The following is the Explanatory Statement required to be sent to shareholders under the Listing Rules
in connection with the proposed general mandate for repurchase of shares and also constitutes the
Memorandum required under section 49BA of the Companies Ordinance.
1. It is proposed that up to 10 per cent of the Company’s shares in issue at the date of the passing of
the resolution to approve the general mandate may be repurchased. As at 12th March 2009, the latest
practicable date for determining such figure, the number of shares in issue was 3,933,628,572. On
the basis of this figure (and assuming no shares are issued or repurchased after 12th March 2009
and up to the date of passing such resolution) the Directors would be authorised to repurchase up to
393,362,857 shares.
2. The Directors believe that the ability to repurchase shares is in the interests of the Company and its
shareholders.
Repurchases may, depending on the circumstances, result in an increase in net assets and/or earnings
per share. The Directors are seeking the grant of a general mandate to repurchase shares to give the
Company the flexibility to do so if and when appropriate. The number of shares to be repurchased on
any occasion and the price and other terms upon which the same are repurchased will be decided by
the Directors at the relevant time having regard to the circumstances then pertaining.
3. It is envisaged that the funds required for any repurchase would be derived from the distributable
profits of the Company.