Pharmaron Beijing (03759): It is recommended to issue USD 2.18 billion zero-coupon convertible bonds due in 2027.

Pharmaron Beijing (03759) announced that on August 26, 2026 (after trading hours), the company entered into a subscription agreement with the underwriter, under which and subject to certain conditions, the company has agreed to issue, and the underwriter has agreed to subscribe for and pay, or procure subscribers to subscribe for and pay a total principal amount of RMB 2.18 billion of convertible bonds. The underwriter has conducted the bookbuilding process, and the terms of the convertible bonds (including but not limited to the principal amount and initial conversion price) have been established. The convertible bonds are convertible into the companys H shares at an initial conversion price of HKD 36.08 per share (subject to adjustment) according to the terms and conditions set forth in the convertible bonds. The initial conversion price of HKD 36.08 per H share (subject to adjustment) represents a premium of approximately 16.76% over the closing price of HKD 30.90 per H share reported on the Hong Kong Stock Exchange on August 26, 2026 (the last trading day). Based on the initial conversion price of HKD 36.08 per H share, assuming full conversion, the convertible bonds can be converted into approximately 70.4786 million new H shares, equivalent to: (i) 3.84% of the total number of shares of the company already issued as of the date of this announcement (excluding any treasury H shares); and (ii) 3.70% of the companys total number of issued shares after the issuance and conversion of H shares (excluding any treasury H shares, and assuming no changes in the companys issued share capital from the date of this announcement until the delivery date, except for the issuance and conversion of H shares upon full conversion). The total proceeds from the subscription are expected to be approximately USD 331 million. The net proceeds from the issuance of the convertible bonds (after deducting related costs and expenses) are expected to be approximately USD 327 million. Based on this, the net price per converted H share, calculated at the initial conversion price (subject to adjustment), is approximately HKD 36.39. The company intends to use the net proceeds from the issuance of the convertible bonds for the following purposes: 1) approximately 70% to support the expansion and development of the groups business; 2) approximately 20% to refinance certain existing debts of the group and optimize its capital structure; and 3) approximately 10% for general corporate purposes and to replenish working capital.