BEIJING ENT<0392>- Announcement
The Stock Exchange of Hong Kong Limited takes no responsibility
for the contents of this announcement, makes no representation
as to its accuracy or completeness and expressly disclaims any
liability whatsoever for any loss howsoever arising from or
in reliance upon the whole or any part of the contents of this
announcement.
Beijing Enterprises Holdings Limited
(Incorporated in Hong Kong with limited liability under the
Companies Ordinance)
Announcement
Beijing Enterprises Holdings Limited (the "Company") has noted
articles in the press on May 27th 1999 and May 28th 1999 in
respect of the following investments made by the Company in
the high technology sector and wishes to make this Announcement
at the request of the Stock Exchange of Hong Kong Limited:
1. the Beijing Technology Development Fund of which the
Company has committed to contribute US$10 million;
2. the acquisition from Weiming Biological Engineering Group
of a 24% interest in Beijing Peking University WBL Biotech Co.,
Ltd; and
3. the contribution of US$24 million payable by the Company
to the registered capital of Beijing Enterprises Holdings
High-Tech Development Co., Ltd., a sino-foreign equity joint
venture held as to 80% by the Company and 20% by Beijing
Municipal High and New Technology Development Zone Management
Committee.
This Announcement is made at the request of the Stock Exchange
of Hong Kong Limited.
The Company has noted that certain articles appeared in the
press on May 27th 1999 and May 28th 1999 relating to certain
high technology investments of the Company (the "Transactions")
and wishes to clarify the status of the Transactions.
Beijing Technology Development Fund (the "Fund")
The Fund was registered in the Cayman Islands as a limited
duration company for a term of seven years expiring on May 26th
2006 with a subscription amount of US$50 million (HK$388
million). The Company has committed to contribute a total of
US$10 million (HK$78 million) to the Fund. The Fund has also
received a US$10 million (HK$78 million) subscription from
Netsales Company Limited, a wholly-owned subsidiary of Sun Hung
Kai Properties Limited which is listed on the Stock Exchange
of Hong Kong. Netsales Company Limited is an independent third
party not associated with the Company, its subsidiaries and
their respective connected parties and their associates. Other
investors include independent third parties from the United
States, Taiwan and Singapore.
The investment scope of the Fund covers a number of information
technology sectors:including software, multi-media, internet,
telecommunications and electronics as well as other industries
such as biotechnology and health care.
The promoters of the Fund are the Company, WI Harper Group and
Tsinghua University Enterprise Group. Both WI Harper Group and
Tsinghua University Enterprise Group are independent third
parties not associated with the Company, its subsidiaries and
their respective connected parties and their associates.
The Fund is managed by a management company incorporated in
Hong Kong held as to 80% by WI Harper (BVI) Management Ltd.,
an affiliate of WI Harper Group and 20% by Beijing Enterprises
VC Management Co Ltd, a wholly-owned subsidiary of the Company.
The Fund has entered into letters of intent with Netfront
Communication Inc. and Beijing Xinwei Telecom Technology Co.
Ltd. in respect of investments in the amount not exceeding US$3
million (HK$23 million) respectively. Both Netfront
Communication Inc. and Beijing Xinwei Telecom Technology Co.
Ltd are independent third parties not associated with the
Company, its subsidiaries and their respective connected
parties and their associates.
Beijing Peking University WBL Biotech Co., Ltd. ("WPU")
The Company's acquisition from Weiming Biological Engineering
Group ("Weiming") of a 24% interest in WPU (the "Acquisition")
has received approval from the Beijing Municipal Government
on May 5th 1999. Both WPU and Weiming are independent third
parties not associated with the Company, its subsidiaries and
their respective connected parties and their associates.
The total consideration of the Acquisition is RMB100 million
(HK$93 million) of which the Company has paid RMB10 million
(HK$9 million) with the remaining balance expected to be paid
within one month of the date of this Announcement. WPU is
currently held as to 24% by the Company, 51% by Weiming and
25% by Wearnes Brothers Limited, a Singapore company. The scope
of business of WPU includes the manufacture and sale of
Xuezhikang capsule and other medicines.
Beijing Enterprises Holdings High-Tech Development Co., Ltd.
(the "Joint Venture")
The Joint Venture is a sino-foreign equity joint venture
established on May 24th 1999 held as to 80% by the Company and
20% by Beijing Municipal High and New Technology Development
Zone Management Committee, an independent third party not
associated with the Company, its subsidiaries and their
respective connected parties and their associates. The
shareholders will participate in profits and loss of the Joint
Venture in proportion to their shareholdings. The board
comprises five directors with three of the directors nominated
by the Company.
The Joint Venture, with a registered capital of US$30 million
(HK$233 million), has received approval from the Ministry of
Foreign Trade and Economic Co-operation of the People's
Republic of China on May 18th 1999. The Company will ultimately
contribute US$24 million (HK$186 million) to the Joint Venture.
Its scope of business includes investments in the areas of
industry, agriculture and energy which are open to foreign
investments and provision of management consultancy services
to such companies in which the Joint Venture has invested.
General
The Transactions with an aggregate investment amount of
approximately 4% of the audited consolidated net tangible
assets of the Company as disclosed in its latest published
annual accounts for the year ended December 31st 1998 do not
constitute discloseable transactions under the Listing Rules
of the Stock Exchange of Hong Kong Limited.
The investment amount paid or payable by the Company in respect
of each of the Transactions was or will be funded out of internal
resources.
By order of the Board
TAM Chun Fai
Company Secretary
May 29th 1999
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