SUNEVISION (01686.HK): Sun Hung Kai Properties group to convert all convertible notes; public float to decrease to approximately 15.1029%

NewTimeSpace News: On 11 September 2026, SUNeVision Holdings Ltd. (stock code: 01686) received a notification from Sun Hung Kai Properties Limited that its wholly-owned subsidiary had exercised its rights to convert all of the convertible notes held by it into shares. The Sun Hung Kai Properties group currently holds convertible notes in an aggregate amount of HKD 171,942,750.00, which are convertible into 1,719,427,500 shares.

Under the conversion procedures set out in the deed poll, the conversion date is deemed to be the 30th business day immediately after the date of this announcement, being 27 October 2026. On the conversion date, an aggregate of 1,719,427,500 new fully paid shares will be issued and allotted to the Sun Hung Kai Properties group, and the conversion price of the convertible notes is HKD 0.10 per share (subject to adjustment under the deed poll).

The announcement stated that the financial impact of the conversion will be neutral, as the conversion will not give rise to any gain or loss for the Company and its shareholders and does not involve any cash consideration. As regards the amount of the convertible notes to be converted into the conversion shares, the conversion only involves a reclassification within equity and has no impact on the total equity of the Company. The Company also reminded that, since the issue of the convertible notes, they have enjoyed the same rights to cash dividends and distributions as the shares, and that if the Company is voluntarily or involuntarily dissolved, wound up or terminated, all convertible notes will be mandatorily converted into shares and thereby enjoy the same rights to distribution of assets as the shares. Accordingly, the conversion will not have any dilutive effect on the net asset value per share or earnings per share, and the total number of shares into which the convertible notes may be converted has formed the basis for calculating the basic and diluted earnings per share in the Company's historical financial statements.

As Sun Hung Kai Properties Limited is the controlling shareholder of the Company (and therefore a core connected person), the conversion shares to be issued to the Sun Hung Kai Properties group will not be counted towards the public float of the Company. Assuming that, from the date of the announcement up to the conversion date, there is no other change in (i) the total number of issued shares and (ii) the number of shares held by core connected persons, then upon the conversion, the Sun Hung Kai Properties group will hold 3,450,150,000 shares (representing approximately 84.4742% of the total number of issued shares), other core connected persons of the Company will hold 17,273,658 shares (representing approximately 0.4229% of the total number of issued shares), and the public will hold 616,839,675 shares (representing approximately 15.1029% of the total number of issued shares). Accordingly, on the conversion date, immediately following the issue and allotment of the conversion shares to the Sun Hung Kai Properties group, the public float of the Company will decrease to approximately 15.1029%.

As at the date of the announcement, the market capitalisation of the Company was approximately HKD 13,200,277,136, while the market capitalisation of the shares held by the public was approximately HKD 3,443,137,382 (calculated based on the volume-weighted average price of HKD 5.5819 per share for the 125 trading days immediately preceding the date of the announcement). Under the Listing Rules, the "alternative threshold" means that the public float satisfies both conditions of a market capitalisation of not less than HKD 1 billion and not less than 10% of the total number of issued shares of the issuer. Based on the foregoing, the Company expects that it will be able to comply with the alternative threshold requirement under Rule 13.32B of the Listing Rules after the issue and allotment of the conversion shares, and will adopt the 10% alternative threshold instead of the 25% initial specified threshold with effect from the conversion date. The Company will make the required disclosures in respect of its public float in accordance with the Listing Rules and will publish a further announcement after the issue and allotment of the conversion shares to provide further information, including the market capitalisation and percentage of the public float on the conversion date. The announcement was published pursuant to Rule 13.32C of the Listing Rules.

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