Huatai (06886) has completed the issuance of zero-coupon convertible bonds with a total amount of 10 billion Hong Kong dollars maturing in 2027.

Huatai (06886) announced that all the preconditions under the subscription agreement have been met, and a total of HK$10 billion in bonds were issued on February 10, 2026. According to the terms and conditions, the bonds can be converted into H shares under certain circumstances, with an initial conversion price of HK$19.70 per H share (adjustable). Assuming all the bonds are converted at the initial conversion price of HK$19.70 per H share, the bonds can be converted into approximately 508 million H shares. The total principal amount of the bonds is HK$10 billion, and the net proceeds from the bond issuance is approximately HK$9.247 billion. The company plans to use the proceeds from the bond issuance to support the overseas business development, particularly in fixed income, foreign exchange, and commodities sales and trading businesses, wealth management, and asset management businesses (representing about 90% of the net proceeds from the bond issuance), as well as to supplement other operating funds to ensure liquidity and financial stability through mainly allocating deposits and other high liquidity assets (representing about 10% of the net proceeds from the bond issuance).