Annual Report 2021

96 SHOUGANG CENTURY HOLDINGS LIMITED 首佳科技製造有限公司 REPORT OF THE DIRECTORS 董事會報告書 關連人士交易 （續） 關連交易－根據特定授權發行可換股債券 及轉換可換股債券 於二零一八年十二月十八日，本公司與京西控 股（本公司關連人士）訂立認購協議，據此，本 公司有條件同意發行而京西控股有條件同意認 購本金額最高為港幣 150,000,000 元的可換股 債券。可換股債券附帶轉換權，可按換股價每 股換股股份港幣 0.33 元（可予調整）轉換為換股 股份，及可換股債券將按年利率 4.0% 計息， 且將於可換股債券發行日期後第三個週年當日 到期。假設轉換權按換股價獲悉數行使，並假 設股份總數概無其他變動， 454,545,454 股新 股份（即換股股份）可在轉換限制規限下分配 及發行予京西控股，相當於二零一九年十二月 三十一日已發行股份總數約 23.64% 以及經分 配及發行換股股份擴大後的已發行股份總數約 19.12% 。 認購協議所得款項淨額港幣 149,000,000 元 預期用作下列用途： (i) 約港幣 37,300,000 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 110,000,000 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 州東方及嘉興東方之生產需求所需時間；及 (iii) 所得款項餘額約港幣 1,700,000 元用於補充一 般營運資金。 RELATED PARTY TRANSACTIONS (continued) Connected Transaction – Issue of the Convertible Bonds under Specific Mandate and Conversion of the Convertible Bonds On 18 December 2018, the Company entered into the Subscription Agreement with Jingxi Holdings (a connected person of the Company) whereby the Company conditionally agreed to issue and Jingxi Holdings conditionally agreed to subscribe for the Convertible Bonds in the principal amount of up to HK$150,000,000. The Convertible Bonds carry the Conversion Rights to convert into the Conversion Shares at the Conversion Price of HK$0.33 per Conversion Shares (subject to adjustment), and the Convertible Bonds will carry an interest rate of 4.0% per annum and will mature on the third anniversary of the issue date of the Convertible Bonds. Assuming the Conversion Rights are exercised in full at the Conversion Price, 454,545,454 new Shares, being the Conversion Shares, may be allotted and issued to Jingxi Holdings subject to the Conversion Restrictions, representing approximately 23.64% of the total number of issued Shares as at 31 December 2019 and approximately 19.12% of the total number of issued Shares as enlarged by the allotment and issue of the Conversion Shares, assuming that there is no other change to the total number of Shares. The net proceeds from the Subscription Agreement of HK$149,000,000, are expected to be used as follows: (i) as to approximately HK$37,300,000 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$110,000,000 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$1,700,000 being the remaining proceeds for supplementing general working capital.