How will the rights issue be carried out? Is there any mechanism to cope with a possible failure of the rights issue?
According to the relevant regulations, the rights issue of A Shares will be by way of subscription, while the rights issue of H Shares will proceedon a fully underwritten basis. If the number of shares subscribed by the original shareholders is below 70% subscription level for the A Shares within subscription period, the issuer shall refund to the shareholders who have made the subscription at the issuing price plus interests as calculated at the bank deposit rate for the same period.
