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OCI International Holdings Limited
東 建 國 際 控 股 有 限 公 司
(Incorporated in the Cayman Islands with limited liability)
(Stock Code: 329)
SUPPLEMENTAL ANNOUNCEMENT
REGARDING THE 2019 ANNUAL REPORT
OCI International Holdings Limited (the "Company") provides information supplemental to its annual report for the year ended 31 December 2019 ("Annual Report 2019"), terms defined in which have the same meanings when used in this announcement.
Significant investments in debt securities
The investment costs and performance during 2019 of the JZ Note, HX Note and SOL Note (further information on which is set out in pages 14 and 15 of the Annual Report
2019) are as follows:
JZ Note | HX Note | SOL Note | ||||
Investment costs | HK$ | 78,439,000 | HK$ | 113,484,000 | HK$ | 141,120,000 |
Interest income for | ||||||
the year ended 31 | ||||||
December 2019 | HK$ | 4,687,000 | HK$ | 5,709,000 | HK$ | 8,150,000 |
Valuation in relation to the impairment of the RD Note and the SP Note
As at 31 December 2019, both the RD Note and the SP Note are, as disclosed in pages 11 to 13 of the Annual Report 2019, in default (2018: only the SP Note in default). The carrying values of the two notes were based on the projected collateral values, historical discounts on placing of shares and expenses of placement and recovery costs observed, given that realisation of the collateral is a way of recovery of debt overdue. There was no material change to the valuation methodology or assumptions to those adopted for the valuation of those notes for the year ended 31 December 2018.
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In relation to the RD Note, the total exposure of the Group as at 31 December 2019 was HK$116,851,000 (2018: HK$121,125,000) after amounts recovered from the sale of part of the collateral. The closing price as at 31 December 2019 of 75,981,000 RD Shares (2018: 78,000,000) that secured the RD Note was HK$0.46 per share (2018: HK$2.97) and a bulk discount and fee of 12.28% with post year end adjustment due to volatility in share price after year end of 16.95% (2018: 18% with no post year end adjustment) was applied.
In relation to the SP Note, the total exposure of the Group as at 31 December 2019 was HK$101,275,000 (2018: same). The closing price as at 31 December 2019 of the
131,000,000 C. Banner Shares that secured the SP Note was HK$0.21 (2018: HK$0.45) and a bulk discount and fee of 12.28% with post year end adjustment due to volatility in share price after year end of 8.68% (2018: 18% with no post year end adjustment) was applied.
The bulk discount and fees were based on placements made during July to December 2019 to reflect market sentiment after the social movement in Hong Kong of issuers in comparable market capitalisation.
By order of the Board
OCI International Holdings Limited
Chen Bo
Executive Director (Chairman)
Hong Kong, 7 August 2020
As at the date of this announcement, the Board comprises the following Directors:
Executive Directors: | Independent non-executive Directors: |
Mr. Chen Bo (Chairman) | Mr. Chang Tat Joel |
Ms. Xiao Qing (Chief Operating Officer) | Mr. Wong Stacey Martin |
Mr. Liu Zheng | Mr. Tso Siu Lun Alan |
Mr. Fei John Xiang | |
Non-executive Directors: | |
Mr. Du Peng | |
Ms. Zheng Xiaosu |
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