Hangcha Group (SHA:603298) plans to issue convertible bonds of up to 2.26 billion yuan, according to a Shanghai bourse filing on Wednesday.
The convertible bonds will have a term of up to six years.
Proceeds from the issuance will be used for three projects, which are the construction of a smart factory for forklift robots, the expansion of a new energy forklift plant and a research and development project for forklift robots.
The remaining amount of 570 million yuan will be used for the Chinese forklift truck manufacturer's supplementary working capital.
The company's shares dropped 4% during the afternoon trade.