RE EDWARD SIMON MIDDLETON AND OTHERS

HCMP 2099/2021

[2022] HKCFI 248

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

MISCELLANEOUS PROCEEDINGS NO 2099 OF 2021

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D E C I S I O N

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Introduction

1.  I have before me the second application for issue by this court of a letter of request directed to the Shenzhen

Intermediate People’s Court seeking its assistance in aid of a Company’s liquidation and liquidators.  The application is made pursuant to what is now commonly referred to as the “Cooperation Mechanism” that was entered into on 14 May 2021 by the Supreme People’s Court and Hong Kong’s Secretary for Justice.  The first application was made on 20 July 2021.  It concerned Samson Paper Co Ltd[1].  It is not necessary for me to repeat the explanation contained in that decision of the genesis and purpose of the Cooperation Mechanism and its terms.  For present purposes what is relevant are (1) that the Cooperation Mechanism applies as between the Hong Kong High Court and the Shenzhen Intermediate People’s Court and (2) the criteria that need to be satisfied before the Shenzhen Intermediate People’s Court will recognise the Liquidators and grant them assistance.

Background

2.  The Company was incorporated in Hong Kong on 11 October 2007.  The Company is part of a corporate group (“Group”).  For more than 14 years, the Group has been engaged in the generation and supply of hydropower in the Mainland.  The Group’s principal operating subsidiaries are in the Mainland.  Key aspects of the Group’s corporate structure are as follows:

(1)  The ultimate parent of the Group is Zhaoheng (BVI)  Limited (Provisional Liquidators Appointed)  (“Parent”), a British Virgin Islands incorporated entity.

(2)  The Parent is a 91.07% shareholder of Zhaoheng Hydropower Holdings Limited (In Official Liquidation)  (“Intermediate Parent”), a Cayman Islands incorporated entity.

(3)  The Intermediate Parent is the sole shareholder of the Company.

(4)  The Company is a 99.94% shareholder of Shenzhen Zhaoheng Hydropower Co., Ltd (“Mainland Holding Company”), a company incorporated in Shenzhen.

(5)  The Mainland Holding Company is the immediate holding company of all the Group’s operating subsidiaries in the Mainland.

3.  As explained below, beginning early 2021, certain shareholders and creditors of the Group began proceedings against each of the Parent and the Company.  In addition, certain shareholders commenced arbitration proceedings against each of the Parent, the Intermediate Parent and the Company in Hong Kong.

4.  On 28 May 2021, a shareholder of the Parent petitioned the Eastern Caribbean Supreme Court in the High Court of Justice British Virgin Islands (“BVI Court”)  for the winding up of the Parent and applied ex parte for the appointment of joint provisional liquidators over the Parent on the grounds of serious misconduct engaged by the management of the Group in dealing with the Group’s affairs, which includes purported dubious related party transactions within and outside of the Group.

5.  On 1 June 2021, the BVI Court ordered the appointment of Wesley Edwards, Wing Sze Tiffany Wong and Edward Middleton as the joint provisional liquidators (“JPLs”)  over the Parent.

6.  The JPLs recognised that in order to protect the interests of creditors and shareholders of the Parent, it was necessary for them to take control of the Intermediate Parent.  On 17 June 2021, Ms Wong and Mr Middleton together with two colleagues in Alvarez & Marsal were appointed as directors of the Intermediate Parent.  On 22 June 2021, following the reconstitution of the board of directors (“Board”)  of the Intermediate Parent, the JPLs issued a notice to the Board of the Intermediate Parent requiring it to convene an extraordinary general meeting to pass a special resolution that the Intermediate Parent be voluntarily wound up, among other things.  On 28 June 2021, the Intermediate Parent issued the notice of extraordinary general meeting to its members.  On 14 July 2021, this shareholder meeting was held and the special resolution was passed.  On 27 September 2021, the Grand Court of the Cayman Islands ordered the appointment of Christopher Kennedy, Ms Wong and Mr Middleton as the Joint Official Liquidators of the Intermediate Parent.

