ZTE Corporation (hereinafter referred to as "ZTE ", stock code: A/H, 000063/763) disclosed the Report on Private Placement of A-Shares and Listing Announcement on February 2, 2020. The new shares in ZTE’s A-share private placement (hereinafter referred to as the "Offering") were listed on the Shenzhen Stock Exchange on February 4, 2020, and the Offering was successfully completed by then. It is worth noting that since the promulgation of the new regulations on private placement in February 2017, the size of the funds raised in this Offering is the largest among all issues of A-share common shares by domestic A-share non-financial companies in a market-oriented and non-public manner.
ZTE is one of the world's leading integrated communications and information solutions providers, providing innovative technology and product solutions to customers in a number of countries and regions around the world, with a complete range of end-to-end products and integrated solutions from the communications industry. Through the full range of "wireless, wired, cloud computing, terminal" and other products, ZTE can flexibly meet the different needs of different customers around the world and the needs of rapid innovation. ZTE takes 5G as the core strategy of development, has been investing in this field for many years, which makes it belong to the first group of patent layout in the world and become the major contributor and participant of 5G technology research and standard setting in the world. ZTE has engaged in deep cooperation with more than 60 operators globally in the 5G area, has been fully involved in the construction of 5G Phase I network by three major operators in China, and was the first company equipped with required devices ready for enabling. ZTE has also joint hands with its global partners in number of explorations in industrial applications of 5G technology.
ZTE issued 381,098,968 new A-shares in this Offering by way of book building, and determined that the issuance price would be not lower than 90% of the average trading price of A-shares of the issuer 20 trading days prior to the pricing benchmark date, i.e. the issuance price was CNY30.21 per share and the total amount of proceeds was CNY11,512,999,823.28. The funds raised in this Offering will be mainly used for projects of technical research and product development in the evolution of the 5G network.
JunHe is ZTE’s long-term partner of legal services for over a decade. In this project, acting as the issuer’s counsel, JunHe was involved in the whole process of this project, helped determining the issue plan, conducting due diligence investigation, drafting relevant documents, preparing application materials, and responding to feedbacks, which has effectively promoted the smooth progress of this project. In the course of this project, JunHe has carried on the thorough analysis and demonstration of legal issues involved, proposed multiple solutions, and actively communicated and cooperated with different parties, playing an important role in this project's successful completion. JunHe's meticulous, professional, efficient and experienced legal services have once again highly acclaimed by ZTE and other intermediaries.