SHANGHAI XNG (03666) proposes to change its name to "China Baicao Group Co., Ltd."

SHANGHAI XNG (03666) announces that the board of directors proposes to change the company's existing English name from "Shanghai XNG Holdings Limited" to "China Herbcure Group Holdings Limited," and to adopt the Chinese name "China Baicao Group Co., Ltd." as the company's new dual foreign name, replacing its existing Chinese name "SHANGHAI XNG Holdings Limited." In addition, the board of directors proposes to implement a capital reorganization, which involves a share consolidation, a capital reduction, and a share subdivision. The board of directors proposes to implement a share consolidation on the basis that every 30 issued and unissued existing shares of HK$0.01 each be consolidated into 1 consolidated share of HK$0.3 each. Immediately following the effective date of the share consolidation, the capital reduction will reduce the par value of each issued consolidated share from HK$0.30 to HK$0.01 by: (a) eliminating any fractional consolidated shares arising from the share consolidation in the company's issued share capital, so as to round down the total number of consolidated shares and consolidated preference shares to a whole number; and (b) cancelling HK$0.29 of the company's paid-up share capital in respect of each issued consolidated share, so that immediately following the capital reduction, the par value of each issued new consolidated share is reduced from HK$0.30 to HK$0.01, and the credit arising from the capital reduction will be transferred to the company's contributed surplus account as defined in the Companies Act. The share subdivision, immediately following the effective date of the capital reduction, will subdivide each authorized but unissued consolidated share into 30 authorized but unissued new shares of HK$0.01 each.