份的唯一文件

• 任何据之向公众 (或公众的成员) 发售证券的其他额外文件可构成香港法例下的 “招股章程”，在该情况下：

• 招股章程的内容要求将适用

• 翻译要求将适用

• 登记要求将适用

违反关于招股章程的法律属刑事罪行

• 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。

• 不向其他人 (包括分析员) 提供额外的重要非公开资料是至为重要的

• 如果向分析员进行披露 (不论是是否有意) 公司可能被要求于招股章程中披露相同的资料

• 该资料不适合用于招股章程且不可验证

• 在招股章程中提供该声明可导致以下后果：

• 招股章程中的任何不实声明 (包括任何错误、误导或欺诈的声明) 可导致刑事或民事责任，包括每一名董事及授权出具招股章程的任何其他人士的个人责任

• 董事必须同样地为公司在上述情况下因应证监会的规则被要求在招股章程中加插的任何资料的真实、准确及完整性承担个人责任

• 此限制涵盖直接或间接、正式或非正式、以书面或其他方式向分析员提供的任何资料

[考虑插入不可传播的资料的例子]

• 如果在此方面有任何不确定之处，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。