Huatong Cable announced on the evening of July 20 that its board of directors has approved a proposal to terminate the issuance of convertible corporate bonds to non-specific investors. The company had previously planned to raise up to 800 million yuan for projects including the expansion of oilfield service continuous tubing and intelligent cable production. The company stated that the termination decision was made after considering factors such as operations and development plans, and will not have a material adverse impact on normal operations. In recent years, the company's profitability has been under pressure, with total liabilities surging from 2.677 billion yuan at the end of 2023 to 6.896 billion yuan at the end of the first quarter of 2026. The asset-liability ratio climbed to a record high of 67.07 percent at the end of the first quarter of 2026, mainly due to borrowing to construct overseas factories.
Hebei Huatong Wires and Cables Group Co. Ltd.Termination of convertible bond issuance up to 800 million yuan, which would have funded expansion projects, signals financing difficulty and may constrain growth.