huahaipharm(SH:600521) Zheng Quan Zhi Xing·2025-06-15 10:17Core Viewpoint - The report discusses the adjustment of the conversion price for Zhejiang Huahai Pharmaceutical Co., Ltd.'s convertible bonds, following the company's decision to cancel part of its repurchased shares, which will affect the bondholders' rights and the bond's conversion terms [1][16]. Group 1: Bond Issuance Details - The total amount of the convertible bonds issued by the company is RMB 1,842.60 million, with a face value of RMB 100 per bond [3]. - The bonds were issued on November 2, 2020, and have a maturity period of six years, expiring on November 1, 2026 [3][4]. - The coupon rates for the bonds are set at 0.30% for the first year and 0.50% for the second year, with subsequent rates to be determined [4]. Group 2: Conversion Price Adjustment - The initial conversion price for the bonds was set at RMB 34.66 per share, which is subject to adjustments based on various corporate actions such as stock dividends and capital increases [5][16]. - Following the cancellation of 10,656,753 shares, the conversion price will be adjusted from RMB 33.21 to RMB 33.31 per share, effective from June 17, 2025 [16]. - The adjustment formula considers factors such as stock dividends, new share issuance, and cash dividends, ensuring that bondholders' rights are protected [14][15]. Group 3: Impact on the Company - The adjustment of the conversion price is in compliance with the terms outlined in the bond issuance prospectus and does not adversely affect the company's operational or debt repayment capabilities [16]. - The company will continue to monitor the repayment of the convertible bonds and any significant impacts on bondholders' rights [16].