CFMOTO to issue convertible bonds to fund expansion

Zhejiang CFMOTO Power Co., Ltd. plans to issue convertible corporate bonds totaling up to RMB 217,876.32 million to unspecified investors, with the bonds listing on the main board. The proceeds will fund four key projects: the "Annual Production of 3 Million Motorcycle and Electric Vehicle Sets and Core Component R&D and New Construction Project" (RMB 145,876.32 million), "Marketing Network Construction Project" (RMB 45,000.00 million), "Information System Upgrade Project" (RMB 12,000.00 million), and "Supplementary Working Capital Project" (RMB 15,000.00 million).

The company's consolidated asset-liability ratio stood at 58.39% as of June 30, 2025. The issuance is expected to increase total assets and liabilities, potentially raising the asset-liability ratio if not fully converted. The convertible bonds will have a six-year term with interest rates to be determined closer to the issuance date. The initial conversion price will be based on the company's stock trading average.

As of the latest reporting period, the company's total assets amounted to RMB 1,674,482.98 million. The offering is poised to enhance the company's capital strength and support its continued growth in the power sports and electric vehicle markets.