7.  On 19 January 2021, a creditor (being one of the banks of a consortium)  of the Company petitioned this Court for the winding up of the Company.  On 17 May 2021, this Court ordered that the Company be wound up on the ground that it was unable to pay its debts.  On the same day, Mr Osman Mohammed Arab and Mr Wong Kwok Keung, both of RSM Corporate Advisory (Hong Kong)  Limited (“RSM”)  were appointed by the Official Receiver as joint and several provisional liquidators.

8.  On 13 July 2021, at the first meeting of creditors of    the Company, the creditors unanimously resolved that Ms Wong and Mr Middleton be appointed as liquidators of the Company (“Liquidators”).  On 9 August 2021, RSM applied to this Court for the appointment of the Liquidators over the Company. On 6 October 2021, RSM’s application was heard by this Court and an Order was made on the same day.

Need for Recognition and Assistance

9.  The Liquidators have a duty to collect in the Company’s assets and investigate into the affairs of the Company.  The Liquidators require recognition and assistance in the Mainland in order to take possession of and deal with the Company’s substantial assets in the Mainland, which are principally located in Shenzhen.  This includes the assets set out below.

(1)  A 99.94% shareholding interest in the Mainland Holding Company, whose registered address is at Flat 1901, 19/F, Unit A, Jinfengcheng Building, 5015 Shennan East Road, Shenzhen, 518015.  The Mainland Holding Company holds, directly or indirectly, interests in about 50 companies incorporated in the Mainland.

(2)  A motor vehicle with number plate TC1475 (粤Z911E港), which the Liquidators believe, based on information from one of the Company’s directors, to be parked at 5015 Shennan East Road, Shenzhen.

(3)  A 25% shareholding interest in Hunan Sanjiang Electric Power Co., Ltd, whose registered office is at No. 001, Power Station South Road, Shuanghong Community, Chujiang Town, Shimen County, Hunan Province.  The remaining 75% of this company’s shares is held by the Mainland Holding Company.

(4)  Funds credited to the Company’s bank accounts held with the Shenzhen branches of various banks.

Bank	Account no.
Pingan Bank Shenzhen Branch	NRA11013897891201
China Guangfa Bank Shenzhen Branch	102062511010000922
Bank of China Shenzhen Branch	760157927843/ 812110545408090014

(5)  Accounts receivable totaling RMB439 million (as of 17 May 2021)  due from companies incorporated in the Mainland.

10.  As of the date of the Affidavit of Mr Middleton filed on 10 December 2021, the Liquidators have received the following claims from the Mainland against the Company:

Item	Creditor	Amount (RMB)
1.	湖南兆恒水电有限公司 Hunan Zhaoheng Hydropower Co., Ltd	622,976.96
2.	深圳兆恒水电有限公司 Shenzhen Zhaoheng Hydropower Co., Ltd (i.e., the Mainland Holding Company)	332,520,379.06
3.	寿宁县洪源水电有限公司 Shouning County Hongyuan Hydropower Co., Ltd	78,029,957.72
Total		411,173,313.74

11.  On 29 November 2021, the Liquidators received a letter from Zhou Qiao Li confirming that the accounting records of the Company are currently kept at 2F, Tower A, South District, Zhaoheng Moju Yuan, Genyu Road, Tianliao Shequ, Guangming New District, Shenzhen.

12.  According to records available to the Liquidators, the Company and/or its subsidiaries is or was involved in legal proceedings with the vendors in connection with the Company’s acquisition of Fujian Tailong Electric Power Co., Ltd (福建泰龙电力股份有限公司)  in Hong Kong and in the Mainland.  The Mainland legal proceedings include proceedings in the People’s Court of Zhangzhou City, Fujian Province, the Supreme People’s Court of Fujian Province and Intermediate People’s Court of Xiamen City, Fujian Province.  Meanwhile, the Liquidators have also been informed by their legal counsel in the Mainland that the creditor (i.e., the Petitioner who petitioned for the winding up of the Company before this Court)  together with the other banks of the consortium had instigated a legal action ((2021)  粤03民初6642号)  against the Company, the Intermediate Parent and an indirect subsidiary of the Company with the Shenzhen Intermediate People’s Court.  The said legal proceedings was accepted by the Shenzhen Intermediate People’s Court on 25 October 2021.  The Liquidators were further informed that 25.11% of the shareholding interest held by the Company in the Mainland Holding Company was frozen by the Shenzhen Intermediate People’s Court with effect from 23 November 2021.

