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Insider Dealing Tribunal makes order in Siu Fung Ceramics Holdings Limited case

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The Insider Dealing Tribunal has concluded its hearings for determining the profit gained or losses avoided by the people found to be insider dealers in the insider dealing inquiry concerning Siu Fung Ceramics Holdings Limited (Siu Fung).

The tribunal was chaired by the Honourable Mr Justice Lugar-Mawson.

The Inquiry was conducted pursuant to a notice served by the Financial Secretary on February 10, 2001. The tribunal completed its inquiry and submitted its report to the Financial Secretary on March 18, 2004. The report concluded that five implicated parties had committed insider dealing. The tribunal then conducted hearings on May 18, 19 & 25, 2004, to deal with issues relating to the profits gained or losses avoided, financial penalties, applications in respect of costs and the orders to be made.

After the hearings, the tribunal made the following orders against the five insider dealers - Mr Siegfried Lee Siu Fung, Mr Daniel Chan Kwong Tat, Mrs Lisa Lam Lai San, Mr William Lam Chun Ming and Mr Henry Tai Hon Leung.

(a) Mr Siegfried Lee Siu Fung shall:

(i) not without leave of the Court of First Instance be a director or a liquidator or a receiver or a manager of the property of both a listed and a private company or in any way whether directly or indirectly be concerned or take part in the management of both a listed and a private company for a period of five years;

(ii) pay to the Government of the Hong Kong Special Administrative Region the sum of HK$69,870,530 being the loss avoided through insider dealing;

(iii) pay to the Government of the Hong Kong Special Administrative Region a penalty of HK$139,741,060; and

(iv) pay to the Government of the Hong Kong Special Administrative Region HK$9,185,356 being expenses of the Inquiry.

(b) Mr Daniel Chan Kwong Tat shall:

(i) not without leave of the Court of First Instance be a director or a liquidator or a receiver or a manager of the property of a listed company or in any way whether directly or indirectly be concerned or take part in the management of a listed company for a period of two years;

(ii) pay to the Government of the Hong Kong Special Administrative Region a penalty of HK$13,925,337; and

(iii) pay to the Government of the Hong Kong Special Administrative Region HK$2,296,339 being expenses of the Inquiry.

(c) Mrs Lisa Lam Lai San shall:

(i) not without leave of the Court of First Instance be a director or a liquidator or a receiver or a manager of the property of a listed company or in any way whether directly or indirectly be concerned or take part in the management of a listed company for a period of one year;

(ii) pay to the Government of the Hong Kong Special Administrative Region the sum of HK$1,910,297 being 50% of the loss avoided through insider dealing;

(iii) pay to the Government of the Hong Kong Special Administrative Region a penalty of HK$1,910,297; and

(iv) pay to the Government of the Hong Kong Special Administrative Region HK$2,296,339 being expenses of the Inquiry.

(d) Mr William Lam Chun Ming shall:

(i) not without leave of the Court of First Instance be a director or a liquidator or a receiver or a manager of the property of a listed company or in any way whether directly or indirectly be concerned or take part in the management of a listed company for a period of one year;

(ii) pay to the Government of the Hong Kong Special Administrative Region the sum of HK$1,910,297 being 50% of the loss avoided through insider dealing;

(iii) pay to the Government of the Hong Kong Special Administrative Region a penalty of HK$1,910,297; and

(iv) pay to the Government of the Hong Kong Special Administrative Region HK$2,296,339 being expenses of the Inquiry.

(e) Mr Henry Tai Hon Leung shall not without leave of the Court of First Instance be a director or a liquidator or a receiver or a manager of the property of a listed company or in any way whether directly or indirectly be concerned or take part in the management of a listed company for a period of one year.

A report on penalty and consequential orders of the tribunal has been submitted to the Financial Secretary and distributed to all concerned parties.

The tribunal will carry out further inquiries on whether or not it can and should identify either the Search Investment Group or Mordale Profits Ltd (or both corporations) as having engaged in insider dealing when the Search Investment Group sold its portfolio of Siu Fung shares which were held by its subsidiary Mordale Profits Ltd and if each or both companies did, what orders should be made against them. Until those hearings are ended the tribunal has made no penalty or costs order against either William Lam Chun Ming or Henry Tai Hon Leung in respect of that sale and has reserved its decision on these matters.

Ends/Monday, November 8, 2004

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