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FORM2

StandardCodes
EXPLANATORYNOTESTODINOTICES
FORM2CORPORATESUBSTANTIALSHAREHOLDERNOTICE

GeneralNotes

1.TheseExplanatoryNotesexplaintheentriesthatcanbeseenonasearchreportthatshowsaDInoticeForm2
CorporateSubstantialshareholderNotice.Form2isforusebyacorporationdisclosinganotifiableinterestina
HongKonglistedcorporationunderPartXVoftheSecuritiesandFuturesOrdinance(Cap.571)(theOrdinance).
ThesubstantialshareholdermustfilethenoticewithTheStockExchangeofHongKongLimited(SEHK)andthe
listedcorporationconcernedatthesametimeoroneimmediatelyaftertheother.

2. Aseriesofnumbersandtitlesappearsonthescreenstartingwith1.Nameoflistedcorporation.Thenumbers
correspondtothenumbersontheboxesofForm2andthetitlesarethedescriptionsoftheboxesonForm2.The
informationoppositethetitles,orshownintheboxesonthesearchreport,istheinformationthathasbeenentered
bythesubstantialshareholderontheForm.Theinformationontheformisnotcheckedbeforebeingenteredonthe
databaseandifincorrectinformationisdisclosedbythesubstantialshareholderthenthesameinformationwillbe
reproducedinthesearchresult,uncorrected.

3. Substantial shareholders are only required to complete boxes that apply to them so you may find several
numbers/boxesareblank.Inaddition,boxes8to12containbusinessregistration/certificateofincorporationnumbers
andcontactinformationthatcannotbeviewedbythepublic.Unlessasubstantialshareholderhasdisclosedthathe
hasashortpositiontherowsonForm2entitledshortpositionarealsonotshownonthesearchreport.Youcan
downloadablankcopyofForm2andthedetailedNotesgivingdirectionsandinstructionsoncompletingtheForm
byvisitingtheHKExwebsiteathttps://sdinotice.hkex.com.hk

4.EachForm2shouldhavebeencompletedinaccordancewiththedirectionsandinstructionsintheNotestotheform.
TheseexplanatorynotesmirrorthedirectionsandinstructionsintheNotestoForm2.Theinformationontheform
canalsobeviewedbyinspectingtheregisterofRegisterofInterestsinSharesandShortPositionsofSubstantial
Shareholdersmaintainedbythelistedcorporationconcerned.

Meaningofnotifiableinterest,shares,substantialshareholderintheseNotes.

5.Anotifiableinterestisaninterestof5%ormoreofthevotingsharesofaHongKonglistedcorporation(inForm2
andtheseNotesshortenedtoshares).Form2andtheseNotesusethetermsubstantialshareholdertodescribe
apersonwithanotifiableinterest.

Relevantevent

6. Asubstantialshareholdermustgivenotificationofinterestsinsharesofalistedcorporation,andanyshort
position(explainedinnote12below)ontheoccurrenceofcertaineventscalledrelevantevents(sees.308ofthe
Ordinance).Relevanteventsinclude:

(i)Whenasubstantialshareholderfirstbecomesinterestedin5%ormoreofthesharesofalistedcorporation
(i.e.whenitfirstacquiresanotifiableinterest).
(ii)Whenitsinterestdropsbelow5%(i.e.itceasestohaveanotifiableinterest).
(iii) Whenthereisanincreaseordecreaseinthepercentagelevelofitsholdingthatresultsinitsinterest
crossingoverawholepercentagenumberwhichisabove5%(e.g.itsinterestincreasesfrom6.8%to7.1%
crossingover7%).
(iv)Whenasubstantialshareholderhasanotifiableinterestandthenatureofitsinterestintheshareschanges(
e.g.onexerciseofanoption).
(v) Whenasubstantialshareholderhasanotifiableinterestanditcometohave,orceasetohave,ashort
positionofmorethan1%(e.g.itisitisalreadyinterestedin6.8%ofthesharesofalistedcompanyandtake
ashortpositionof1.9%).
(vi) When a substantial shareholder has a notifiable interest and there is an increase or decrease in the
percentagelevelofitsshortpositionthatresultsinitsshortpositioncrossingoverawholepercentage
numberwhichisabove1%.(e.g.itisitisalreadyinterestedin6.8%ofthesharesofalistedcompanyand
increasesitsshortpositionfrom1.9%to2.1%).
(vii)Ifasubstantialshareholderhasaninterestin5%ormoreofthesharesofacorporationthatisbeinglisted,
sharesofaclassthatisbeinglisted,orsharesofaclasswhicharebeinggivenfullvotingrights..
(viii)OncommencementoftheOrdinance,ifasubstantialshareholderhasaninterestin5%ormoreoftheshares
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ofalistedcorporation,orifithasanotifiableinterestandashortpositionof1%ormore,whichhasnot
previouslybeendisclosed.
(ix)Ifthe5%thresholdisreducedorthe1%thresholdforshortpositionsisreduced.

Anotificationofrelevantevents(vii)to(ix)isdescribedinForm2andtheseNotesasanInitialNotification.

Relevantevent(iv)maynotalwaysgiverisetoadutytogiveanotification.Thechangeinthenatureofitsinterest
isnotrequiredtobereportedifthepercentagelevelofitsinterestthathasnotchanged,andthepercentagelevelof
itsinterestatthelastnotificationgivenbyitisthesame.Forexample,ifasubstantialshareholderhasaninterestin
5.6%ofthesharesofalistedcorporationandlends0.5%thepercentagelevelofitsinterestthathasnotchangedis
5.0%(i.e.5.6%less0.5%equalsapercentagefigureof5.1%whichisthenroundeddowntoapercentagelevelof
5.0%)andnonotificationneedbemade.However,ifithasaninterestin5.6%ofthesharesofalistedcorporation
andlend 1.0% the percentage level of its interest that has not changed is 4.0% (i.e. a percentage figure of 4.6%
roundeddowntoapercentagelevelof4.0%)andanotificationmustbemade.

