Annual Report 2020

MANAGEMENT DISCUSSION AND ANALYSIS 管理層論述及分析 33 2020 ANNUAL REPORT 年報 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，自發行日六個月起開始轉換至期末。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。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（首控香港及其關連人士提供的貸款 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.