KING PACIFIC<0072> - 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.
KING PACIFIC INTERNATIONAL HOLDINGS LIMITED
(incorporated in Bermuda with limited liability)
ANNOUNCEMENT
The Board (including members of the Independent Board Committee)
held a meeting on 29th March, 2000 to consider the announcement made
by Cheung Yiu Wing and Cheung Wing Keung, Samuel in the newspaper
on 29th March, 2000. The Board (including members of the Independent
Board Committee) considered that certain matters contained in the
said announcement might mislead the public and they ought to be
clarified by this announcement.
The board of directors of the Company (the ``Board'') refers to the
announcement of Cheung Yiu Wing and Cheung Wing Keung, Samuel ( the
``Cheung Directors'') dated 29th March, 2000 (the ``Cheung
Announcement'') and confirms that a duly convened meeting of the
Board was held on 29th March, 2000 (the ``Meeting'') to discuss,
inter alia, the statements contained in the Cheung Announcement.
The Meeting was attended by Mr. Cheng Chao Ming, Jenson, Mr. Xiong
Pingbo, Paul, Mr. Hui Yat On, Kelvin, Mr. Chen Vee Yong, Frederick,
Dr. Charles W.B. Cheung J.P., Ms. Amelia O.M. Cheung and the Cheung
Directors.
The Board also refers to the appointment of an Independent Board
Committee on 7th March, 2000 to review certain matters regarding
the Acquisition and Subscription (as defined in the Company's
announcement dated 8th January, 2000), the legality and validity
of the Company's investment in Wuhan Ocean Essence Water Factory
Company Limited (the ``Wuhan Company'') and the allegations made
by Cheung Directors in respect of the said investment and to report
its findings and recommendations to the Board.
AUTHORITY TO ISSUE THE CHEUNG ANNOUNCEMENT
The Board and the Independent Board Committee wish to clarify by
this announcement that:
1. The Cheung Announcement was an announcement made by the Cheung
Directors personally who should take full responsibility for the
statements made therein. The Board noted that the Cheung Directors
had never informed the Board (including members of the Independent
Board Committee) about the Cheung Announcement before it was
published on 29th March, 2000;
2. The Cheung Announcement had not been authorised by the
Independent Board Committee and it should not represent the
findings of the Independent Board Committee. The Hubei Court Notice
(as defined below) was not issued as a result of the Independent
Board Committee's action. The Independent Board Committee is
diligently reviewing the Company's investment in the Wuhan Company
and it has not, as at the date of this announcement, published its
findings and recommendations. It is, however, expected that a
report from the Independent Board Committee on the Wuhan Company
will be issued in the very near future.
MISLEADING STATEMENTS IN THE CHEUNG ANNOUNCEMENT
The Board (including members of the Independent Board Committee)
considered that the Cheung Announcement contained certain
statements in respect of the document issued by the Hubei Province
Higher People's Court (the ``Hubei Court'') which might mislead the
public. The Board (including members of the Independent Board
Committee) wishes to clarify by this announcement that:
(a) The document issued by the Hubei Court that was reproduced in
the Cheung Announcement was not a preliminary ruling of the Hubei
Court. This was merely a notice issued by the Hubei Court (the
``Hubei Court Notice'').
(b) The Hubei Court Notice did not state that the Wuhan Company
did not exist or operate prior to the date of the Company acquiring
an interest in it in December 1998.
FURTHER CLARIFICATIONS
The Board noticed that the Hubei Court Notice reproduced in the
Cheung Announcement was addressed to the Company and Mr. Cheung Wing
Keung, Samuel and it refers to an indictment (the ``Indictment'')
delivered by the Company on 23rd February, 2000. The Board was not
aware of the Indictment and had never authorised any person,
including Mr. Cheung Wing Keung, Samuel to issue it on its behalf.
The Company has requested and Mr. Cheung Wing Keung, Samuel has
agreed to provide a copy of the Indictment for the Board's perusal.
The Board (including members of the Independent Board Committee)
has requested the Cheung Directors to clarify the various
statements made in the Cheung Announcement.
Report of the independent board committee
The Board expects that the Independent Board Committee's report on
the Wuhan Company investment will be available on around 7th April,
2000. The Company will publish full details of the said report as
soon as possible.
Trading of the Company's Shares
The trading of the Company's shares will remain suspended pending
the outcome of the investigation of the Independent Board Committee.
Further announcement on the progress and outcome of the
investigation will be published as and when the Board considers
appropriate.
APPROVAL OF THIS ANNOUNCEMENT
The publication of this announcement has been approved by Mr. Cheng
Chao Ming, Jenson, Mr. Xiong Pingbo, Paul, Mr. Zeng Xiang Zhi, Mr.
Ching Kwok Leung, Mr. Hui Yat On, Kelvin, Mr. Chen Vee Yong,
Frederick as well as Dr. Charles W.B. Cheung J.P. and Ms. Amelia
O.M. Cheung who were acting as the independent non-executive
directors and members of the Independent Board Committee. The
Cheung Directors have confirmed that they disagree with certain
parts of this announcement and will make clarifications in a
separate announcement accordingly. The Cheung Directors have also
confirmed that they may in due course make such further
announcements as they deem necessary. Each of the directors of the
Company who approved this announcement take responsibility for the
accuracy of this announcement. Mr. Cheung Kung Tai, Ms. Cheung Lik
Ping and Mr. Gao Zong Ze were not contactable for the approval of
this announcement prior to the time of printing.
In the meantime, shareholders and potential investors should
exercise extreme caution when dealing in the securities of the Company.
Made by order of the Board
Hui Yat On, Kelvin
Director
Hong Kong, 30th March, 2000
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