Timingofnotification

7.Inthecaseofevents(i)to(vi)inNote5,asubstantialshareholdermustgivethenotificationwithin3businessdays
ofthedayonwhichitbecameawareoftherelevantevent.Thetermbusinessdaymeansadayotherthanapublic
holidayandadayonwhichablackrainstormwarning,oragalewarning,isinforcei.e.itwouldnormallyinclude
SaturdaysbutnotSundays.Theperiodiscalculatedexcludingthedaythattherelevanteventoccurred.

For an Initial Notification, a substantial shareholder must normally give the notification on this Form 2 within 10
businessdaysaftertherelevantevent.However,ifatthatdateitwasnotawarethatithadanotifiableinterest,ora
shortposition,thenitmustgivethenotificationwithin10businessdaysofthedayitbecameawarethatithadsuch
aninterestorshortposition.

Theperiodallowedforfilinganoticerunsfromthetimethesubstantialshareholderknowsofthefactsthatconstitute
the event (e.g. the purchase of the shares, the delivery of the shares, the buy back of shares by the listed
corporation),notthedaythatitrealizesthattheeventgaverisetoadutyofdisclosureunderPartXV.

Workingoutthepercentagefigureofitsinterest

8.InBoxes18and19ofForm2asubstantialshareholderisaskedtostatethepercentagefigureofitsinterest.Towork
thisoutitexpressesthetotalnumberofsharesinwhichitisinterestedasapercentageofthenumberofsharesofthe
listedcorporationinissue(i.e.thenumberinBox4).Thisfigureisthenroundedtotwodecimalplaces.Toworkout
thepercentagelevelofaninterestyousimplyrounddownthepercentagefigureoftheinteresttothenextwhole
number.

9.Incalculatingthetotalnumberofsharesinwhichasubstantialshareholderisinteresteditmustincludealljoint
interests(seeNotetoBox23below)intereststhroughderivatives(seeNote10below)andanysuchinterestsin
sharesofthesamelistedcorporationthatanyofthefollowingpersonsandtrustshave:

(i)Acorporationwhichitcontrols(i.e.acorporationisacontrolledcorporationifitcontrolsonethirdor
moreofthevotingpoweratgeneralmeetingsofthecorporation,orifthecorporationoritsdirectorsare
accustomedtoactinaccordancewithitsdirections)(seenotestoBox22)
(ii)Atrust,ifitisatrusteeofthetrust(otherthanatrustwhereitisabaretrusteei.e.whereithavenopowers
ordutiesexcepttotransferthesharesaccordingtothedirectionsofthebeneficialowner)(seenotestoBox
24)
(iii)Adiscretionarytrust,ifitisthefounderofthetrust(e.g.ithadthetrustsetuporputassetsintoitand
caninfluencehowthetrusteeexerciseshisdiscretion(seenotestoBox24)
(iv)Atrustofwhichitisabeneficiary(discretionaryinterestsmaybeignored)
(v)Allpersonswhohaveagreedtoacquireinterestsinsharesinthelistedcorporation,ifitisapartytothe
agreement(seenotestoBox25).

10. Asubstantialshareholdermustalsocountasitsshortpositionanyshortpositionsthatthepersonsandtrusts
mentionedinNote8have.Thismaycreateashortposition(ifitdoesnothaveashortpositionalready)orincreases
thesizeofitsshortposition.

11.Incalculatingthelevelofitsinterestinsharesasubstantialshareholdermustaddtogetherbothdirectandindirect
interests.Itmustnotnetofflongpositionsandshortpositionsbutmustdisclosetheseseparately.Indirectinterests
includeinterestsinsharesunderlyingequityderivatives.Equityderivativesincludeinstrumentssuchasoptions,
warrants,stockfuturesandarereferredtointhesenotesasderivatives.Underlyingsharesarethesharesthat
mayberequiredtobedeliveredtoaperson,orbyaperson,underthederivatives,andincludethesharesusedto
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determine the price or value of the derivatives (e.g. In the case of an issue of European Style Cash Settled Call
Warrants20012002relatingtoordinarysharesofHK$10.00eachinXYZLtd.issuedbyABCInvestmentBankthe
underlyingsharesareordinarysharesofHK$10.00eachinXYZLtd.).

Longpositionsandshortpositions

12.Asubstantialshareholderhavealongpositionifithasaninterestinshares,includingintereststhroughholding,
writingorissuingderivativesunderwhich,forexample:

(i)ithasarighttotaketheunderlyingshares
(ii)itisunderanobligationtotaketheunderlyingshares
(iii)ithasarighttoreceivemoneyifthepriceoftheunderlyingsharesincreasesor
(iv)ithasarighttoavoidorreducealossifthepriceoftheunderlyingsharesincreases.

13. Asubstantialshareholderhasashortpositionifitborrowssharesunderasecuritiesborrowingandlending
agreement,orifitholds,writesorissuesfinancialinstruments(includingderivatives)underwhich,forexample:

(i)ithasarighttorequireanotherpersontotaketheunderlyingshares
(ii)itisunderanobligationtodelivertheunderlyingshares
(iii)ithasarighttoreceivemoneyifthepriceoftheunderlyingsharesdeclinesor
(iv)ithasarighttoavoidalossifthepriceoftheunderlyingsharesdeclines.

