overseas regulatory announcement

597 Pages·2016·6.93 MB·English

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.
This announcement does not constitute an offer to sell or the solicitation of an offer to buy
any securities in the United States or any other jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification under the securities laws of
any such jurisdiction. The securities referred to herein will not be registered under the United
States Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or
sold in the United States except pursuant to an exemption from, or a transaction not subject
to, the registration requirements of the Securities Act. Any public offering of securities to
be made in the United States will be made by means of a prospectus. Such prospectus will
contain detailed information about the company making the offer and its management and
financial statements. The Company does not intend to make any public offering of securities in
the United States.
Fantasia Holdings Group Co., Limited
花 樣 年 控 股 集 團 有 限 公 司
(Incorporated in the Cayman Islands with limited liability)
(Stock Code: 01777)
OVERSEAS REGULATORY ANNOUNCEMENT
This overseas regulatory announcement is issued pursuant to Rule 13.10B of the Rules
Governing the Listing of Securities (the “Listing Rules”) on The Stock Exchange of Hong
Kong Limited (the “Stock Exchange”).
Reference is made to the announcements of Fantasia Holdings Group Co., Limited (the
“Company”) dated 20 December 2016 in relation to the Additional Notes Issue (the
“Announcements”). Unless otherwise defined, capitalised terms used herein have the same
meanings as ascribed to them in the Announcements.
Please refer to the attached offering memorandum dated 20 December 2016 in relation to the
Additional Notes Issue (the “Offering Memorandum”), which was published on the website
of Singapore Exchange Securities Trading Limited on 30 December 2016.
The posting of the Offering Memorandum on the website of the Stock Exchange is only for
the purpose of facilitating equal dissemination of information to investors in Hong Kong and
compliance with Rule 13.10B of the Listing Rules, and not for any other purposes.
– 1 –
The Offering Memorandum does not constitute a prospectus, notice, circular, brochure or
advertisement offering to sell any securities to the public in any jurisdiction, nor is it an
invitation to the public to make offers to subscribe for or purchase any securities, nor is it
calculated to invite offers by the public to subscribe for or purchase any securities.
The Offering Memorandum must not be regarded as an inducement to subscribe for or
purchase any securities of the Company, and no such inducement is intended. No investment
decision should be based on the information contained in the Offering Memorandum.
By Order of the Board
Fantasia Holdings Group Co., Limited
Pan Jun
Chairman
Hong Kong, 30 December 2016
As at the date of this announcement, the executive Directors are Mr. Pan Jun, Ms. Zeng Jie,
Baby, Mr. Lam Kam Tong and Mr. Zhou Jinquan; the non-executive Directors are Mr. Li
Dong Sheng and Mr. Yuan Hao Dong and the independent non-executive Directors are Mr.
Ho Man, Mr. Huang Ming, Dr. Liao Jianwen, Ms. Wong Pui Sze, Priscilla, JP and Mr. Guo
Shaomu.
– 2 –
Hydrangea - OM_1st Draft
SUPPLEMENTAL OFFERING MEMORANDUM CONFIDENTIAL
(to the Offering Memorandum dated September 27, 2016)
FANTASIA HOLDINGS GROUP CO., LIMITED
(incorporatedintheCaymanIslandswithlimitedliability)
US$100,000,000
7.375% Senior Notes due 2021
(to be consolidated and form a single series with
the US$400,000,000 7.375% Senior Notes due 2021 issued on October 4, 2016)
Issue Price: 99.884%
plus accrued interest from (and including)
October 4, 2016 to (but excluding) December 29, 2016
Fantasia Holdings Group Co., Limited, a company incorporated in the Cayman Islands with limited liability (the “Company”), is offering
US$100,000,000aggregateprincipalamountofits7.375%SeniorNotesdue2021(the“NewNotes”).TheNewNoteswillbeissuedundertheindenture(the
“Indenture”)governingtheCompany’soutstandingUS$400,000,000aggregateprincipalamountof7.375%SeniorNotesdue2021(the“OriginalNotes”).The
NewNotesconstituteAdditionalNotesundertheIndentureandareidenticalinallrespectsoftheOriginalNotes,otherthanwithrespecttothedateofissuance
andissueprice.TheNewNoteswillformasingleserieswiththeOriginalNotes.TheOriginalNotesandtheNewNotesarereferredtocollectivelyasthe“Notes.”