13.  I am satisfied that it is desirable and necessary for the Liquidators appointment to be recognised by the Shenzhen Intermediate People’s Court and for that court to provide assistance to carry out the Liquidators’ function, which I describe in [13]–[14] of the decision in Re Samson Paper Co Ltd (In Liq)[2].

Jurisdiction

14.  Article 4 of the SPC Opinion states:

“ 四、 本意見適用於香港特別行政區系債務人主要利益中心所在地的香港破產程序。

本意見所稱‘主要利益中心’，一般是指債務人的註冊地。同時，人民法院應當綜合考慮債務人主要辦事機構所在地、主要營業地、主要財產所在地等因素認定。

在香港管理人申請認可和協助時，債務人主要利益中心應當已經在香港特別行政區連續存在6個月以上。

4. This Opinion applies to Hong Kong Insolvency Proceedings where the Hong Kong Special Administrative Region is the centre of main interests of the debtor.

‘Centre of main interests’ referred to in this Opinion generally means the place of incorporation of the debtor. At the same time, the people’s court shall take into account other factors including the place of principal office, the principal place of business, the place of principal assets etc. of the debtor.

When a Hong Kong Administrator applies for recognition and assistance, the centre of main interests of the debtor shall have been in the Hong Kong Special Administrative Region continuously for at least 6 months.”

15.  As the Company is incorporated in Hong Kong it follows that unless there are matters, which demonstrate that its centre of main interests are located elsewhere the SPC Opinion applies to the Company and its Liquidators and this is a proper case in which to seek recognition and assistance.  On the basis of the evidence before me in my view it would appear that the Company’s centre of main interests has been in Hong Kong since its incorporation as it has always been run out of Hong Kong [3].

Procedure for recognition specified in the SPC Opinion

16.  Article 6 of the SPC Opinion sets out the procedure for an application by a Hong Kong liquidator (清盤人):

“ 六、申請認可和協助香港破產程序的，香港管理人應當提交下列材料：

(一)  申請書；

(二)  香港特別行政區高等法院請求認可和協助的函；

(三)  啟動香港破產程序以及委任香港管理人的有關文件；

(四)  債務人主要利益中心位於香港特別行政區的證明材料，證明材料在內地以外形成的，還應當依據內地法律規定辦理證明手續；

(五)  申請予以認可和協助的裁判文書副本；

(六)  香港管理人身份證件的複印件，身份證件在內地以外形成的，還應當依據內地法律規定辦理證明手續；

(七)  債務人在內地的主要財產位於試點地區、在試點地區存在營業地或者在試點地區設有代表機構的相關證據。向人民法院提交的文件沒有中文文本的，應當提交中文譯本。

6. The Hong Kong Administrator applying for recognition of and assistance to Hong Kong Insolvency Proceedings shall submit the following materials:

(1)  an application;

(2)  a letter of request for recognition and assistance issued by the High Court of the Hong Kong Special Administrative Region;

(3)  the relevant documents on the commencement of the Hong Kong Insolvency Proceedings and in relation to the appointment of the Hong Kong Administrator;

(4)  materials showing that the debtor’s centre of main interests is in the Hong Kong Special Administrative Region, and if any of such materials was issued outside the Mainland, it shall be certified in accordance with the law of the Mainland;

(5)  a copy of the judgment in respect of which the application for recognition and assistance is made;

(6)  a copy of the identity document of the Hong Kong Administrator, and if such identity document was issued outside the Mainland, it shall be certified in accordance with the law of the Mainland;

(7)  evidence showing that the debtor’s principal assets in the Mainland are in a pilot area, or that it has a place of business or a representative office in a pilot area.

Where a document to be submitted to a people’s court of the Mainland is not in the Chinese language, a Chinese translation shall be submitted.”

Determination

17.  I have found in [13] above that it is desirable that the Liquidators’ appointment should be recognised and assisted in Shenzhen and in [15] that the criteria for issuing a letter of request are satisfied in the present case.  It follows that in my opinion this is a proper case for a letter of request to be issued by the Hong Kong Court to the Shenzhen Intermediate People’s Court requesting that the Shenzhen Intermediate People’s Court make an order recognising the Liquidators and providing assistance to them.

