(¡°China Shoto¡± or ¡°the Company¡±)

 

 

 

China Shoto plc (AIM:CHNS), a leading Chinese producer of industrial batteries and power supply systems, is pleased to announce that it has conditionally placed 3,143,750 new ordinary shares of 10 pence each in the capital of the Company (¡°Ordinary Shares¡±) at a price of 160 pence per share, raising a total of £5.0 million (before expenses) for the Company.  Application has been made to AIM for the new shares to be admitted to trading, which is expected to commence on 12 June 2006.

 

The proceeds of the placing will be used to: increase AGM battery production capacity as well as to provide working capital for the Group; extend the current AGM product portfolio through an investment in Zhenghe Power Supply Company; purchase the power type battery business of Jiangsu Electric Wire and Cable Co. Ltd; and also to increase the Company¡¯s current 51% stake in Beijing Full Three Dimension Power Engineering Co., Ltd (¡°FTD¡±).

 

Commenting on the Placing, Cao Guifa, Executive Chairman of China Shoto plc, said: ¡°We are delighted with the response and support shown by both new and existing investors.  The funds raised will allow China Shoto to undertake the next stage of its business strategy.  The first quarter of this year has shown strong growth compared to the same period in 2005 with revenues up by 170% and profit after tax showing an increase of 133%.  As such we look forward to the future with considerable optimism.¡±

 

The Placing has been undertaken by Seymour Pierce Limited (¡°Seymour Pierce¡±).  The new ordinary shares will rank pari passu in all respects with the existing Ordinary Shares in issue.