# Issue of new Shares under the Share Option Scheme will have a dilution effect and may affect the Group’s profitability

The Company has conditionally adopted the Share Option Scheme. Although no options have been granted thereunder as at the Latest Practicable Date, any exercise of the options granted under the Share Option Scheme in the future and issue of the Shares thereunder would result in a reduction in the percentage ownership of the Shareholders in the Company and may result in a dilution in the earnings per Share and net assets value per Share, as a result of the increase in the number of Shares outstanding after the issue.

Under HKFRS, any options granted to the grantees through the Share Option Scheme will be recognised as share based payment and will be charged to the Group’s income statements at fair value at the date of which such options are granted. As such, any grant of options under the Share Option Scheme may increase the expenses of the Group and may thereby affect the Group’s profitability.

# You should not rely on any information contained in press articles or other media regarding the Company and the Share Offer

Prior to the publication of this prospectus, there may be certain press and media coverage regarding the Company and the Share Offer which may include certain financial information, industry comparisons, profit estimates and other information about the Company that does not appear in this prospectus. The Group has not authorised the disclosure of any such information in the press or media and does not accept any responsibility for any such press or media coverage or the accuracy or completeness of any such information. The Group makes no representation as to the appropriateness, accuracy, completeness or reliability of any such information or publication. Prospective investors should not rely on any such information and should only rely on information included in this prospectus in making any decision as to whether to subscribe for the Shares.

This prospectus contains forward-looking statements, including, but without limitation to, the words and expressions such as “aim”, “expect”, “believe”, “plan”, “intend”, “anticipate”, “may”, “seek”, “will”, “would” and “could” and the negative of these words or other similar expressions or statements, in particular, in the sections headed “Business”, “Financial Information” and “Future Plans and Use of Proceeds” in this prospectus in relation to future events, business or other performance and development, the future development of the Group’s industry and the future development of the general economy of the Group’s key markets and globally.

These statements are based on numerous assumptions regarding the Group’s present and future business strategy and the environment in which the Group will operate in the future. These forward-looking statements reflecting the Group’s current views with respect to future events are not a guarantee of future performance and are subject to certain risks, uncertainties and assumptions, including the risk factors described in this prospectus and the following:

• the Group’s business and operating strategies and the Group’s ability to implement such strategies;

• the Group’s capital expenditure and expansion plans;

• the Group’s ability to further develop and manage the Group’s expansion projects as planned;

• the Group’s operations and business prospects;

• various business opportunities that the Group may pursue;

• the Group’s financial position;

• the availability and costs of bank loans and other forms of financing;

• the Group’s dividend policy;

• the regulatory environment of the Group’s industry in general;

• the performance and future developments of the consumer electronics industry;

• the general outlook of the consumer electronics market in the world;

• changes in political, economic, legal and social conditions in the PRC, including the specific policies of the PRC government and the local authorities in the regions where the Group operates;