18.  I will make the following order:

(1)  A letter of request in the form appended hereto in simplified Chinese be issued to the Shenzhen Intermediate People’s Court seeking its assistance in aid of the Company’s liquidation and its liquidators.

(2)  The Liquidators’ costs of this application be paid out of the assets of the Company as an expense of the Company’s liquidation.

(3)  Liberty to apply.

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根据认可和协助香港特别行政区破产程序试点方案发出的司法协助请求函

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致：深圳市中级人民法院

鉴于:

1.  本法庭是对香港特别行政区（“香港”）的公司法和破产法行使管辖权的法庭。

2.  兆恒水电（香港）有限公司（“该公司”）是一家于2007年10月11日根据香港法律注册成立的公司。

3.  该公司隶属于在内地从事水力发电和供应的公司集团（“该集团”）。

4.  2021年1月19日，台湾银行香港分行向法院提出了将该公司清盘的呈请。公司自2021年5月17日，法院命令将该公司清盘，理由是其无力偿还债务。

5.  2021年7月13日，该公司债权人通过一项决议，确认委任Alvarez & Marsal Asia Limited（地址为香港中环雪厂街2号圣佐治大厦4楼405-7室）的Edward Simon Middleton先生和Wing Sze Tiffany Wong女士两人担任该公司的共同和各别清盘人(“清盘人”)。

6.  2021年10月6日，本法院发出一项命令，确认清盘人的委任。

7.  根据香港法律（包括《公司（清盘及杂项条文）条例》（香港法例第32章）第197及199条），授权清盘人共同及各別采取（其中包括）以下行动：

7.1.  将该公司有权享有或看似有权享有的所有财产及据法权产，收归该清盘人保管或控制；

7.2.  公开拍卖或私人合约，出售该公司的不动产、动产及据法权产，并有权将该等财产及权产全盘转让予任何人或任何公司，或将它们分拆出售；

7.3.  以该公司的名义和代表该公司作出所有作为及签立所有契据、收据及其他文件，并可为该目的而在有需要时，使用该公司的印章；及

7.4.  作出为该公司事务清盘及该公司资产分配而需要作出的所有其他事情。

8.  清盘人认为，鉴于（其中包括）以下事实，若要根据香港法律有效行使他们的权力，需要深圳市中级人民法院认可他们的委任：

   8.1.  该公司在内地的资产包括：

8.1.1.  一家在深圳注册成立的公司Shenzhen Zhaoheng Hydropower Co., Ltd*(深圳兆恒水电有限公司)的99.94%股权。此公司继而(直接或间接)持有在内地注册成立的约50家公司的权益。

8.1.2.  一家在湖南注册成立的公司Hunan Sanjiang Electric Power Co., Ltd*(湖南三江电力有限责任公司)的25%股权。

   *仅供识别

8.1.3.  车牌号为TC1475(粤Z911E港)的汽车，清盘人相信该汽车位于深圳。

8.1.4.  存入该公司在各银行深圳分行的银行账户的资金

银行	账号
平安银行深圳中电支行	NRA11013897891201
广发银行深圳科苑支行	102062511010000922
中国银行深圳分行	760157927843 / 812110545408090014

