HXG(SH:603112) Zheng Quan Zhi Xing·2025-05-21 13:47Core Viewpoint - The company, Shanxi Huaxiang Group Co., Ltd., has announced the early redemption of its convertible bonds, "Huaxiang Convertible Bonds," due to the stock price meeting the necessary conditions for redemption [1][2][3]. Redemption Details - The redemption date is set for June 11, 2025, with a redemption price of 100.7068 CNY per bond [1][4]. - The last trading day for the "Huaxiang Convertible Bonds" is June 6, 2025, and the last conversion day is also June 11, 2025 [1][7]. - The company will issue the redemption payments on June 12, 2025 [6]. Conditions for Redemption - The bonds were triggered for conditional redemption as the stock price was above 130% of the conversion price for 15 out of 25 trading days from March 21 to April 25, 2025 [2][4]. - The redemption applies to all bondholders registered by the close of trading on June 11, 2025 [4][5]. Interest Calculation - The accrued interest for the bonds is calculated using the formula: IA = B × i × t / 365, where B is the total face value, i is the annual coupon rate, and t is the number of days from the last interest payment to the redemption date [4][5]. - The calculated accrued interest amounts to 0.7068 CNY per bond, leading to a total redemption price of 100.7068 CNY [4][5]. Tax Implications - Individual investors are subject to a 20% tax on the interest income from the bonds, resulting in a net redemption amount of 100.5654 CNY after tax [5][6]. - Non-resident enterprises are exempt from corporate income tax on the interest income from these bonds [5]. Trading and Conversion - Investors are reminded to convert or sell their bonds within the specified period to avoid forced redemption at the lower price [2][8]. - The current market price of the bonds is significantly higher than the redemption price, indicating potential losses for investors who do not act in time [8].