14. Thenumberofsharesinwhichasubstantialshareholderistakentobeinterested,ortohaveashortposition,
throughderivativesis:

(i)thenumberofsharesrequiredtobedeliveredtoit,orbyit,underthederivatives
(ii) thenumberofsharesbyreferencetowhichtheamountpayableunderthederivativesisderivedor
determinedor
(iii)(inthecaseofstockfuturescontracts)thecontractmultipliertimesthenumberofcontractsitholds.
Ifanypartytoaderivativecanchoosewhethertosettleincashorbydeliverythenuse(i)toworkoutthenumberof
shares in which it is interested. If it is not possible to determine the number of shares in which a substantial
shareholderistakentobeinterested(orhaveashortposition)atthedatewhenitfirstacquiresaninterestinthe
underlyingsharesthroughanequityderivativethenitneednotfileanotice.However,itshouldfileanoticewhenit
firstbecomesawareofthenumberofsharesthatwillbedeliveredtohim/willberequiredtobedeliveredbyhim.For
example,ifthenumberofsharesthatitwillreceiveunderanequityderivativeisdeterminedbythepriceoftheshares
onagivendateinthefuture(andthereisnominimumormaximumnumberthatitisboundtoget)thennodutyof
disclosurearisesonenteringintothederivative.Oncethenumberofsharesthatitwillreceiveisknownadutyof
disclosurearises.

15.PersonsareaskednottosendcopiesofsharepurchaseagreementsandotherdocumentstoSEHKorthelisted
corporationconcernedwhenfilingForm2(exceptasindicatedintheNotestoBox25).Attachingadocumentthat
explains the transaction in question does not discharge the duty to complete the prescribed form. Copies of any
documents that are sent to SEHK are maintained in a register and are available for inspection by the public. To
inspectthesedocumentspleasecontactSEHK.

16.TheOutlineofPartXV(Outline)publishedbytheSecuritiesandFuturesCommission(SFC)givesfurther
guidanceonthesituationsinwhichanoticehastobefiledunderPartXV.AcopyoftheOutlinecanbedownloaded
fromtheSFCswebsitehttp://www.hksfc.org.hk.

SpecificNotes

Ifthesubstantialshareholderisgivingnotificationthatithasceasedtohaveanotifiableinterestthenitneedonly
completeboxes1to19and27ofForm2.Inthecaseofothereventsallboxeswhichapplytoitshouldbecompleted.
IftherearesomeboxesintheFormthatdonotapplytoasubstantialshareholderitisdirectedthattheseshouldbe
eitherleftblankorheshouldinsertNIL.

Personsgivingnoticeundersection5(4)oftheSecuritiesandFutures(DisclosureofInterestsSecuritiesBorrowing
andLending)Rules(L.N.219of2002)shouldreadthenotesonpage11.

Box1Asubstantialshareholderisdirectedtocompletethenameofthelistedcorporationinwhosesharesitisinterested.

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Box 3 A few corporations have two classes of share capital, each with voting rights (e.g. A and B shares). A
substantialshareholderisdirectedtostatetheclassofsharesinwhichitisinterested.Ifitithasaninterestin5%or
moreoftwoclassesofsharesthenitshouldcompleteaseparatenoticeforeachclassofshares.

Box4Asubstantialshareholderisdirectedtostatethenumberofshares(intheclassofsharesinwhichitisinterested)
whichhavebeenissuedatthedateoftherelevantevent.Ifthenumberofsharesinissueisgreaterimmediatelyafter
therelevanteventthanitwasimmediatelybeforethateventthenitshouldstatethehigherfigure.Itcanfindthe
numberofsharesissuedontheHKExWebSiteoritcanaskthecorporation.

Boxes5to12.Asubstantialshareholdershouldhavestatedthedetailsasindicated.Itisaskedtostateitscompanynamein
fullasitappearsonthecertificateofincorporation.ItshouldonlycompleteBox8ifithasaHongKongbusiness
registration number. In Box 9 it should state the place where it was incorporated and give the number on the
certificate of incorporation. The data entered in Boxes 8 to 12 is not be available for viewing by the public when
searchingtheDIpagesoftheHKExwebsite.

Box13Ifitisalistedcorporationitshouldstatethenameoftheexchangeonwhichitislisted.

Box14Ifitsparentcompanyisalistedcorporationitshouldstatethenameofitslistedparentandtheexchangeonwhichit
islisted.Ifitsparentcompanyislistedonseveralexchangesitshouldgivetheprimarylisting.

Box15Asubstantialshareholderisdirectedtostatethedateoftherelevantevent(explainedinNote4)whichgaveriseto
thedutyofdisclosure.

Box16Inthecaseofevents(i)to(vi)inNote5,ifitbecameawareoftherelevanteventonadatelaterthanthedatethatit
occurred,thenitshouldputthedatethatitbecameawareoftheeventthattriggersthereportingobligationinBox
16.

ForanInitialNotification,ifitwasnotawarethatithadaninterest,orashortpositionatthedateoftherelevant
event,orwasnotawarethatithad5%ormoreofthesharesofthelistedcorporation,thenitshouldhaveputthe
datethatitbecameawarethatithadsuchaninterestinthesharesinBox16.

Box17Box17asksfordetailsoftherelevantevent.ThisistheeventthattriggerstheNotice.Inthecaseofrelevantevents
(i)to(viii)inNote5thedetailsthatitmustgiveinBox17relatetothesharesbought/soldorinvolvedatthattime
nottheshareswhichitalreadyhas.Wheretherelevanteventispromptedbyatransactionthatformspartofaseries
oftransactionseffectedonthesameday,thedetailsoftherelevanteventthatitgivesinBox17shallrelatetoall
sharesinwhichitacquiredaninterest,ceasedtohaveaninterestorthenatureofitsinterestchangedonthatdayas
aresultofthatseriesoftransactions.