Uponcompletionofthisoffering,theaggregateprincipalamountofoutstandingNewNotesandOriginalNoteswillbeUS$500,000,000.Termsnotdefinedinthis
SupplementalOfferingMemorandumhavethemeaningsgiventothemintheOfferingMemorandum,datedSeptember27,2016.
TheNewNoteswillbearinterestfromOctober4,2016at7.375%perannumpayablesemi-annuallyinarrearsonthebusinessdayonornearesttoApril
4andOctober4ofeachyear,beginningApril4,2017.TheNoteswillmatureonOctober4,2021.
TheNotesareseniorobligationsoftheCompany,guaranteedbycertainofourexistingsubsidiaries(the“SubsidiaryGuarantors”),otherthan(1)those
organizedunderthelawsofthePRCand(2)certainothersubsidiariesspecifiedinthesectionentitled“DescriptionoftheNotes”intheOfferingMemorandum.
WerefertotheguaranteesbytheSubsidiaryGuarantorsasSubsidiaryGuarantees.Undercertaincircumstancesandsubjecttocertainconditions,aSubsidiary
GuaranteerequiredtobeprovidedbyasubsidiaryoftheCompanymaybereplacedbyalimited-recourseguarantee(the“JVSubsidiaryGuarantee”).Wereferto
thesubsidiariesprovidingaJVSubsidiaryGuaranteeasJVSubsidiaryGuarantors.
WemayatouroptionredeemtheNotes,inwholeorinpart,atanytimeandfromtimetotimeonorafterOctober4,2019,atredemptionpricessetforth
intheOfferingMemorandumplusaccruedandunpaidinterest,ifany,to(butnotincluding)theredemptiondate.AtanytimepriortoOctober4,2019,wemayat
ouroptionredeemtheNotes,inwholebutnotinpart,ataredemptionpriceequalto100%oftheprincipalamountoftheNotesplusapremium(assetoutinthe
sectionentitled“DescriptionoftheNotes”oftheOfferingMemorandum)asof,andaccruedandunpaidinterest,ifany,to(butnotincluding)theredemptiondate.
AtanytimeandfromtimetotimepriortoOctober4,2019,wemayredeemupto35%oftheNotes,ataredemptionpriceof107.375%oftheprincipalamount
oftheNotes,plusaccruedandunpaidinterest,ifany,to(butnotincluding)theredemptiondate,withthenetcashproceedsfromsalesofcertainkindsofcapital
stockoftheCompany.UpontheoccurrenceofaChangeofControlTriggeringEvent(asdefinedintheIndenture),wemustmakeanoffertorepurchaseallNotes
outstandingatapurchasepriceequalto101%oftheirprincipalamount,plusaccruedandunpaidinterest,ifany,tothedateofrepurchase.
TheNoteswillbe(1)seniorinrightofpaymenttoanyexistingandfutureobligationsoftheCompanyexpresslysubordinatedinrightofpaymenttothe
Notes,(2)atleastparipassuinrightofpaymentagainsttheCompanywithallotherunsecured,unsubordinatedindebtednessoftheCompany(subjecttoany
priorityrightsofsuchunsecured,unsubordinatedindebtednesspursuanttoapplicablelaw),(3)effectivelysubordinatedtothesecuredobligations(ifany)ofthe
Company,theSubsidiaryGuarantorsandtheJVSubsidiaryGuarantors,totheextentofthevalueoftheassetsservingassecuritytherefor(otherthanthe
collateralsecuringtheNotes),and(4)effectivelysubordinatedtoallexistingandfutureobligationsoftheNon-GuarantorSubsidiaries.
InvestingintheNotesinvolvesrisks.Seethesectionentitled“RiskFactors”intheOfferingMemorandum.