8.1.5.  应收下列在内地注册成立的公司的款项 (截至2021年5月17日)  合共人民币4.39亿元：

序号	债务人	金额 （人民币）
1.	汶川华明电力开发有限责任公司 Wenchuan Huaming Electric Power Development Co., Ltd*	2,920,305.97
2.	南平威达绿色能源开发有限公司 Nanping Weida Green Energy Development Co., Ltd*	61,080,486.84
3.	福建泰龙电力股份有限公司 Fujian Tailong Electric Power Co., Ltd*	335,430,216.45
4.	芒市泰龙电力发展有限公司 Mangshi Tailong Electric Power Development Co., Ltd*	5,020,903.38
5.	永泰县青龙溪水电开发有限公司 Yongtai Xian Qing Long Xi Hydroelectric Development Co., Ltd*	5,081,389.45
6.	福建省上杭宝富水电发展有限公司 Fujian Sheng Shanghang Bao Fu Hydroelectric Development Co., Ltd*	670,202.30
7.	漳平市富鑫水电投资有限公司 Zhangping Shi Fu Xin Hydroelectric Investment Co., Ltd*	369,209.07
8.	华安县泰龙电力发展有限公司 Huaan Xian Tailong Electric Power Development Co., Ltd*	32,610.02
9.	上杭县中龙电力有限公司 Shanghang Xian Zhong Long Electric Power Co., Ltd*	715,435.44
10.	华安县浙溪口电力有限公司 Huaan Xian Zhe Xi Kou Electric Power Co., Ltd*	53,000.00
11.	寿宁县蒲洋水电开发有限公司 Shouning Xian Pu Yang Hydroelectric Development Co., Ltd*	15,510,669.76
12.	华安县德溪电力发展有限公司 Huaan Xian De Xi Electric Power Development Co., Ltd*	346,991.77
13.	福建省顺昌县坊上水电有限责任公司 Fujian Sheng Shun Chang Xian Fang Shang Hydroelectric Co., Ltd*	11,325,859.81
14.	龙岩市万安华益水电有限公司 Longyan Shi Wan An Hua Yi Hydroelectric Co., Ltd*	276,662.32
合计		438,833,942.58

*仅供识别

8.2.  清盘人相信该公司的董事徐国胜先生，饶正富先生和朱宏先生及前董事和前该集团财务官柳景森目前在内地。

8.3.  公司的财务账本先保存在深圳市光明新区田寮社区根玉路兆恒摸具园南区A座二楼。

8.4.  涉及该公司及/或其子公司在内地的法律诉讼

8.4.1.  该公司及/或其子公司曾/正在与卖方就该公司在香港和内地收购Fujian Tailong Electric Power Co., Ltd*（福建泰龙电力股份有限公司）进行法律诉讼。内地法律诉讼包括在福建省漳州市人民法院、福建省最高人民法院和福建省厦门市中级人民法院进行的诉讼。清盘人亦从其内地法律顾问悉，该公司是深圳市中级人民法院（（2021）粤03民初6642号））的被告，该公司在Shenzhen Zhaoheng Hydropower Co., Ltd* 深圳兆恒水电有限公司25.11%的股权因诉讼被深圳市中级人民法院冻结，清盘人目前无法获得信息以确认这些诉讼程序的当前状况。

  *仅供识别

9.  因此，清盘人认为，根据香港法律，向深圳市中级人民法院寻求济助属适当行为，以便（特别及最重要的是）该法庭能认可清盘人及其权力。

10.  本案所提供的证据证明并令本法庭信纳，在其认为适当的范围内，向深圳市中级人民法院提出协助请求符合正义。为使清盘人能够履行其职责，谨请深圳市中级人民法院协助本法庭，授权清盘人根据适用的内地法律在内地行使香港法律赋予他们的所有权力、职责和酌情权。

11.  本法庭谨请深圳市中级人民法院为清盘程序及清盘人提供协助，签发命令并指示：

11.1.  清盘程序和清盘人的委任均得深圳市中级人民法院的认可；及

11.2.  清盘人拥有并可行使香港法律赋予他们的权力（如上文所载），并可在内地法律允许的最大范围内行使。

12.  本法庭确认，已根据香港的程序和法律发出本请求函及作出相关申请。

13.  为免产生疑问，寻求该协助旨在获得与本法庭因公司资产专属于本法庭的管辖范围内所授予的济助大致相符的济助。

14.  本法庭进一步确认，香港法院将在类似情况下，并在行使其固有管辖权时，认可深圳市中级人民法院的请求函，并就该请求函提供可能需要的协助（受香港法律的适用限制约束）。

_____________________________________________________________________

LETTER OF REQUEST FOR JUDICIAL ASSISTANCE

UNDER THE PILOT MEASURE IN RELATION TO THE RECOGNITION

OF AND ASSISTANCE TO INSOLVENCY PROCEEDINGS IN THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

_____________________________________________________________________

 

TO: Shenzhen Intermediate People’s Court

WHEREAS:

1.  This Court is a court exercising jurisdiction in relation to company and insolvency law in the Hong Kong Special Administrative Region (“Hong Kong”).