InthecaseofanInitialNotificationinBox17itneedonlycompletecolumn2(asthenotificationisnotpromptedby
theacquisitionordisposalofaninterestinshares).

InBox17column2itshouldhaveenteredtheCodefromTable1belowwhichbestdescribestherelevantevent.It
willseefromNote8abovethatifapersonconnectedwiththesubstantialshareholderacquiresaninterestinshares
theirinterestwillbetreatedasitsinterest.Forexample,ifacompanythatitcontrolsfirstacquired5%ormoreofthe
sharesofalistedcorporationthecontrolledcorporationwoulduseCode101andthesubstantialshareholdershould
treattheacquisitionashisacquisitionandusetheappropriateCodeinthiscaseCode101ifitdidnotalreadyhave
anotifiableinterestitself.

Asubstantialshareholderisdirectedtousetherowentitledshortpositionifitisfilingthenoticebecauseofa
changeinashortposition.Thenormalpositionisthateitheralongpositionorashortpositionwillgiverisetoa
dutyofdisclosure(notbothsimultaneously).Howeverifthetransactioncreatesbothalongandashortposition
simultaneously(suchasborrowingshareswhichgivesrisetobothalongandashortposition)thenitcancomplete
bothrows.

Table1Eventorchange
Code

LONGPOSITIONS
Firstacquiringanotifiableinterest
Firstbecominginterestedin5%ormoreofthesharesofthelistedcorporation.Thisincludesall
acquisitionswhetherbypurchaseorgift,orbyrights/bonusissueandtakingstepstoenforcerightsin
respectofsharesheldbywayofsecurity
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Ceasingtohaveanotifiableinterest
Ceasingtohaveaninterestinatleast5%ofthesharesofthelistedcorporation
Changeinthepercentagelevelofitsinterest
Acquisitionordisposalresultinginthepercentagelevelofitsinterestcrossingoverawholepercentage
number(e.g.itsinterestincreasesfrom6.8%to7.1%crossingover7%)
Event(otherthananacquisitionordisposal)resultinginthepercentagelevelofitsinterestinsharesof
thelistedcorporationcrossingoverawholepercentagenumber(e.g.thereisachangeintheissued
sharecapitalofalistedcorporationsothatitsinterestreducesfrom7.1%to6.8%crossingover7%)
Changesinnatureofaninterest
Exerciseofarightoranoptionifithas5%ormoreofthesharesofthelistedcorporation
Lendingofsharesunderasecuritiesborrowingandlendingagreementifithas5%ormoreoftheshares
ofthelistedcorporation
Returnofsharesofthelistedcorporationlentunderasecuritiesborrowingandlendingagreementifit
has(orhadimmediatelybeforethereturnoftheshares)5%ormoreofthesharesofthelisted
corporation
Otherevents
Onlistingofthecorporationifithas5%ormoreofthesharesofthecorporation
Onlistingofaclassofsharesofalistedcorporationifithas5%ormoreofthesharesofthatclass
OncommencementoftheOrdinanceifithas5%ormoreofthesharesofalistedcorporationandsuch
interestwasnotdisclosedundertheSecurities(DisclosureofInterests)Ordinance(Cap.396)beforeits
repeal
SHORTPOSITIONS
Comingtohaveashortpositionof1%(ifitalsohas5%ormoreofthesharesofthelistedcorporation).
Thisincludesashortpositionthroughholdingderivativesandborrowingsharesunderasecurities
borrowingandlendingagreement

102

103

Ceasingtohaveashortpositionof1%(ifitalsohas5%ormoreofthesharesofthelistedcorporation)
Acquisitionordisposalorothereventresultinginthepercentagelevelofitsshortpositioncrossing
overawholepercentagenumberwhichisabove1%(ifitalsohas5%ormoreofthesharesofthelisted
corporation)e.g.itsshortpositionincreasesfrom1.9%to2.1%crossingover2%
OncommencementoftheOrdinanceifithasashortpositioninthesharesofalistedcorporationof1%
ormore(ifitalsohave5%ormoreofthesharesofthelistedcorporation)
MISCELLANEOUS(longandshortpositions)
Voluntarydisclosure
Noticeundersection5(4)oftheSecuritiesandFutures(DisclosureofInterestsSecuritiesBorrowing
andLending)Rules(L.N.219of2002)
Other(Thiscoversanynotifiableeventnotmentionedabove)

112

104

105
106
107

108
109
110

111

113

114

115
116

117

AsubstantialshareholderisdirectedtoselectfromTable2belowtheCodewhichbestdescribesthecapacityor
natureofitsinterestandentertheCodeinBox17column3and/or4.Ifithasdisposedofaninterestinsharesit
shouldchoosetheCodedescribingthecapacityinwhichitheldthesharesimmediatelybeforeitdisposedofthem
andenterthisCodeinBox17column3.IfithasacquiredaninterestinsharesitshouldchoosetheCodedescribing
thecapacityinwhichitheldthesharesimmediatelyafteritacquiredthemandenterthisCodeinBox17column4.Ifit
is giving notice of a change in the nature of itsinterest in shares, it should complete the Codes describing the
capacityinwhichithelditsinterestinthosesharesbeforeandaftertherelevanteventi.eitmustcompleteboth
columns3and4.Ifitis,orwas,thebeneficialownerbutanotherCodealsoapplies,asubstantialshareholderis
directedtousethelatterCoderatherthanCode201.

Asubstantialshareholderisdirectedtousetherowentitledshortpositionifitisfilingthenoticebecauseofa
changeinashortposition.