TheOriginalNotesarelistedontheSingaporeExchangeSecuritiesTradingLimited(the“SGX-ST”)andapprovalin-principlehasbeenreceivedforthe
listingandquotationoftheNewNotesontheSGX-ST.TheSGX-STassumesnoresponsibilityforthecorrectnessofanyofthestatementsmadeoropinions
expressedorreportscontainedherein.Approvalin-principlefrom,admissiontotheOfficialListof,andlistingandquotationofanyNewNoteson,theSGX-ST
arenottobetakenasanindicationofthemeritsoftheCompany,theSubsidiaryGuarantors,theJVSubsidiaryGuarantors(ifany)oranyothersubsidiaryor
associatedcompanyoftheCompany,theNotes,theSubsidiaryGuaranteesortheJVSubsidiaryGuarantees.ForsolongastheNotesarelistedontheSGX-STand
therulesoftheSGX-STsorequire,theNoteswillbetradedinaminimumboardlotsizeofS$200,000(oritsequivalentinforeigncurrencies).Accordingly,the
NoteswillbetradedinaminimumboardlotsizeofUS$200,000.
TheNewNotes,theSubsidiaryGuaranteesandtheJVSubsidiaryGuarantees(ifany)havenotbeenandwillnotberegisteredundertheUnitedStates
SecuritiesActof1933,asamended(the“U.S.SecuritiesAct”),andmaynotbeofferedorsoldwithintheUnitedStatesexceptpursuanttoanexemptionfrom,or
inatransactionnotsubjectto,theregistrationrequirementsoftheU.S.SecuritiesAct.TheNewNotesarebeingofferedandsoldbytheInitialPurchaseronly
outsidetheUnitedStatesinoffshoretransactionsinrelianceonRegulationSundertheU.S.SecuritiesAct(“RegulationS”).Foradescriptionofcertain
restrictionsonresaleortransfer,seethesectionentitled“TransferRestrictions”intheOfferingMemorandum.
WithreferencetotheNoticeonPromotingtheReformoftheFilingandRegistrationSystemforIssuanceofForeignDebtbyEnterprises(國家發展改革
委關於推進企業發行外債備案登記制管理改革的通知)(the“NDRCNotice”)promulgatedbyNationalDevelopmentandReformCommission(the“NDRC”)of
thePRConSeptember14,2015whichcameintoeffectonthesameday,wehaveregisteredtheissuanceoftheNoteswiththeNDRCandobtainedacertificate
fromtheNDRCdatedSeptember20,2016evidencingsuchregistration.Pursuanttotheregistrationcertificate,wewillcauserelevantinformationrelatingtothe
issueoftheNewNotestobereportedtotheNDRCwithintenworkingdaysaftertheissuedateoftheNewNotes.Wehavereportedtherelevantinformation
relatingtotheissueoftheOriginalNotestotheNDRCwithintenworkingdaysaftertheissuedateoftheOriginalNotes.
ItisexpectedthatthedeliveryoftheNewNoteswillbemadeonoraboutDecember29,2016throughthebook-entryfacilitiesoftheEuroclearBank
SA/NV(“Euroclear”)andClearstreamBankingS.A.(“Clearstream”),againstpaymentthereforinimmediatelyavailablefunds.
