In December 2020, Chungs Lawyers (in association with DeHeng Law Offices) advised China High Speed Transmission Equipment Group Co., Ltd. (stock code: 658) (“China High Speed”) on the capital injection at a discounted price in its subsidiary by 277 designated employees of China High Speed. Such a capital injection serves as an employee incentive scheme to award the contribution of the designated employees. The transaction also involves the application for a waiver from the requirement to convene a general meeting, such that a written approval from a shareholder who holds more than 50% of the shares of China High Speed in issue would be accepted in lieu of convening a general meeting pursuant to Rule 14A.37 of the Listing Rules.
The above transaction constitutes a connected transaction and a discloseable transaction under Chapters 14A and 14 of the Listing Rules, respectively.
China High Speed is a leading supplier of wind gear transmission equipment (including 6MW and 7MW wind power gear box) and is principally engaged in the research, design, development, manufacture and distribution of various types of mechanical transmission equipment for a broad range of applications in wind power generation and industrial use. China High Speed or its subsidiaries is recognised by the National Development and Reform Commission as the State-Certified Enterprise Technology Centre (国家认定企业技术中心) and was awarded Top Ten Outstanding Enterprise of the Award for the Top 50 of China Wind Power Industry in 2019 (2019中国风电产业50强十佳优秀企业).