CIG (06166) announced that the company and the joint placement agents entered into a placement agreement before the trading session on October 8, 2026, to place 18.446 million placement shares through the joint placement agents at HK$105.16 per share, representing a discount of approximately 8.00% to the closing price of HK$114.30 per H share as quoted on the Hong Kong Stock Exchange on the last trading day, raising net proceeds of approximately HK$1.93 billion.

On the same day, the company entered into a subscription agreement with the managers, under which and subject to certain conditions contained therein, the company has agreed to issue, and each manager has severally (and not jointly, nor jointly and severally) agreed to subscribe for and pay, or to procure subscribers to subscribe for and pay, for bonds with an aggregate principal amount of RMB3.96 billion.

The bonds may be converted into H shares at an initial conversion price of HK$128.82 per H share (subject to adjustment) under the circumstances set out in the terms and conditions, representing a premium of approximately 12.70% over the closing price of HK$114.30 per H share as quoted on the Hong Kong Stock Exchange on the last trading day.

Upon completion of the bond issue, the gross proceeds from the bond subscription will be approximately HK$4.635 billion, and after deducting the estimated expenses payable for the bond issue, the net proceeds from the bond subscription will be approximately HK$4.606 billion.

The company will apply to the Vienna MTF operated by the Vienna Stock Exchange for approval to list the bonds, and will apply to the Hong Kong Stock Exchange for the H shares to be issued upon conversion of the bonds.

After taking into account the industry background and the company's strategic planning, the company intends to use approximately 55% of the total net proceeds from the placement and the bond issue to expand the production capacity of optical module products, approximately 30% to make strategic investments in selected upstream enterprises, and approximately 15% for general corporate purposes and to replenish the group's working capital.