Code
Table2Capacity

Beneficialowner
Investmentmanager
Personhavingasecurityinterestinshares
Interestsbyattribution
Interestofcorporationcontrolledbythesubstantialshareholder
Trustsandsimilarinterests
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201
202
203

205

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FORM2

Nomineeforanotherperson(otherthanabaretrustee)
Trustee(otherthanabaretrustee)
Custodiancorporation/approvedlendingagent
Founderofadiscretionarytrust
Beneficiaryofatrust(otherthanadiscretionaryinterest)
Personsactinginconcert
Interestsofanypartiestoanagreementtoacquireinterestsinaparticularlistedcorporationrequired
tobedisclosedunders.317(1)(a)ands.318
Interestsofanypartiestoanagreementtoacquireinterestsinaparticularlistedcorporationrequired
tobedisclosedunders.317(1)(b)ands.318(controllingshareholderprovidingcash/makingaloanto
otherpartiestosuchanagreement)
Miscellaneous
Interestsheldjointlywithanotherperson
Other

206
207
208
209
210

211
212

213
214

InBox17column5itshouldhavestatedthenumberofsharesconcerned(e.g.thenumberofsharesitboughtthat
triggeredtheNotice).Forachangeinthenatureofaninterest(e.g.onexerciseofanoption)itshouldhavestated
thenumberofsharesaffectedbythechange.

InBox17 column 6 it should have chosen the currency in which the price for the interest in shares described in
column5waspaidorreceived.

Lastly, it should have stated the consideration per share paid or received (for the interest in shares described in
column5)incolumns7/8or9/10ofBox17underOnExchangeorOffExchangeasappropriate.Incolumn7it
shouldstatethehighestpricepersharewhilstincolumns8and9itshouldstatetheaverageprice/considerationper
share.AnacquisitionordisposalismadeOnExchangewhenthetransactiontookplaceintheordinarycourseof
tradingonarecognizedexchangeandOffExchangecoversallothertransactions.Ifnopriceorconsiderationhas
beenpaidorreceived,oriftheconsiderationisservicesprovided,thepriceorconsiderationshouldbestatedas0.
CodesdescribingtheprincipaltypesofconsiderationforOffExchangetransactionsaresetoutinTable3below.
Using Table 3 it should have selected the Code which best describes the nature of the consideration it paid or
receivedandentereditinBox17column10.Ifthetransactionthatpromptsdisclosureisachangeinthenatureofits
interestinshares(e.g.asecuritiesborrowingandlendingtransaction),atransactioninderivatives,orachangeina
short position, the highest price per share and the average price per share (average amount and nature of the
considerationforoffexchangetrades)shouldhavebeenleftblank.

Table3Natureofconsideration
Cash
Assetsotherthancash

Code
301
302

Natureofconsideration

Surrenderofrightstoshares
Services

Code
303
304

ExampleofhowtocompleteBox17.

WehavesetoutbelowanexampleofhowBox17shouldhavebeencompleted.Assumethatthepersoncompleting
the form is a substantial shareholder who already owns 4,500,000 shares in the listed corporation or 4.5% of the
sharesinissue.On31st December2003itpurchased(throughtheStockExchange)400,000sharesforHK$800,000
and100,000sharesforHK$210,000(allsharestobeheldbeneficially)increasingitstotalshareholdingto5%.Asthe
twotransactionsareaseriesoftransactionsonthesamedatethedetailsoftherelevanteventthatitshouldgivein
Box17relatetothepurchaseof500,000shareswhichistherelevantevent.Thedateoftherelevanteventtobe
insertedinBox15wouldbe31.12.2003anditshouldcompleteBox17inthefollowingmanner.TheCodestobe
usedaredescribedbelow.

17.De tailsofre le van te ve n t

Relevantevent Codedescribingcapacity
codedescribing inwhichshareswereheld
circumstances( (seeT able2)
seeT able1)

Before

http://sdinotice.hkex.com.hk/di/notes/NSForm2.htm

After

Numberof
shares
bought/
soldor
involved

Currency

OnExchange

Highest
priceper

Average
priceper

OffExchange

Average
consideration

Consideration
Code(see
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Long
position
Short
position

FORM2

101

relevant
event

relevant
event
201

500,000

share

share

pershare

T able3)

HKD

2.10

2.02

Box 18 In column 2 of Box 18 a substantial shareholder is directed to state the total number of shares in which it were
interested,andthoseinwhichithadashortposition,immediatelybeforetherelevantevent.Thisfigureincludesall
jointinterests,intereststhroughequityderivativesanddeemedinterests(seenote8).Incolumn3itshouldstatethe
percentagefigureofitsinterest,andshortposition(ifany),immediatelybeforetherelevantevent.Note7explains
howtocalculatethepercentagefigure.

Unlessitisgivinganoticeundersection5(4)oftheSecuritiesandFutures(DisclosureofInterestsSecurities
BorrowingandLending)Rules(L.N.219of2002)asubstantialshareholderwillignorerow3ofBox18.

Box19AsubstantialshareholdershouldcompleteBox19inthesamemannerasBox18specifyingthenumberofsharesin
whichitwasinterested,andthoseinwhichithadashortpositionimmediatelyafterthedateoftherelevantevent.
Thisfigureincludesalljointinterests,intereststhroughequityderivativesanddeemedinterests(seenote8).

Unlessitisgivinganoticeundersection5(4)oftheSecuritiesandFutures(DisclosureofInterestsSecurities
BorrowingandLending)Rules(L.N.219of2002)asubstantialshareholderwillignorerow3ofBox19.

