Luen Fat Hong International Holdings, a maker of plastic products, claimed yesterday it had not breached stock exchange listing rules by temporarily changing the use of proceeds from a share placement last year. According to the company's annual report, about one-third of the $80 million raised a year ago was used to cut short-term debts 'for the time being', instead of financing a project for PVC materials. The stock exchange is understood to have expressed concern about the move. Listed companies must seek exchange approval in advance and make public any change of use of share-sale proceeds. The company's financial controller, Keith Chan Ying-kay, denied the company had changed the use of the proceeds, maintaining it would be able to retrieve the proceeds if the PVC project pushed ahead. 'The stock exchange was concerned about the issue. But we don't think we need to make any public statement, as we did not re-allocate the proceeds,' he said.