SANY HEAVY IND (06031.HK): Plans asset-backed special plan and ABS issuance of up to RMB 10 billion; controlling shareholder to subscribe all subordinated tranche
NewTimeSpace News: On 28 August 2026, SANY Heavy Industry Co., Ltd. (stock code: 06031) announced that the Board has resolved to establish an asset-backed special plan and apply to register the issuance of finance lease asset-backed securities (ABS) with an aggregate principal of no more than RMB 10 billion. The special plan will use as underlying assets the accounts receivable claims against debtors arising in the course of production and operation of the Company and its subsidiaries, together with the ancillary security interests, and will be listed and traded on the Shanghai Stock Exchange, with issuance in one or more tranches, each tranche expected to have a duration of no more than 5 years, and the ABS divided into senior and subordinated classes.
According to the announcement, the Company's controlling shareholder, SANY Group Co., Ltd., intends to subscribe for all of the subordinated ABS under the proposed issuance, with an aggregate subscription amount of no more than RMB 1 billion; the Company intends to act as the liquidity shortfall payment undertaker, undertaking to make good the shortfall where the funds in the special plan account are insufficient to pay the relevant taxes and fees, the expected returns on the senior ABS and the principal due. The special plan has a shelf size of no more than RMB 10 billion (inclusive), with a subordinated ratio expected to be no less than 5%. The plan managers are CITIC Securities Co., Ltd. and China International Capital Corporation Limited.
In terms of the connected transaction nature, SANY Group is a connected legal person of the Company, and the transaction constitutes a connected transaction to be submitted for shareholders' meeting approval, with connected shareholders required to abstain from voting. The Company convened the third special meeting of independent directors in 2026 and the 12th meeting of the ninth session of the Board on 28 August 2026, at which the relevant resolutions were approved, with connected directors abstaining. As of the date of the announcement, SANY Group and its concert parties hold approximately 31.09% of the total issued shares of the Company, making SANY Group a connected person under the HK Listing Rules; the final transaction documents for the special plan and the proposed ABS issuance have not yet been signed, and the terms and conditions have not been finalized.
In terms of financials, as of 31 December 2025, SANY Group had total assets of RMB 264,090,828,000 and net assets of RMB 109,331,402,000, with 2025 revenue of RMB 113,814,402,000 and net profit of RMB 10,197,773,000. The Company stated that providing liquidity shortfall payment for the securitized products and having the controlling shareholder subscribe for the subordinated ABS mainly serves the Company's development needs, helping to broaden financing channels, revitalize existing assets and improve capital efficiency, in line with the overall interests of the listed company.
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