SoleGlobalCoordinator,SoleLeadManagerandSoleBookrunner
GuotaiJunanInternational
The date of this Supplemental Offering Memorandum is December 20, 2016
TABLE OF CONTENTS
Supplemental Offering Memorandum
RECENT DEVELOPMENT . . . . . . . . . . . S-4 DESCRIPTION OF THE NOTES . . . . . . . S-8
THE OFFERING . . . . . . . . . . . . . . . . . . S-5 PLAN OF DISTRIBUTION . . . . . . . . . . . S-9
USE OF PROCEEDS . . . . . . . . . . . . . . . . S-6 LEGAL MATTERS . . . . . . . . . . . . . . . . . S-11
CAPITALIZATIONANDINDEBTEDNESS . S-7 GENERAL INFORMATION . . . . . . . . . . . S-12
Offering Memorandum
SUMMARY . . . . . . . . . . . . . . . . . . . . . . . 1 BUSINESS . . . . . . . . . . . . . . . . . . . . . . . 115
THE OFFERING . . . . . . . . . . . . . . . . . . . 7 REGULATION . . . . . . . . . . . . . . . . . . . . 155
SUMMARY CONSOLIDATED MANAGEMENT . . . . . . . . . . . . . . . . . . . 191
FINANCIALAND OTHER DATA . . . . . 14 PRINCIPAL SHAREHOLDERS . . . . . . . . 199
RISK FACTORS . . . . . . . . . . . . . . . . . . . 18 RELATED PARTY TRANSACTIONS . . . . 200
USE OF PROCEEDS . . . . . . . . . . . . . . . . 57 DESCRIPTION OF MATERIAL
EXCHANGE RATE INFORMATION . . . . 58 INDEBTEDNESSAND OTHER
CAPITALIZATIONAND OBLIGATIONS . . . . . . . . . . . . . . . . . . 201
INDEBTEDNESS . . . . . . . . . . . . . . . . . 60 DESCRIPTION OF THE NOTES . . . . . . . 213
SELECTED CONSOLIDATED TAXATION . . . . . . . . . . . . . . . . . . . . . . . 284
FINANCIALAND OTHER DATA . . . . . 61 PLAN OF DISTRIBUTION . . . . . . . . . . . 286
MANAGEMENT’S DISCUSSIONAND TRANSFER RESTRICTIONS . . . . . . . . . 290
ANALYSIS OF FINANCIAL RATINGS . . . . . . . . . . . . . . . . . . . . . . . . 292
CONDITIONAND RESULTS OF LEGAL MATTERS . . . . . . . . . . . . . . . . . 292
OPERATIONS . . . . . . . . . . . . . . . . . . . 65 INDEPENDENTACCOUNTANTS . . . . . . 292
INDUSTRY OVERVIEW . . . . . . . . . . . . . 95 GENERAL INFORMATION . . . . . . . . . . . 293
CORPORATE STRUCTURE . . . . . . . . . . 108 INDEX TO FINANCIAL STATEMENTS . . F-1
This Supplemental Offering Memorandum and the accompanying Offering Memorandum do
not constitute an offer to sell to, or a solicitation of an offer to buy from, any person in any
jurisdictiontowhomitisunlawfultomaketheofferorsolicitationinsuchjurisdiction.Neitherthe
delivery of this Supplemental Offering Memorandum and the accompanying Offering
Memorandumnoranysalemadehereundershall,underanycircumstances,createanyimplication
that there has been no change in our affairs since the date of this Supplemental Offering
Memorandum and the accompanying Offering Memorandum or that the information contained in
thisSupplementalOfferingMemorandumandtheaccompanyingOfferingMemorandumiscorrect
as of any time after such date.
Neither this Supplemental Offering Memorandum nor the accompanying Offering
Memorandum is a prospectus for the purposes of the European Union’s Directive 2003/71/EC (and
any amendments thereto) as implemented in member states of the European Economic Area (the
“EU Prospectus Directive”). This Supplemental Offering Memorandum and the accompanying
Offering Memorandum has been prepared on the basis that all offers of the New Notes made to
persons in the European Economic Area will be made pursuant to an exemption under the EU
ProspectusDirectivefromtherequirementtoproduceaprospectusinconnectionwithoffersofthe
New Notes.
