Yunnan Baiyao major shareholder plans exchangeable bond issuance

Yunnan Baiyao Group announced that its major shareholder, New Huadu Industrial Group Co., Ltd., which holds 24.42% of the company's shares, intends to issue non-public exchangeable corporate bonds. The Shenzhen Stock Exchange has issued a "No Objection Letter" for this issuance, with an estimated scale not exceeding RMB 2 billion. The letter is valid for 12 months, during which New Huadu will proceed with the issuance based on its funding arrangements and market conditions.

The exchangeable bonds will use a portion of New Huadu's A-share holdings in Yunnan Baiyao as underlying collateral. Bondholders will have the right to exchange their bonds for Yunnan Baiyao shares during the conversion period. New Huadu currently holds 435,742,244 shares in Yunnan Baiyao.

New Huadu is set to register a pledge and trust for up to 60 million Yunnan Baiyao shares to facilitate this transaction. The company will disclose further developments regarding the exchangeable bonds as required.