ZCZL Shares Drop Over 6% Following Announcement of 4.35 Billion Yuan Convertible Bond Issue

Stock News
Feb 05

Shares of ZCZL (00564) fell more than 6% in Hong Kong trading. At the time of writing, the stock was down 5.39% to HK$22.1, with a turnover of HK$72.95 million. The decline follows the company's recent announcement of a plan to issue up to 4.35 billion yuan in convertible bonds to unspecified A-share investors. The proceeds from the fundraising are intended to fund several key projects. These include the construction of a high-end new energy vehicle components industrial base, an intelligent upgrade of the high-end hydraulic components production system, the development of a full-scenario smart manufacturing R&D center, and the establishment of an intelligent mobile robot manufacturing base. Public information shows that ZCZL originally started with coal machinery operations. While continuing to develop its core business, the company has, in recent years, established a synergistic development structure across three main segments: coal machinery, automotive components, and industrial intelligence. The current fundraising initiative is directed towards these three primary business areas. Specifically, within the automotive components segment, ZCZL plans to invest 2.187 billion yuan.

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