LMC(SZ:002921) Zheng Quan Zhi Xing·2025-08-14 08:19Summary of Key Points Core Viewpoint - The company announces the upcoming redemption of its convertible bonds, "Liancheng Convertible Bonds," with a final trading day for conversion set for August 15, 2025, after which unconverted bonds will be redeemed and delisted from the Shenzhen Stock Exchange [1][5]. Redemption Overview - The redemption was triggered as the company's stock price has been above 130% of the conversion price for 15 trading days from June 25, 2025, to July 25, 2025, reaching a price of 15.07 yuan per share [2]. - The company has decided to exercise its right to redeem all unconverted bonds based on the conditions outlined in the bond issuance prospectus [2]. Conditional Redemption Terms - The conditional redemption terms allow the company to redeem the bonds if either the stock price remains above 130% of the conversion price for 15 trading days or if the unconverted bond balance falls below 30 million yuan [2]. Redemption Price Calculation - The redemption price is set at 100.22 yuan per bond, which includes accrued interest calculated based on the bond's face value and interest rate [4]. - The accrued interest is calculated using the formula: IA = B × i × t / 365, where B is the total face value, i is the annual interest rate, and t is the number of days [3][4]. Redemption Process and Timing - The redemption will be executed for all bondholders registered with the China Securities Depository and Clearing Corporation Limited by the close of trading on August 15, 2025 [5]. - The funds from the redemption will be directly transferred to the bondholders' accounts through their custodial brokers [5]. Tax Implications - Individual investors are subject to a 20% tax on interest income, resulting in a net redemption amount of approximately 100.176 yuan per bond after tax [6]. - Qualified foreign institutional investors are exempt from corporate income tax on interest income, receiving the full redemption amount of 100.22 yuan [6]. Conversion Instructions - Bondholders are advised to consult their brokerage firms for the conversion process, which must be done before the final trading day to avoid forced redemption [7].