New Smart Energy Group (HKG:0091) announces that the company propose capital reduction. The company proposes to reduce the nominal value of all the issued and unissued shares from HK$0.08 to HK$0.01 each. The authorized share capital of the company will be reduced from from HK$2 billion divided into 25 billion shares of HK$0.08 each to HK$250 million divided into 25 billion new shares of HK$0.01 each.

Assuming that no further shares will be issued after the date of this announcement, a credit of HK$464.693 million will arise from the proposed capital reduction, which will be utilised to set off the accumulated losses. As at 31 December 2011, being the date to which the last audited accounts of the company were drawn up, the total amount of the unconsolidated accumulated losses of the company, consisting of losses of both permanent and non-permanent in nature, was approximately HK$585.538 million.

The proposed capital reduction is under the approval of the court and the shareholders. At this stage, it is anticipated that the proposed capital reduction would become effective around July/August 2012.

Source:chinesestock.org