CONCORD HC GP(02453) plans to issue convertible bonds with a total principal amount of HK$68 million.

CONCORD HC GP (02453) announced that on May 10, 2026, the company entered into a placement and subscription agreement with the placing agent (HAITONG INT'L) and subscriber. According to this agreement, the company will issue bonds with a principal amount of HK$68 million and the subscriber will subscribe to the same amount (i.e. HK$68 million 2% convertible bonds due in 2027), subject to the terms and conditions of the placement and subscription agreement. The initial conversion price per share is HK$1.7, which represents a premium of approximately 14.09% over the closing price per share of HK$1.49 on the Hong Kong Stock Exchange on May 8, 2026 (the last trading day before the signing of the placement and subscription agreement). Based on the initial conversion price of HK$1.7 per share and assuming full conversion at this price, the bonds will be convertible into 40 million H shares, equivalent to approximately 12.74% of the existing issued H shares and 5.10% of the existing issued share capital of the company. The subscriber (Jiaxi Holdings Limited) is a wholly-owned subsidiary of CSPC PHARMA (01093.HK). Leveraging on CSPC PHARMA's strong background in the pharmaceutical industry and leading industry position, the group will deepen its strategic cooperation with CSPC PHARMA to create synergies in business development, helping the group achieve long-term growth in the field of oncology healthcare. The total amount raised from the issuance of bonds is HK$68 million, with an estimated net amount of approximately HK$63.1 million. The company plans to utilize the net proceeds from the bonds as follows: (a) around 70% will be used to repay loans provided by financial institutions to the company and its subsidiaries, including but not limited to the principal and interest on working capital loans, fixed asset loans, and financing lease liabilities, expected to be fully utilized by December 31, 2026; and (b) about 30% will be used to supplement the working capital of the company and its subsidiaries for general corporate purposes, expected to be fully utilized by December 31, 2026.