Announcement on Proposed Issuance of HKD 8.624 Billion Convertible Bonds
Midea Group Co., Ltd. (hereinafter referred to as "the Company") announces that it plans to issue HKD 8.624 billion convertible bonds maturing in 2027 and HKD 8.624 billion convertible bonds maturing in 2033, which can be converted into the Company's H shares.
On May 6, 2022 (after the trading hours), the Company, based on the internal decision-making procedures, proposed to issue the convertible bonds under a general authorization.
Key Figures
| Year | Amount (HKD) | Conversion Price (HKD) |
|---|---|---|
| 2027 | 8,624,000,000 | 96.82 |
| 2033 | 8,624,000,000 | 115.76 |
The initial conversion price for the 2027 bonds is set at HKD 96.82, effective from May 6, 2026. The initial conversion price for the 2033 bonds is set at HKD 115.76, effective from May 6, 2026.
The Company will provide further details regarding the issuance and conversion of the bonds in subsequent announcements.
2027 Bonds
The 2027 bonds are subject to the conditions outlined in the bond terms, with an initial conversion price of HKD 96.82 (subject to adjustment) for H shares. Initially, the conversion price for the 2027 bonds will be HKD 96.82. The bonds will be issued on May 6, 2026 (the "Issue Date") and will be listed on the Hong Kong Stock Exchange at an initial price of HKD 87.70, with a conversion premium of approximately 10.4%. The bonds will be convertible into H shares at a conversion price of HKD 88.28, representing a premium of 9.7%.
Assuming the conversion of approximately 89,270,205 H shares under the 2027 bonds, the conversion price represents a premium of approximately 13.7% over the average closing price of H shares on the Hong Kong Stock Exchange for the five trading days prior to the announcement date. The Company will also provide further details regarding the issuance and conversion of the bonds in subsequent announcements.
2033 Bonds
The 2033 bonds are subject to the conditions outlined in the bond terms, with an initial conversion price of HKD 115.76 (subject to adjustment) for H shares. Initially, the conversion price for the 2033 bonds will be HKD 115.76. The bonds will be issued on May 6, 2026 (the "Issue Date") and will be listed on the Hong Kong Stock Exchange at an initial price of HKD 87.70, with a conversion premium of approximately 32.0%. The bonds will be convertible into H shares at a conversion price of HKD 88.28, representing a premium of 31.1%.
Assuming the conversion of approximately 74,809,685 H shares under the 2033 bonds, the conversion price represents a premium of approximately 11.4% over the average closing price of H shares on the Hong Kong Stock Exchange for the five trading days prior to the announcement date. The Company will also provide further details regarding the issuance and conversion of the bonds in subsequent announcements.