INCONNECTIONWITHTHISOFFERING,GUOTAIJUNANSECURITIES(HONGKONG)
LIMITEDASSTABILIZINGMANAGER,ORANYPERSONACTINGFORIT,MAYPURCHASE
ANDSELLTHENEWNOTESINTHEOPENMARKET.THESETRANSACTIONSMAY,TOTHE
EXTENT PERMITTED BY APPLICABLE LAWS AND REGULATIONS, INCLUDE SHORT
SALES,STABILIZINGTRANSACTIONSANDPURCHASESTOCOVERPOSITIONSCREATED
BY SHORT SALES. THESE ACTIVITIES MAY STABILIZE, MAINTAIN OR OTHERWISE
– S-1 –
AFFECT THE MARKET PRICE OF THE NEW NOTES. AS A RESULT, THE PRICE OF THE
NOTES MAY BE HIGHER THAN THE PRICE THAT OTHERWISE MIGHT EXIST IN THE
OPEN MARKET. IF THESE ACTIVITIES ARE COMMENCED, THEY MAY BE
DISCONTINUEDATANYTIMEANDMUSTINANYEVENTBEBROUGHTTOANENDAFTER
A LIMITED TIME. THESE ACTIVITIES WILL BE UNDERTAKEN SOLELY FOR THE
ACCOUNT OFTHE INITIAL PURCHASER,AND NOT FOR US OR ON OUR BEHALF.
We, having made all reasonable inquiries, confirm that: (i) this Supplemental Offering
Memorandum and the accompanying Offering Memorandum contain all information with respect to us,
our subsidiaries and affiliates referred to in this Supplemental Offering Memorandum and the
accompanying Offering Memorandum and the New Notes, the Subsidiary Guarantees and the JV
Subsidiary Guarantees (if any) that is material in the context of the issue and offering of the New Notes;
(ii)thestatementscontainedinthisSupplementalOfferingMemorandumandtheaccompanyingOffering
Memorandum relating to us and our subsidiaries and our affiliates are in every material respect true and
accurate and not misleading; (iii) the opinions and intentions expressed in this Supplemental Offering
Memorandum and the accompanying Offering Memorandum with regard to us and our subsidiaries and
affiliates are honestly held, have been reached after considering all relevant circumstances and are based
on reasonable assumptions; (iv) there are no other facts in relation to us, our subsidiaries and affiliates,
the New Notes, the Subsidiary Guarantees and the JV Subsidiary Guarantees (if any), the omission of
whichwould,inthecontextoftheissueandofferingoftheNewNotes,makethisSupplementalOffering
Memorandum and the accompanying Offering Memorandum, as a whole, misleading in any material
respect; and (v) we have made all reasonable enquiries to ascertain such facts and to verify the accuracy
of all such information and statements.We accept responsibility accordingly.
ThisSupplementalOfferingMemorandumandtheaccompanyingOfferingMemorandumarehighly
confidential.We are providing them solely for the purpose of enabling you to consider a purchase of the
New Notes.You should read this Supplemental Offering Memorandum and the accompanying Offering
Memorandum before making a decision whether to purchase the New Notes. You must not use this
Supplemental Offering Memorandum and the accompanying Offering Memorandum for any other
purpose, or disclose any information in this Supplemental Offering Memorandum and the accompanying
Offering Memorandum to any other person.We have prepared this Supplemental Offering Memorandum
and the accompanying Offering Memorandum, and we are solely responsible for their contents.You are
responsible for making your own examination of us and your own assessment of the merits and risks of
investingintheNewNotes.BypurchasingtheNewNotes,youwillbedeemedtohaveacknowledgedthat
you have made certain acknowledgements, representations and agreements as set forth under the section
entitled “Transfer Restrictions” below.
Norepresentationorwarranty,expressorimplied,ismadebyGuotaiJunanSecurities(HongKong)
Limited (the “Initial Purchaser”) or any of its affiliates or advisors as to the accuracy or completeness of
the information set forth herein, and nothing contained in this Supplemental Offering Memorandum and
the accompanying Offering Memorandum is, or should be relied upon as, a promise or representation,
whether as to the past or the future.
Each person receiving this Supplemental Offering Memorandum and the accompanying Offering
Memorandumacknowledgesthat:(i)suchpersonhasbeenaffordedanopportunitytorequestfromusand
to review, and has received, all additional information considered by it to be necessary to verify the
accuracy of, or to supplement, the information contained herein; (ii) such person has not relied on the
InitialPurchaseroranypersonaffiliatedwiththeInitialPurchaserinconnectionwithanyinvestigationof
the accuracy of such information or its investment decision; and (iii) no person has been authorized to
giveanyinformationortomakeanyrepresentationconcerningus,oursubsidiariesandaffiliates,theNew
Notes, the Subsidiary Guarantees or the JV Subsidiary Guarantees (other than as contained herein and
information given by our duly authorized officers and employees in connection with investors’
examination of our Company and the terms of the offering of the New Notes) and, if given or made, any
suchotherinformationorrepresentationshouldnotberelieduponashavingbeenauthorizedbyusorthe
Initial Purchaser.
