LZJT(SZ:300428) Zheng Quan Zhi Xing·2025-06-25 16:59Core Viewpoint - Lizhong Alloys Sitong Light Group Co., Ltd. has successfully issued convertible bonds totaling RMB 899.8 million, with the funds intended for specific projects, including the production of ultra-lightweight aluminum alloy wheels in Mexico and the establishment of a research center for high-conductivity materials [3][19]. Section 1: Bond Overview - The bond issuance plan was approved by the company's board and shareholders in 2022, with subsequent adjustments made in 2023 [2][3]. - The China Securities Regulatory Commission approved the registration of the bond issuance, allowing the company to issue 8,998,000 convertible bonds at a face value of RMB 100 each [3][4]. - The total amount raised from the bond issuance was RMB 899.8 million, with a net amount of RMB 888.26 million after deducting issuance costs [3][19]. Section 2: Key Terms of the Bonds - The bonds have a six-year term, with an annual interest rate that increases from 0.30% in the first year to 2.50% in the sixth year [4][5]. - Interest payments will be made annually, and the principal will be repaid at maturity [4][5]. - The initial conversion price is set at RMB 23.57 per share, with a current conversion price of RMB 18.66 effective from June 23, 2025 [5][6]. Section 3: Financial Performance - For the year 2024, the company reported a total revenue of RMB 2,724.64 million, a 16.61% increase year-on-year, and a net profit attributable to shareholders of RMB 707.12 million, up 16.77% [19]. - The company’s basic earnings per share increased by 15.46% to RMB 1.12, while the diluted earnings per share rose by 13.54% to RMB 1.09 [19]. Section 4: Use of Proceeds - The proceeds from the bond issuance will be allocated to specific projects, including the production of aluminum alloy wheels and the development of high-conductivity materials [19][20]. - The total investment for these projects exceeds the amount raised from the bond issuance, with the company planning to cover the shortfall through self-funding [20][21]. Section 5: Management of Funds - The company has established a special account for the management of the raised funds, ensuring that they are used in accordance with regulatory requirements [20][21]. - As of December 31, 2024, the company had not yet utilized the entirety of the raised funds, which remain in the designated special account [22].