Hillstone Networks(SH:688030) Zheng Quan Zhi Xing·2025-06-26 16:21Core Viewpoint - The board of directors of the company proposes to lower the conversion price of the "Shan Stone Convertible Bond" due to the triggering of the downward adjustment clause as of June 26, 2025 [1][3]. Summary by Sections Convertible Bond Issuance Overview - The company issued a total of 2,674,300 convertible bonds on March 22, 2022, with a total amount of RMB 26,743.00 million, and a maturity period of six years [1][2]. Convertible Bond Conversion Price Adjustment Clause - The conversion price was initially set at RMB 24.65 per share and adjusted to RMB 24.52 per share on June 21, 2022, due to the annual equity distribution [2]. - The board has the authority to propose a downward adjustment of the conversion price if the stock price is below 85% of the current conversion price for at least 15 out of 30 consecutive trading days [2][3]. Procedures for Downward Adjustment of Conversion Price - The proposal for the downward adjustment must be approved by more than two-thirds of the voting rights at the shareholders' meeting [3]. - The adjusted conversion price must not be lower than the average trading price of the company's stock for the 20 trading days prior to the shareholders' meeting [3][5]. Recent Developments - As of June 26, 2025, the company's stock price has been below the threshold, triggering the condition for a downward adjustment of the conversion price [3][4]. - The board meeting held on June 26, 2025, approved the proposal to adjust the conversion price and will submit it for shareholder approval [4][5].