annual report 2014
I
Notes to the Financial Statements
31 December 2014 (Cont’d)
103
29. COMMITMENTS
(a)
Operating lease commitments
The Group as lessee
The Group had entered into non-cancellable lease agreements for factory buildings and staff housing. The
Group has aggregate future minimum lease commitment as at the end of each reporting period as follows:
Group
2014
2013
RMB’000
RMB’000
Not later than one (1) year
1,609
1,609
Later than one (1) year and not later than five (5) years
–
1,609
1,609
3,218
(b)
Capital commitments
Group
2014
2013
RMB’000
RMB’000
Capital expenditure in respect of purchase of
property, plant and equipment:
Approved but not contracted for
43,524
50,061
30. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR
(a)
On 23 January 2014, the Company undertook a renounceable rights issue of up to 241,998,950 new ordinary
shares of USD0.10 each (“Rights Shares”) at an issue price of RM0.35 per Rights Share, together with up to
181,499,212 free detachable warrants (Warrant 2014/2017) and an attached bonus issue of up to 181,499,212
new ordinary shares of USD0.10 each (“Bonus Shares”), credited as fully paid-up, on the basis of four (4) Rights
Shares together with three (3) Warrants 2014/2017 and three (3) Bonus Shares for every twelve (12) existing
ordinary shares held on 23 December 2013 (“Rights Issue”).
In accordance with the Deed Poll dated 15 March 2012, the holders of the existing Warrants 2012/2015 were
entitled to an adjustment to the exercise price and the number of warrants, which the warrants remained
unexercised as at 23 December 2013, pursuant to the Right Issue on 23 January 2014. Accordingly, an additional
19,779,602 of Warrants 2012/2015 was issued with a fair value of RM0.039 and an exercise price of RM0.35.
(b)
On 31 December 2014, the Company announced to undertake a par value reduction via cancellation of
USD0.07 of the par value of every issued and unissued share of the Company of USD0.10 each pursuant to
Sections 45 and 46 of the Companies Act 1981 of Bermuda (“Proposed Par Value Reduction”). The Proposed
Par Value Reduction was subsequently approved by the shareholders of the Company at a Special General
Meeting held on 13 February 2015 and was effected on 18 February 2015.