2.  Zhaoheng Hydropower (Hong Kong)  Limited (“Company”)  is a company incorporated under the laws of Hong Kong on 11 October 2007.

3.  The Company is part of a group of companies which engages in generation and supply of hydropower in the Mainland (“Group”).

4.  On 19 January 2021, a petition to wind up the Company was presented to the Court by Bank of Taiwan, Hong Kong Branch.  On 17 May 2021, this Court ordered that the Company be wound up on the ground that it was unable to pay its debts.

5.  On 13 July 2021, the creditors of the Company passed a resolution confirming the appointment of Mr Edward Simon Middleton and Ms Wing Sze Tiffany Wong, both of Alvarez & Marsal Asia Limited, Rooms 405-7, 4/F., St. George’s Building, 2 Ice House Street, Central, Hong Kong, as the joint and several liquidators of the Company (“Liquidators”).

6.  On 6 October 2021, this Court made an Order confirming the appointment of the Liquidators.

7.  Under Hong Kong law (including sections 197 and 199 of the Companies (Winding Up and Miscellaneous Provisions)  Ordinance (Cap.32)), the Liquidators are authorised jointly and severally to, among others:

7.1.  take into their custody, or under their control, all the property and things in action to which the Company is or appears to be entitled;

7.2.  sell the real and personal property and things in action of the Company by public auction or private contract, with power to transfer the whole of the property and things in action to any person or company, or to sell them in parcels;

7.3  do all acts and execute, in the name and on behalf of the Company, all deeds, receipts and other documents, and for that purpose use, when necessary, the Company’s seal; and

7.4  do all other things as may be necessary for winding up the affairs of the Company and distributing its assets.

8.  The Liquidators consider that the effective exercise of their powers under Hong Kong law requires that their appointment be recognised by the Shenzhen Intermediate People’s Court because of, inter alia, the following facts:

8.1.  The Company’s assets in the Mainland include:

8.1.1.  A 99.94% shareholding interest in Shenzhen Zhaoheng Hydropower Co., Ltd* (深圳兆恒水电有限公司), a company incorporated in Shenzhen, which in turn holds (directly or indirectly)  interests in approximately 50 companies incorporated in the Mainland.

8.1.2.  A 25% shareholding interest in Hunan Sanjiang Electric Power Co., Ltd* (湖南三江电力有限责任公司), a company incorporated in Hunan.

   * for identification purposes only

8.1.3.  A motor vehicle with number plate TC1475 (粤Z911E港), which the Liquidators believe to be located in Shenzhen.

8.1.4.  Funds credited to the Company’s bank accounts held with the Shenzhen branches of various banks.

Bank	Account no.
Pingan Bank Shenzhen Branch	NRA11013897891201
China Guangfa Bank Shenzhen Branch	102062511010000922
Bank of China Shenzhen Branch	760157927843 / 812110545408090014

8.1.5.  Accounts receivable totalling RMB439 million (as of 17 May 2021)  due from companies incorporated in the Mainland:

Item	Debtor	Amount (RMB)
1.	汶川华明电力开发有限责任公司 Wenchuan Huaming Electric Power Development Co., Ltd*	2,920,305.97
2.	南平威达绿色能源开发有限公司 Nanping Weida Green Energy Development Co., Ltd*	61,080,486.84
3.	福建泰龙电力股份有限公司 Fujian Tailong Electric Power Co., Ltd*	335,430,216.45
4.	芒市泰龙电力发展有限公司 Mangshi Tailong Electric Power Development Co., Ltd*	5,020,903.38
5.	永泰县青龙溪水电开发有限公司 Yongtai Xian Qing Long Xi Hydroelectric Development Co., Ltd*	5,081,389.45
6.	福建省上杭宝富水电发展有限公司 Fujian Sheng Shanghang Bao Fu Hydroelectric Development Co., Ltd*	670,202.30
7.	漳平市富鑫水电投资有限公司 Zhangping Shi Fu Xin Hydroelectric Investment Co., Ltd*	369,209.07
8.	华安县泰龙电力发展有限公司 Huaan Xian Tailong Electric Power Development Co., Ltd*	32,610.02
9.	上杭县中龙电力有限公司 Shanghang Xian Zhong Long Electric Power Co., Ltd*	715,435.44
10.	华安县浙溪口电力有限公司 Huaan Xian Zhe Xi Kou Electric Power Co., Ltd*	53,000.00
11.	寿宁县蒲洋水电开发有限公司 Shouning Xian Pu Yang Hydroelectric Development Co., Ltd*	15,510,669.76
12.	华安县德溪电力发展有限公司 Huaan Xian De Xi Electric Power Development Co., Ltd*	346,991.77
13.	福建省顺昌县坊上水电有限责任公司 Fujian Sheng Shun Chang Xian Fang Shang Hydroelectric Co., Ltd*	11,325,859.81
14.	龙岩市万安华益水电有限公司 Longyan Shi Wan An Hua Yi Hydroelectric Co., Ltd*	276,662.32
Total		438,833,942.58

