HONGCHENG WATERWORKS(SH:600461) Zheng Quan Zhi Xing·2025-07-11 09:27Core Viewpoint - Jiangxi Hongcheng Environment Co., Ltd. has decided not to exercise the early redemption rights of its convertible bonds, known as "Hongcheng Convertible Bonds," based on a comprehensive assessment of current market conditions and the company's actual situation [1][4]. Group 1: Issuance and Terms of "Hongcheng Convertible Bonds" - The company issued 18 million convertible bonds on November 20, 2020, with a total amount of 1.8 billion yuan and a maturity period of 6 years [1]. - The initial conversion price was set at 7.13 yuan per share, while the latest conversion price is 4.88 yuan per share [2]. - The bonds have a tiered interest rate structure, starting from 0.2% in the first year and increasing to 2.0% in the sixth year [1]. Group 2: Redemption Conditions - The company has conditional redemption terms, allowing the board to redeem the bonds if the stock price exceeds 130% of the conversion price for at least 15 out of 30 consecutive trading days or if the remaining unconverted bonds are less than 300 million yuan [2][3]. - The redemption clause can be triggered between June 22 and July 11, 2025, if the stock price conditions are met [3]. Group 3: Board Decision and Future Considerations - The board has resolved not to exercise the early redemption rights for the "Hongcheng Convertible Bonds" and will reassess the situation after July 12, 2026, if the redemption conditions are met again [4]. - The company has confirmed that major stakeholders have not traded the convertible bonds in the six months prior to the redemption condition being met [4]. Group 4: Compliance and Verification - The underwriting institution has verified that the decision not to redeem the bonds early complies with relevant regulations and has been approved by the company's board [5].