Midea Group Co., Ltd (00300) proposes to issue 8.624 billion Hong Kong dollars convertible bonds due in 2027 and 8.624 billion Hong Kong dollars convertible bonds due in 2033.

Midea Group Co., Ltd (00300) announced that on May 6, 2026 (after trading hours), the company, issuer (Midea Investment Development Limited, a wholly-owned subsidiary of the company), and the underwriter entered into a subscription agreement. The underwriter agrees to individually and not jointly subscribe and pay, or cause subscribers to subscribe and pay, for the company's issuance of HK$8.624 billion of 2027 bonds and HK$8.624 billion of 2033 bonds. In each case, the company will unconditionally and irrevocably guarantee the timely payment of all amounts due under the guarantee documents, trust deeds, and bonds. The 2027 bonds can be converted into H shares at a conversion price of HK$96.82 per share (adjustable) according to the terms of the 2027 bond. The initial conversion price of the 2027 bonds is HK$96.82 per H share, representing a premium of approximately 10.4% over the closing price of H shares on May 6, 2026, the day the subscription agreement was signed. Assuming full conversion of the 2027 bonds at the initial conversion price of HK$96.82 per H share, approximately 89.0725 million H shares will be converted, equivalent to about 13.7% of the existing issued H shares and 1.2% of the existing issued shares as of the date of this announcement. The conversion shares of the 2027 bonds will be fully paid up and rank equally in all respects with the existing issued H shares on the relevant registration date. The 2033 bonds can be converted into H shares at a conversion price of HK$115.76 per share (adjustable) according to the terms of the 2033 bond. The initial conversion price of the 2033 bonds is HK$115.76 per H share, representing a premium of approximately 32.0% over the closing price of H shares on May 6, 2026. Assuming full conversion of the 2033 bonds at the initial conversion price of HK$115.76 per H share, approximately 74.499 million H shares will be converted, equivalent to about 11.4% of the existing issued H shares and 1.0% of the existing issued shares as of the date of this announcement. The conversion shares of the 2033 bonds will be fully paid up and rank equally in all respects with the existing issued H shares on the relevant registration date. After the issuance of the bonds is completed, the net proceeds from the subscription of the bonds (after deducting the underwriter's commission and other estimated expenses payable for the sale) will be approximately HK$17.174 billion. The company plans to use the proceeds as follows: (1) approximately 60% for international expansion and improving overseas liquidity; (2) approximately 40% for general corporate purposes.