– S-2 –
TheNewNotes,theSubsidiaryGuaranteesandtheJVSubsidiaryGuarantees(ifany)havenot
beenapprovedordisapprovedbytheUnitedStatesSecuritiesandExchangeCommission,anystate
securitiescommissionintheUnitedStatesoranyotherUnitedStatesregulatoryauthority,norhave
any of the foregoing authorities passed upon or endorsed the merits of the offering or the accuracy
oradequacyofthisofferingmemorandum.Anyrepresentationtothecontraryisacriminaloffense
in the United States.
We are not, and the Initial Purchaser is not, making an offer to sell the New Notes, including the
Subsidiary Guarantees and the JV Subsidiary Guarantees (if any), in any jurisdiction except where an
offer or sale is permitted. The distribution of this Supplemental Offering Memorandum and the
accompanying Offering Memorandum and the offering of the securities, including the New Notes, the
Subsidiary Guarantees and the JV Subsidiary Guarantees (if any), may in certain jurisdictions be
restricted by law. Persons into whose possession this Supplemental Offering Memorandum and the
accompanying Offering Memorandum come are required by us and the Initial Purchaser to inform
themselves about and to observe any such restrictions.
For a description of the restrictions on offers, sales and resales of the securities, including the New
Notes, the Subsidiary Guarantees and the JV Subsidiary Guarantees (if any), and distribution of this
Supplemental Offering Memorandum and the accompanying Offering Memorandum, see the sections
entitled “Transfer Restrictions” and “Plan of Distribution” below and in the accompanying Offering
Memorandum.
This Supplemental Offering Memorandum and the accompanying Offering Memorandum
summarize certain material documents and other information, and we refer you to them for a more
complete understanding of what we discuss in this Supplemental Offering Memorandum and the
accompanying Offering Memorandum. In making an investment decision, you must rely on your own
examination of us and the terms of the offering, including the merits and risks involved. We are not
making any representation to you regarding the legality of an investment in the New Notes by you under
any legal, investment or similar laws or regulations. You should not consider any information in this
SupplementalOfferingMemorandumandtheaccompanyingOfferingMemorandumtobelegal,business
ortaxadvice.Youshouldconsultyourownprofessionaladvisorsforlegal,business,taxandotheradvice
regarding an investment in the New Notes.
We reserve the right to withdraw the offering of New Notes at any time, and the Initial Purchaser
reservestherighttorejectanycommitmenttosubscribefortheNewNotesinwholeorinpartandtoallot
to any prospective purchaser less than the full amount of the New Notes sought by such purchaser. The
Initial Purchaser and certain related entities may acquire for their own account a portion of the New
Notes.
– S-3 –
RECENT DEVELOPMENT
Repurchase of the 2012 Notes and the 2014 Notes
On November 10, 2016, we purchased part of the 2014 Notes and part of the 2012 Notes in the
aggregate principal amount of US$6.5 million and US$5.7 million, respectively, in the open market. On
November 21, 2016, we further purchased part of the 2014 Notes and part of the 2012 Notes in the
aggregateprincipalamountofUS$4.6millionandUS$24.6million,respectively,intheopenmarket.We
believethattherepurchasesofsuch2012Notesand2014Noteswillreduceourfuturefinancialexpenses
and lower our financial gearing level. The repurchased 2014 Notes and the repurchased 2012 Notes,
representingapproximately7.03%and12.12%oftheinitialprincipalamountsofthe2014Notesandthe
2012 Notes, respectively, have been cancelled subsequently. After the cancellation, the aggregate
principalamountsofthe2014Notesandthe2012NotesremainingoutstandingareUS$278,900,000and
US$219,700,000, respectively, representing approximately 92.97% and 87.88% of the initial principal
amounts of the 2014 Notes and the 2012 Notes, respectively.
