QUNXING PAPER HOLDINGS COMPANY LIMITED Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
(Incorporated in the Cayman Islands with limited liability)
(Stock Code: 3868)("the Company")
ANNOUNCEMENT
Reference is made to the announcements of Qunxing Paper Holdings Company Limited (the "Company") dated 31 March 2014 and 8 April 2014 respectively regarding (i) the appointment of interim receivers and managers (the "Receivers") of the Company and (ii) the reorganisation of Shandong Qunxing Paper Limited ("Shandong QX").
Pursuant to the continuing disclosure obligations under Rule 13.24A of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong , the Receivers herein provide an update on the work they have undertaken up to the date of this announcement since their appointment on 28 March 2014.
The focus of the Receivers' work has been to secure and preserve the assets of the Company and to investigate the affairs of the Company, including and in particular the restructuring of Shandong QX.
Operations in Hong KongOn 11 June 2014, the Company vacated its premises at Kowloon Bay and changed its principal place of business to Level 22, The Center, 99 Queen's Road Central, Central, Hong Kong. An announcement dated 16 June 2014 was duly made in this regard.
Assets in Hong Kong
The Company's assets continue to be subject to the injunction prohibiting disposal of assets made by the Order of the High Court on 12 December 2013, which was varied by further Orders of the High Court dated 20 December 2013, 3 January 2014 and 23 January 2014.
The Receivers have notified the relevant banks and brokerage firms and have secured the balance of cash and investments accounts held by the Company.
Double Nation Limited is a wholly owned subsidiary of the Company and the sole shareholder of Best Known Group Limited. Best Known Group Limited is the sole shareholder of Shandong QX.
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On 1 April 2014, the Company resolved to remove all the existing directors of Double Nation
Limited and appointed FTI Director Services Limited and FTI Director Services Number 2
Limited as its directors.
Prior to the appointment of the Receivers, Shandong QX filed a reorganisation application to the Binzhou Intermediate People's Court ("Binzhou Court"). The application was accepted by the Binzhou Court on 21 February 2014.
According to the Receivers' communication with the Binzhou Court and PRC counsel, we understand that:
The articles of association, board resolutions and recent financial statements of
Shandong QX apparently disclosed that the entity was insolvent;
The application for reorganisation stated that the alleged assets and liabilities of Shandong QX were RMB 4 billion and RMB 5 billion respectively. The alleged amounts are subject to further investigation; and
Up to 20 legal proceedings had been initiated against Shandong QX in the PRC.
On 9 May 2014, a first meeting of creditors of Shandong QX was held at the Zouping County People's Court. The Receiver and his representative were prevented from entering into the meeting. The Receivers have not been provided with any further notice concerning the next steps in regards to the reorganisation process.
Pursuant to the relevant PRC laws, the PRC Administrators of Shandong QX are obliged to submit a draft revival plan to the Binzhou Court and to creditors for approval within 6 months of the order for reorganisation.
Any queries in respect of this announcement should be directed to the Receivers:
Mail: Level 22, The Center, 99 Queen's Road Central, Central, Hong Kong
Telephone: +852 3768 4500
Facsimile: +852 3012 9664
Hong Kong, 17 September 2014
For and on behalf of
Interim Receivers and Managers
At the date of this announcement, the executive directors of the Company are Mr. GUO Guang Quan (Chairman) and Mr. Yang Li Quan and the independent non-executive director of the Company is Mr. GUO Liang Yong.
On 20 December 2013, the Securities and Futures Commission issued a direction under Rule 8(1) of the Securities and Futures ( Stock
Market Listing) Rules, directing the Stock Exchange to suspend all dealings in the shares of the Company from 9:00 a.m. on 20 December
2013. Trading of the shares of the Company was previously suspended at the request of the Company on 30 March 2011. Trading will remain suspended until further notice.
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