Ge Long Hui·2026-02-05 10:15Core Viewpoint - Zhonglian Heavy Industry (01157.HK) has entered into a subscription agreement to issue convertible bonds worth RMB 6 billion (approximately HKD 6.745 billion) with underwriters including Huatai International, HSBC, and Morgan Stanley, with the bonds convertible into approximately 673 million H-shares, representing about 43.36% of the company's issued H-shares as of the announcement date [1][2] Group 1 - The company has agreed to issue convertible bonds with a principal amount of RMB 60 billion, which is approximately HKD 67.45 billion, under a subscription agreement [1] - The initial conversion price for the bonds is set at HKD 10.02 per H-share, which is about 18.58% higher than the last trading price of HKD 8.45 [1] - The net proceeds from the issuance of the convertible bonds are expected to be approximately RMB 59.42 billion (around HKD 66.80 billion) after deducting expenses and commissions [2] Group 2 - All conditions precedent for the subscription agreement have been fulfilled, and the issuance of the convertible bonds was completed on February 5, 2026 [2] - The company anticipates that the convertible bonds will be approved for listing and trading on the Hong Kong Stock Exchange on February 6, 2026 [2] - The company has also received approval for the listing of the conversion shares on the Hong Kong Stock Exchange [2]