PYE 0577.HK engineers entering film business

The board of Paul Y. Engineering are bored with pocket lining engineers and want to hang out with actresses. Now these engineers are intelligent and they intimately know actresses are attracted either with looks/charm, or money and promises of fame. The later options are decidedly easier so what better than to start your own film company!

Original company activities: building construction, civil engineering, development management, project management, facilities and asset management.

New actress attracting idea:

The Board, in its continuous efforts to explore new projects and

potential business developments that stand to benefit PYE and all Shareholders, has made the decision

to diversify PYE’s business through a series of transactions that would involve PYE undertaking a

substantial capital raising exercise, predominantly for the purpose of funding its involvement in a new

joint venture with market leaders, Legendary and the Huayi Group, to develop and produce films,

predominantly in the English language intended for a global audience, based on Chinese history,

mythology or culture.

Note: Third Avenue has a 10.72% holding in PYI. Given Marty Whitman's views on being an "Outside Passive Investor", and his reluctance to engage in any corporate activism, expect him to liquidate this position.