Box20AsubstantialshareholdershouldhaveselectedfromTable2theCodewhichbestdescribesthecapacityinwhichit
heldtheshareslistedinBox19andentereditinBox20column1.Ifitheldsomeofitsinterestsinonecapacity(e.g.
asbeneficialowner),andotherinterestsinanothercapacity(e.g.astrustee)thenitshouldhaveusedtwoCodes(on
differentrows)andstatedthenumberoftheinterestsinsharesheldineachcapacity(ondifferentrows)incolumn
2.

Ifitalsohasashortpositionitshouldhavestatedthecapacityorcapacitiesinwhichitheldthatshortposition,
usingtheappropriateCode(s),incolumn3.

Derivativeinterests

Box21Ifitderivesallorpartofitsinterestinshares(oritsshortposition)whicharelistedinBox19fromequityderivatives,
itshouldhaveselectedfromTable4belowtheCodewhichbestdescribesthederivativesthatitholdsandentered
thatCodeinBox21column1.Itshouldhavestatedthenumberofsharesinwhichitderivesaninterest(orashort
position)fromthederivativesincolumn2(or3).Note13explainshowtoworkthisout.Ifithasmorethanone
derivative of the same category, it should have added them together and stated the total number (in one row) in
column2(or3).

If it has more than one derivative but they are in different categories it should have used 2 or more codes (on
differentrows)andstatedthenumberofsharesforeachcategoryofderivative(ondifferentrows)incolumn2(or3).

Table4Categoryofderivatives
Code
Categoryofderivatives
Code

DerivativeslistedortradedonaStockExchange
Unlistedderivatives

ortradedonaFuturesExchange
Physicallysettled
401
Physicallysettled
403
Cashsettled
402
Cashsettled
404

Ifanypartytoaderivativecanchoosewhethertosettleincashorbydeliverythenitshouldtreatthatderivativeas
physicallysettled.

Interestsheldbyacorporationwhichitcontrol

Box22Ifthesubstantialshareholderisentitledtoexercise,orcontroltheexerciseof,onethirdormoreofthevotingpower
atgeneralmeetingsofacorporation,orthecorporationoritsdirectorsareaccustomedtoactinaccordancewithits
directions,andthatcorporationisinterestedinsharesofthelistedcorporationconcernedthengivedetailsofthat
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corporation(referredtointhesenotesasacontrolledcorporation)inBox22.Ifthereismorethanonecorporation
thatitcontrolsthendetailsofeachcontrolledcorporationmustbestatedseparatelyinBox22.
The substantial shareholder must also add the controlled corporations interest to its interests in working out
whetheritisunderadutyofdisclosureandwhencompletingBoxes17to21.Ifthecorporationwhichitcontrolsalso
hasashortpositionthenthesameprinciplesapply.

AsubstantialshareholderisdirectedtocompleteBox22asfollows

Column1:Statethenameofthecontrolledcorporationstartingwiththetopcontrolledcorporationinthegroup(if
youcontrolmorethanonecorporation).
Column2:Statetheaddressandplaceofincorporation(inbrackets)ofthecontrolledcorporation.
Column 3 : If it controls the controlled corporation state its name in column 3. If another corporation named in
column 1 of Box 22 controls the controlled corporation then state that corporations name in column 3. (The
substantialshareholdersnamewillnormallyappearinthefirstrowofcolumn3.Thecontrolledcorporationnamedin
thefirstrowofcolumn1normallyappearsinthesecondrowofcolumn3andsoon).
Column4:Statethepercentageofthesharesinthecontrolledcorporationthatthepersonnamedincolumn3ofthe
samerowcontrols.
Column5:Ifthecontrolledcorporationholdstheinterestinsharesofthelistedcorporationdirectly(asopposedto
theinterestbeingadeemedinterest)placeaYincolumn5,iftheinterestisadeemedinterestplaceaNin
column 5. If the controlled corporation holds some shares of the listed corporation directly, and some shares
indirectly,detailsoftheinteresthelddirectlyshouldbegiveninonerowofBox22andthesharesheldindirectly(the
deemedinterest)shouldbegiveninthefollowingrow(seetheexamplebelowwherethedirectandindirectinterests
ofWongIndustriesLtd.arestatedseparately).
Column 6 and 7 : State the number of shares of the listed corporation in which the controlled corporation is
interested(hasashortposition).

ExampleofhowBox22shouldhavebeencompleted.

AssumethatWongHoldingsLimitedowns100%ofthesharesinaprivatecorporationABC(HongKong)Ltd.which
owns51%ofthesharesinDEF(HongKong)Ltd.whichowns35%ofGHI(HongKong)Ltd.and65%ofWong
IndustriesLtd.WongIndustriesLtd.inturnowns100%ofthesharesinWongAssetManagementLtd.

ThegroupholdingsinXYZLtd.(alistedcorporation)areasfollows:GHI(HongKong)Ltd.hasacalloptionover
25,000,000 shares (physically settled) and has a short position in 10,000,000 shares under a cash settled equity
derivative(detailsofthesederivativeinterestswillhavebeengiveninBox21).WongIndustriesLtd.owns10,000,000
sharesandWongAssetManagementLtd.owns15,000,000shares.

GroupStructureandholdings

WongHoldingsLtd.

100%

ABC(HongKong)Ltd.

51%

DEF(HongKong)Ltd.

35%

65%

GHI(HongKong)Ltd.
WongIndustriesLtd.

25,000,000shares

100%

(10,000,000shortposition)

10,000,000shares

WongAssetManagement
Ltd.

15,000,000

shares
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XYZLtd.
(Alistedcorporation)

InthisexampletheentriesinBox22wouldbeasfollows

22.Furtherinformationinrelationtointerestsofcorporationscontrolledbysubstantialshareholder#

Nameofcontrolled
corporation

Address
and
incorporation

ABC(HongKong)
Ltd.