Redemption of the 2014 Notes
WehaveannouncedonDecember19,2016thatalloutstanding2014Noteswillberedeemedinfull
on January 23, 2017 at a redemption price equal to 105.31250% of the principal amount thereof plus
accrued and unpaid interest, if any, to (but not including) January 23, 2017. Upon the redemption,
Citicorp International Limited, as trustee with respect to the 2014 Notes, will be removed as a secured
party under the IntercreditorAgreement.
– S-4 –
THE OFFERING
Terms used in this summary and not otherwise defined shall have the meanings given to them in
“Description of the Notes” in the accompanying Offering Memorandum.
Issuer . . . . . . . . . . . . . . . . . . . . . . . . . . . Fantasia Holdings Group Co., Limited (the “Company”).
New Notes Offered . . . . . . . . . . . . . . . . . US$100,000,000 aggregate principal amount of 7.375%
Senior Notes due 2021 (the “New Notes”), to be
consolidated and form a single series with the
US$400,000,000 7.375% senior notes due 2021 issued by
the Company on October 4, 2016 (the “Original Notes”
and, together with the New Notes, the “Notes”).The terms
for the New Notes are the same as those for the Original
Notes in all respects except for the issue date and issue
price.
Offering Price . . . . . . . . . . . . . . . . . . . . 99.884% of the principal amount of the New Notes, plus
accrued interest from (and including) October 4, 2016 to
(but excluding) December 29, 2016.
Maturity Date . . . . . . . . . . . . . . . . . . . . . October 4, 2021.
Interest . . . . . . . . . . . . . . . . . . . . . . . . . The Notes will bear interest from and including October 4,
2016 at the rate of 7.375% per annum, payable
semi-annually in arrears.
Interest Payment Dates . . . . . . . . . . . . . . April 4 and October 4 of each year, commencing April 4,
2017.
Use of Proceeds. . . . . . . . . . . . . . . . . . . . We intend to use the proceeds from this offering to
refinance certain of our existing indebtedness.
Wemayadjusttheforegoingplansinresponsetochanging
market conditions and, thus, reallocate the use of the
proceeds. Pending application of the net proceeds of this
offering, we intend to invest such net proceeds in
Temporary Cash Investments as defined under
“Description of the Notes” in the accompanying Offering
Memorandum.
Delivery of the Notes. . . . . . . . . . . . . . . . The Company expects to make delivery of the Notes,
against payment in same-day funds on or about December
29, 2016 which the Company expects will be the fifth
business day following the date of this offering
memorandum referred to as “T+5”. You should note that
initial trading of the Notes may be affected by the T+5
settlement. See “Plan of Distribution”.
Forallotherterms,pleaserefertothesectionentitled“TheOffering”intheaccompanyingOffering
Memorandum.
– S-5 –
USE OF PROCEEDS
Weestimatethatthenetproceedsfromthisoffering,afterdeductingtheunderwritingdiscountsand
commissions and other estimated expenses payable in connection with this offering, will be
approximatelyUS$100.5million,whichweplantousetorefinancecertainofourexistingindebtedness.
We may adjust the foregoing plans in response to changing market conditions and, thus, reallocate
the use of the proceeds. Pending application of the net proceeds of this offering, we intend to invest the
net proceeds in Temporary Cash Investments (as defined under “Description of the Notes—Definitions”
in the accompanying Offering Memorandum).
– S-6 –
CAPITALIZATIONAND INDEBTEDNESS
The following table sets forth our consolidated cash and cash equivalents, short-term debt and
capitalization as of June 30, 2016 on an actual basis and on an adjusted basis after giving effect to the
issuance of the New Notes in this offering after deducting the underwriting discounts and commissions
and other estimated expenses of this offering payable by us. The following table should be read in
conjunction with the selected consolidated financial information and the audited consolidated financial
statements and related notes included in the accompanying Offering Memorandum.
