Huapont Life Sciences plans $1bn exchangeable bonds, operational adjustments

Huapont Life Sciences is set to issue non-public exchangeable corporate bonds for technological innovation, with a total size not exceeding 1 billion yuan. These bonds are exchangeable for shares in Shandong Kaisheng New Materials Co., Ltd. and will have a maturity of up to three years. Proceeds are designated for repaying interest-bearing debts. This initiative aims to align with the company's development strategy and market conditions, focusing on professional institutional investors.

In parallel, the company and its subsidiaries plan to apply for a comprehensive credit facility of up to 13.154 billion yuan for 2026, with a maximum guarantee limit of 10.274 billion yuan. This credit will support various financing activities, including working capital and project loans. Additionally, Huapont Life Sciences anticipates engaging in up to $410m in forward foreign exchange settlement and yuan foreign exchange option combination transactions for 2026 to mitigate currency fluctuation risks, ensuring stable profit margins.

The company also projects an increase in its 2025 related-party transactions and provides a forecast for 2026, encompassing sales, procurement, and service agreements, all to be conducted at market-determined prices. The collective movements indicate a proactive financial and operational strategy to manage debt, mitigate risks, and support ongoing business expansion.