Concord Healthcare completes HK$68 million convertible bond issuance; potential 5.11% share dilution at HK$1.70 conversion price

Bulletin Express05-13

Concord Healthcare Group Co., Ltd. announced the completion of a HK$68.00 million convertible bond placement on 13 May 2026 after all conditions precedent were satisfied. The bonds were issued under the existing general mandate.

Key terms • Principal amount: HK$68.00 million • Initial conversion price: HK$1.70 per H share • Maximum new H shares on full conversion: 40.00 million

Capital-structure impact • Current issued share capital: 783.66 million shares • Enlarged share capital after full conversion: 823.66 million shares • Potential dilution: 5.11% increase in issued shares

Shareholding changes on full conversion • Core connected persons’ stake would fall from 49.77% to 47.36%. • CSPC Group and affiliates would own 8.28% (28.20 million domestic shares plus 40.00 million new H shares) versus 3.60% currently. • The new bond subscriber would hold 4.86% of the enlarged share capital through the 40.00 million H shares.

Conversion-price adjustment mechanism The conversion price is subject to ten adjustment events, all of which are under the company’s control. Management does not expect any adjustment to cause the number of conversion shares to exceed the limits of the current or upcoming general mandates.

Mandate capacity Should adjustments increase the number of conversion shares beyond the current mandate, the excess shares would be issued under the new 20% general mandate approved on 11 May 2026, covering up to 156.73 million shares.

Governance The board composition remains unchanged, chaired by Dr. Yang Jianyu. The company reiterates that the bond issue was executed entirely under Hong Kong listing rules and applicable securities regulations.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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