The Stock Exchange of Hong Kong

NEWS RELEASE

June 7, 2000

The Stock Exchange of Hong Kong noted with concern the increasing number of listed issuers not complying with the requirements of the Listing Rules in respect of the timely publication of financial results. Failure to publish results within the time limits prescribed in the Listing Agreement constitutes a breach of the Listing Rules by an issuer. The directors of the issuer, in the view of the Exchange, have caused or failed to prevent the issuer from breaching the Listing Rules and thus may be in breach of their undertakings to the Exchange. The Exchange will take enforcement action against the issuer concerned and/or its directors in respect of such breaches, imposing such sanctions as may be appropriate, including that of public censure, on the facts of each case.

The Exchange noted with concern the increasing number of listed issuers not complying with the requirements of the Listing Rules in respect of the timely publication of financial results.

The Exchange is of the view that provision of periodic financial results in a timely manner is essential to the maintenance of an open capital market in Hong Kong. Such information is crucial for shareholders and investors enabling them to appraise the financial performance of issuers. Provisions regarding the timing for listed issuers to publish their interim and annual results announcements are set out in Paragraph 11 of the Listing Agreement and all listed issuers must publish interim and annual results on or before these deadlines. The Exchange takes a very serious view of listed issuers and their management which fail to make announcements of results on time and is not prepared to grant any waiver from the strict compliance with such requirements.

An issuer is required to publish an announcement in the newspaper if it is unable to comply with the deadlines for publishing its results. That announcement is to be made as soon as the issuer is aware that there will be a delay in the announcement of results and before the due date for the publication as required by the Listing Agreement. The announcement should include at least full explanation of the reasons for the delay and the expected date of the announcement of results. Additional disclosure requirements in respect of a delay in publishing announcement of annual results are set out in Paragraph 11(3) of the Listing Agreement.

The Exchange draws the attention of directors of listed issuers, including non-executive directors, to the undertakings given by them to the Exchange upon their appointment as directors that they will use their best endeavours to procure that the issuer shall comply with the Listing Rules.

Failure to publish results within the time limits prescribed in the Listing Agreement constitutes a breach of the Listing Rules by an issuer. The directors of the issuer, in the view of the Exchange, have caused or failed to prevent the issuer from breaching the Listing Rules and thus may be in breach of their undertakings to the Exchange. The Exchange will take enforcement action against the issuer concerned and/or its directors in respect of such breaches, imposing such sanctions as may be appropriate, including that of public censure, on the facts of each case.

Corporate Communications Department

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