LMC(SZ:002921) Zheng Quan Zhi Xing·2025-08-15 04:08Core Viewpoint - The company announces the imminent cessation of conversion for its convertible bonds, "Liancheng Convertible Bonds," with a forced redemption price set at 100.22 CNY per bond, effective after the market closes on August 15, 2025 [1][2][5]. Redemption Overview - The redemption was triggered as the company's stock price closed above 130% of the conversion price for 15 trading days from June 25, 2025, to July 25, 2025, meeting the conditions outlined in the bond's prospectus [2][3]. - The company has the right to redeem all unconverted bonds at the face value plus accrued interest if certain conditions are met, including the stock price criteria and if the remaining unconverted bonds are below 30 million CNY [2][4]. Redemption Price and Calculation - The redemption price is set at 100.22 CNY per bond, which includes accrued interest calculated based on the formula: IA = B × i × t / 365, where IA is the accrued interest, B is the total face value of the bonds held, i is the annual coupon rate, and t is the number of days from the last interest payment to the redemption date [4][6]. - The accrued interest for the period is approximately 0.22 CNY per bond, leading to the total redemption price of 100.22 CNY [4]. Redemption Process and Timeline - The redemption will apply to all bondholders registered with the China Securities Depository and Clearing Corporation Limited by the close of trading on August 15, 2025 [5][6]. - After the redemption is completed, the "Liancheng Convertible Bonds" will be delisted from the Shenzhen Stock Exchange [5]. Tax Implications - Individual investors are subject to a 20% tax on the interest income from the bonds, resulting in a net redemption amount of approximately 100.176 CNY per bond after tax [6][7]. - Qualified foreign institutional investors are exempt from corporate income tax on interest income, allowing them to receive the full redemption amount of 100.22 CNY per bond [6].