Unit1,26/FWongIndustrial
Bldg
ChaiWan,HK(HongKong)
Unit1,26/FWongIndustrial
Bldg
ChaiWan,HK(HongKong)
Unit1,26/FWongIndustrial
Bldg
ChaiWan,HK(HongKong)
Unit1,26/FWongIndustrial
Bldg
ChaiWan,HK(Bermuda)
Unit1,26/FWongIndustrial
Bldg
ChaiWan,HK(Bermuda)
Unit1,26/FWongIndustrial
Bldg
ChaiWan,HK(BritishVirgin
Islands)

DEF(HongKong)
Ltd.
GHI(HongKong)
Ltd.
WongIndustriesLtd.

WongIndustriesLtd.

WongAsset
M anagementLtd.

place

of

Nameofcontrolling
Shareholder

%
control

Direct
Interest
(Y/N)

Numberofshares
Longpositions

WongHoldingsLtd

100%

50,000,000

Short
positions
10,000,000

ABC(HongKong)
Ltd.

51%

50,000,000

10,000,000

DEF(HongKong)
Ltd.

35%

25,000,000

10,000,000

DEF(HongKong)
Ltd.

65%

10,000,000

DEF(HongKong)
Ltd.

65%

15,000,000

WongIndustriesLtd.

100%

15,000,000

Jointinterests

Box23Ifitisinterestedinsharesofthelistedcorporationconcernedjointlywithanotherpersonthentheyarebothtakento
beinterestedinallofthesharesheldjointlyincalculatingwhethertheyeachhavetofileanotice,andincompleting
Boxes17to21.Itshouldhavestatedthenameofthepersonwhoownstheinterestinthesharesjointlywiththe
substantialshareholder,his/heraddressandthenumberofsharesinwhichhe/sheisinterestedinBox23.

Thesameprinciplesapplytoshortpositionsheldjointly.

Interestsoftrusteeorbeneficiaryofatrustorfounderofadiscretionarytrust

Box24Ifitisatrusteeofatrust,abeneficiaryofatrust,orifitisthefounderofadiscretionarytrust(e.g.ithada
discretionarytrustsetuporputassetsintoit(andcaninfluencehowthetrusteeexerciseshisdiscretion),thenit
shouldhaveaddedallofthesharesinwhichthetrusthasaninterest(orashortposition)toitsinterestsinworking
outwhetheritmustfileanotice.Itshouldhavediscloseddetailsofthatinterest(orshortposition)whencompleting
Boxes17to21.ItmayhavestatedthenameoftheTrustwhichownstheinterestinthesharesanditsaddressinBox
24,columns1and2butisnotrequiredtodosoifhewishesthesedetailstoremainprivate.Box22columns1and2.It
shouldhaveselectedfromTable5belowtheCodewhichbestdescribesitsstatusinrelationtothetrustandenter
theCodeinBox24column3.Itshouldhavestatedthenumberofsharesinwhichthetrustisinterested(hasashort
position)inBox24column4.(and5).Itshouldhaveignoredaninterestinreversionorremainder,aninterestofa
baretrustee,andanydiscretionaryinterest(ofabeneficiary).

Table5Statusinrelationtoatrust
Code

Trusteeofatrust
501
Beneficiaryofatrust
502
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Founderofadiscretionarytrust
503

Personsactinginconcert

Box25IfitisapartytoanagreementwithotherpartiestoacquireinterestsinsharesinthelistedcorporationinBox1inthe
circumstances set out in s. 317 (1)(a) or (b) then it will have added any shares in which any other party to the
agreementisinterestedtoitsowninterestsinworkingoutwhetheritmustfileanotice.Detailsoftheinterestsofany
otherpartymustalsohavebeentakenintoaccountincompletingBoxes17to21.Itmuststatethenameofeachof
theotherpartiestotheagreement,his/heraddressandthenumberofsharesinwhichhe/sheisinterestedapartfrom
theagreementinBox25.InthelastrowofBox25itmuststatethenumberofsharesinwhichitisinterestedunder
sections317and318.Thiswillbethetotaloffirstlyallshareswhichhavebeenpurchasedpursuanttotheagreement
by any of the parties to the agreement and secondly all shares in which the other parties to the agreement are
interestedapartfromtheagreement(definedins.318(2)).

ExampleofhowtocompleteBox25

For example, assume that Wong Holdings Ltd and 2 other persons agree to buy shares in XYZ Ltd. (a listed
corporation).TheyareeachalreadyinterestedinanumberofsharesofXYZLtd.whichtheypurchasedbeforethey
enteredintothes.317agreement.Underthes.317agreementtheyeachpurchasedafurther20,000,000sharesinXYZ
Ltd.Theirshareholdingsareasfollows

Concertparty
Numberofshares
Numberofshares
Total
apartfromthes.317
purchasedpursuantto
agreement
thes.317agreement

WongHoldings
50,000,000
20,000,000
70,000,000
Ltd.
Mr.A
4,000,000
20,000,000
24,000,000
Mr.B
2,000,000
20,000,000
22,000,000

Totals
56,000,000
60,000,000
116,000,000

AssumealsothatWongHoldingsLtd.iscompletingthenotice.ItwillhavealreadystatedinBox19thatitis
interestedin116,000,000shares.Ithastostatethenumberofsharesinwhichtheotherpartiesareinterestedapart
fromtheagreementandthetotalsharesinwhichheisinterestedbytheapplicationofs.317and318(the60,000,000
sharesboughtpursuanttotheagreementandthefurthersharesthattheotherpartiesareinterestedinapartfrom
theagreement).Accordingly,Mr.WongwillthencompleteBox25asfollows

