AviChina plans exchangeable bonds, announces dividend amid earnings dip

AviChina Industry & Technology (HKEX: 2357) has announced plans for a proposed issuance of exchangeable corporate bonds to bolster its working capital, alongside its annual results revealing a recommended final dividend for 2024. The maximum fundraising scale for the exchangeable bonds is RMB 1 billion (inclusive), with a term of no more than three years. These bonds will be exchangeable for A shares of AVICOPTER PLC, a non-wholly owned subsidiary, listed on the Shanghai Stock Exchange, in which AviChina directly holds a 50.90% equity interest. While the issuance may reduce AviChina's equity stake in AVICOPTER, the company expects AVICOPTER will still remain a non-wholly owned subsidiary, and the transaction does not constitute a notifiable transaction under Chapter 14 of the Listing Rules.