Acquisition of 50% equity interest in Shanghai Jinting Automobile ...

Set out below is the audited financials of Shanghai JAH for the two years ended 31 December
2008.
Year ended 31 December
2007 2007 2008 2008
RMB’000 HK$’000 RMB’000 HK$’000
Turnover 759,516 862,051 811,728 921,311
Profit before tax 43,302 49,148 78,350 88,927
Profit after tax 38,201 43,358 68,658 77,927
As at 31 December
2007 2007 2008 2008
RMB’000 HK$’000 RMB’000 HK$’000
Total assets 380,420 431,777 368,836 418,629
Net assets 194,896 221,207 226,394 256,957
REASONS FOR AND BENEFITS OF THE ACQUISITION
Shanghai JAH is a well-established company engaging in the business of automotive wire
harness since 1997. Over the years, Shanghai JAH has achieved impressive results and has
become one of the leading automotive wire harness manufacturers in the PRC.
The Directors believe that the business of automotive wire harness is very promising in the PRC,
and the Acquisition will give the Group a good opportunity to participate in and develop
automotive wire harness business in the PRC.
The Directors are of the opinion that the terms of the Acquisition are fair, reasonable and on
normal commercial terms, and the Acquisition is in the interests of the Company and the
Shareholders as a whole.
GENERAL
The Company acts as an investment holding company. The activities of its principal subsidiaries
and associates are investment holding and development, manufacturing, marketing and trading of
batteries, electronics and acoustics products, wire harness, cables, light fittings products and
LED display screens.
The Acquisition constitutes a major transaction for the Company under Chapter 14 of the Listing
Rules and is subject to the Shareholders’ approval. As no Shareholder has an interest in the
Acquisition which is materially different from the other Shareholders, no Shareholder is required
to abstain from voting on the resolution to be proposed at the extraordinary general meeting of
the Company to approve the Acquisition and the transactions contemplated thereunder.
A circular containing, among other things, further details of the Acquisition together with the
notice of the extraordinary general meeting of the Company will be despatched to the
Shareholders as soon as practicable.
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