25.Furtherinformationfromapartytoanagreementundersection317(PleaseseeNotesforfurtherinformationrequired)

Names
parties

Mr.A
Mr.B

of

other

Address

Numberofshares

Unit1,25/FWongIndustrialBldg,ChaiWan,HK
Unit1,24/FWongIndustrialBldg,ChaiWan,HK

4,000,000
2,000,000

66,000,000

Totalnumberofsharesinwhichsubstantialshareholderisinterestedundersection317and318

Itmustalso

(i)attachaseparatesheettothenotificationstatingthatitisapartytoanagreementtowhichs.317(1)(a)or
(b)applies
(ii)includeacopyofanywrittenagreement,contractorotherdocumentwhichrecordsanytermsordetailsof
theagreementand
(iii)iftherearenosuchpapersasarementionedin(ii),orifsuchpapersdonotrecordthematerialtermsofthe
agreement,includeawrittenmemorandumsettingoutthematerialtermsoftheagreement.

Thememorandumrequiredunder(iii)shouldincludedetailsofanycashorconsiderationinvolvedandtheidentityof
all persons between whom such cash or other consideration is passed or is intended to pass. If the parties are
interested in any derivatives, the exercise or conversion price, expiration date and exercise period should be
disclosed.Thememorandummustbesignedbythesubstantialshareholderorhisdulyauthorizedagent.
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Anotificationthatapersonhasceasedtobeapartytoanagreementtowhichs.317(1)(a)or(b)appliesshallalso
statethatheortheotherparty(asthecasemaybe)hasceasedtobeapartytotheagreementand,inthelattercase,
includethenameandaddressoftheotherparty.

Detailsofperson(s)inaccordancewithwhosedirectionsitoritsdirectorsareaccustomedtoact

Box26Ifyou,oritsdirectors,areaccustomedorobligedtoactinaccordancewiththedirectionsorinstructionsofany
person,orpersons,(referredtointhesenotesasacontroller)itshouldmuststatethenameandaddressofeach
suchpersoninBox26.ItshouldhaveselectedfromTable6belowtheCodewhichbestdescribestherelationshipof
thecontrollertoitandenterthatCodeinBox26column3.Statethepercentageofitssharesthatthecontrollerowns.

Table6Relationshipwithcontroller
Code

Controllerisitsimmediateholdingcompany
601
Controllerisitsintermediateholdingcompany
602
Controllerisitsultimateholdingcompany
603
Controllerisadirector
604
Controllerisashadowdirector
605
Other
606

ItneednotcompleteBox26ifitisalistedcorporationorthewhollyownedsubsidiaryofalistedcorporation.

Box27Form2shouldhavebeendatedthesamedayasitisfiledwithSEHK.

Box 28 This number relates to the number of continuation sheets the substantial shareholder has completed. These are
alreadydisplayedautomaticallyinthesearchresults.

Box29Thesubstantialshareholderisdirectedtostatethenumberofattachmentsfiledwiththeform.Theonlydocuments
that should be submitted are those referred to in relation to Box 25. If it is filing electronically, or if there are no
attachments,itneednotcompleteBox29.

SecuritiesBorrowingandLending

Ifthesubstantialshareholderisanapprovedlendingagent(ALA)givingnotificationundersection5(4)oftheSecurities
andFutures(DisclosureofInterestsSecuritiesBorrowingandLending)Rules(L.N.219of2002)(theSBLRules)thenit
needonlycompleteBoxes1to12,15and16,columns2and5ofBox17,Boxes18and19,and27and28ofForm2.

IfitistheholdingcompanyofanALAgivingnotificationundersection5(4)oftheSecuritiesandFutures(Disclosureof
InterestsSecuritiesBorrowingandLending)Rules(L.N.219of2002)thenitneedonlycompleteBoxes1to12,15and16,
columns2and5ofBox17,Boxes18to20,22,23and27and28ofForm2.Allboxesshouldbecompletedinaccordancewith
thenotessetoutabove.Allboxesshouldbecompletedinaccordancewiththenotessetoutabovewiththeexceptionof
Boxes18and19.Boxes18and19shouldhavebeencompletedasfollows.

Box18Incolumn2ofBox18thesubstantialshareholderisdirectedtostatethetotalnumberofsharesinwhichitwere
interested, and those in which it had a short position, immediately before the relevant event. In column 3 the
substantial shareholder should have stated the percentage figure of its interest, and short position (if any),
immediately before the relevant event. It should include shares that it is authorized to lend (or, if it is a holding
companyofanALA,thesharesthattheALAisauthorizedtolend)inthetotalofsharesinwhichitisinterested
whencompletingrow1ofcolumns2and3ofBox18.

Incolumn2,row3ofBox18(labelledLendingpool)anALAandaholdingcompanyofanALA,shouldstateonly
the number of shares that the ALA is authorized to lend immediately before the relevant event (referred to as
qualifiedsharesintheSBLRules).Incolumn3,row3ofBox18,itshouldhavestatedthepercentagefigureofthe
interestoftheALAinqualifiedsharesimmediatelybeforetherelevantevent.

Box19Completerows2and3ofBox19inthesamemannerasBox18specifyingthetotalnumberofsharesinwhichitwere
interested,andthoseinwhichithadashortpositionimmediatelyafterthedateoftherelevantevent.

Incolumn2,row3ofBox19(labelledLendingpool)anALAandaholdingcompanyofanALA,shouldstateonly
thenumberofsharesthattheALAisauthorizedtolend(thequalifiedshares)immediatelyaftertherelevantevent.
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In column 3, row 3 of Box 19, it should state the percentage figure of the interest of the ALA in qualified shares
immediatelyaftertherelevantevent.

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