AsofJune30,2016
Actual Asadjusted
RMB US$ RMB US$
(unaudited) (unaudited) (unaudited)
(inthousands)
Cash and cash equivalents(1) . . . . . . . . . . . . 4,077,869 613,592 4,745,782 714,092
Short-term borrowings
Borrowings – due within one year . . . . . . . 1,129,886 170,012 1,129,886 170,012
Amount due to a non-controlling
shareholder . . . . . . . . . . . . . . . . . . . . . . 343,324 51,660 343,324 51,660
Amounts due to joint ventures . . . . . . . . . . 1,887,310 283,981 1,887,310 283,981
Long-term borrowings(2)
Borrowings – due after
one year . . . . . . . . . . . . . . . . . . . . . . . . . . 2,862,889 430,776 2,862,889 430,776
Senior notes and bonds(3). . . . . . . . . . . . . . . . 10,980,228 1,652,181 10,980,228 1,652,181
New Notes to be issued . . . . . . . . . . . . . . . . . – – 667,913 100,500
Total long-term borrowings. . . . . . . . . . . . . 13,843,117 2,082,957 14,511,030 2,183,457
Total equity. . . . . . . . . . . . . . . . . . . . . . . . . 12,186,375 1,833,668 12,186,375 1,833,668
Total capitalization(4). . . . . . . . . . . . . . . . . . 26,029,492 3,916,625 26,697,405 4,017,125
Notes:
(1) CashandcashequivalentsexcluderestrictedbankdepositsofRMB1,382.1million(US$208.0million).
(2) SubsequenttoJune30,2016,wehave,intheordinarycourseofbusiness,enteredintoadditionalfinancingarrangementsto
financeourpropertydevelopmentsandforgeneralcorporatepurposesincludingtheissuanceoffurthertranchesof2016
OnshoreBondsonAugust17,2016andAugust23,2016.Wehavealsoissuedthe2016AdditionalNotesonAugust29,2016
andtheOriginalNotesonOctober4,2016.See“DescriptionofMaterialIndebtednessandOtherObligations”and“The
Offering”intheaccompanyingOfferingMemorandum.Theseadditionalborrowingsarenotreflectedinthetableabove.
(3) Seniornotesrefertothe2012Notes,theJanuary2013Notes,the2014Notes,the2015Notesandthe2016OriginalNotes.
OnNovember10,2016,wepurchasedpartofthe2014Notesandpartofthe2012Notesintheaggregateprincipalamount
ofUS$6.5millionandUS$5.7million,respectively,intheopenmarket.OnNovember21,2016,wefurtherpurchasedpartof
the 2014 Notes and part of the 2012 Notes in the aggregate principal amount of US$4.6 million and US$24.6 million,
respectively,intheopenmarket.Therepurchased2014Notesandtherepurchased2012Notes,representingapproximately
7.03%and12.12%oftheinitialprincipalamountsofthe2014Notesandthe2012Notes,respectively,havebeencancelled
subsequently. After the cancellation, the aggregate principal amounts of the 2014 Notes and the 2012 Notes remaining
outstandingareUS$278,900,000andUS$219,700,000,respectively,representingapproximately92.97%and87.88%ofthe
initialprincipalamountsofthe2014Notesandthe2012Notes,respectively.See“RecentDevelopment—Repurchaseofthe
2012Notesandthe2014Notes.”WehaveannouncedonDecember19,2016thatalloutstanding2014Noteswillberedeemed
infullonJanuary23,2017ataredemptionpriceequalto105.31250%oftheprincipalamountthereofplusaccruedand
unpaidinterest,ifany,to(butnotincluding)January23,2017.See“RecentDevelopment—Redemptionofthe2014Notes.”
Therepurchasesandredemptionarenotreflectedinthetableabove.
(4) Totalcapitalizationincludestotallong-termborrowingsplustotalequity.
After the completion of this offering, we may incur additional debt, including Renminbi
denominated borrowings or debt securities in China. Except as otherwise disclosed in this Supplemental
OfferingMemorandumandtheaccompanyingOfferingMemorandum,therehasbeennomaterialadverse
change in our capitalization since June 30, 2016.
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