SOURCE: Renhe Commercial Holdings Company Limited

Renhe Commercial Holdings Company Limited

July 26, 2011 00:52 ET

Renhe Commercial Holdings Company Limited: Change in Shareholding Entity of Management Pre-IPO Share Option Scheme to Enhance Market's Understanding of the Scheme's Arrangements

HONG KONG--(Marketwire - Jul 26, 2011) - Renhe Commercial Holdings Company Limited (HKSE: 1387), one of the leading operators and developers of underground shopping centers in China, announced that Wealthy Aim Holdings Limited, held by the Company's controlling shareholder, has transferred its 427,174,700 employee share options to Broad Long Limited. The move will help enhance the market's understanding of the Company's employee share options arrangements, avoid confusion in the market, and simplify the administrative procedure when options are exercised.

The Company's controlling shareholder Mrs. Hawken Xiu Li set up the share option scheme for 143 employees in April 2008 ahead of the Company's stock listing in order to recognize the employees' contributions to the Company. The scheme was held through Wealthy Aim, a corporate entity wholly owned by Mrs. Hawken Xiu Li. Following the stock listing, the employees are allowed to exercise the options at HK$1.34 per share. At the time of the listing, Wealthy Aim held 935,000,000 shares, or 4.68%, of the issued share capital of the Company. As some employees have already exercised their options, Wealthy Aim now holds 427,174,700 shares, or 2.02%, of the issued share capital of the Company.

In the past, when employees exercise their options the number of shares held by Wealthy Aim would decline, which the market had misinterpreted as share disposals by the controlling shareholder. In view of this, the respective shares will now be held by Broad Long, which is wholly owned by Ms. Wong Chi Yin, a qualified accountant and an employee of the Company, on behalf of the employees of the scheme. The arrangement will enhance the flexibility of the share option scheme. The change in the shareholding entity will help avoid confusion by giving the market a better picture of any shareholding changes as a result of the exercise of options by the employees. It will also streamline the administrative procedure of the scheme. The Company stresses that the arrangement will not result in any impact on the total number of shares owned by Mrs. Hawken Xiu Li nor share disposals by her personally.

The Chairman of Renhe Commercial, Mr. Dai Yongge, said, "Employees are the most valuable asset of Renhe Commercial, and we believe that the existing share option scheme will further boost staff morale and enable our employees to share in the Company's achievements. In addition, this share transfer arrangement will help give the capital market a better understanding and provide a fuller picture of the Company's shareholding changes."

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Renhe Commercial is one of the most prominent operators and developers of underground shopping centers with businesses in 31 major cities across China, including Harbin in Heilongjiang Province, Guangzhou in Guangdong Province, Wuhan in Hubei Province and Shenyang in Liaoning Province. The Company is a constituent of the Hang Seng Composite Size Index LargeCap Index and Hang Seng Mainland 100 in Hang Seng Composite Index Series as well as, MSCI Emerging Markets Index and MSCI China Index in Morgan Stanley Capital International Index Series. For more information about us, please visit

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