Annual Report 2019

31 年報 ANNUAL REPORT 2019 MANAGEMENT DISCUSSION AND ANALYSIS 管理層論述及分析 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（關連人士及首鋼基金的附屬公司）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，發行可換股債券已完成。認購事項所 得款項淨額（經扣除成本及開支約港幣 1 百萬 元後）約為港幣 149 百萬元及預期用作下列用 途： (i) 約港幣 37.3 百萬元用於償還本集團利率 較高的計息貸款（首控香港及其關連方提供的 貸款除外）； (ii) 約港幣 110 百萬元用於為滕州 東方二期項目的資本投資提供資金，惟受限於 建設成本及補充滕州東方及嘉興東方的生產 需求所需時間；及 (iii) 所得款項餘額約港幣 1.7 百萬元用於補充一般營運資金。 Issuance 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 issuance of the Convertible Bonds was completed. The net proceeds from the Subscription, after deducting the costs and expenses of approximately HK$1 million, are approximately HK$149 million and are expected to be used as follows: (i) as to approximately HK$37.3 million for repaying interest-bearing borrowings with higher interest rate of the Group (excluding borrowings provided by Shougang HK and its related party(ies)); (ii) as to approximately HK$110 million for funding the capital investment for the TESC Phase II Project subject to the construction cost and time needed to supplement the production need for both TESC and JESC; and (iii) as to approximately HK$1.7 million, being the remaining proceeds for supplementing general working capital.