On January 29, Zoomlion, an A+H listed company, announced the successful issuance of Hong Kong dollar convertible bonds (hereinafter referred to as "the Bonds") on the Hong Kong Stock Exchange, garnering enthusiastic subscriptions from investors in the global capital market. This issuance marks another significant milestone in the Company's international capital operations. The proceeds will support the strengthening of R&D investment and the development of overseas business systems, providing solid capital synergy for the Company to continuously advance its innovation-driven development strategy and globalization strategy.
Prudent and Balanced Issuance Terms to Maximize Value for All Shareholders
According to the announcement, the issuance size of the Bonds reached RMB 6 billion, settled in US dollars by investors. The term is five years, with a redemption right for the issuer between the third and fifth years and a put option for investors at the end of the third year. The coupon rate is 0.70%, and the conversion price is HKD 10.02. The issuance received active subscriptions from high-quality global institutional investors, with the order book covered multiple times, reflecting global investors' full confidence in the Company's long-term growth prospects and creditworthiness.
During the pricing process, the Company fully considered the recent market environment and investor feedback. While securing favorable financing terms, the Company balanced conversion potential with the interests of existing shareholders, demonstrating the management's ability to precisely grasp capital market windows and maximize shareholder value.
Enthusiastic Subscription by Global Investors Signals Long-Term Confidence
The issuance attracted active subscriptions from numerous renowned international investment institutions across Mainland China, Hong Kong, the United States, the United Kingdom, Germany, France, Switzerland, Ireland, and Singapore. The investor structure is high-quality and diversified with a broad geographical distribution, fully reflecting the global capital market's high recognition of Zoomlion's development strategy, operating performance, growth prospects, financial status, corporate governance, creditworthiness, and sustainable development.
Amidst global macroeconomic and financial market uncertainties, Zoomlion continues to earn the trust of global investors by leveraging its clear development strategy, robust R&D innovation capabilities, significant industry market advantages, steady financial performance, and long-term stable shareholder returns. This successful issuance further enhances the Company's image and influence in overseas capital markets.
Seizing the Strategic Window to Boost Globalization and Industrial Innovation
Currently, the industry's competitive landscape is undergoing profound changes, with the accelerated integration of globalization, green transition, and the intelligent technological revolution. Internally, Zoomlion continues to deepen its globalization strategy centered on "end-to-end, digitalization, and localization," achieving continuous breakthroughs in overseas markets. Concurrently, with rapid breakthroughs in new technologies such as new energy, intelligence, and robotics, the Company's basic R&D and terminal products are accelerating their extension into innovative fields.
This issuance represents a strategic capital initiative by Zoomlion during this window of transformation, deeply aligning with the core strategy of "globalization, diversification, green development, intelligent transformation, and digitalization" that the Company has been continuously advancing in recent years.
Fifty percent of the proceeds will be used to support the implementation of the Company's globalization strategy, funding the construction of overseas manufacturing bases, warehousing and logistics systems, R&D centers, marketing systems, and after-market service systems, thereby building comprehensive competitiveness covering global market demands. The remaining 50% will support the implementation of the Company's innovation-driven high-quality development strategy. This includes the R&D and application of frontier technologies such as robotics, new energy, and intelligence, as well as the development of new products—such as new energy agricultural machinery, new energy mining machinery, and embodied intelligent robots—and related core components. This will lay a critical foundation for enhancing the international competitiveness of the Company's products.
Furthermore, upon full conversion of the Bonds, the Company's H-share capital base will expand, and H-share liquidity will improve significantly. This will help the Company better utilize overseas capital market platforms, enhance its international capital image, and support its globalization strategy, echoing its expanding international business footprint. In addition, compared to debt financing of the same scale, issuing H-share convertible bonds significantly reduces financial costs.
Against the backdrop of profound changes in the global economic and industrial landscape, the successful issuance of HKD convertible bonds by Zoomlion—a representative enterprise in China's equipment manufacturing industry "going global"—not only injects new vitality into its own development but also provides another example for the Chinese manufacturing industry's ascent to the high end of the global value chain.
Looking ahead, Zoomlion will continue to uphold the concept of sustainable development, fully implement its core development strategies of globalization, diversification, green development, intelligent transformation, and digitalization, actively embrace the vast global market, and lead the industry's innovative development. Adhering to efficient and scientific corporate governance, high R&D investment, high shareholder returns, and high standards of transparency and compliance, the Company strives to become a comprehensive global benchmark enterprise in the three high-end equipment manufacturing fields of construction machinery, agricultural machinery, and mining machinery, continuously creating value returns for investors.