* for identification purposes only

8.2.  The Liquidators believe the Company’s directors Mr Xu Guosheng (徐国胜), Mr Rao Zhengfu (饶正富), Mr Zhu Hong (朱宏), and the Company’s former director and former CFO of the Group Mr Kenneth Lau (柳景森), are currently in the Mainland.

8.3.  The accounting records of the Company are kept at 2F, Tower A, South District, Zhaoheng Moju Yuan, Genyu Road, Tianliao Shequ, Guangming New District, Shenzhen.

8.4.  Legal proceedings involving the Company and/or its subsidiaries in the Mainland

8.4.1.  The Company and/or its subsidiaries is or was involved in legal proceedings with the vendors in connection with the Company’s acquisition of Fujian Tailong Electric Power Co., Ltd* (福建泰龙电力股份有限公司)  in Hong Kong and the Mainland.  The Mainland legal proceedings include proceedings in the People’s Court of Zhangzhou City, Fujian Province, the Supreme People’s Court of Fujian Province and Intermediate People’s Court of Xiamen City, Fujian Province.  The Liquidators have also been informed by their legal counsel in the Mainland that the Company is a defendant in a legal proceeding ((2021)  粤03民初6642号))  in the Shenzhen Intermediate People’s Court and that the Company’s 25.11% shareholding interest in Shenzhen Zhaoheng Hydropower Co., Ltd* (深圳兆恒水电有限公司)  have been frozen by the Shenzhen Intermediate People’s Court as a result of the legal proceedings. The Liquidators do not presently have access to information to confirm the current status of these proceedings.

* for identification purposes only

9.  Accordingly, the Liquidators consider it appropriate, as a matter of Hong Kong law, to seek relief from the Shenzhen Intermediate People’s Court, most specifically and importantly for the recognition of the Liquidators and their powers.

10.  The evidence filed in these proceedings has demonstrated to the satisfaction of this Court that, in order for the Liquidators to discharge their duties, it is in the interests of justice to respectfully request the Shenzhen Intermediate People’s Court, to the extent it deems it appropriate to do so, to assist this Court by empowering the Liquidators to exercise all the powers, duties and discretions afforded to them under Hong Kong law within the Mainland in accordance with applicable Mainland law.

11.  This Court hereby respectfully requests the Shenzhen Intermediate People’s Court to act in aid of the Liquidation proceedings and in aid of the Liquidators by ordering and directing that:

11.1.  the Liquidation proceedings and the appointment of the Liquidators be recognised by the Shenzhen Intermediate People’s Court; and

11.2.  the Liquidators have and may exercise such powers as are available to them under Hong Kong law (as set out above), and to the fullest extent permitted by Mainland law.

12.  This Court confirms that this Letter of Request has been issued, and the associated application has been made, in accordance with the procedures and laws of Hong Kong.

13.  For the avoidance of doubt, this assistance is sought to obtain relief broadly corresponding to the relief which would be granted by this Court if the Company’s assets were located exclusively within the jurisdiction of this Court.

14.  This Court further confirms that the Hong Kong Court would in similar circumstances, and in the exercise of its inherent jurisdiction, recognise a letter of request from the Shenzhen Intermediate People’s Court and provide such assistance as may be requested in respect of that letter of request (subject to applicable limitations under Hong Kong law).