Neway Group clarifies media reports

The articles related to a recent labour strike.

Neway Group Holdings Limited said in a statement:

The board of directors of Neway Group Holdings Limited noticed some news articles from the Hong Kong media recently in relation to the recent labour strike at one of the Group’s printing factories in Long Gang District, Shenzhen, the People’s Republic of China.

Some of these articles mentioned that the strike was due to the company failing to compensate its workers in accordance with their seniority and re-counting the years of employment in the restructuring of the abovementioned factory.

In response to such articles, the Group would like to clarify that, in connection with the restructuring, all workers’ employment contracts with the Group before the restructuring have been automatically renewed after the restructuring and all workers’ seniority before the restructuring would be carried and cumulated into the renewed employment relationship with the Group in accordance with the labour laws of the PRC.

As at the date of this announcement (15 January 2013), the strike has not yet ended but part of the factory production has been resumed and the management of the Group is actively resolving this incident. Further announcement will be made by the company on the development of the incident.