The Board of Directors of BreadTalk Group Ltd ("the Company") is pleased to announce that a new subsidiary, " Shanghai BreadTalk Co., Ltd" has been established. Shanghai BreadTalk Co., Ltd is incorporated in the People's Republic of China and its main activities will be the manufacture and retail of bakery goods and confectionery. It is 100% owned by BreadTalk International Pte Ltd, which is a wholly owned subsidiary of the Company.
Shanghai BreadTalk Co., Ltd has a registered capital of US$2,000,000 and the investment will be funded through the Company's IPO proceeds. As at the date of this announcement, the registered capital has not been paid up.
The new subsidiary is not expected to have any material effect on the earnings per share or net tangible assets per share of the Company for the financial year ending 31 December 2003.
None of the Directors or substantial shareholders of the Company has any direct or indirect interest in the above transaction other than through their respective shareholdings in the Company.