Annual Report 2018

47 年報 ANNUAL REPORT 2018 管理層論述及分析 MANAGEMENT DISCUSSION AND ANALYSIS App r o x i ma t e l y HK$ 1 1 0 , 0 0 0 , 0 0 0 f r om i s s u a n c e o f Convertible Bonds on 11 February 2019 will be used for funding the capital expenditures and working capital for TESC Phase II Project. The Group intends to upgrade some of its brass wires production lines by supplementing the existing production facilities with the TESC Phase II Project. The project is to proceed in phases commencing in the latter half of 2019 and planned to be completed in the third quarter of 2020. Capital Commitments Capital expenditures incurred by the Group during the year amounted to HK$54,231,000, which were mainly incurred by Steel cord segment for enhancement of its production facilities. The capital expenditures to be incurred in 2019 is estimated to be approximately HK$13,969,000, which are to be incurred by Steel cord segment mainly for enhancement of production efficiency of the two manufacturing plants. These capital expenditures will be financed by the Group’s internal resources and bank borrowings. Issue of Convertible Bonds On 18 December 2018, the Company entered into the Subscription Agreement with Jingxi Holdings (a related party and a wholly-owned subsidiary of Shougang Fund) whereby the Company issued and Jingxi Holdings subscribed for the Convertible Bonds in the principal amount of HK$150,000,000. The interest rate is 4.0% per annum while Conversion Price is HK$0.33 per Share, with conversion available commencing 6 months from issuance date till end of term. Tenor is 3 years from issuance date which can be extended by Jingxi Holdings for one year twice to the date falling on the fifth anniversary of the issue date of the Convertible Bonds. The Conversion Price was arrived at after arm’s length negotiations between the Group and Jingxi Holdings with reference to the prevailing market prices of the Shares. On 11 February 2019, the issue of Convertible Bonds was completed. 二零一九年二月十一日發行的可換股債券約港 幣 110,000,000 元將用於滕州東方二期項目的 資本支出和營運資金。本集團擬通過滕州東方 二期項目補充現有的生產設施來提升對部分黃 絲的生產線。 該項目將從二零一九年下半年開始分階段進 行，並計劃在二零二零年第三季完成。 資本承擔 於 本 年 度 ， 本 集 團 資 本 開 支 共 港 幣 54,231,000 元，主要是用於提升鋼簾線分部 生產設施的資本開支。 本 集 團 預 計 在 二 零 一 九 年 投 資 約 港 幣 13,969,000 元的資本開支，主要是用於鋼簾 線分部以提升兩間生產廠房的生產效率。該等 資本開支將會通過本集團內部資源及銀行借貸 籌集。 發行可換股債券 於二零一八年十二月十八日，本公司與京西控 股（有關連人士及北京首鋼基金有限公司的附 屬公司）訂立認購協議，據此，本公司發行而 京西控股認購本金額最高為港幣 150,000,000 元的可換股債券。年利率為 4.0% 而換股價為 每股股份港幣 0.33 元，自發行日起至期末六個 月開始轉換。期限由發行日起三年，可由京西 控股延長兩次，每次一年至可換股債券發行日 期後至第五個週年當日。 換股價乃由本集團與京西控股參考股份的現行 市價經公平磋商後釐定。於二零一九年二月 十一日，發行可換股債券完成。