omniture

Heng Xin China Places 100 million Shares and Resumes Trading on HKEx

Heng Xin China Holdings Limited
2009-08-28 09:58 1437

HK$70 million Proceeds will Enlarge Equity Base Used as General Working Capital

HONG KONG, Aug. 28 /PRNewswire-Asia/ -- Heng Xin China Holdings Limited (HKEx: 8046, the "Company" or "Heng Xin China") announces that the Company has agreed to place 100 million existing shares at HK$0.70 per share to not fewer than 6 placees who are independent of and not connect to the Company, while a substantial shareholder of the Company has entered into a subscription agreement for a maximum of 100 million shares at HK$0.70 each under a general mandate, at 6.67% discount from the closing price from the previous trading day. This represents a maximum of about 7.07% of the existing issued share capital of 1.414,583,000 shares and about 6.60% of the enlarged share capital of the company. The transaction will raise HK$70 million with a net proceeds of approximately HK$68 million. Trading of the Company's shares on the HKEx was suspended today for the transaction and is expected to resume at 9:30am on August 28, 2009.

Mr. Xiao Yan, Chief Executive Officer of the Company, said, "The net proceeds from the placement and subscription will be approximately HK$68 million. We have made the decision to engage in this exercise based on a multitude of consideration and is a great opportunity to enlarge the equity base of the Company and provide general working capital for its business expansion."

The Company has recently entered into a framework agreement with Hubei Chutian CTV Co., Ltd ("HBCTV") as the main contractor for the construction of ground wireless digital television operating platform in Hubei Province, China. The contract is expected to churn in an aggregate revenue of RMB 2,000 million (equivalent to HK$2,280 million) in the next five years, and is expected to generate a revenue of approximately RMB100 million (equivalent to approximately HK$114 million) initially in 2009.

About the Company

Heng Xin China Holdings Limited is principally engaged in the research, design, development on and manufacturing of electronic message security products, integrated circuits, radio frequency identification ("RFID") chips and related devices and systems, and the integrated circuit solutions and related services.

For media inquiries, please contact:

Stimulus Investor Relations Ltd.

Alex Wong / Karen Lau

Tel: +852-6899-0255 / +852-9311-1791

Email: alex@stimulus-ir.com / karen@stimulus-ir.com

Source: Heng Xin China Holdings Limited
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